ZURICH, Switzerland--(BUSINESS WIRE)--
UBS Group (NYSE:UBS) (SWX:UBSN) / ISIN: CH0024899483 net profit for 2016 was CHF 3.3 billion. Adjusted1 profit before tax for the year was CHF 5.4 billion and reported profit before tax was CHF 4.2 billion. The full-year adjusted1 return on tangible equity was 9.2%. Despite very challenging market conditions and macroeconomic and geopolitical uncertainty, UBS delivered solid results in 2016, while prudently managing resources and risk. As of 31 December 2016, the Group achieved CHF 1.6 billion of annualized net cost savings, an improvement from CHF 1.1 billion at year-end 2015, and is on track to achieve its CHF 2.1 billion target by the end of 2017.
UBS’s capital position remains strong, with a fully applied CET1 capital ratio of 13.8% and a fully applied CET1 leverage ratio of 3.53%. Risk-weighted assets (RWA) were CHF 223 billion. The fully applied leverage ratio denominator (LRD) was CHF 870 billion at year end.
UBS’s Board of Directors intends to propose a dividend of CHF 0.60 per share to shareholders for the financial year 2016. Subject to shareholder approval, the dividend will be paid out of capital contribution reserves on 10 May 2017 to shareholders of record as of 9 May 20172 . The ex-dividend date will be 8 May 2017.
“Despite a very challenging market environment in 2016, we achieved solid results, thanks to our balanced business and geographic mix, as well as our strong focus on executing our strategy. Wealth Management Americas delivered a record performance, and our Swiss Personal and Corporate business achieved its best full-year results since 2008. While we saw persistent client risk aversion and substantial cross-border outflows, we generated over CHF 40 billion of net new money in our wealth management businesses.”
Sergio P. Ermotti, Group Chief Executive Officer
Information in this release is presented for UBS Group AG on a consolidated basis unless otherwise specified. Financial information for UBS AG (consolidated) does not differ materially from UBS Group AG (consolidated) and a comparison between UBS Group AG (consolidated) and UBS AG (consolidated) is provided at the end of this news release.
Full-year 2016: Group, divisional and Corporate Center performance overview
UBS’s full-year 2016 adjusted1 profit before tax was CHF 5,443 million, and reported profit before tax was CHF 4,192 million. Net profit attributable to shareholders was CHF 3,306 million. This included expenses for provisions for litigation, regulatory and similar matters of CHF 693 million, as well as restructuring expenses of CHF 1,458 million. Adjusted1 return on tangible equity was 9.2%.
Wealth Management delivered an adjusted1 profit before tax of CHF 2,397 million, down 15% year on year. Net new money was CHF 26.8 billion, despite cross-border outflows of CHF 14 billion. Net mandate sales were CHF 14.0 billion, with mandate penetration increasing 50 basis points to 26.9% of invested assets, while total invested assets increased by CHF 30 billion. Adjusted1 net margin decreased by 5 basis points to 25 basis points.
Wealth Management Americas posted a record adjusted1 profit before tax of USD 1,250 million, a 43% increase year on year, reflecting higher net interest income and lower expenses for provisions for litigation, regulatory and similar matters. Net new money was USD 15.4 billion, and managed accounts increased 70 basis points to 34.7% of invested assets, while total invested assets increased by USD 78 billion. Adjusted1 net margin improved by 4 basis points to 12 basis points.
Personal & Corporate Banking delivered an adjusted1 profit before tax of CHF 1,754 million, the best full-year results since 2008 and up 4% year on year, despite negative interest rates. The net new business volume growth in personal banking was 3.1% with the highest net new client acquisition on record.
Asset Management recorded an adjusted1 profit before tax of CHF 552 million, down 10% year on year. Net new money, excluding money markets, was negative at CHF 22.5 billion.
The Investment Bank posted an adjusted1 profit before tax of CHF 1,503 million, down 34% compared with a strong prior year. The adjusted1 return on attributed equity was 19.6%. Investor Client Services adjusted1 revenues were down 11% year on year, mostly due to a decrease in Equities. Corporate Client Solutions revenues decreased 20%, mostly due to lower equity capital market revenues. RWA increased by CHF 8 billion to CHF 70 billion, largely due to regulatory inflation, while LRD was reduced by CHF 37 billion to CHF 231 billion at year-end.
Corporate Center – Services recorded an adjusted1 loss before tax of CHF 912 million. Group Asset and Liability Management recorded an adjusted1 loss before tax of CHF 96 million. Non-core and Legacy Portfolio posted an adjusted1 loss before tax of CHF 991 million, driven by expenses for provisions for litigation, regulatory and similar matters of CHF 482 million. Non-core and Legacy Portfolio LRD was reduced by CHF 16 billion to CHF 22 billion at year-end.
