UBS 2Q Net Profit Up 53% to CHF 1.2 Billion

Adjusted1 profit before tax CHF 1.6 billion

Diluted earnings per share CHF 0.32

Net profit attributable to shareholders up 73% to CHF 3.2 billion in 1H15

12.0% adjusted1 annualized return on tangible equity in 1H15

Industry-leading fully applied Basel III CET1 ratio up 70 bps to 14.4%

Fully applied Swiss SRB leverage ratio up 10 bps to 4.7%

53,000 hours volunteered by UBS staff in 1H15

Group service company subsidiary to be established in 3Q15

ZURICH, Switzerland--()--Regulatory News:

UBS  (NYSE:UBS) (SWX:UBSN) delivered a robust second-quarter adjusted1 profit before tax of CHF 1,635 million despite continued market and economic uncertainty, again demonstrating its fundamental earnings power and the strength of its business model. Net profit attributable to UBS Group AG shareholders was CHF 1,209 million, up 53% compared with the second quarter of 2014, with diluted earnings per share of CHF 0.32.

“I am pleased with the quarter. We maintained our momentum despite ongoing market challenges, and establishing UBS Switzerland AG was another major milestone in enhancing resolvability. We remain focused on building on our early mover advantage with a clear strategy, while increasing effectiveness and efficiency, and further investing for profitable growth.”
Sergio P. Ermotti, Group Chief Executive Officer

Business division highlights

  • Wealth Management delivered its best second-quarter result since 2009, with an adjusted1 profit before tax of CHF 769 million and robust net new money of CHF 8.4 billion excluding the effects of its balance sheet and capital optimization program. On a reported basis, net new money was CHF 1.8 billion.
  • Wealth Management Americas posted an adjusted1 profit before tax of USD 231 million, with operating income and financial advisor productivity at record levels.
  • Retail & Corporate had its best second quarter since 2010, with an adjusted1 profit before tax of CHF 414 million showing strong net new business volume growth for retail clients.
  • Global Asset Management reported an adjusted1 profit before tax of CHF 134 million and strong net new money of CHF 8.3 billion, excluding money market flows.
  • The Investment Bank reported an adjusted1profit before tax of CHF 617 million with the best second-quarter result in Equities since 2012. It achieved an adjusted1 return on attributed equity of 33.8% without increasing its risk profile.

Information in this release is presented for UBS Group AG on a consolidated basis unless otherwise specified. Key figures for UBS AG are included at the end of this release. Financial information for UBS AG does not differ materially from UBS Group AG. UBS AG will publish its consolidated quarterly financial statements in electronic form only on 31 July 2015. These will be made available at www.ubs.com/quarterlyreporting

Results by business division and Corporate Center
CHF million   Total operating income   Total operating expenses  

Operating profit / (loss)
before tax

For the quarter ended   30.6.15     31.3.15    

%
change

    30.6.15   31.3.15    

%
change

    30.6.15     31.3.15    

%
change

 
Wealth Management   2,080     2,247     (7 )   1,324   1,296     2     756     951     (21 )
Wealth Management Americas   1,823     1,801     1     1,631   1,548     5     191     253     (25 )
Retail & Corporate   952     979     (3 )   555   552     1     397     427     (7 )
Global Asset Management   476     511     (7 )   346   343     1     130     168     (23 )
Investment Bank   2,355     2,657     (11 )   1,804   1,891     (5 )   551     766     (28 )
Corporate Center   131     646     (80 )   399   504     (21 )   (267 )   142      
of which: Services   (41 )   374         212   337     (37 )   (253 )   37      
of which: Group ALM   138     313     (56 )   7   (4 )       132     317     (58 )
of which: Non-core and Legacy Portfolio   35     (41 )       180   171     5     (145 )   (212 )   (32 )
UBS   7,818     8,841     (12 )   6,059   6,134     (1 )   1,759     2,708     (35 )
                 

Group, divisional and Corporate Center performance overview

Overall, UBS’s second quarter again demonstrated the resilience and diversification of its earnings, the strength of its business model, and the benefits of a strategy defined early and executed with discipline.

UBS Group reported a net profit attributable to shareholders of CHF 1,209 million, up 53% compared with the second quarter 2014, with diluted earnings per share of CHF 0.32. Group adjusted1 profit before tax was CHF 1,635 million, with positive contributions from all divisions and regions. Adjusted1 annualized return on tangible equity for the first six months of 2015 was 12.0%, above the 2015 target of around 10%.

The bank strengthened its leading capital position, with a fully applied Basel III CET1 capital ratio of 14.4% at the end of June, above the target of at least 13.0% and ahead of all other large global banks. Its fully applied Swiss SRB leverage ratio rose to 4.7% in the second quarter, as the Swiss SRB leverage ratio denominator (LRD, fully applied) decreased by CHF 33 billion partly reflecting a substantial reduction in Non-core and Legacy Portfolio assets. Since the third quarter of 2012, UBS has reduced the Non-core and Legacy Portfolio LRD from CHF 293 billion to CHF 70 billion.

The creation of UBS Group AG and UBS Switzerland AG were major milestones to improve the Group's resolvability, in response to the evolving regulatory environment. In June, some 2.7 million clients and approximately CHF 300 billion in assets, primarily from the Swiss Retail & Corporate and Wealth Management businesses, were transferred into UBS Switzerland AG. UBS is the first bank to complete this step in Switzerland. UBS has also implemented a more self-sufficient business and operating model for UBS Limited in the UK, and has submitted plans for the establishment of an intermediate holding company in the US. In the third quarter, UBS will establish a Group service company as a subsidiary of UBS Group AG, into which shared services and support functions of the Group will be transferred over the next several years. This will help ensure the bank can maintain the operational continuity of these critical services in case of resolution. All these measures will allow UBS to qualify for a rebate on the progressive buffer capital requirement applicable to Swiss systemically relevant banks, which should result in lower overall regulatory capital requirements for the Group.

UBS was honored to receive the Euromoney Award for Excellence for Best Global Wealth Manager and, for the fourth year running, Best Bank in Switzerland. In addition, Euromoney named UBS Investment Bank the Best Flow House in North America and Best Equity House in Western Europe, underlining the success of its client-centric model. UBS Neo, the firm’s cross-asset e-commerce platform, was named Best Platform at the annual Digital FX Awards hosted by Profit & Loss magazine.

Wealth Management delivered its best second-quarter result since 2009 with an adjusted1profit before tax of CHF 769 million. The business continued to generate high-quality earnings, with an increase in recurring income reflecting continued success in its strategic initiatives to grow loans and increase mandate penetration, as well as further pricing measures. Adjusted net new money was robust at CHF 8.4 billion, driven by inflows from all regions and segments, most notably its market-leading Asia Pacific franchise, as well as from Ultra High Net Worth clients. The balance sheet and capital optimization program implemented in the first half of 2015 led to net new money outflows of CHF 6.6 billion during the quarter. On a reported basis, net new money was CHF 1.8 billion.

Wealth Management Americas reported an adjusted1 profit before tax of USD 231 million. Total operating income and recurring net fees increased to record levels, and financial advisor productivity remained industry-leading, while pre-tax profit was affected by higher charges for provisions for litigation, regulatory and similar matters and other provisions. Net new money was slightly negative at USD 0.7 billion, reflecting seasonal outflows of approximately USD 3.9 billion associated with income tax payments.

Retail & Corporate posted its best second-quarter result since 2010, with an adjusted1profit before tax of CHF 414 million. The net new business volume growth for retail clients was particularly strong for a second quarter. Credit loss expenses were lower, while general and administrative expenses increased mainly due to higher charges for provisions in the Corporate & Institutional client business.

Global Asset Management recorded strong net new money of CHF 8.3 billion excluding money market flows, with net inflows from third-party clients more than doubling compared to the prior quarter. Adjusted1 profit before tax was CHF 134 million. The quarter saw an increase in net management fees mainly in traditional investments and global real estate, offset by a decline in performance fees in O’Connor and A&Q, in line with market developments in the alternative asset management sector.

The Investment Bank achieved a solid result with an adjusted1 profit before tax of CHF 617 million, following very strong results in the first quarter. Investor Client Services benefited from the best second-quarter result in Equities since UBS accelerated its strategy in 2012, and a solid performance in FX, rates and credit, despite lower client activity and after exceptionally high FX revenues in the first quarter. Corporate Client Solutions improved on the back of higher revenues mainly in debt and equity capital markets and advisory. The business maintained risk profile and allocated resource limits discipline and its results once again demonstrated the strength of its business model and client-centric approach. Adjusted1 return on attributed equity for the second quarter was 33.8%.

Corporate Center – Services recorded a loss before tax of CHF 253 million. Corporate Center – Group Asset and Liability Management reported a profit before tax of CHF 132 million. Corporate Center – Non-core and Legacy Portfolio recorded a loss before tax of CHF 145 million, achieving further progress in de-risking its balance sheet with RWA and the Swiss SRB leverage ratio denominator decreasing by CHF 4 billion and CHF 14 billion respectively.

UBS aims to create long-term value for its investors and clients, while making a positive contribution to the communities in which it operates. In June, for example, UBS launched a campaign to engage up to 50% of its Americas workforce in volunteering programs. To date, UBS Americas employees contributed around 20,000 hours of their time – approximately 70% of 2014's full-year total – volunteering across the Americas. Combined with the time volunteered by other UBS staff around the world, around 53,000 hours were logged in the first half of 2015 to support volunteering programs and give back to society.

Outlook

As in previous years, seasonal impacts are likely to affect revenues and profits in the third quarter. In addition, many of the underlying macroeconomic challenges and geopolitical issues that we have previously highlighted remain and are unlikely to be resolved in the foreseeable future. Despite ongoing and new challenges, we continue to be committed to the disciplined execution of our strategy in order to ensure the firm’s long-term success and to deliver sustainable returns for our shareholders.

