UBS: 1Q17 Net Profit up 79% to CHF 1.3bn

Adjusted1 profit before tax CHF 1.9bn, up 42% YoY, with all business divisions up

Adjusted1 return on tangible equity 12.6%, 17.4% excluding DTA2; diluted EPS CHF 0.33

Fully applied CET1 capital ratio 14.1% and leverage ratio 3.55%

Total loss-absorbing capacity CHF 74bn

CHF 1.1bn combined adjusted1 profit before tax in global wealth management

Investment Bank 24% annualized adjusted1 return on attributed equity

Sustainable investing funds for gender diversity and renewable energy launched

ZURICH--()--Regulatory News:

UBS (NYSE:UBS) (SWX:UBSN) delivered very strong first-quarter results with an adjusted1 profit before tax of CHF 1,934m, up 42% year on year. Adjusted1 operating income increased 8%, driven by the Investment Bank, Wealth Management Americas and Wealth Management, and the firm continued to make progress on its net cost reduction program. Despite facing a variety of market conditions and client activity levels, all business divisions and regions contributed to the improvement in performance. Reported pre-tax profit was up 73% year on year to CHF 1,690m. Net profit attributable to shareholders was CHF 1,269m, up 79% year on year, with diluted earnings per share of CHF 0.33. Group annualized adjusted1 return on tangible equity was 12.6%, or 17.4% excluding DTA.2

On a fully applied basis, UBS’s capital position remains strong, with a CET1 capital ratio of 14.1%, a CET1 leverage ratio of 3.55% and total loss-absorbing capacity increased to CHF 74bn.

Outlook

Improved investor sentiment and enhanced confidence have not yet fully translated into a sustained increase in client activity levels. While the global recovery is likely to continue, macroeconomic uncertainty, geopolitical tensions and divisive politics pose risks that may affect client sentiment and transaction volumes. Low and negative interest rates, particularly in Switzerland and the eurozone, continue to present headwinds to net interest margins. These may be partially offset by the effect of higher US dollar interest rates and a further normalization of monetary policy. Implementing Switzerland’s new bank capital standards and the proposed further changes to the international regulatory framework for banks will result in increased capital requirements, interest and operating costs. UBS is well positioned to mitigate these challenges and benefit from further improvements in market conditions.

“Our very strong results in the first quarter highlight the power and potential of our franchise. We will continue to manage our business with discipline, focusing on sustainable performance and long-term growth.” Sergio P. Ermotti, Group Chief Executive Officer

First quarter 2017: Divisional and Corporate Center performance overview

Global wealth management businesses adjusted1 PBT CHF 1.1bn, up 19% YoY

Invested assets increased 13% to a record CHF 2.2trn year on year, with net new money of CHF 20.5bn. Adjusted1 net margin increased 2 bps to 20 bps from the prior year.

Wealth Management adjusted1 PBT CHF 727m, up 14% YoY

Very strong performance was driven by higher transaction-based income and lower operating expenses. Net new money was CHF 18.6bn, driven by Europe, with positive contributions from all other regions. Net mandate sales in the quarter were CHF 15.1bn, with mandate penetration increasing to 27.8% of invested assets. Adjusted1 net margin increased by 2 bps from the prior year to 29 bps.

Wealth Management Americas adjusted1 PBT USD 324m, up 32% YoY

Record first-quarter results reflected higher recurring net fee income and record net interest income. Net new money in the quarter was USD 1.9bn. Managed account assets increased to a record 35.2% of invested assets. Adjusted1 net margin increased by 2 bps from the prior year to 11 bps. Advisor productivity was industry-leading for both revenues and invested assets.

Personal & Corporate Banking adjusted1 PBT CHF 437m, up 4% YoY

Strong results benefited from certain items that are not expected to recur and lower operating expenses, mitigating increasing net interest income headwinds. Annualized net new business volume growth for personal banking was a record 6.7%.

Asset Management adjusted1 PBT CHF 123m, up 12% YoY

Solid results improved on lower operating expenses. Net new money excluding money market inflows was CHF 19.7bn, reflecting strong passive investment capabilities.

Investment Bank adjusted1 PBT CHF 558m, up 51% YoY

Very strong performance, despite low volatility and uneven client activity levels, was driven by higher revenues in Corporate Client Solutions and good cost management, contributing to a very strong annualized adjusted1 return on attributed equity of 24%.