Fourth quarter 2016: Group, divisional and Corporate Center performance overview
UBS’s fourth quarter adjusted1 profit before tax was CHF 1,105 million, and reported profit before tax was CHF 848 million. Net profit attributable to shareholders was CHF 738 million. This included provisions for litigation, regulatory and similar matters of CHF 162 million, as well as restructuring expenses of CHF 372 million. Adjusted1 return on tangible equity was 8.2%.
Wealth Management delivered an adjusted1 profit before tax of CHF 511 million, up 1% from the fourth quarter of 2015, reflecting lower operating expenses offset by decreased operating income. This includes provisions for litigation, regulatory and similar matters of CHF 62 million in the fourth quarter of 2016, compared with CHF 79 million in the fourth quarter of 2015. Negative net new money of CHF 4.1 billion was driven by cross-border outflows of CHF 7.4 billion, mainly driven by outflows from emerging markets and Asia Pacific.
Wealth Management Americas posted an adjusted1 profit before tax of USD 358 million, a substantial increase year on year, reflecting lower expenses for provisions for litigation, regulatory and similar matters, which were USD 52 million in the fourth quarter of 2016, as well as higher recurring fees and net interest income. Net new money was negative USD 1.3 billion.
Personal & Corporate Banking recorded an adjusted1 profit before tax of CHF 395 million, flat year on year, as increased expenses offset higher income. The annualized net new business volume growth in personal banking was 1.1%.
Asset Management delivered an adjusted1 profit before tax of CHF 156 million, up 2% from the fourth quarter of 2015. Net new money, excluding money markets, was negative CHF 9.8 billion.
The Investment Bank posted an adjusted1 profit before tax of CHF 344 million, an increase of 54% year on year. The annualized adjusted1 return on attributed equity was 18.1%. Adjusted1 Investor Client Services revenues were up 10% year on year, as an increase in Equities more than offset a decrease in FX, Rates and Credit. Corporate Client Solutions revenues increased 9%. RWA increased to CHF 70 billion, as market risk RWA rose from exceptionally low levels. LRD reduced to CHF 231 billion.
Corporate Center – Services recorded an adjusted1 loss before tax of CHF 275 million. Group Asset and Liability Management recorded an adjusted1 loss before tax of CHF 171 million. Non-core and Legacy Portfolio posted an adjusted1 loss before tax of CHF 215 million. Non-core and Legacy Portfolio LRD was reduced by CHF 3 billion to CHF 22 billion at year-end.
1 Refer to the “Performance by business division and Corporate Center unit – reported and adjusted“ table in this news release.
2 UBS expects that dividends will be paid out of capital contribution reserves for the foreseeable future. Dividends paid out of capital contribution reserves are not subject to the deduction of Swiss withholding tax. For US federal income tax purposes, we expect that the dividend will be paid out of current or accumulated profits.
UBS Optimus Foundation launches groundbreaking philanthropic health portfolio
Going Further: a philanthropic health portfolio breaks new ground in financing and delivering large-scale, transformational change for the world’s most neglected and underserved communities. UBS Optimus Foundation plans to co-fund the portfolio. Furthermore, all donations will be doubled by portfolio partners, increasing the reach and impact of each donation significantly. Optimus guarantees that 100% of each donation will go to portfolio programs, as UBS covers all administrative costs.
UBS also recently announced plans to launch several new impact investment funds totaling USD 5 billion over the next five years to support the UN Sustainable Development Goals.
In 2016, 18,386 – or over 30% – of UBS employees recorded a total of 155,325 volunteer hours in social and community engagement projects as part of our Community Affairs program. That compares with 27% of UBS employees who volunteered in 2015.
Winners of UBS Social Innovators program announced
The finals in Zurich, London and Singapore brought to a close the first phase of the UBS Social Innovators program. The program sought out high-potential social enterprises delivering innovative solutions to society’s most pressing challenges. Choba Choba, a Swiss chocolate brand owned by its cocoa farmers, was chosen as the winner from Switzerland. Kiron, a Germany-based social enterprise that integrates refugees through higher education was chosen as the winner from EMEA, while the provider of e-Doctor clinics in rural India, Karma Healthcare, was named APAC winner.
Awards and achievements
UBS claimed the title as Best Global Private Bank and Best Private Bank in Asia at the FT’s PWM/The Banker Awards 2016 in October. The firm was also awarded Most Innovative Investment Bank for M&A at The Banker Investment Banking Awards 2016. UBS was named Europe Financial Bond House of the Year by the International Financing Review for the second year running. UBS Switzerland received the Euromoney Award 2016 for Best Cash Manager Switzerland for the sixth time in a row.
UBS continued to innovate for the benefit of its customers. In the fourth quarter, UBS Atrium was launched in Switzerland, a platform that connects borrowers looking to finance commercial property investments with external institutional investors. Our UBS SmartWealth digital initiative, launched in the UK in the fourth quarter, exceeded expectations in attracting new clients during its pilot phase. The full launch is planned for February 2017. At the end of 2016, we also launched "Ask UBS", a voice-activated service in partnership with Amazon, which gives users access to investment insights and opinions of UBS CIO House View, as well as explanations of financial terminology.