__________________________

1 Please refer to the "Adjusted results" section at the end of this news release for information on adjusted results.
 
UBS Group key figures
    As of or for the quarter ended   As of or year-to-date
CHF million, except where indicated   30.6.15     31.3.15   31.12.14   30.6.14     30.6.15   30.6.14
Group results
Operating income   7,818     8,841   6,746   7,147     16,659   14,405
Operating expenses   6,059     6,134   6,342   5,929     12,193   11,794
Operating profit / (loss) before tax   1,759     2,708   404   1,218     4,467   2,611
Net profit / (loss) attributable to UBS Group AG shareholders   1,209     1,977   858   792     3,186   1,846
Diluted earnings per share (CHF) 1   0.32     0.53   0.23   0.21     0.85   0.48
Key performance indicators 2
Profitability            
Return on tangible equity (%)   11.0     17.8   8.0   7.5     14.4   8.8
Return on assets, gross (%)   3.1     3.4   2.6   2.9     3.2   2.9
Cost / income ratio (%)   77.4     69.2   93.2   82.8     73.1   82.0
Growth            
Net profit growth (%)   (38.8 )   130.4   12.6   (24.9 )   72.6   10.0
Net new money growth for combined wealth management businesses (%) 3   1.5     3.8   1.7   1.9     2.6   2.4
Resources            
Common equity tier 1 capital ratio (fully applied, %) 4   14.4     13.7   13.4   13.5     14.4   13.5
Leverage ratio (phase-in, %) 5   5.4     5.6   5.4   5.3     5.4   5.3
Additional information
Profitability            
Return on equity (RoE) (%)   9.4     15.4   6.8   6.4     12.4   7.6
Return on risk-weighted assets, gross (%) 6   14.5     16.1   12.3   12.5     15.3   12.5
Resources
Total assets   950,168     1,048,850   1,062,478   982,605     950,168   982,605
Equity attributable to UBS Group AG shareholders   50,211     52,359   50,608   49,532     50,211   49,532
Common equity tier 1 capital (fully applied) 4   30,265     29,566   28,941   30,590     30,265   30,590
Common equity tier 1 capital (phase-in) 4   38,706     40,779   42,863   41,858     38,706   41,858
Risk-weighted assets (fully applied) 4   209,777     216,385   216,462   226,736     209,777   226,736
Risk-weighted assets (phase-in) 4   212,088     219,358   220,877   229,908     212,088   229,908
Common equity tier 1 capital ratio (phase-in, %) 4   18.2     18.6   19.4   18.2     18.2   18.2
Total capital ratio (fully applied, %) 4   21.2     20.6   18.9   18.1     21.2   18.1
Total capital ratio (phase-in, %) 4   25.0     25.9   25.5   23.9     25.0   23.9
Leverage ratio (fully applied, %) 5   4.7     4.6   4.1   4.2     4.7   4.2
Leverage ratio denominator (fully applied) 5   944,422     976,934   997,822   980,552     944,422   980,552
Leverage ratio denominator (phase-in) 5   949,134     982,249   1,004,869   986,577     949,134   986,577
Liquidity coverage ratio (%) 7   121     122   123   117     121   117
Other
Invested assets (CHF billion) 8   2,628     2,708   2,734   2,507     2,628   2,507
Personnel (full-time equivalents)   59,648     60,113   60,155   60,087     59,648   60,087
Market capitalization 9   74,547     68,508   63,526   62,542     74,547   62,542
Total book value per share (CHF) 9   13.71     14.33   13.94   13.20     13.71   13.20
Tangible book value per share (CHF) 9   12.04     12.59   12.14   11.54     12.04   11.54
           

1 Refer to “Note 9 Earnings per share (EPS) and shares outstanding” in the “Financial information” section of the second quarter 2015 report for more information. 2 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. 3 Based on adjusted net new money which excludes the negative effect on net new money of CHF 6.6 billion in Wealth Management from our balance sheet and capital optimization program in the second quarter of 2015. 4 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of the second quarter 2015 report for more information. 5 In accordance with Swiss SRB rules. Refer to the “Capital management” section of the second quarter 2015 report for more information. 6 Based on phase-in Basel III risk-weighted assets. 7 Refer to the “Liquidity and funding management” section of the second quarter 2015 report for more information. Data for periods prior to 31 March 2015 are on a pro-forma basis. 8 Includes invested assets for Retail & Corporate. 9 Refer to the “UBS shares” section of the second quarter 2015 report for more information.

 

Income statement

       
    For the quarter ended   % change from   Year-to-date
CHF million, except per share data   30.6.15     31.3.15     30.6.14     1Q15   2Q14   30.6.15     30.6.14  
Interest income   3,409     3,172     3,337     7     2     6,581     6,528  
Interest expense   (1,918 )   (1,535 )   (2,095 )   25     (8 )   (3,454 )   (3,714 )
Net interest income   1,490     1,637     1,242     (9 )   20     3,127     2,814  
Credit loss (expense) / recovery   (13 )   (16 )   (14 )   (19 )   (7 )   (29 )   14  
Net interest income after credit loss expense   1,478     1,621     1,229     (9 )   20     3,098     2,829  
Net fee and commission income   4,409     4,401     4,296     0     3     8,810     8,408  
Net trading income   1,647     2,135     1,347     (23 )   22     3,781     2,704  
Other income   285     685     276     (58 )   3     970     465  
Total operating income   7,818     8,841     7,147     (12 )   9     16,659     14,405  
Personnel expenses   4,124     4,172     3,842     (1 )   7     8,297     7,809  
General and administrative expenses   1,695     1,713     1,871     (1 )   (9 )   3,408     3,550  
Depreciation and impairment of property, equipment and software   209     221     197     (5 )   6     429     396  
Amortization and impairment of intangible assets   30     28     19     7     58     58     39  
Total operating expenses   6,059     6,134     5,929     (1 )   2     12,193     11,794  
Operating profit / (loss) before tax   1,759     2,708     1,218     (35 )   44     4,467     2,611  
Tax expense / (benefit)   443     670     314     (34 )   41     1,113     652  
Net profit / (loss)   1,316     2,038     904     (35 )   46     3,354     1,958  
Net profit / (loss) attributable to preferred noteholders           111                 111  
Net profit / (loss) attributable to non-controlling interests   106     61     1     74         168     2  
Net profit / (loss) attributable to UBS Group AG shareholders   1,209     1,977     792     (39 )   53     3,186     1,846  
         
Earnings per share (CHF)        
Basic   0.33     0.54     0.21     (39 )   57     0.87     0.49  
Diluted   0.32     0.53     0.21     (40 )   52     0.85     0.48  
             
Comparison UBS Group AG (consolidated) versus UBS AG (consolidated)
    As of or for the quarter ended 30.6.15   As of or for the quarter ended 31.3.15   As of or for the quarter ended 31.12.14
CHF million, except where indicated   UBS Group AG
(consolidated)
  UBS AG
(consolidated)
  Difference
(absolute)
  Difference
(%)
  UBS Group AG
(consolidated)
  UBS AG
(consolidated)
  Difference
(absolute)
  Difference
(%)
  UBS Group AG
(consolidated)
  UBS AG
(consolidated)
  Difference
(absolute)
  Difference
(%)
     
Income statement
Operating income   7,818   7,784   34     0     8,841   8,860   (19 )   0     6,746   6,745   1     0  
Operating expenses   6,059   6,087   (28 )   0     6,134   6,167   (33 )   (1 )   6,342   6,333   10     0  
Operating profit / (loss) before tax   1,759   1,698   61     4     2,708   2,693   15     1     404   412   (8 )   (2 )
Net profit / (loss)   1,316   1,255   61     5     2,038   2,023   15     1     919   927   (9 )   (1 )

of which: net profit /
(loss) attributable to
shareholders

  1,209   1,178   31     3     1,977   2,023   (46 )   (2 )   858   893   (36 )   (4 )

of which: net profit /
(loss) attributable to
preferred noteholders

  0   76   (76 )   (100 )   0   0   0         31   31   0     0  

of which: net profit /
(loss) attributable to
non-controlling interests

  106   1   105         61   0   61         29   2   27      
 
Balance sheet
Total assets   950,168   951,528   (1,360 )   0     1,048,850   1,050,122   (1,272 )   0     1,062,478   1,062,327   151     0  
Total liabilities   896,915   897,966   (1,051 )   0     993,194   994,379   (1,185 )   0     1,008,110   1,008,162   (52 )   0  
Total equity   53,253   53,562   (309 )   (1 )   55,656   55,742   (86 )   0     54,368   54,165   203     0  

of which: equity
attributable to
shareholders

  50,211   51,685   (1,474 )   (3 )   52,359   53,815   (1,456 )   (3 )   50,608   52,108   (1,500 )   (3 )

of which: equity
attributable to
preferred noteholders

  0   1,840   (1,840 )   (100 )   0   1,889   (1,889 )   (100 )   0   2,013   (2,013 )   (100 )

of which: equity
attributable to non-
controlling interests

  3,042   38   3,004         3,298   39   3,259         3,760   45   3,715      
 
Capital information (fully applied)

Common equity tier 1
capital

  30,265   32,834   (2,569 )   (8 )   29,566   31,725   (2,159 )   (7 )   28,941   30,805   (1,864 )   (6 )
Additional tier 1 capital   3,777   0   3,777         3,949   0   3,949         467   0   467      
Tier 2 capital   10,531   9,613   918     10     10,975   10,038   936     9     11,398   10,451   947     9  
Total capital   44,573   42,447   2,126     5     44,490   41,763   2,727     7     40,806   41,257   (451 )   (1 )
Risk-weighted assets   209,777   210,400   (623 )   0     216,385   216,893   (508 )   0     216,462   217,158   (696 )   0  

Common equity tier 1
capital ratio (%)

  14.4   15.6   (1.2 )       13.7   14.6   (0.9 )       13.4   14.2   (0.8 )    
Total capital ratio (%)   21.2   20.2   1.0         20.6   19.3   1.3         18.9   19.0   (0.1 )    

Leverage ratio
denominator

  944,422   946,457   (2,035 )   0     976,934   978,709   (1,775 )   0     997,822   999,124   (1,302 )   0  
Leverage ratio (%)   4.7   4.5   0.2         4.6   4.3   0.3         4.1   4.1   0.0      
 
Share information

Shares issued
(number of shares)

  3,759,320,804   3,858,408,466   (99,087,662 )   (3 )   3,739,518,390   3,844,560,913   (105,042,523 )   (3 )   3,717,128,324   3,844,560,913   (127,432,589 )   (3 )

Shares outstanding
(number of shares)

  3,663,403,008   3,856,268,548   (192,865,540 )   (5 )   3,654,259,506   3,835,846,436   (181,586,930 )   (5 )   3,629,256,587   3,842,445,658   (213,189,071 )   (6 )

Diluted earnings per share
(CHF)

  0.32   0.31   0.01     3     0.53   0.53   0.00     0     0.23   0.23   0.00     0  

Tangible book value per share
(CHF)

  12.04   11.78   0.26     2     12.59   12.33   0.26     2     12.14   11.80   0.34     3  

Additional financial tables UBS Group AG

References in tables to notes in various sections of 'the' or 'this' report refer to notes contained in the Second Quarter 2015 Report, which will be published on 28 July 2015.