Corporate Center – Services recorded an adjusted1 loss before tax of CHF 207m. Group Asset and Liability Management adjusted1 profit before tax was CHF 63m. Non-core and Legacy Portfolio posted an adjusted1 loss before tax of CHF 91m.

Information in this news 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.

2016 dividend key dates

UBS’s Board of Directors has proposed 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 2017.3 The ex-dividend date will be 8 May 2017.

Awards and achievements

Sustainable investing funds for gender diversity and renewable energy launched

As a recognized sustainability leader, UBS has committed to attract USD 5bn of wealth management client assets over the next five years to support the 17 UN Sustainable Development Goals (UN SDGs). The UN SDGs target the world's biggest challenges, from climate change and healthcare, to gender equality, hunger and education. In March, UBS co-launched the USD 110m Rethink Impact Fund to support innovative female-led companies that use technology to solve the UN SDGs. The launch of the fund coincided with a new UBS white paper on gender-lens investing that calls for systematic, concerted private support for the UN SDG promoting gender equality.

In February, Asset Management launched its new climate aware rules-based fund, UBS Life Climate Aware World Equity Fund. The fund was seeded by a UK pension fund looking to integrate sustainable investing into its long-term strategy. The fund works with a bias toward companies sourcing energy from renewables and transitioning to a low-carbon model.

UBS was once again the recipient of several awards. The Investment Bank was named Best Investment Bank for the second year running by Global Finance magazine, as well as Best Bank for M&A. Wealth Management Americas client advisors featured prominently among the latest lists of top US financial advisors. Barron's Top 1,200 Financial Advisors included 167 UBS advisors, with five named top advisor in their respective states. The FT Top 400 Financial Advisors listed 54 UBS advisors, while 35 UBS advisors appeared among Forbes Top 200 Women Advisors. Ten UBS advisors were also named in Wall Street's “Top 40 Under 40” by OnWallStreet magazine.

In March, UBS hosted the Food for Thought Dinner on behalf of vulnerable students at the Bridge Academy, the flagship of UBS's UK Community Affairs program. The academy was co-founded with a GBP 1m donation by UBS and celebrates its 10th anniversary in September. The project has won several prestigious awards, including the UK's National CSR Award for Best Community Development.

1 Refer to the “Adjusted results“ paragraph at the end of this news release.
2 Excludes any net deferred tax expense / benefit from net profit attributable to shareholders and excludes any deferred tax assets that do not qualify as CET1 capital from tangible equity.
3 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.

Performance by business division and Corporate Center unit – reported and adjusted¹,²
    For the quarter ended 31.3.17
CHF million  

Wealth Management

 

Wealth Management Americas

  Personal & Corporate Banking  

Asset Management

  Investment Bank   CC – Services³   CC – Group ALM  

CC – Non-

core and Legacy Portfolio

  UBS
Operating income as reported   1,929   2,051   958   450   2,098   (18)   65   0   7,532
Operating income (adjusted)   1,929   2,051   958   450   2,098   (18)   65   0   7,532
                 
Operating expenses as reported   1,290   1,749   540   347   1,619   204   2   93   5,842
of which: personnel-related restructuring expenses⁴   1   0   2   2   18   92   0   0   116
of which: non-personnel-related restructuring expenses⁴   11   0   0   5   2   110   (1)   0   127
of which: restructuring expenses allocated from CC ­ Services⁴   76   22   17   13   57   (188)   0   2   0
Operating expenses (adjusted)   1,202   1,727   521   327   1,541   189   2   91   5,598
of which: expenses for provisions for litigation, regulatory and similar matters   3   33   0   0   0   (4)   0   1   33
 
Operating profit / (loss) before tax as reported   639   301   418   103   480   (222)   63   (93)   1,690
Operating profit / (loss) before tax (adjusted)   727   323   437   123   558   (207)   63   (91)   1,934
 
    For the quarter ended 31.3.16
CHF million  

Wealth Management

 

Wealth Management Americas

  Personal & Corporate Banking  

Asset Management

  Investment Bank   CC – Services³   CC – Group ALM  

CC – Non-

core and Legacy Portfolio

  UBS
Operating income as reported   1,885   1,889   963   468   1,879   (55)   (150)   (47)   6,833
of which: net foreign currency translation losses⁵                           (123)       (123)
Operating income (adjusted)   1,885   1,889   963   468   1,879   (55)   (27)   (47)   6,956
 