Outlook
Although macroeconomic uncertainty, geopolitical tensions and divisive politics continue to affect client sentiment and transaction volumes, we have begun to observe improved investor confidence, primarily in the US, which may benefit our wealth management businesses. Lower than expected and negative interest rates, particularly in Switzerland and the eurozone, continue to present headwinds to net interest margins, which may be offset by the effect of higher US dollar interest rates. Implementing Switzerland's new bank capital standards and the proposed further changes to the international regulatory framework for banks will result in increasing capital requirements and costs. UBS will continue to execute its strategy with discipline, positioning it to mitigate these challenges and to benefit from any further improvement in market conditions.
Performance by business division and Corporate Center unit – reported and adjusted¹,² | ||||||||||||||||||||
For the quarter ended 31.12.16 | ||||||||||||||||||||
CHF million |
Wealth |
Wealth
ment |
Personal Banking |
Asset
Manage ment |
Investment |
CC – |
CC – |
CC – Non- |
UBS |
|||||||||||
Operating income as reported | 1,782 | 2,076 | 941 | 499 | 2,014 | (59) | (144) | (53) | 7,055 | |||||||||||
of which: gains on sale of financial assets available for sale⁴ | 10 | 78 | 88 | |||||||||||||||||
of which: net foreign currency translation gains⁵ | 27 | 27 | ||||||||||||||||||
Operating income (adjusted) | 1,782 | 2,066 | 941 | 499 | 1,936 | (59) | (171) | (53) | 6,940 | |||||||||||
Operating expenses as reported | 1,413 | 1,737 | 567 | 356 | 1,708 | 256 | 0 | 170 | 6,206 | |||||||||||
of which: personnel-related restructuring expenses | 15 | 1 | 2 | 1 | 40 | 114 | 0 | 0 | 174 | |||||||||||
of which: non-personnel-related restructuring expenses | 25 | 0 | 0 | 5 | 5 | 163 | 0 | 0 | 197 | |||||||||||
of which: restructuring expenses allocated from CC Services | 103 | 30 | 19 | 5 | 72 | (237) | 0 | 8 | 0 | |||||||||||
Operating expenses (adjusted) | 1,270 | 1,706 | 546 | 344 | 1,592 | 216 | 0 | 162 | 5,834 | |||||||||||
of which: expenses for provisions for litigation, regulatory and |
62 | 53 | 7 | 1 | 14 | (2) | 0 | 27 | 162 | |||||||||||
Operating profit / (loss) before tax as reported | 368 | 339 | 374 | 144 | 306 | (315) | (144) | (223) | 848 | |||||||||||
Operating profit / (loss) before tax (adjusted) | 511 | 360 | 395 | 156 | 344 | (275) | (171) | (215) | 1,105 | |||||||||||
For the quarter ended 31.12.15 | ||||||||||||||||||||
CHF million |
Wealth |
Wealth |
Personal & |
Asset |
Investment |
CC – Services³ |
CC – |
CC – Non- |
UBS | |||||||||||
Operating income as reported | 1,869 | 1,885 | 915 | 568 | 1,721 | (54) | (59) | (71) | 6,775 | |||||||||||
of which: net foreign currency translation gains⁵ | 115 | 115 | ||||||||||||||||||
of which: own credit on financial liabilities designated at fair value | 35 | 35 | ||||||||||||||||||
of which: gains / (losses) on sale of subsidiaries and businesses | (28) | 56 | 28 | |||||||||||||||||
of which: net losses related to the buyback of debt | (257) | (257) | ||||||||||||||||||
Operating income (adjusted) | 1,897 | 1,885 | 915 | 512 | 1,721 | (54) | 48 | (71) | 6,854 | |||||||||||
Operating expenses as reported | 1,526 | 1,871 | 560 | 397 | 1,641 | 291 | (3) | 258 | 6,541 | |||||||||||
of which: personnel-related restructuring expenses | 3 | 0 | 0 | 3 | 12 | 144 | 0 | 1 | 164 | |||||||||||
of which: non-personnel-related restructuring expenses | 14 | 0 | 0 | 8 | 2 | 252 | 0 | 0 | 276 | |||||||||||
of which: restructuring expenses allocated from CC Services | 116 | 50 | 41 | 27 | 129 | (377) | 0 | 15 | 0 | |||||||||||
Operating expenses (adjusted) | 1,393 | 1,821 | 519 | 359 | 1,498 | 272 | (3) | 241 | 6,100 | |||||||||||
of which: expenses for provisions for litigation, regulatory and |
79 | 233 | 0 | (3) | 4 | 1 | 0 | 51 | 365 | |||||||||||