Adjusted results 1, 2
    For the quarter ended 30.6.15
CHF million  

Wealth
Manage-
ment

 

Wealth Manage-
ment Americas

 

Retail &
Corporate

 

Global
Asset
Manage-
ment

 

Invest-
ment Bank

 

CC –
Services 3

 

CC –
Group
ALM

 

CC – Non-
core and
Legacy
Portfolio

  UBS
Operating income as reported   2,080   1,823   952   476   2,355   (41 )   138     35     7,818

of which: own credit on financial liabilities designated at
fair value 4

                          259         259

of which: gain on sale of the Belgian domestic Wealth
Management business

  56                               56

of which: gain from a further partial sale of our investment
in Markit

                  11               11
Operating income (adjusted)   2,024   1,823   952   476   2,344   (41 )   (121 )   35     7,492
 
Operating expenses as reported   1,324   1,631   555   346   1,804   212     7     180     6,059
of which: personnel-related restructuring charges 5   18   0   0   0   0   85     0     7     110
of which: non-personnel-related restructuring charges 5   10   0   0   0   1   70     0     0     81

of which: restructuring charges allocated from CC
Services to business divisions and other CC units 5

  41   24   16   4   65   (155 )   0     6     0
of which: impairment of an intangible asset                   11               11
Operating expenses (adjusted)   1,255   1,607   538   342   1,727   212     7     167     5,857
 
Operating profit / (loss) before tax as reported   756   191   397   130   551   (253 )   132     (145 )   1,759
Operating profit / (loss) before tax (adjusted)   769   215   414   134   617   (253 )   (127 )   (132 )   1,635
 
    For the quarter ended 31.3.15
CHF million  

Wealth
Manage-
ment

 

Wealth
Manage-
ment
Americas

 

Retail &
Corporate

 

Global
Asset
Manage-
ment

 

Investment
Bank

 

CC –
Services 3

 

CC –
Group ALM

 

CC – Non-
core and
Legacy
Portfolio

  UBS
Operating income as reported   2,247   1,801   979   511   2,657   374     313     (41 )   8,841

of which: own credit on financial liabilities designated at
fair value 4

                          226         226
of which: gains on sales of real estate                       378             378
of which: gain on sale of a subsidiary   141                               141
Operating income (adjusted)   2,106   1,801   979   511   2,657   (4 )   87     (41 )   8,096
 
Operating expenses as reported   1,296   1,548   552   343   1,891   337     (4 )   171     6,134
of which: personnel-related restructuring charges 5   3   0   1   0   2   62     0     1     68
of which: non-personnel-related restructuring charges 5   5   0   0   0   2   230     0     0     237

of which: restructuring charges allocated from CC
Services to business divisions and other CC units 5

  39   24   16   17   66   (173 )   0     11     0
Operating expenses (adjusted)   1,250   1,524   536   325   1,821   218     (4 )   160     5,829
 
Operating profit / (loss) before tax as reported   951   253   427   168   766   37     317     (212 )   2,708
Operating profit / (loss) before tax (adjusted)   856   277   443   186   836   (222 )   91     (201 )   2,268
                 

1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 3 Corporate Center – Services operating expenses presented in this table are after service allocations to business divisions and Corporate Center units. 4 Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information. 5 Refer to ”Note 18 Changes in organization and disposals” in the “Financial information” section of the second quarter report for more information.

Adjusted results 1, 2 (continued)

    For the quarter ended 30.6.14
CHF million  

Wealth
Manage-
ment

 

Wealth
Manage-
ment
Americas

 

Retail &
Corporate

 

Global
Asset
Manage-
ment

 

Investment
Bank

 

CC –
Services 3

 

CC –
Group ALM

 

CC – Non-
core and
Legacy
Portfolio

  UBS
Operating income as reported   1,921   1,684   938   465   2,268     5     33     (168 )   7,147

of which: own credit on financial liabilities designated at
fair value 4

                          72         72
of which: gains on sales of real estate                       1             1

of which: gain from the partial sale of our investment in
Markit

                  43                 43
Operating income (adjusted)   1,921   1,684   938   465   2,225     4     (39 )   (168 )   7,031
 
Operating expenses as reported   1,566   1,473   584   359   1,704     (5 )   3     245     5,929
of which: personnel-related restructuring charges 5   3   0   2   0   (1 )   24     0     0     28
of which: non-personnel-related restructuring charges 5   15   0   0   0   2     43     0     0     61

of which: restructuring charges allocated from CC
Services to business divisions and other CC units 5

  19   7   11   2   26     (63 )   0     (2 )   0
Operating expenses (adjusted)   1,528   1,466   571   357   1,677     (9 )   3     247     5,840
 
Operating profit / (loss) before tax as reported   355   211   354   105   564     10     31     (412 )   1,218
Operating profit / (loss) before tax (adjusted)   393   218   367   107   548     13     (41 )   (414 )   1,191
                 

1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 3 Corporate Center – Services operating expenses presented in this table are after service allocations to business divisions and Corporate Center units. 4 Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information. 5 Refer to ”Note 18 Changes in organization and disposals” in the “Financial information” section of this report for more information.

Adjusted results 1, 2 (continued)
    Year-to-date 30.6.15
CHF million  

Wealth
Manage-
ment

 

Wealth
Manage-
ment
Americas

 

Retail &
Corporate

 

Global
Asset
Manage-
ment

 

Invest-
ment Bank

 

CC –
Services 3

 

CC –
Group
ALM

 

CC – Non-
core and
Legacy
Portfolio

  UBS
Operating income as reported   4,327   3,624   1,931   987   5,012   333     451     (6 )   16,659

of which: own credit on financial liabilities designated at
fair value 4

                          486         486
of which: gains on sales of real estate                       378             378
of which: gain on sale of a subsidiary   141                               141

of which: gain on sale of the Belgian domestic Wealth
Management business

  56                               56

of which: gain from a further partial sale of our investment
in Markit

                  11               11
Operating income (adjusted)   4,130   3,624   1,931   987   5,001   (45 )   (35 )   (6 )   15,587
 
Operating expenses as reported   2,621   3,179   1,106   688   3,695   549     2     351     12,193
of which: personnel-related restructuring charges 5   21   0   1   0   2   146     0     8     178
of which: non-personnel-related restructuring charges 5   14   0   0   0   3   300     0     0     318

of which: restructuring charges allocated from CC –
Services to business divisions and other CC units 5

  80   48   32   21   131   (328 )   0     16     0
of which: impairment of an intangible asset                   11               11
Operating expenses (adjusted)   2,506   3,131   1,073   666   3,548   431     2     327     11,686
 
Operating profit / (loss) before tax as reported   1,707   445   824   299   1,317   (217 )   449     (357 )   4,467
Operating profit / (loss) before tax (adjusted)   1,625   493   857   321   1,453   (477 )   (37 )   (333 )   3,902
 
    Year-to-date 30.6.14
CHF million  

Wealth
Manage-
ment

 

Wealth
Manage-
ment
Americas

 

Retail &
Corporate

 

Global
Asset
Manage-
ment

 

Investment
Bank

 

CC
Services 3

 

CC
Group ALM

 

CCNon-
core and
Legacy
Portfolio

  UBS
Operating income as reported   3,865   3,345   1,870   916   4,468   14     83     (156 )   14,405

of which: own credit on financial liabilities designated at
fair value 4

                          160         160
of which: gains on sales of real estate                       24             24

of which: gain from the partial sale of our investment in
Markit

                  43               43
Operating income (adjusted)   3,865   3,345   1,870   916   4,425   (10 )   (77 )   (156 )   14,178
 
Operating expenses as reported   2,891   2,892   1,130   688   3,469   230     (5 )   499     11,794
of which: personnel-related restructuring charges 5   13   0   2   0   62   84     0     0     161
of which: non-personnel-related restructuring charges 5   23   0   0   0   33   76     0     0     132

of which: restructuring charges allocated from CC –
Services to business divisions and other CC units 5

  42   18   25   6   56   (154 )   0     7     0
Operating expenses (adjusted)   2,813   2,874   1,103   682   3,318   224     (5 )   492     11,501
 
Operating profit / (loss) before tax as reported   974   453   740   228   999   (215 )   88     (654 )   2,611
Operating profit / (loss) before tax (adjusted)   1,052   471   767   234   1,107   (233 )   (72 )   (647 )   2,677
                 

1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 3 Corporate Center – Services operating expenses presented in this table are after service allocations to business divisions and Corporate Center units. 4 Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information. 5 Refer to ”Note 18 Changes in organization and disposals” in the “Financial information” section of this report for more information.

Return on equity
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15     31.3.15     30.6.14     1Q15   2Q14   30.6.15     30.6.14  
 
Net profit
Net profit attributable to UBS Group AG shareholders   1,209     1,977     792     (39 )   53     3,186     1,846  
Amortization and impairment of intangible assets   30     28     19     7     58     58     39  
Pre-tax adjustment items 1   (135 )   (440 )   (27 )   (69 )   400     (576 )   66  
Tax effect on adjustment items 2   (22 )   52     (8 )       175     30     (47 )
Adjusted net profit attributable to UBS Group AG shareholders 3   1,082     1,617     776     (33 )   39     2,698     1,904  
 
Equity
Equity attributable to UBS Group AG shareholders   50,211     52,359     49,532     (4 )   1     50,211     49,532  
Less: goodwill and intangible assets 4   6,101     6,342     6,229     (4 )   (2 )   6,101     6,229  
Tangible equity attributable to UBS Group AG shareholders   44,110     46,017     43,303     (4 )   2     44,110     43,303  
 
Return on equity
Return on equity (%)   9.4     15.4     6.4             12.4     7.6  
Return on tangible equity (%)   11.0     17.8     7.5             14.4     8.8  
Adjusted return on tangible equity (%)   9.6     14.4     7.2             12.0     8.9  
             

1 Refer to the table “Adjusted results” in this section for more information. 2 Generally reflects an indicative tax rate of 22% on pre-tax adjustment items, apart from own credit on financial liabilities designated at fair value, which has a lower indicative tax rate of 2%. 3 Net profit attributable to UBS Group AG shareholders excluding amortization and impairment of intangible assets, pre-tax adjustment items and tax effect on pre-tax adjustment items. 4 Goodwill and intangible assets used in the calculation of tangible equity attributable to UBS Group AG shareholders have been adjusted to reflect the non-controlling interests in UBS AG, where applicable.