Operating expenses as reported   1,327   1,678   564   378   1,625   148   (2)   135   5,855
of which: personnel-related restructuring expenses⁴   2   0   0   1   17   107   0   1   128
of which: non-personnel-related restructuring expenses⁴   14   0   0   2   2   118   0   0   137
of which: restructuring expenses allocated from CC ­ Services⁴   62   33   23   17   97   (233)   0   1   0
Operating expenses (adjusted)   1,248   1,645   541   358   1,508   156   (2)   133   5,590
of which: expenses for provisions for litigation, regulatory and similar matters   0   18   (1)   0   (1)   0   0   23   39
 
Operating profit / (loss) before tax as reported   557   211   399   90   253   (203)   (148)   (183)   978
Operating profit / (loss) before tax (adjusted)   636   244   422   110   370   (211)   (25)   (181)   1,366

 

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, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the reporting period. 3 CC ­ Services operating expenses presented in this table are after service allocations to business divisions and other Corporate Center units. 4 Refer to “Note 16 Changes in organization and disposals” in the “Consolidated financial statements” section of the UBS Group first quarter 2017 report for more information. 5 Related to the disposal of foreign subsidiaries and branches.

UBS Group AG key figures            
     
    As of or for the quarter ended
CHF million, except where indicated   31.3.17   31.12.16   31.3.16
 
Group results            
Operating income   7,532   7,055   6,833
Operating expenses   5,842   6,308   5,855
Operating profit / (loss) before tax   1,690   746   978
Net profit / (loss) attributable to shareholders   1,269   636   707
Diluted earnings per share (CHF)¹   0.33   0.17   0.18
 
Key performance indicators²            
Profitability            
Return on tangible equity (%)   10.9   5.6   6.0
Cost / income ratio (%)   77.6   89.1   85.7
Growth            
Net profit growth (%)   79.5   (33.0)   (64.2)
Net new money growth for combined wealth management businesses (%)   3.9   (1.1)   5.9
Resources            
Common equity tier 1 capital ratio (fully applied, %)³   14.1   13.8   14.0
Going concern leverage ratio (fully applied, %)⁴   4.6   4.6    
 
Additional information            
Profitability            
Return on equity (RoE) (%)   9.5   4.8   5.1
Return on risk-weighted assets, gross (%)⁵   13.6   12.9   13.0
Return on leverage ratio denominator, gross (%)⁵   3.4   3.2   3.0
Resources            
Total assets   909,608   935,016   966,873
Equity attributable to shareholders   53,661   53,621   54,845
Common equity tier 1 capital (fully applied)³   31,311   30,693   29,853
Common equity tier 1 capital (phase-in)³   34,841   37,788   36,580
Risk-weighted assets (fully applied)³   221,785   222,677   213,558
Common equity tier 1 capital ratio (phase-in, %)³   15.6   16.8   16.9
Going concern capital ratio (fully applied, %)⁴   18.2   17.9    
Going concern capital ratio (phase-in, %)⁴   23.2   24.7    
Gone concern loss-absorbing capacity ratio (fully applied, %)⁴   15.0   13.2    
Leverage ratio denominator (fully applied)³   881,183   870,470   905,801
Common equity tier 1 leverage ratio (fully applied, %)³   3.6   3.5   3.3
Going concern leverage ratio (phase-in, %)⁴   5.8   6.4    
Gone concern leverage ratio (fully applied, %)⁴   3.8   3.4    
Liquidity coverage ratio (%)⁶   128   132   134
Other            
Invested assets (CHF billion)⁷   2,934   2,821   2,618
Personnel (full-time equivalents)   59,416   59,387   60,547
Market capitalization⁸   61,736   61,420   59,638
Total book value per share (CHF)⁸   14.45   14.44   14.74
Tangible book value per share (CHF)⁸   12.71   12.68   13.04

1 Refer to “Note 8 Earnings per share (EPS) and shares outstanding” in the “Consolidated financial statements” section of the UBS Group first quarter 2017 report for more information. 2 Refer to the “Measurement of performance” section of our Annual Report 2016 for the definitions of our key performance indicators. 3 Refer to the “Capital management” section of the UBS Group first quarter 2017 report for more information. 4 Based on the revised Swiss SRB framework that became effective on 1 July 2016. Refer to the “Capital management” section of the UBS Group first quarter 2017 report for more information. 5 Based on fully applied risk-weighted assets and leverage ratio denominator. 6 Refer to the “Balance sheet, liquidity and funding management” section of the UBS Group first quarter 2017 report for more information. 7 Includes invested assets for Personal & Corporate Banking. 8 Refer to the “UBS shares” section of the UBS Group first quarter 2017 report for more information.