Operating profit / (loss) before tax as reported | 344 | 14 | 355 | 171 | 80 | (345) | (56) | (329) | 234 | |||||||||||
Operating profit / (loss) before tax (adjusted) | 505 | 64 | 396 | 153 | 223 | (326) | 51 | (312) | 754 | |||||||||||
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 |
||||||||||||||||||||
Performance by business division and Corporate Center unit – reported and adjusted¹,² | ||||||||||||||||||||
For the year ended 31.12.16 | ||||||||||||||||||||
CHF million |
Wealth |
Wealth |
Personal |
Asset
Manage |
Investment |
CC – |
CC – |
CC – Non- |
UBS | |||||||||||
Operating income as reported | 7,291 | 7,782 | 3,984 | 1,931 | 7,688 | (102) | (219) | (36) | 28,320 | |||||||||||
of which: gains on sale of financial assets available for sale⁴ | 21 | 10 | 102 | 78 | 211 | |||||||||||||||
of which: gains on sales of real estate | 120 | 120 | ||||||||||||||||||
of which: gains related to investments in associates | 21 | 21 | ||||||||||||||||||
of which: net foreign currency translation losses⁵ | (122) | (122) | ||||||||||||||||||
of which: losses on sales of subsidiaries and businesses | (23) | (23) | ||||||||||||||||||
Operating income (adjusted) | 7,293 | 7,772 | 3,861 | 1,931 | 7,610 | (222) | (97) | (36) | 28,113 | |||||||||||
Operating expenses as reported | 5,343 | 6,675 | 2,224 | 1,479 | 6,684 | 747 | (1) | 976 | 24,128 | |||||||||||
of which: personnel-related restructuring expenses | 53 | 7 | 4 | 15 | 154 | 518 | 0 | 1 | 751 | |||||||||||
of which: non-personnel-related restructuring expenses | 55 | 0 | 0 | 15 | 14 | 623 | 0 | 0 | 706 | |||||||||||
of which: restructuring expenses allocated from CC Services | 339 | 132 | 113 | 70 | 410 | (1,084) | 0 | 21 | 0 | |||||||||||
Operating expenses (adjusted) | 4,896 | 6,536 | 2,107 | 1,379 | 6,107 | 690 | (1) | 955 | 22,670 | |||||||||||
of which: expenses for provisions for litigation, regulatory and |
69 | 96 | 3 | (2) | 42 | 2 | 0 | 482 | 693 | |||||||||||
Operating profit / (loss) before tax as reported | 1,948 | 1,107 | 1,760 | 452 | 1,004 | (849) | (218) | (1,012) | 4,192 | |||||||||||
Operating profit / (loss) before tax (adjusted) | 2,397 | 1,236 | 1,754 | 552 | 1,503 | (912) | (96) | (991) | 5,443 | |||||||||||
For the year ended 31.12.15 | ||||||||||||||||||||
CHF million |
Wealth |
Wealth |
Personal & |
Asset |
Investment |
CC – |
CC – |
CC – Non- |
UBS | |||||||||||
Operating income as reported | 8,155 | 7,381 | 3,877 | 2,057 | 8,821 | 241 | 277 | (203) | 30,605 | |||||||||||
of which: own credit on financial liabilities designated at fair value | 553 | 553 | ||||||||||||||||||
of which: gains on sales of real estate | 378 | 378 | ||||||||||||||||||
of which: gains on sales of subsidiaries and businesses | 169 | 56 | 225 | |||||||||||||||||
of which: net foreign currency translation gains⁵ |
88 | 88 | ||||||||||||||||||
of which: gains related to investments in associates | 15 | 66 | 81 | |||||||||||||||||
of which: gains on sale of financial assets available for sale⁴ | 11 | 11 | ||||||||||||||||||
of which: net losses related to the buyback of debt | (257) | (257) | ||||||||||||||||||
Operating income (adjusted) | 7,971 | 7,381 | 3,811 | 2,001 | 8,810 | (137) | (107) | (203) | 29,526 | |||||||||||
Operating expenses as reported | 5,465 | 6,663 | 2,231 | 1,474 | 6,929 | 1,059 | (5) | 1,301 | 25,116 | |||||||||||
of which: personnel-related restructuring expenses | 20 | 0 | 2 | 4 | 14 | 406 | 0 | 14 | 460 | |||||||||||
of which: non-personnel-related restructuring expenses | 38 | 0 | 0 | 11 | 7 | 719 | 0 | 0 | 775 | |||||||||||
of which: restructuring expenses allocated from CC Services | 265 | 137 | 99 | 68 | 376 | (986) | 0 | 43 | 0 | |||||||||||
of which: gain related to a change to retiree benefit plans in the US | (21) | (21) | ||||||||||||||||||
of which: impairment of an intangible asset | 11 | 11 | ||||||||||||||||||
Operating expenses (adjusted) | 5,142 | 6,547 | 2,130 | 1,392 | 6,522 | 919 | (5) | 1,245 | 23,891 | |||||||||||