Wealth Management 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15     31.3.15   30.6.14     1Q15   2Q14   30.6.15   30.6.14  
Net interest income   568     560   518     1     10     1,128   1,013  
Recurring net fee income   976     949   922     3     6     1,925   1,819  
Transaction-based income   459     589   472     (22 )   (3 )   1,048   1,014  
Other income   78     149   7     (48 )       227   16  
Income   2,081     2,246   1,919     (7 )   8     4,327   3,862  
Credit loss (expense) / recovery   (1 )   1   2             0   3  
Total operating income   2,080     2,247   1,921     (7 )   8     4,327   3,865  
Personnel expenses   656     661   603     (1 )   9     1,316   1,232  
General and administrative expenses   134     111   425     21     (68 )   245   614  
Services (to) / from other business divisions and Corporate Center   533     521   536     2     (1 )   1,055   1,040  
of which: services from CC – Services   519     508   522     2     (1 )   1,027   1,008  
Depreciation and impairment of property, equipment and software   1     2   1     (50 )   0     3   2  
Amortization and impairment of intangible assets   1     1   1     0     0     2   3  
Total operating expenses 2   1,324     1,296   1,566     2     (15 )   2,621   2,891  
Business division operating profit / (loss) before tax   756     951   355     (21 )   113     1,707   974  
 
Key performance indicators 3
Pre-tax profit growth (%)   (20.5 )   47.2   (42.6 )           75.3   (20.2 )
Cost / income ratio (%)   63.6     57.7   81.6             60.6   74.9  
Net new money growth (%) 4   3.5     5.8   4.8             4.6   4.9  
Gross margin on invested assets (bps)   87     92   84     (5 )   4     89   86  
Net margin on invested assets (bps)   32     39   16     (18 )   100     35   22  
 
Additional information
Recurring income   1,544     1,509   1,440     2     7     3,053   2,832  
Recurring income as a % of income (%)   74.2     67.2   75.0             70.6   73.3  
Average attributed equity (CHF billion) 5   3.4     3.6   3.4     (6 )   0     3.5   3.4  
Return on attributed equity (%)   88.9     105.7   41.8             97.5   57.3  
Risk-weighted assets (fully applied, CHF billion) 6   25.8     25.7   22.1     0     17     25.8   22.1  
Risk-weighted assets (phase-in, CHF billion) 6   25.8     26.0   22.6     (1 )   14     25.8   22.6  
Return on risk-weighted assets, gross (%) 7   32.1     34.7   34.6             33.4   35.3  
Leverage ratio denominator (phase-in, CHF billion) 8   129.7     134.2   129.0     (3 )   1     129.7   129.0  
Goodwill and intangible assets (CHF billion)   1.3     1.3   1.3     0     0     1.3   1.3  
Net new money (CHF billion)   1.8     14.4   10.7             16.1   21.6  
Net new money adjusted (CHF billion) 9   8.4     14.4   10.7             22.7   21.6  
Invested assets (CHF billion)   945     970   928     (3 )   2     945   928  
Client assets (CHF billion)   1,115     1,142   1,083     (2 )   3     1,115   1,083  
Loans, gross (CHF billion)   110.9     110.8   105.3     0     5     110.9   105.3  
Due to customers (CHF billion)   173.2     188.4   187.5     (8 )   (8 )   173.2   187.5  
Personnel (full-time equivalents)   10,257     10,366   10,243     (1 )   0     10,257   10,243  
Client advisors (full-time equivalents)   4,079     4,326   4,245     (6 )   (4 )   4,079   4,245  
             

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 2 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 3 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. 4 Based on adjusted net new money. 5 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 6 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information. 7 Based on phase-in Basel III risk-weighted assets. 8 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information. 9 Adjusted net new money excludes the negative effect on net new money of CHF 6.6 billion from our balance sheet and capital optimization program in the second quarter of 2015.

Regional breakdown of key figures 1, 2
As of or for the quarter ended 30.6.15   Europe Asia Pacific   Switzerland   Emerging
markets
 

of which: ultra
high net
worth

 

of which:
Global Family
Office 3

Net new money (CHF billion)   0.6 3.4   0.8   (2.5 )   2.8     1.1  
Net new money adjusted (CHF billion) 4   1.8 4.5   2.4   0.1     7.1     2.3  
Net new money growth (%) 5   2.1 6.5   5.4   0.2     5.6     12.4  
Invested assets (CHF billion)   340 274   172   157     494     76  
Gross margin on invested assets (bps) 6   87 82   90   94     56    

37( 7)

 

Client advisors (full-time equivalents)   1,392 1,127   760   714    

708( 8)

 

   
         

1 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. 2 Based on the Wealth Management business area structure, and excluding minor functions with 86 client advisors, and CHF 2 billion of invested assets, and CHF 0.5 billion of net new money outflows in the second quarter of 2015. 3 Joint venture between Wealth Management and the Investment Bank. Global Family Office is reported as a sub-segment of ultra high net worth and is included in the ultra high net worth figures. 4 Adjusted net new money excludes the negative effect on net new money from our balance sheet and capital optimization program in the second quarter of 2015. 5 Based on adjusted net new money. 6 Includes the effect of a gain of CHF 56 million on the sale of our Belgian domestic business. Excluding this, the adjusted gross margin for Europe was 80 basis points and 55 basis points for ultra high net worth clients. 7 Gross margin includes income booked in the Investment Bank. Gross margin only based on income booked in Wealth Management is 24 basis points. 8 Represents client advisors who exclusively serve ultra high net worth clients. In addition to these, other client advisors may also serve certain ultra high net worth clients, but not exclusively.

Wealth Management Americas – in US dollars 1
  As of or for the quarter ended % change from Year-to-date
USD million, except where indicated 30.6.15 31.3.15 30.6.14 1Q15 2Q14 30.6.15 30.6.14
Net interest income 301 277 261 9 15 579 511
Recurring net fee income 1,217 1,186 1,163 3 5 2,404 2,282
Transaction-based income 425 432 464 (2) (8) 857 936
Other income 4 5 12 (20) (67) 9 17
Income 1,947 1,901 1,900 2 2 3,848 3,747
Credit loss (expense) / recovery 0 0 (2)   (100) 0 17
Total operating income 1,947 1,901 1,898 2 3 3,848 3,764
Personnel expenses 1,199 1,185 1,186 1 1 2,383 2,332
Financial advisor compensation 2 750 731 742 3 1 1,482 1,450
Compensation commitments with recruited financial advisors 3 188 186 184 1 2 374 364
Salaries and other personnel costs 260 267 260 (3) 0 527 518
General and administrative expenses 213 126 153 69 39 339 292
Services (to) / from other business divisions and Corporate Center 317 309 308 3 3 625 603
of which: services from CC – Services 314 305 304 3 3 619 595
Depreciation and impairment of property, equipment and software 1 1 0 0   1 0
Amortization and impairment of intangible assets 13 13 13 0 0 26 26
Total operating expenses 4 1,743 1,633 1,660 7 5 3,375 3,254
Business division operating profit / (loss) before tax 205 268 238 (24) (14) 473 510
 
Key performance indicators 5
Pre-tax profit growth (%) (23.5) 23.5 (12.5)     (7.3) 12.1
Cost / income ratio (%) 89.5 85.9 87.4     87.7 86.8
Net new money growth (%) (0.3) 1.9 (1.0)     0.8 (0.1)
Gross margin on invested assets (bps) 74 73 76 1 (3) 74 76
Net margin on invested assets (bps) 8 10 10 (20) (20) 9 10
 
Additional information
Recurring income 1,519 1,463 1,424 4 7 2,982 2,793
Recurring income as a % of income (%) 78.0 77.0 74.9     77.5 74.5
Average attributed equity (USD billion) 6 2.6 2.5 2.9 4 (10) 2.6 3.0
Return on attributed equity (%) 31.5 42.9 32.8     37.1 34.6
Risk-weighted assets (fully applied, USD billion) 7 23.0 22.4 28.0 3 (18) 23.0 28.0
Risk-weighted assets (phase-in, USD billion) 7 23.0 22.6 28.2 2 (18) 23.0 28.2
Return on risk-weighted assets, gross (%) 8 34.2 34.1 27.1     34.1 26.9
Leverage ratio denominator (phase-in, USD billion) 9 60.7 57.9 63.7 5 (5) 60.7 63.7
Goodwill and intangible assets (USD billion) 3.7 3.7 3.8 0 (3) 3.7 3.8
Net new money (USD billion) (0.7) 4.8 (2.5)     4.0 (0.4)
Net new money including interest and dividend income (USD billion) 10 5.1 10.3 3.2     15.4 10.8
Invested assets (USD billion) 1,045 1,050 1,017 0 3 1,045 1,017
Client assets (USD billion) 1,099 1,104 1,073 0 2 1,099 1,073
Loans, gross (USD billion) 47.3 45.5 41.7 4 13 47.3 41.7
Due to customers (USD billion) 73.4 74.5 67.6 (1) 9 73.4 67.6
Recruitment loans to financial advisors 2,853 2,871 2,985 (1) (4) 2,853 2,985
Other loans to financial advisors 455 487 402 (7) 13 455 402
Personnel (full-time equivalents) 13,235 13,275 13,558 0 (2) 13,235 13,558
Financial advisors (full-time equivalents) 6,948 6,982 7,119 0 (2) 6,948 7,119

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 2 Financial advisor compensation consists of grid-based compensation based directly on compensable revenues generated by financial advisors and supplemental compensation calculated based on financial advisor productivity, firm tenure, assets and other variables. 3 Compensation commitments with recruited financial advisors represents charges related to compensation commitments granted to financial advisors at the time of recruitment which are subject to vesting requirements. 4 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 5 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. 6 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 7 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 8 Based on phase-in Basel III risk-weighted assets. 9 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information. 10 Presented in line with historical reporting practice in the US market.