Income statement                    
    For the quarter ended   % change from
CHF million   31.3.17   31.12.16   31.3.16   4Q16   1Q16
Net interest income   1,696   1,762   1,712   (4)   (1)
Credit loss (expense) / recovery   0   (24)   (3)   (100)   (100)
Net interest income after credit loss expense   1,696   1,738   1,709   (2)   (1)
Net fee and commission income   4,353   4,161   4,093   5   6
Net trading income   1,440   946   1,013   52   42
Other income   43   209   17   (79)   153
Total operating income   7,532   7,055   6,833   7   10
of which: net interest and trading income   3,136   2,708   2,725   16   15
Personnel expenses   4,060   3,868   3,924   5   3
General and administrative expenses   1,506   2,165   1,664   (30)   (9)
Depreciation and impairment of property, equipment and software   255   255   243   0   5
Amortization and impairment of intangible assets   21   21   23   0   (9)
Total operating expenses   5,842   6,308   5,855   (7)   0
Operating profit / (loss) before tax   1,690   746   978   127   73
Tax expense / (benefit)   375   109   270   244   39
Net profit / (loss)   1,315   637   708   106   86
Net profit / (loss) attributable to non-controlling interests   47   1   0        
Net profit / (loss) attributable to shareholders   1,269   636   707   100   79
     
Comprehensive income                    
Total comprehensive income   666   71   349   838   91
Total comprehensive income attributable to non-controlling interests   47   (12)   (50)        
Total comprehensive income attributable to shareholders   620   83   399   647   55
 
Comparison UBS Group AG (consolidated) versus UBS AG (consolidated)            
    As of or for the quarter ended 31.3.17   As of or for the quarter ended 31.12.16
CHF million, except where indicated   UBS Group AG

(consolidated)

  UBS AG

(consolidated)

  Difference

(absolute)

  UBS Group AG

(consolidated)

  UBS AG

(consolidated)

  Difference

(absolute)

       
Income statement                        
Operating income   7,532   7,560   (28)   7,055   7,118   (63)
Operating expenses   5,842   5,919   (77)   6,308   6,373   (65)
Operating profit / (loss) before tax   1,690   1,641   49   746   745   1
of which: Wealth Management   639   630   9   368   368   0
of which: Wealth Management Americas   301   286   15   339   338   1
of which: Personal & Corporate Banking   418   418   0   374   375   (1)
of which: Asset Management   103   103   0   144   144   0
of which: Investment Bank   480   443   37   306   304   2
of which: Corporate Center   (251)   (239)   (12)   (784)   (783)   (1)
of which: Services   (222)   (222)   0   (315)   (307)   (8)
of which: Group ALM   63   76   (13)   (144)   (150)   6
of which: Non-core and Legacy Portfolio   (93)   (93)   0   (325)   (326)   1
Net profit / (loss)   1,315   1,277   38   637   639   (2)
of which: net profit / (loss) attributable to shareholders   1,269   1,231   38   636   638   (2)
of which: net profit / (loss) attributable to preferred noteholders       46   (46)       0   0
of which: net profit / (loss) attributable to non-controlling interests   47   1   46   1   1   0
 
Statement of comprehensive income                        
Other comprehensive income   (649)   (651)   2   (566)   (566)   0
of which: attributable to shareholders   (649)   (652)   3   (553)   (553)   0
of which: attributable to preferred noteholders       (2)   2       (12)   12
of which: attributable to non-controlling interests   0   2   (2)   (13)   (1)   (12)
Total comprehensive income   666   626   40   71   73   (2)
of which: attributable to shareholders   620   579   41   83   85   (2)
of which: attributable to preferred noteholders       44   (44)       (12)   12
of which: attributable to non-controlling interests   47   2   45   (12)   0   (12)
 