of which: expenses for provisions for litigation, regulatory and |
104 | 351 | (2) | (3) | 2 | 15 | 0 | 620 | 1,087 | |||||||||||
Operating profit / (loss) before tax as reported | 2,689 | 718 | 1,646 | 584 | 1,892 | (818) | 282 | (1,503) | 5,489 | |||||||||||
Operating profit / (loss) before tax (adjusted) | 2,828 | 834 | 1,681 | 610 | 2,288 | (1,056) | (102) | (1,447) | 5,635 | |||||||||||
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 |
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UBS Group AG key figures | ||||||||||||
As of or for the quarter ended | As of or for the year ended | |||||||||||
CHF million, except where indicated | 31.12.16 | 30.9.16 | 31.12.15 | 31.12.16 | 31.12.15 | |||||||
Group results | ||||||||||||
Operating income | 7,055 | 7,029 | 6,775 | 28,320 | 30,605 | |||||||
Operating expenses | 6,206 | 6,152 | 6,541 | 24,128 | 25,116 | |||||||
Operating profit / (loss) before tax | 848 | 877 | 234 | 4,192 | 5,489 | |||||||
Net profit / (loss) attributable to shareholders | 738 | 827 | 949 | 3,306 | 6,203 | |||||||
Diluted earnings per share (CHF)¹ | 0.19 | 0.22 | 0.25 | 0.86 | 1.64 | |||||||
Key performance indicators² | ||||||||||||
Profitability | ||||||||||||
Return on tangible equity (%) | 6.5 | 7.3 | 8.1 | 7.2 | 13.7 | |||||||
Return on assets, gross (%) | 3.0 | 2.9 | 2.8 | 3.0 | 3.1 | |||||||
Cost / income ratio (%) | 87.7 | 87.5 | 95.7 | 85.1 | 81.8 | |||||||
Growth | ||||||||||||
Net profit growth (%) | (22.2) | (60.0) | 10.6 | (46.7) | 79.0 | |||||||
Net new money growth for combined wealth management businesses (%)³ | (1.1) | 2.1 | 2.9 | 2.1 | 2.2 | |||||||
Resources | ||||||||||||
Common equity tier 1 capital ratio (fully applied, %)⁴ | 13.8 | 14.0 | 14.5 | 13.8 | 14.5 | |||||||
Going concern leverage ratio (phase-in, %)⁵ | 6.4 | 6.2 | 6.4 | |||||||||
Additional information | ||||||||||||
Profitability | ||||||||||||
Return on equity (RoE) (%) | 5.5 | 6.2 | 6.9 | 6.1 | 11.8 | |||||||
Return on risk-weighted assets, gross (%)⁶ | 12.9 | 13.1 | 12.9 | 13.2 | 14.4 | |||||||
Resources | ||||||||||||
Total assets | 935,016 | 935,206 | 942,819 | 935,016 | 942,819 | |||||||
Equity attributable to shareholders | 53,723 | 53,300 | 55,313 | 53,723 | 55,313 | |||||||
Common equity tier 1 capital (fully applied)⁴ | 30,693 | 30,254 | 30,044 | 30,693 | 30,044 | |||||||
Common equity tier 1 capital (phase-in)⁴ | 37,788 | 37,207 | 40,378 | 37,788 | 40,378 | |||||||
Risk-weighted assets (fully applied)⁴ | 222,677 | 216,830 | 207,530 | 222,677 | 207,530 | |||||||
Common equity tier 1 capital ratio (phase-in, %)⁴ | 16.8 | 16.9 | 19.0 | 16.8 | 19.0 | |||||||
Going concern capital ratio (fully applied, %)⁵ | 17.9 | 18.0 | 17.9 | |||||||||
Going concern capital ratio (phase-in, %)⁵ | 24.7 | 24.8 | 24.7 | |||||||||
Common equity tier 1 leverage ratio (fully applied, %)⁷ | 3.5 | 3.4 | 3.3 | 3.5 | 3.3 | |||||||
Going concern leverage ratio (fully applied, %)⁵ | 4.6 | 4.4 | 4.6 | |||||||||
Leverage ratio denominator (fully applied)⁷ | 870,470 | 877,313 | 897,607 | 870,470 | 897,607 | |||||||
Liquidity coverage ratio (%)⁸ | 132 | 124 | 124 | 132 | 124 | |||||||
Other | ||||||||||||
Invested assets (CHF billion)⁹ | 2,821 | 2,747 | 2,689 | 2,821 | 2,689 | |||||||
Personnel (full-time equivalents) | 59,387 | 59,946 | 60,099 | 59,387 | 60,099 | |||||||
Market capitalization | 61,420 | 50,941 | 75,147 | 61,420 | 75,147 | |||||||
Total book value per share (CHF) | 14.47 | 14.37 | 14.75 | 14.47 | 14.75 | |||||||
Tangible book value per share (CHF) | 12.71 | 12.66 | 13.00 | 12.71 | 13.00 | |||||||
1 Weighted average shares outstanding for diluted earnings per
share were 3,828 million shares in the fourth quarter of 2016
(third quarter of 2016: 3,812 million shares; fourth quarter of |
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Income statement | |||||||||||||||||
For the quarter ended | % change from | For the year ended | |||||||||||||||
CHF million | 31.12.16 | 30.9.16 | 31.12.15 | 3Q16 | 4Q15 | 31.12.16 | 31.12.15 | ||||||||||