Wealth Management Americas – in Swiss francs 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Net interest income   282   263   232   7   22   545   454
Recurring net fee income   1,140   1,124   1,032   1   10   2,263   2,028
Transaction-based income   398   410   412   (3)   (3)   807   832
Other income   3   5   10   (40)   (70)   8   15
Income   1,823   1,801   1,686   1   8   3,624   3,330
Credit loss (expense) / recovery   0   0   (2)       (100)   0   15
Total operating income   1,823   1,801   1,684   1   8   3,624   3,345
Personnel expenses   1,122   1,123   1,053   0   7   2,245   2,073
Financial advisor compensation 2   702   693   659   1   7   1,396   1,289
Compensation commitments with recruited financial advisors 3   176   177   163   (1)   8   353   323
Salaries and other personnel costs   244   253   231   (4)   6   497   461
General and administrative expenses   199   120   136   66   46   319   260
Services (to) / from other business divisions and Corporate Center   297   293   273   1   9   589   536
of which: services from CC – Services   293   289   269   1   9   583   528
Depreciation and impairment of property, equipment and software   1   1   0   0       1   0
Amortization and impairment of intangible assets   12   12   12   0   0   25   23
Total operating expenses 4   1,631   1,548   1,473   5   11   3,179   2,892
Business division operating profit / (loss) before tax   191   253   211   (25)   (9)   445   453
 
Key performance indicators 5
Pre-tax profit growth (%)   (24.5)   19.9   (12.8)           (1.8)   6.1
Cost / income ratio (%)   89.5   86.0   87.4           87.7   86.8
Net new money growth (%)   (0.3)   1.8   (1.0)           0.8   (0.1)
Gross margin on invested assets (bps)   73   70   76   4   (4)   72   76
Net margin on invested assets (bps)   8   10   10   (20)   (20)   9   10
 
Additional information
Recurring income   1,422   1,387   1,264   3   13   2,808   2,482
Recurring income as a % of income (%)   78.0   77.0   75.0           77.5   74.5
Average attributed equity (CHF billion) 6   2.4   2.4   2.6   0   (8)   2.4   2.7
Return on attributed equity (%)   31.8   42.2   32.5           37.1   34.2
Risk-weighted assets (fully applied, CHF billion) 7   21.5   21.8   24.8   (1)   (13)   21.5   24.8
Risk-weighted assets (phase-in, CHF billion) 7   21.5   21.9   25.0   (2)   (14)   21.5   25.0
Return on risk-weighted assets, gross (%) 8   33.6   32.9   27.2           33.2   27.0
Leverage ratio denominator (phase-in, CHF billion) 9   56.8   56.3   56.5   1   1   56.8   56.5
Goodwill and intangible assets (CHF billion)   3.5   3.6   3.4   (3)   3   3.5   3.4
Net new money (CHF billion)   (0.7)   4.6   (2.2)           3.9   (0.3)
Net new money including interest and dividend income (CHF billion) 10   4.8   9.8   2.8           14.6   9.6
Invested assets (CHF billion)   977   1,021   902   (4)   8   977   902
Client assets (CHF billion)   1,028   1,073   951   (4)   8   1,028   951
Loans, gross (CHF billion)   44.2   44.2   37.0   0   19   44.2   37.0
Due to customers (CHF billion)   68.6   72.4   59.9   (5)   15   68.6   59.9
Recruitment loans to financial advisors   2,668   2,791   2,647   (4)   1   2,668   2,647
Other loans to financial advisors   425   473   356   (10)   19   425   356
Personnel (full-time equivalents)   13,235   13,275   13,558   0   (2)   13,235   13,558
Financial advisors (full-time equivalents)   6,948   6,982   7,119   0   (2)   6,948   7,119

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 2 Financial advisor compensation consists of grid-based compensation based directly on compensable revenues generated by financial advisors and supplemental compensation calculated based on financial advisor productivity, firm tenure, assets and other variables. 3 Compensation commitments with recruited financial advisors represents charges related to compensation commitments granted to financial advisors at the time of recruitment which are subject to vesting requirements. 4 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 5 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. 6 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 7 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 8 Based on phase-in Basel III risk-weighted assets. 9 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information. 10 Presented in line with historical reporting practice in the US market.

Retail & Corporate 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Net interest income   560   568   541   (1)   4   1,128   1,063
Recurring net fee income   135   134   138   1   (2)   269   283
Transaction-based income   241   284   247   (15)   (2)   525   481
Other income   21   13   20   62   5   35   39
Income   956   1,000   945   (4)   1   1,956   1,866
Credit loss (expense) / recovery   (4)   (21)   (8)   (81)   (50)   (25)   4
Total operating income   952   979   938   (3)   1   1,931   1,870
Personnel expenses   221   226   216   (2)   2   447   440
General and administrative expenses   64   53   97   21   (34)   117   157
Services (to) / from other business divisions and Corporate Center   265   268   267   (1)   (1)   534   525
of which: services from CC – Services   292   292   293   0   0   584   581
Depreciation and impairment of property, equipment and software   4   4   4   0   0   8   8
Amortization and impairment of intangible assets   0   0   0           0   0
Total operating expenses 2   555   552   584   1   (5)   1,106   1,130
Business division operating profit / (loss) before tax   397   427   354   (7)   12   824   740
 
Key performance indicators 3
Pre-tax profit growth (%)   (7.0)   25.6   (8.3)           11.4   2.2
Cost / income ratio (%)   58.1   55.2   61.8           56.5   60.6
Net interest margin (bps)   164   165   158   (1)   4   165   155
Net new business volume growth for retail business (%)   3.1   3.1   2.5           3.2   3.4
 
Additional information
Average attributed equity (CHF billion) 4   3.9   4.0   4.1   (3)   (5)   4.0   4.2
Return on attributed equity (%)   40.7   42.7   34.5           41.7   35.7
Risk-weighted assets (fully applied, CHF billion) 5   34.7   34.6   31.5   0   10   34.7   31.5
Risk-weighted assets (phase-in, CHF billion) 5   34.7   35.6   33.0   (3)   5   34.7   33.0
Return on risk-weighted assets, gross (%) 6   10.9   11.4   11.4           11.2   11.3
Leverage ratio denominator (phase-in, CHF billion) 7   162.4   163.7   164.8   (1)   (1)   162.4   164.8
Goodwill and intangible assets (CHF billion)   0.0   0.0   0.0           0.0   0.0
Business volume for retail business (CHF billion)   144   143   142   1   1   144   142
Net new business volume for retail business (CHF billion)   1.1   1.1   0.9           2.3   2.4
Client assets (CHF billion)   435   441   415   (1)   5   435   415
Due to customers (CHF billion)   129.4   131.3   131.6   (1)   (2)   129.4   131.6
Loans, gross (CHF billion)   135.8   137.3   137.3   (1)   (1)   135.8   137.3
Secured loan portfolio as a % of total loan portfolio, gross (%)   93.4   93.2   93.0           93.4   93.0
Impaired loan portfolio as a % of total loan portfolio, gross (%) 8   0.7   0.8   0.6           0.7   0.6
Personnel (full-time equivalents)   5,086   5,157   5,210   (1)   (2)   5,086   5,210

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 2 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 3 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. 4 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 5 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 6 Based on phase-in Basel III risk-weighted assets. 7 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information. 8 Refer to the “Risk management and control” section of this report for more information on impairment ratios.

Global Asset Management 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Net management fees 2   456   443   427   3   7   900   831
Performance fees   20   68   38   (71)   (47)   87   85
Total operating income   476   511   465   (7)   2   987   916
Personnel expenses   175   167   153   5   14   342   301
General and administrative expenses   55   55   92   0   (40)   110   158
Services (to) / from other business divisions and Corporate Center   114   119   112   (4)   2   233   224
of which: services from CC – Services   118   123   115   (4)   3   241   231
Depreciation and impairment of property, equipment and software   0   0   0           1   1
Amortization and impairment of intangible assets   1   2   2   (50)   (50)   3   4
Total operating expenses 3   346   343   359   1   (4)   688   688
Business division operating profit / (loss) before tax   130   168   105   (23)   24   299   228
 
Key performance indicators 4
Pre-tax profit growth (%)   (22.6)   97.6   (13.9)           31.1   (30.5)
Cost / income ratio (%)   72.7   67.1   77.2           69.7   75.1
Net new money growth excluding money market flows (%)   5.5   5.0   8.7           5.3   9.5
Gross margin on invested assets (bps)   29   31   31   (6)   (6)   30   31
Net margin on invested assets (bps)   8   10   7   (20)   14   9   8
 
Information by business line
Operating Income
Traditional investments   279   276   270   1   3   555   531
O’Connor and A&Q   38   80   61   (53)   (38)   119   127
Global real estate   92   93   80   (1)   15   185   153
Infrastructure and private equity   15   14   11   7   36   29   20
Fund services   51   48   43   6   19   99   85
Total operating income   476   511   465   (7)   2   987   916
 
Gross margin on invested assets (bps)
Traditional investments   20   19   20   5   0   20   20
O’Connor and A&Q   41   89   80   (54)   (49)   65   86
Global real estate   78   80   79   (3)   (1)   79   75
Infrastructure and private equity   67   62   52   8   29   64   48
Total gross margin   29   31   31   (6)   (6)   30   31
 
Net new money (CHF billion)
Traditional investments   6.3   2.4   6.1           8.7   13.5
O’Connor and A&Q   1.3   2.2   1.4           3.5   3.2
Global real estate   1.3   0.5   0.6           1.8   1.0
Infrastructure and private equity   0.1   0.0   0.0           0.1   (0.1)
Total net new money   9.0   5.1   8.0           14.1   17.6
Net new money excluding money market flows   8.3   7.5   11.6           15.8   24.6
of which: from third parties   5.3   2.5   8.7           7.8   17.7
of which: from UBS’s wealth management businesses   3.0   5.1   2.9           8.0   6.9
Money market flows   0.7   (2.4)   (3.6)           (1.7)   (7.0)
of which: from third parties   1.7   (1.2)   (0.4)           0.5   (1.1)
of which: from UBS’s wealth management businesses   (1.0)   (1.2)   (3.2)           (2.2)   (5.8)
 