Balance sheet                        
Total assets   909,608   910,924   (1,316)   935,016   935,353   (337)
Total liabilities   855,268   858,255   (2,987)   880,714   881,009   (295)
Total equity   54,340   52,669   1,671   54,302   54,343   (41)
of which: equity attributable to shareholders   53,661   51,990   1,671   53,621   53,662   (41)
of which: equity attributable to preferred noteholders       641   (641)       642   (642)
of which: equity attributable to non-controlling interests   679   38   641   682   40   642
 
Capital information                        
Common equity tier 1 capital (fully applied)   31,311   33,137   (1,826)   30,693   32,447   (1,754)
Common equity tier 1 capital (phase-in)   34,841   36,629   (1,788)   37,788   39,474   (1,686)
Going concern capital (fully applied)   40,317   36,919   3,398   39,844   36,294   3,550
Going concern capital (phase-in)   51,658   47,344   4,314   55,593   51,084   4,509
Risk-weighted assets (fully applied)   221,785   222,207   (422)   222,677   223,232   (555)
Common equity tier 1 capital ratio (fully applied, %)   14.1   14.9   (0.8)   13.8   14.5   (0.7)
Common equity tier 1 capital ratio (phase-in, %)   15.6   16.4   (0.8)   16.8   17.5   (0.7)
Going concern capital ratio (fully applied, %)   18.2   16.6   1.6   17.9   16.3   1.6
Going concern capital ratio (phase-in, %)   23.2   21.2   2.0   24.7   22.6   2.1
Gone concern loss-absorbing capacity ratio (fully applied, %)   15.0   15.4   (0.4)   13.2   13.3   (0.1)
Leverage ratio denominator (fully applied)   881,183   882,670   (1,487)   870,470   870,942   (472)
Common equity tier 1 leverage ratio (fully applied, %)   3.6   3.8   (0.2)   3.5   3.7   (0.2)
Going concern leverage ratio (fully applied, %)   4.6   4.2   0.4   4.6   4.2   0.4
Going concern leverage ratio (phase-in, %)   5.8   5.4   0.4   6.4   5.8   0.6
Gone concern leverage ratio (fully applied, %)   3.8   3.9   (0.1)   3.4   3.4   0.0
 

UBS’s first-quarter 2017 report, news release and slide presentation will be available from 06:45 CEST on Friday, 28 April 2017, at www.ubs.com/quarterlyreporting.

UBS will hold a presentation of its first-quarter 2017 results on Friday, 28 April 2017. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Kirt Gardner, Group Chief Financial Officer, Caroline Stewart, Global Head of Investor Relations, and Hubertus Kuelps, Group Head of Communications & Branding.

Time

• 09:00–11:00 CEST

• 08:00–10:00 BST

• 03:00–05:00 US EDT

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 the ongoing execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator, liquidity coverage ratio and other financial resources, 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 the extent to which the Swiss Financial Market Supervisory Authority (FINMA) will 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, completing the implementation of a service company model, 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, to proposals in Switzerland and other jurisdictions for mandatory structural reform of banks or systemically important institutions or to other external developments, and the extent to which such changes will 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) UBS's ability to implement new technologies and business methods, including digital services and technologies and ability to successfully compete with both existing and new financial service providers, some of which may not be regulated to the same extent; (xv) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xvi) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks, 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 2016. 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.

Adjusted results

In addition to reporting our results in accordance with International Financial Reporting Standards (IFRS), we report adjusted results that exclude items that management believes are not representative of the underlying performance of our businesses. Such adjusted results are non-GAAP financial measures as defined by SEC regulations. For the purpose of determining adjusted results for the first quarter of 2017, we excluded net restructuring expenses of CHF 244 million. For the first quarter of 2016, we excluded net foreign currency translation losses of CHF 123 million and net restructuring expenses of CHF 265 million. On this adjusted basis, profit before tax increased by CHF 568 million or 42% to CHF 1,934 million for the first quarter 2017, driven by CHF 576 million or 8% higher operating income.

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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Switzerland: +41-44-234 41 00
or
Media contact
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 57
APAC: +852-297-1 82 00

Contacts

UBS Group AG and UBS AG
Investor contact
Switzerland: +41-44-234 41 00
or
Media contact
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 57
APAC: +852-297-1 82 00