Net interest income | 1,762 | 1,775 | 1,759 | (1) | 0 | 6,413 | 6,732 | ||||||||||
Credit loss (expense) / recovery | (24) | (4) | (59) | 500 | (59) | (37) | (117) | ||||||||||
Net interest income after credit loss expense | 1,738 | 1,771 | 1,700 | (2) | 2 | 6,376 | 6,615 | ||||||||||
Net fee and commission income | 4,161 | 4,056 | 4,218 | 3 | (1) | 16,397 | 17,140 | ||||||||||
Net trading income | 946 | 1,098 | 898 | (14) | 5 | 4,948 | 5,742 | ||||||||||
of which: net trading income excluding own credit | 946 | 1,098 | 863 | (14) | 10 | 4,948 | 5,190 | ||||||||||
of which: own credit on financial liabilities designated at fair value | 35 | 553 | |||||||||||||||
Other income | 209 | 104 | (41) | 101 | 599 | 1,107 | |||||||||||
Total operating income | 7,055 | 7,029 | 6,775 | 0 | 4 | 28,320 | 30,605 | ||||||||||
of which: net interest and trading income | 2,708 | 2,873 | 2,657 | (6) | 2 | 11,361 | 12,474 | ||||||||||
Personnel expenses | 3,868 | 3,942 | 3,843 | (2) | 1 | 15,720 | 15,981 | ||||||||||
General and administrative expenses | 2,063 | 1,939 | 2,413 | 6 | (15) | 7,332 | 8,107 | ||||||||||
Depreciation and impairment of property, equipment and software | 255 | 248 | 260 | 3 | (2) | 985 | 920 | ||||||||||
Amortization and impairment of intangible assets | 21 | 23 | 24 | (9) | (13) | 91 | 107 | ||||||||||
Total operating expenses | 6,206 | 6,152 | 6,541 | 1 | (5) | 24,128 | 25,116 | ||||||||||
Operating profit / (loss) before tax | 848 | 877 | 234 | (3) | 262 | 4,192 | 5,489 | ||||||||||
Tax expense / (benefit) | 109 | 49 | (715) | 122 | 805 | (898) | |||||||||||
Net profit / (loss) | 739 | 829 | 950 | (11) | (22) | 3,388 | 6,386 | ||||||||||
Net profit / (loss) attributable to non-controlling interests | 1 | 1 | 1 | 0 | 0 | 82 | 183 | ||||||||||
Net profit / (loss) attributable to shareholders | 738 | 827 | 949 | (11) | (22) | 3,306 | 6,203 | ||||||||||
Comprehensive income | |||||||||||||||||
Total comprehensive income | 173 | 191 | 1,164 | (9) | (85) | 2,272 | 5,781 | ||||||||||
Total comprehensive income attributable to non-controlling interests | (12) | 7 | 38 | 352 | 83 | ||||||||||||
Total comprehensive income attributable to shareholders | 185 | 184 | 1,126 | 1 | (84) | 1,919 | 5,698 | ||||||||||
Comparison UBS Group AG (consolidated) versus UBS AG (consolidated) | ||||||||||||||||||||||||
As of or for the quarter ended 31.12.16 | As of or for the quarter ended 30.9.16 | As of or for the quarter ended 31.12.15 | ||||||||||||||||||||||
CHF million, except where indicated |
UBS Group |
UBS AG |
Difference |
UBS Group |
UBS AG |
Difference |
UBS Group |
UBS AG |
Difference |
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Income statement | ||||||||||||||||||||||||
Operating income | 7,055 | 7,118 | (63) | 7,029 | 7,049 | (20) | 6,775 | 6,771 | 4 | |||||||||||||||
Operating expenses | 6,206 | 6,271 | (65) | 6,152 | 6,161 | (9) | 6,541 | 6,543 | (2) | |||||||||||||||
Operating profit / (loss) before tax | 848 | 847 | 1 | 877 | 888 | (11) | 234 | 228 | 6 | |||||||||||||||
of which: Wealth Management | 368 | 368 | 0 | 504 | 502 | 2 | 344 | 342 | 2 | |||||||||||||||
of which: Wealth Management Americas | 339 | 338 | 1 | 320 | 313 | 7 | 14 | 8 | 6 | |||||||||||||||
of which: Personal & Corporate Banking | 374 | 375 | (1) | 453 | 454 | (1) | 355 | 356 | (1) | |||||||||||||||
of which: Asset Management | 144 | 144 | 0 | 104 | 104 | 0 | 171 | 171 | 0 | |||||||||||||||
of which: Investment Bank | 306 | 304 | 2 | 161 | 155 | 6 | 80 | 83 | (3) | |||||||||||||||
of which: Corporate Center | (682) | (681) | (1) | (665) | (640) | (25) | (729) | (732) | 3 | |||||||||||||||
of which: Services | (315) | (307) | (8) | (218) | (216) | (2) | (345) | (349) | 4 | |||||||||||||||
of which: Group ALM | (144) | (150) | 6 | 30 | 53 | (23) | (56) | (54) | (2) | |||||||||||||||
of which: Non-core and Legacy Portfolio | (223) | (224) | 1 | (477) | (476) | (1) | (329) | (329) | 0 | |||||||||||||||