Invested assets (CHF billion)
Traditional investments   557   568   540   (2)   3   557   540
O’Connor and A&Q   37   37   31   0   19   37   31
Global real estate   47   47   41   0   15   47   41
Infrastructure and private equity   9   9   9   0   0   9   9
Total invested assets   650   661   621   (2)   5   650   621
of which: excluding money market funds   592   601   563   (1)   5   592   563
of which: money market funds   58   60   58   (3)   0   58   58
 
Assets under administration by fund services
Assets under administration (CHF billion) 2   520   521   470   0   11   520   470
Net new assets under administration (CHF billion) 3   11.6   5.8   8.2           17.3   25.0
Gross margin on assets under administration (bps)   4   4   4   0   0   4   4
 
Additional information
Average attributed equity (CHF billion) 4   1.6   1.7   1.7   (6)   (6)   1.7   1.7
Return on attributed equity (%)   32.5   39.5   24.7           36.2   26.8
Risk-weighted assets (fully applied, CHF billion) 5   3.4   3.5   3.5   (3)   (3)   3.4   3.5
Risk-weighted assets (phase-in, CHF billion) 5   3.4   3.5   3.6   (3)   (6)   3.4   3.6
Return on risk-weighted assets, gross (%) 6   55.2   55.2   51.7           55.2   50.2
Leverage ratio denominator (phase-in, CHF billion) 7   14.2   14.0   14.2   1   0   14.2   14.2
Goodwill and intangible assets (CHF billion)   1.3   1.4   1.4   (7)   (7)   1.3   1.4
Personnel (full-time equivalents)   2,434   2,369   2,260   3   8   2,434   2,260

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 2 Net management fees include transaction fees, fund administration revenues (including net interest and trading income from lending activities and foreign exchange hedging as part of the fund services offering), gains or losses from seed money and co-investments, funding costs and other items that are not performance fees. 3 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 4 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. In the second quarter of 2014, the definition of the net new money growth key performance indicator was amended. Refer to the “Regulatory and legal developments and financial reporting changes” section of our second quarter 2014 report for more information. 5 This includes UBS and third-party fund assets, for which the fund services unit provides professional services, including fund set-up, accounting and reporting for traditional investment funds and alternative funds. 6 Inflows of assets under administration from new and existing funds less outflows from existing funds or fund exits. 7 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 8 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 9 Based on phase-in Basel III risk-weighted assets. 10 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

Investment Bank 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Corporate Client Solutions   822   779   981   6   (16)   1,601   1,748
Advisory   184   172   165   7   12   356   318
Equity Capital Markets   337   306   349   10   (3)   643   545
Debt Capital Markets   180   143   371   26   (51)   323   674
Financing Solutions   106   119   113   (11)   (6)   225   239
Risk Management   15   39   (17)   (62)       54   (28)
Investor Client Services   1,540   1,877   1,293   (18)   19   3,417   2,725
Equities   1,128   1,156   869   (2)   30   2,284   1,890
Foreign Exchange, Rates and Credit   413   721   424   (43)   (3)   1,133   836
Income   2,363   2,655   2,274   (11)   4   5,018   4,473
Credit loss (expense) / recovery   (8)   2   (6)       33   (6)   (6)
Total operating income   2,355   2,657   2,268   (11)   4   5,012   4,468
Personnel expenses   940   1,008   875   (7)   7   1,948   1,786
General and administrative expenses   162   189   179   (14)   (9)   351   353
Services (to) / from other business divisions and Corporate Center   685   681   641   1   7   1,366   1,305
of which: services from CC – Services   669   667   635   0   5   1,336   1,284
Depreciation and impairment of property, equipment and software   6   6   6   0   0   13   20
Amortization and impairment of intangible assets   11   7   3   57   267   18   6
Total operating expenses 2   1,804   1,891   1,704   (5)   6   3,695   3,469
Business division operating profit / (loss) before tax   551   766   564   (28)   (2)   1,317   999
 
Key performance indicators 3
Pre-tax profit growth (%)   (28.1)   253.0   29.7           31.8   (39.3)
Cost / income ratio (%)   76.3   71.2   74.9           73.6   77.6
Return on attributed equity (%)   30.2   42.0   30.5           36.1   26.1
Return on assets, gross (%)   3.3   3.6   3.7           3.5   3.7
Average VaR (1-day, 95% confidence, 5 years of historical data)   11   13   11   (15)   0   12   12
 
Additional information
Total assets (CHF billion) 2   263.8   303.2   244.8   (13)   8   263.8   244.8
Funded assets (CHF billion) 3   176.2   174.6   181.9   1   (3)   176.2   181.9
Average attributed equity (CHF billion) 4   7.3   7.3   7.4   0   (1)   7.3   7.7
Risk-weighted assets (fully applied, CHF billion) 5   63.3   64.1   68.0   (1)   (7)   63.3   68.0
Risk-weighted assets (phase-in, CHF billion) 5   63.3   64.2   68.3   (1)   (7)   63.3   68.3
Return on risk-weighted assets, gross (%) 6   14.8   16.2   13.9           15.5   14.0
Leverage ratio denominator (phase-in, CHF billion) 7   289.9   294.2   278.2   (1)   4   289.9   278.2
Goodwill and intangible assets (CHF billion)   0.1   0.1   0.1   0   0   0.1   0.1
Compensation ratio (%)   39.8   38.0   38.5           38.8   39.9
Impaired loan portfolio as a % of total loan portfolio, gross (%) 8   0.2   0.2   0.3           0.2   0.3
Personnel (full-time equivalents)   5,192   5,276   5,167   (2)   0   5,192   5,167

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies. 2 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 3 Refer to the “Measurement of performance” section of our Annual Report 2014 for the definitions of our key performance indicators. 4 Based on third-party view, i.e., without intercompany balances. 5 Funded assets are defined as total IFRS balance sheet assets less positive replacement values (PRV) and collateral delivered against over-the-counter (OTC) derivatives. 6 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 7 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information. 8 Based on phase-in Basel III risk-weighted assets. 9 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information. 10 Refer to the “Risk management and control” section of this report for more information on impairment ratios.

Corporate Center 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Total operating income   131   646   (129)   (80)       778   (59)
Personnel expenses   1,011   988   941   2   7   1,999   1,977
General and administrative expenses   1,081   1,185   943   (9)   15   2,266   2,008
Services (to) / from business divisions   (1,895)   (1,882)   (1,829)   1   4   (3,776)   (3,630)
Depreciation and impairment of property, equipment and software   196   207   185   (5)   6   403   365
Amortization and impairment of intangible assets   5   5   2   0   150   11   3
Total operating expenses 2   399   504   242   (21)   65   903   723
Operating profit / (loss) before tax   (267)   142   (371)       (28)   (125)   (782)
 
Additional information
Average attributed equity (CHF billion) 3   25.9   26.1   20.5   (1)   26   26.0   20.9
Total assets (CHF billion) 4   351.0   407.2   414.9   (14)   (15)   351.0   414.9
Risk-weighted assets (fully applied, CHF billion) 5   61.1   66.8   76.7   (9)   (20)   61.1   76.7
Risk-weighted assets (phase-in, CHF billion) 5   63.4   68.1   77.5   (7)   (18)   63.4   77.5
Leverage ratio denominator (phase-in, CHF billion) 6   296.1   319.9   344.0   (7)   (14)   296.1   344.0
Personnel (full-time equivalents)   23,443   23,670   23,649   (1)   (1)   23,443   23,649

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to the retrospective adoption of new accounting standards or changes in accounting policies. 2 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 3 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 4 Based on third-party view, i.e., without intercompany balances. 5 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 6 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

Corporate Center – Services 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Total operating income   (41)   374   5           333   14
Personnel expenses   965   950   903   2   7   1,915   1,898
General and administrative expenses   1,027   1,139   841   (10)   22   2,166   1,818
Depreciation and impairment of property, equipment and software   196   207   185   (5)   6   403   365
Amortization and impairment of intangible assets   5   5   1   0   400   11   2
Total operating expenses before allocations to business divisions and other CC units   2,194   2,301   1,930   (5)   14   4,495   4,084
Services (to) / from business divisions and other CC units   (1,982)   (1,964)   (1,935)   1   2   (3,946)   (3,854)
of which: services to Wealth Management   (519)   (508)   (522)   2   (1)   (1,027)   (1,008)
of which: services to Wealth Management Americas   (293)   (289)   (269)   1   9   (583)   (528)
of which: services to Retail & Corporate   (292)   (292)   (293)   0   0   (584)   (581)
of which: services to Global Asset Management   (118)   (123)   (115)   (4)   3   (241)   (231)
of which: services to Investment Bank   (669)   (667)   (635)   0   5   (1,336)   (1,284)
of which: services to CC – Group ALM   (19)   (14)   (20)   36   (5)   (34)   (40)
of which: services to CC – Non-core and Legacy Portfolio   (79)   (80)   (87)   (1)   (9)   (159)   (193)
Total operating expenses 2   212   337   (5)   (37)       549   230
Operating profit / (loss) before tax   (253)   37   10           (217)   (215)
 
Additional information
Average attributed equity (CHF billion) 3   1.5   1.2   1.0   25   50   1.4   1.0
Total assets (CHF billion) 4   19.3   19.5   17.3   (1)   12   19.3   17.3
Risk-weighted assets (fully applied, CHF billion) 5   20.3   23.2   17.9   (13)   13   20.3   17.9
Risk-weighted assets (phase-in, CHF billion) 5   22.6   24.5   18.7   (8)   21   22.6   18.7
Leverage ratio denominator (phase-in, CHF billion) 6   9.5   4.3   5.4   121   76   9.5   5.4
Personnel (full-time equivalents)   23,221   23,424   23,368   (1)   (1)   23,221   23,368

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies. 2 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 3 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 4 Based on third-party view, i.e., without intercompany balances. 5 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 6 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