Net profit / (loss) | 739 | 741 | (2) | 829 | 847 | (18) | 950 | 951 | (1) | |||||||||||||||
of which: net profit / (loss) attributable to |
738 | 740 | (2) | 827 | 846 | (19) | 949 | 950 | (1) | |||||||||||||||
of which: net profit / (loss) attributable to |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
of which: net profit / (loss) attributable to |
1 | 1 | 0 | 1 | 1 | 0 | 1 | 1 | 0 | |||||||||||||||
Statement of comprehensive income | ||||||||||||||||||||||||
Other comprehensive income | (566) | (566) | 0 | (637) | (638) | 1 | 214 | 214 | 0 | |||||||||||||||
of which: attributable to shareholders | (553) | (553) | 0 | (643) | (643) | 0 | 177 | 177 | 0 | |||||||||||||||
of which: attributable to preferred |
(12) | 12 | 4 | (4) | 35 | (35) | ||||||||||||||||||
of which: attributable to non-controlling |
(13) | (1) | (12) | 5 | 1 | 4 | 37 | 2 | 35 | |||||||||||||||
Total comprehensive income | 173 | 175 | (2) | 191 | 210 | (19) | 1,164 | 1,165 | (1) | |||||||||||||||
of which: attributable to shareholders | 185 | 187 | (2) | 184 | 203 | (19) | 1,126 | 1,126 | 0 | |||||||||||||||
of which: attributable to preferred |
(12) | 12 | 4 | (4) | 35 | (35) | ||||||||||||||||||
of which: attributable to non-controlling |
(12) | 0 | (12) | 7 | 3 | 4 | 38 | 3 | 35 | |||||||||||||||
Balance sheet | ||||||||||||||||||||||||
Total assets | 935,016 | 935,353 | (337) | 935,206 | 935,683 | (477) | 942,819 | 943,256 | (437) | |||||||||||||||
Total liabilities | 880,612 | 880,907 | (295) | 881,213 | 881,433 | (220) | 885,511 | 886,013 | (502) | |||||||||||||||
Total equity | 54,404 | 54,445 | (41) | 53,993 | 54,250 | (257) | 57,308 | 57,243 | 65 | |||||||||||||||
of which: equity attributable to |
53,723 | 53,764 | (41) | 53,300 | 53,556 | (256) | 55,313 | 55,248 | 65 | |||||||||||||||
of which: equity attributable to preferred |
642 | (642) | 654 | (654) | 1,954 | (1,954) | ||||||||||||||||||
of which: equity attributable to non- |
682 | 40 | 642 | 693 | 40 | 653 | 1,995 | 41 | 1,954 | |||||||||||||||
Capital information | ||||||||||||||||||||||||
Common equity tier 1 capital (fully applied) | 30,693 | 33,054 | (2,361) | 30,254 | 32,110 | (1,856) | 30,044 | 32,042 | (1,998) | |||||||||||||||
Common equity tier 1 capital (phase-in) | 37,788 | 40,059 | (2,271) | 37,207 | 38,994 | (1,787) | 40,378 | 41,516 | (1,138) | |||||||||||||||
Going concern capital (fully applied)¹ | 39,844 | 36,901 | 2,943 | 39,003 | 35,885 | 3,118 | ||||||||||||||||||
Going concern capital (phase-in)¹ | 55,593 | 51,669 | 3,924 | 54,623 | 50,522 | 4,101 | ||||||||||||||||||
Risk-weighted assets (fully applied) | 222,677 | 223,232 | (555) | 216,830 | 217,297 | (467) | 207,530 | 208,186 | (656) | |||||||||||||||
Common equity tier 1 capital ratio (fully |
13.8 | 14.8 | (1.0) | 14.0 | 14.8 | (0.8) | 14.5 | 15.4 | (0.9) | |||||||||||||||
Common equity tier 1 capital ratio (phase- |
16.8 | 17.7 | (0.9) | 16.9 | 17.7 | (0.8) | 19.0 | 19.5 | (0.5) | |||||||||||||||
Going concern capital ratio (fully applied, |
17.9 | 16.5 | 1.4 | 18.0 | 16.5 | 1.5 | ||||||||||||||||||
Going concern capital ratio (phase-in, %)¹ | 24.7 | 22.9 | 1.8 | 24.8 | 23.0 | 1.8 | ||||||||||||||||||
Leverage ratio denominator (fully applied) | 870,470 | 870,987 | (517) | 877,313 | 877,926 | (613) | 897,607 | 898,251 | (644) | |||||||||||||||
Common equity tier 1 leverage ratio (fully |
3.5 | 3.8 | (0.3) | 3.4 | 3.7 | (0.3) | 3.3 | 3.6 | (0.3) | |||||||||||||||
Going concern leverage ratio (fully applied, |
4.6 | 4.2 | 0.4 | 4.4 | 4.1 | 0.3 | ||||||||||||||||||
Going concern leverage ratio (phase-in, |
6.4 | 5.9 | 0.5 | 6.2 | 5.7 | 0.5 | ||||||||||||||||||
1 Based on the revised Swiss SRB framework that became effective on 1 July 2016. | ||||||||||||||||||||||||
|
UBS’s fourth quarter 2016 report, news release and slide presentation will be available from 06:45 CET on Friday, 27 January 2017, at www.ubs.com/quarterlyreporting.
UBS will hold a presentation of its fourth quarter 2016 results on Friday, 27 January 2017. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Kirt Gardner, Group Chief Financial Officer, Martin Osinga, Global Head of Investor Relations ad interim, and Hubertus Kuelps, Group Head of Communications & Branding.
Time
• 09:00–11:00 CET
• 08:00–10:00 GMT
• 03:00–05:00 US EST
Audio webcast
The presentation for analysts can be followed live on www.ubs.com/quarterlyreporting with a simultaneous slide show.
Webcast playback
An audio playback of the results presentation will be made available at www.ubs.com/investors later in the day.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance and statements relating to the anticipated effect of transactions and strategic initiatives on UBS’s business and future development. While these forward-looking statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. These factors include, but are not limited to: (i) the degree to which UBS is successful in executing its announced strategic plans, including its cost reduction and efficiency initiatives and its targets for risk-weighted assets (RWA) and leverage ratio denominator (LRD), and the degree to which UBS is successful in implementing changes to its wealth management businesses to meet changing market, regulatory and other conditions; (ii) continuing low or negative interest rate environment, developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, and currency exchange rates, and the effects of economic conditions, market developments, and geopolitical tensions on the financial position or creditworthiness of UBS’s clients and counterparties as well as on client sentiment and levels of activity; (iii) changes in the availability of capital and funding, including any changes in UBS’s credit spreads and ratings, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (iv) changes in or the implementation of financial legislation and regulation in Switzerland, the US, the UK and other financial centers that may impose, or result in, more stringent capital, TLAC, leverage ratio, liquidity and funding requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints on transfers of capital and liquidity and sharing of operational costs across the Group or other measures, and the effect these would have on UBS’s business activities; (v) uncertainty as to when and to what degree the Swiss Financial Market Supervisory Authority (FINMA) will approve, or confirm, limited reductions of gone concern requirements due to measures to reduce resolvability risk; (vi) the degree to which UBS is successful in implementing further changes to its legal structure to improve its resolvability and meet related regulatory requirements, including changes in legal structure and reporting required to implement US enhanced prudential standards, implementing a service company model, completing the transfer of the Asset Management business to a holding company, and the potential need to make further changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements relating to capital requirements, resolvability requirements and proposals in Switzerland and other jurisdictions for mandatory structural reform of banks or systemically important institutions and the extent to which such changes have the intended effects; (vii) the uncertainty arising from the timing and nature of the UK exit from the EU and the potential need to make changes in UBS’s legal structure and operations as a result of it; (viii) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS’s ability to compete in certain lines of business; (ix) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including recently enacted and proposed measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (x) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses or loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of our RWA; (xi) the effects on UBS’s cross-border banking business of tax or regulatory developments and of possible changes in UBS’s policies and practices relating to this business; (xii) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors including differences in compensation practices; (xiii) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xiv) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xv) whether UBS will be successful in keeping pace with competitors in updating its technology, including development of digital channels and tools, and in our trading businesses; (xvi) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyber-attacks, and systems failures; (xvii) restrictions on the ability of UBS Group AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xviii) the degree to which changes in regulation, capital or legal structure, financial results or other factors, including methodology, assumptions and stress scenarios, may affect UBS’s ability to maintain its stated capital return objective; and (xix) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including UBS’s Annual Report on Form 20-F for the year ended 31 December 2015. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
Rounding
Numbers presented throughout this news release may not add up precisely to the totals provided in the tables and text. Percentages, percent changes and absolute variances are calculated on the basis of rounded figures displayed in the tables and text and may not precisely reflect the percentages, percent changes and absolute variances that would be calculated on the basis of figures that are not rounded.
Tables
Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented as a mathematical calculation of the change between periods.
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