Corporate Center – Group ALM 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Gross income excluding own credit   70   376   205   (81)   (66)   445   372
Allocations to business divisions and other CC units   (191)   (289)   (243)   (34)   (21)   (480)   (449)
of which: Wealth Management   (105)   (131)   (105)   (20)   0   (236)   (202)
of which: Wealth Management Americas   (29)   (23)   (27)   26   7   (52)   (54)
of which: Retail & Corporate   (88)   (122)   (107)   (28)   (18)   (210)   (196)
of which: Global Asset Management   (4)   (5)   (7)   (20)   (43)   (9)   (12)
of which: Investment Bank   52   34   31   53   68   86   67
of which: CC – Services   (31)   (54)   (52)   (43)   (40)   (86)   (105)
of which: CC – Non-core and Legacy Portfolio   15   12   24   25   (38)   27   52
Own credit 2   259   226   72   15   260   486   160
Total operating income   138   313   33   (56)   318   451   83
Personnel expenses   7   8   7   (13)   0   15   10
General and administrative expenses   4   4   7   0   (43)   8   9
Depreciation and impairment of property, equipment and software   0   0   0           0   0
Amortization and impairment of intangible assets   0   0   0           0   0
Services (to) / from business divisions and other CC units   (5)   (15)   (11)   (67)   (55)   (20)   (24)
of which: Wealth Management   (6)   (8)   (4)   (25)   50   (13)   (9)
of which: Wealth Management Americas   (1)   (1)   (1)   0   0   (2)   (3)
of which: Retail & Corporate   (3)   (4)   (2)   (25)   50   (7)   (4)
of which: Global Asset Management   0   0   (1)       (100)   0   (1)
of which: Investment Bank   (9)   (11)   (13)   (18)   (31)   (20)   (27)
of which: CC – Services   19   14   20   36   (5)   34   40
of which: CC – Non-core and Legacy Portfolio   (5)   (6)   (10)   (17)   (50)   (11)   (20)
Total operating expenses 3   7   (4)   3       133   2   (5)
Operating profit / (loss) before tax   132   317   31   (58)   326   449   88
 
Additional information
Average attributed equity (CHF billion) 4   3.3   3.4   3.3   (3)   0   3.4   3.2
Total assets (CHF billion) 5   218.3   227.6   213.7   (4)   2   218.3   213.7
Risk-weighted assets (fully applied, CHF billion) 6   9.2   7.9   6.9   16   33   9.2   6.9
Risk-weighted assets (phase-in, CHF billion) 6   9.2   7.9   6.9   16   33   9.2   6.9
Leverage ratio denominator (phase-in, CHF billion) 7   216.2   231.4   217.7   (7)   (1)   216.2   217.7
Personnel (full-time equivalents)   122   122   121   0   1   122   121

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies. 2 Represents own credit changes on financial liabilities designated at fair value through profit or loss. The cumulative own credit gain for such debt held on 30 June 2015 amounts to CHF 0.2 billion. This gain has reduced the fair value of financial liabilities designated at fair value recognized on our balance sheet. Refer to “Note 10 Fair value measurement” in the “Financial information” section of this report for more information. 3 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 4 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 5 Based on third-party view, i.e., without intercompany balances. 6 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 7 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

Corporate Center – Non-core and Legacy Portfolio 1
    As of or for the quarter ended   % change from   Year-to-date
CHF million, except where indicated   30.6.15   31.3.15   30.6.14   1Q15   2Q14   30.6.15   30.6.14
Income   35   (43)   (166)           (8)   (154)
Credit loss (expense) / recovery 2   0   2   (2)   (100)   (100)   2   (2)
Total operating income   35   (41)   (168)           (6)   (156)
Personnel expenses   38   31   32   23   19   69   69
General and administrative expenses   50   42   95   19   (47)   92   180
Services (to) / from business divisions and other CC units   92   97   118   (5)   (22)   190   248
of which: services from CC – Services   79   80   87   (1)   (9)   159   193
Depreciation and impairment of property, equipment and software   0   0   0           0   0
Amortization and impairment of intangible assets   0   0   0           0   1
Total operating expenses 3   180   171   245   5   (27)   351   499
Operating profit / (loss) before tax   (145)   (212)   (412)   (32)   (65)   (357)   (654)
 
Additional information
Average attributed equity (CHF billion) 4   2.9   3.3   5.1   (12)   (43)   3.1   5.6
Total assets (CHF billion) 5   113.4   160.1   183.9   (29)   (38)   113.4   183.9
Risk-weighted assets (fully applied, CHF billion) 6   31.6   35.7   51.9   (11)   (39)   31.6   51.9
Risk-weighted assets (phase-in, CHF billion) 6   31.6   35.7   51.9   (11)   (39)   31.6   51.9
Leverage ratio denominator (phase-in, CHF billion) 7   70.4   84.2   120.8   (16)   (42)   70.4   120.8
Personnel (full-time equivalents)   101   125   160   (19)   (37)   101   160

1 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, and restatements due to retrospective adoption of new accounting standards or changes in accounting policies. 2 Includes credit loss (expense) / recovery on reclassified and acquired securities. 3 Refer to “Note 18 Changes in organization and disposals” in the “Financial information” section of this report for information on restructuring charges. 4 Refer to the “Capital management” section of our Annual Report 2014 for more information on the equity attribution framework. 5 Based on third-party view, i.e., without intercompany balances. 6 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the ”Capital management” section of this report for more information. 7 In accordance with Swiss SRB rules. Refer to the “Capital management” section of this report for more information.

Risk measures and performance
    30.6.15
    Wealth Manage-
ment
  Wealth Manage-
ment
Americas
  Retail &
Corporate
  Global
Asset
Management
  Investment Bank   CC –
Services
  CC –
Group ALM
  CC –
Non-core
and Legacy
Portfolio
CHF billion, as of or for the quarter ended
Risk-weighted assets (fully applied) 1   25.8   21.5   34.7   3.4   63.3   20.3   9.2   31.6
of which: credit risk   12.8   7.8   33.1   2.4   35.3   1.6   5.5   8.8
of which: market risk   0.0   1.3   0.0   0.0   10.7   (5.6) 2   3.5   2.8
of which: operational risk   12.9   12.3   1.6   0.9   17.3   9.5   0.1   20.0
Leverage ratio denominator (fully applied) 3   129.7   56.8   162.4   14.2   289.9   4.8   216.2   70.4
Risk-based capital 4, 5   1.3   1.2   3.3   0.4   7.4   2.0   4.2   2.9
Average tangible attributed equity 6   2.7   1.8   3.9   0.4   7.2   1.5   3.2   2.9
Total assets   124.6   55.3   141.3   14.2   263.8   19.3   218.3   113.4
Operating profit / (loss) before tax (adjusted) 7   0.8   0.2   0.4   0.1   0.6   (0.3)   (0.1)   (0.1)
 
    31.3.15
    Wealth
Manage-
ment
  Wealth
Manage-
ment
Americas
  Retail &
Corporate
  Global
Asset
Manage-ment
  Investment Bank   CC –
Services
  CC –
Group ALM
  CC –
Non-core
and Legacy
Portfolio
CHF billion, as of or for the quarter ended
Risk-weighted assets (fully applied) 1   25.7   21.8   34.6   3.5   64.1   23.2   7.9   35.7
of which: credit risk   12.6   8.4   33.0   2.5   33.9   1.2   4.6   11.7
of which: market risk   0.0   1.1   0.0   0.0   11.6   (4.7) 2   3.2   3.9
of which: operational risk   12.9   12.3   1.5   0.9   18.5   12.4   0.1   20.1
Leverage ratio denominator (fully applied) 3   134.2   56.3   163.7   14.0   294.2   (1.0)   231.4   84.2
Risk-based capital 4, 5   1.4   1.3   3.3   0.3   6.6   1.3   5.0   3.2
Average tangible attributed equity 6   2.8   1.8   4.0   0.4   7.1   1.2   3.3   3.3
Total assets   125.5   55.7   143.3   14.1   303.2   19.5   227.6   160.1
Operating profit / (loss) before tax (adjusted) 7   0.9   0.3   0.4   0.2   0.8   (0.2)   0.1   (0.2)

1 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the “Capital management” section of this report for more information. 2 Negative market risk numbers are due to the diversification effect allocated to CC – Services. 3 Refer to the “Capital management” section of this report for more information. 4 Refer to “Statistical measures” in the “Risk management and control” section of our Annual Report 2014 for more information on risk-based capital. 5 Excludes CHF 8.2 billion (31 March 2015: CHF 7.9 billion) of centrally-held RBC items in the Corporate Center. For equity attribution, these RBC items are not allocated to the business divisions or Corporate Center units. 6 Excludes CHF 14.6 billion (31 March 2015: CHF 14.5 billion) of centrally-held average tangible equity attribution items within the Corporate Center relating to common equity not allocated to the business divisions or Corporate Center units. Refer to the “Capital management” section of this report for more information on our equity attribution framework. 7 Adjusted results are non-GAAP financial measures as defined by SEC Regulations. Refer to the table “Adjusted results” in the “Group performance” section of this report for more information.

Swiss SRB Basel III available capital versus capital requirements (phase-in)
    Capital ratio (%)   Capital
CHF million, except where indicated   Requirement 1   Actual 2, 3   Requirement   Actual 2, 3
    30.6.15   30.6.15   31.3.15   31.12.14   30.6.15   30.6.15   31.3.15   31.12.14
Base capital (common equity tier 1 capital)   4.5   4.5   4.5   4.0   9,544   9,544   9,871   8,835
Buffer capital (common equity tier 1 capital and high-trigger loss-absorbing capital)   5.3 4   15.0   15.3   15.4   11,233   31,711   33,528   34,027
of which: effect of countercyclical buffer   0.2   0.2   0.2   0.1   364   364   369   322
Progressive buffer capital (low-trigger loss-absorbing capital)   2.8   4.7   5.2   5.2   6,005   9,869   11,377   11,398
Phase-out capital (tier 2 capital)       0.8   0.9   0.9       1,798   1,976   2,050
Total   12.6   25.0   25.9   25.5   26,782   52,923   56,752   56,310

1 The total capital ratio requirement of 12.6% is the current phase-in requirement according to the Swiss Capital Adequacy Ordinance. Prior to the implementation of the Basel III framework, FINMA also defined a total capital ratio target for UBS Group of 14.4% which will be effective until it is exceeded by the Swiss SRB Basel III phase-in capital requirement. 2 Swiss SRB Basel III CET1 capital exceeding the base capital requirement is allocated to the buffer capital. 3 Since 31 March 2015, high-trigger loss-absorbing capital (LAC) is included in the buffer capital. As of 31 December 2014, high-trigger LAC was included in the progressive buffer capital. 4 CET1 capital can be substituted by high-trigger LAC up to 2.3% in 2015.

Swiss SRB Basel III capital information
    Phase-in   Fully applied
CHF million, except where indicated   30.6.15   31.3.15   31.12.14   30.6.15   31.3.15   31.12.14
Tier 1 capital   40,593   43,801   42,863   34,042   33,515   29,408
of which: common equity tier 1 capital   38,706   40,779   42,863   30,265   29,566   28,941
of which: additional tier 1 capital (high-trigger loss-absorbing capital)   1,631   1,684   0   1,631   1,684   467
of which: additional tier 1 capital (low-trigger loss-absorbing capital) 1   256   1,339   0   2,145   2,266   0
Tier 2 capital   12,329   12,950   13,448   10,531   10,975   11,398
of which: high-trigger loss-absorbing capital   918   936   946   918   936   946
of which: low-trigger loss-absorbing capital   9,613   10,038   10,451   9,613   10,038   10,451
of which: phase-out capital   1,798   1,976   2,050            
Total capital   52,923   56,752   56,310   44,573   44,490   40,806
Common equity tier 1 capital ratio (%)   18.2   18.6   19.4   14.4   13.7   13.4
Tier 1 capital ratio (%)   19.1   20.0   19.4   16.2   15.5   13.6
Total capital ratio (%)   25.0   25.9   25.5   21.2   20.6   18.9
Risk-weighted assets   212,088   219,358   220,877   209,777   216,385   216,462

1 Consists on a phase-in basis of low-trigger loss-absorbing capital (30 June 2015: CHF 2,145 million, 31 March 2015: CHF 2,266 million, 31 December 2014: CHF 0 million) and hybrid capital subject to phase-out (30 June 2015: CHF 1,840 million, 31 March 2015: CHF 2,929 million, 31 December 2014: CHF 3,210 million), partly offset by required deductions for goodwill (30 June 2015: CHF 3,729 million, 31 March 2015: CHF 3,855 million, 31 December 2014: CHF 3,677 million).

Swiss SRB Basel III capital movement
CHF billion   Phase-in   Fully applied
Common equity tier 1 capital as of 31.3.15   40.8   29.6
Movements during the second quarter of 2015:
Operating profit / (loss) before tax   1.7   1.7
Own credit related to financial liabilites designated at fair value and replacement value, net of tax   (0.3)   (0.3)
Current tax effect   (0.2)   (0.2)
Transitional effect of the accelerated application of IAS 19R treatment of defined benefit plans as of 1.4.15 2   (1.8)    
Defined benefit plans   (0.1)   0.3
Foreign currency translation effects   (0.4)   (0.3)
Other 1   (0.9)   (0.5)
Total movement   (2.1)   0.7
Common equity tier 1 capital as of 30.6.15   38.7   30.3
Additional tier 1 capital as of 31.3.15   3.0   3.9
Movements during the second quarter of 2015:
Call of a hybrid capital instrument   (1.0)    
Foreign currency translation effects and other   (0.1)   (0.2)
Total movement   (1.1)   (0.2)
Additional tier 1 capital as of 30.6.15   1.9   3.8
Tier 2 capital as of 31.3.2015   13.0   11.0
Movements during the second quarter of 2015:
Foreign currency translation effects and other   (0.7)   (0.5)
Total movement   (0.7)   (0.5)
Tier 2 capital as of 30.6.15   12.3   10.5
Total capital as of 30.6.15   52.9   44.6
Total capital as of 31.3.15   56.8   44.5

 

1 Includes accruals for capital returns to shareholders. 2 Includes effects related to deferred tax assets recognized for tax loss carry-forwards.

Reconciliation IFRS equity to Swiss SRB Basel III capital
    Phase-in   Fully applied
CHF million   30.6.15   31.3.15   31.12.14   30.6.15   31.3.15   31.12.14
Equity attributable to UBS Group AG shareholders   50,211   52,359   50,608   50,211   52,359   50,608
Equity attributable to non-controlling interests in UBS AG   1,164   1,370   1,702   1,164   1,370   1,702
Equity attributable to preferred noteholders and other non-controlling interests   1,878   1,928   2,058   1,878   1,928   2,058
Total IFRS equity   53,253   55,656   54,368   53,253   55,656   54,368
Equity attributable to preferred noteholders and other non-controlling interests   (1,878)   (1,928)   (2,058)   (1,878)   (1,928)   (2,058)
Defined benefit plans (before phase-in, as applicable) 1       3,404   3,997   0   (887)   0
Defined benefit plans, 40% phase-in   0   (1,716)   (799)            
Deferred tax assets recognized for tax loss carry-forwards (before phase-in, as applicable)               (6,312)   (7,467)   (8,047)
Deferred tax assets recognized for tax loss carry-forwards, 40% phase-in   (2,525)   (2,991)   (1,605)            
Deferred tax assets on temporary differences, excess over threshold   (115)   0   0   (1,040)   (307)   (604)
Goodwill, net of tax, less hybrid capital and loss-absorbing capital 2   (2,486)   (2,570)   (3,010)   (6,215)   (6,426)   (6,687)
Intangible assets, net of tax   (351)   (392)   (410)   (351)   (392)   (410)
Unrealized (gains) / losses from cash flow hedges, net of tax   (1,626)   (2,171)   (2,156)   (1,626)   (2,171)   (2,156)
Compensation and own shares-related capital components (not recognized in net profit)   (1,523)   (1,282)   (1,219)   (1,523)   (1,282)   (1,219)
Own credit related to financial liabilities designated at fair value and replacement values, net of tax   (412)   (130)   136   (412)   (130)   136
Unrealized gains related to financial investments available-for-sale, net of tax   (312)   (413)   (384)   (312)   (413)   (384)
Prudential valuation adjustments   (84)   (128)   (123)   (84)   (128)   (123)
Consolidation scope   (76)   (77)   (88)   (76)   (77)   (88)
Other 3   (3,158)   (4,483)   (3,786)   (3,158)   (4,483)   (3,786)
Common equity tier 1 capital   38,706   40,779   42,863   30,265   29,566   28,941
Hybrid capital subject to phase-out   1,840   2,929   3,210            
High-trigger loss-absorbing capital   1,631   1,684   467   1,631   1,684   467
Low-trigger loss-absorbing capital   2,145   2,266   0   2,145   2,266   0
Goodwill, net of tax, offset against hybrid capital and loss-absorbing capital   (3,729)   (3,855)   (3,677)            
Additional tier 1 capital   1,887   3,022   0   3,777   3,949   467
Tier 1 capital   40,593   43,801   42,863   34,042   33,515   29,408
Tier 2 capital   12,329   12,950   13,448   10,531   10,975   11,398
Total capital   52,923   56,752   56,310   44,573   44,490   40,806

1 Phase-in number net of tax, fully applied number pre-tax. 2 Includes goodwill related to significant investments in financial institutions of CHF 352 million. 3 Includes the net charge for the compensation-related increase in high-trigger loss-absorbing capital for tier 2 and additional tier 1 capital, accruals for capital returns to shareholders and other items.

Swiss SRB leverage ratio
CHF million, except where indicated   Average 2Q15   Average 1Q15   Average 4Q14
Total on-balance sheet assets1   970,415   1,042,252   1,038,836
Netting of securities financing transactions   (7,509)   (7,726)   (6,141)
Netting of derivative exposures   (144,420)   (187,919)   (184,265)
Current exposure method (CEM) add-on for derivative exposures   53,025   56,023   63,385
Off-balance sheet items   69,071   76,896   88,750
of which: commitments and guarantees – unconditionally cancellable (10%)   5,123   10,085   17,212
of which: commitments and guarantees – other than unconditionally cancellable (100%)   63,949   66,811   71,538
Assets of entities consolidated under IFRS but not in regulatory scope of consolidation   18,383   17,625   19,184
Items deducted from Swiss SRB tier 1 capital, phase-in (at period-end)   (9,832)   (14,903)   (14,879)
Total adjusted exposure (leverage ratio denominator), phase-in 2   949,134   982,249   1,004,869
Additional items deducted from Swiss SRB tier 1 capital, fully applied (at period-end)   (4,712)   (5,315)   (7,047)
Total adjusted exposure (leverage ratio denominator), fully applied 2   944,422   976,934   997,822
 
    As of
    30.6.15   31.3.15   31.12.14
Common equity tier 1 capital (phase-in)   38,706   40,779   42,863
Loss-absorbing capital (phase-in)   12,419   13,997   11,398
Common equity tier 1 capital including loss-absorbing capital   51,125   54,776   54,260
Swiss SRB leverage ratio phase-in (%)   5.4   5.6   5.4
 
    As of
    30.6.15   31.3.15   31.12.14
Common equity tier 1 capital (fully applied)   30,265   29,566   28,941
Loss-absorbing capital (fully applied)   14,308   14,924   11,865
Common equity tier 1 capital including loss-absorbing capital   44,573   44,490   40,806
Swiss SRB leverage ratio fully applied (%)   4.7   4.6   4.1

1 Represent assets recognized on the balance sheet in accordance with IFRS measurement principles, but based on the regulatory scope of consolidation. Refer to the “UBS Group AG consolidated supplemental disclosures required under Basel III Pillar 3 regulations” section of our Annual Report 2014 for more information on the regulatory scope of consolidation. 2 In accordance with current Swiss SRB leverage ratio requirements, the leverage ratio denominator excludes forward starting repos, securities lending indemnifications and CEM add-ons for exchange-traded derivatives (ETD), both proprietary and agency transactions, and for OTC derivatives with a qualifying central counterparty.

UBS shares
    UBS Group AG   UBS AG
    As of   % change from   As of   % change from
    30.6.15   31.3.15   30.6.14   31.3.15   30.6.15   31.3.15   30.6.14   31.3.15
 
Shares outstanding
Shares issued   3,759,320,804   3,739,518,390       1   3,858,408,466   3,844,560,913   3,844,030,621   0
Treasury shares   95,917,796   85,258,884       13   2,139,918   8,714,477   91,236,602   (75)
Shares outstanding   3,663,403,008   3,654,259,506       0   3,856,268,548   3,835,846,436   3,752,794,019   1
of which: held by UBS Group AG                   3,769,482,155   3,738,235,457        
of which: held by shareholders with a non-controlling interest