3Q19 net profit USD 1,049m

Reported PBT USD 1.3bn; adjusted1 PBT USD 1.5bn

Reported RoCET12 12.1% for 3Q19 and 13.8% for 9M19

CET1 capital ratio 13.1% and CET1 leverage ratio 3.8%; tier 1 leverage ratio3 5.6%

Invested assets of USD 3.4trn in GWM and AM combined, with NNM of USD 49bn

UBS confirmed leader in Dow Jones Sustainability Index for fifth year running

ZURICH--()--Regulatory News:

In a challenging environment, UBS (NYSE:UBS) (SWX:UBSN) delivered solid third quarter 2019 results. Reported profit before tax (PBT) was USD 1,345m, down 21% year over year (YoY), and adjusted PBT decreased by 18% to USD 1,459m. The Group's adjusted cost/income ratio was 79.1%. Net profit attributable to shareholders was USD 1,049m, down 16% YoY. Reported return on CET1 capital2 (RoCET1) was 12.1%.

Global Wealth Management (GWM) adjusted PBT was USD 919m; invested assets reached a new high of USD 2,502bn; recurring net fee income increased from the prior quarter. Personal & Corporate Banking adjusted PBT was USD 362m; net new business volume growth in personal banking was strong at 3.0% (3.1% in CHF). Asset Management (AM) adjusted PBT was USD 135m with higher operating income YoY; invested assets rose to USD 858bn mainly on strong net new money (NNM) inflows. The Investment Bank (IB) delivered adjusted PBT of USD 203m; adjusted annualized RoAE was 6.6%. Corporate Center adjusted loss before tax was USD 160m.

UBS’s capital position remains strong, with a CET1 capital ratio of 13.1%, a CET1 leverage ratio of 3.8%, a fully applied tier 1 leverage ratio3 of 5.6%, and total loss-absorbing capacity of USD 88bn. During the third quarter of 2019, UBS repurchased USD 306m of its shares under its share repurchase program; year-to-date repurchases were USD 604m. Equity attributable to shareholders increased by USD 3bn, of which USD 2bn related to other comprehensive income from defined benefit plans, predominantly reflecting the recognition of the Swiss pension plan surplus that had no impact on CET1 capital.

"We delivered solid results generating attractive returns, considering the market conditions. We continue to take actions to grow profitability and further capitalize on the strengths of our diversified franchise, delivering long-term value for our clients and shareholders."
Sergio P. Ermotti, Group Chief Executive Officer

1 Adjusted results are non-GAAP financial measures defined by SEC regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.

Outlook

Stimulus measures and easing of monetary policy by central banks may help to mitigate slowing global economic growth over the medium term. Geopolitical tensions and trade disputes continue to impact investor confidence. Positive momentum toward resolving these issues would likely improve confidence and the economic outlook.

Low and persistent negative interest rates and expectations of further monetary easing will adversely affect net interest income compared with last year. Our regional and business diversification, along with actions that we are taking, will help to mitigate these headwinds. Recurring revenues should also benefit from higher invested assets.

As we execute on our strategy, we are balancing investments for growth while managing for efficiency. We remain committed to delivering on our capital return objectives and creating sustainable long-term value for our shareholders.

Third quarter 2019 performance overview

UBS’s third quarter adjusted1 PBT was USD 1,459m (down 18% YoY), and reported PBT was USD 1,345m (down 21% YoY). Adjusted figures this quarter exclude USD 69m of restructuring expenses, as well as USD 46m of net foreign currency translation losses. The adjusted cost/income ratio was 79.1%. Net profit attributable to shareholders was USD 1,049m (down 16% YoY), with diluted earnings per share of USD 0.28 (down 14% YoY). Reported return on CET1 capital2 was 12.1%.

Global Wealth Management (GWM) adjusted PBT USD 919m, (2%) YoY

Recurring net fee income rose for the second quarter in a row on higher invested assets, but was down YoY. Transaction-based income increased by 14%, while net interest income decreased by 3%. Mandate penetration was stable at 34.4% of invested assets. Loans were stable sequentially, as positive net new loans were largely offset by currency effects. The adjusted cost/income ratio was 77.7%. Net new money was USD 15.7bn; the net new money growth rate was 2.5%. Adjusted net margin was 15bps.

Personal & Corporate Banking (P&C) adjusted PBT CHF 360m, (10%) YoY

Operating income decreased despite higher transaction-based income, mainly on an increase in credit loss expenses, which was primarily driven by a provision on a single exposure, as well as lower net interest income. Adjusted operating expenses were unchanged despite continued investments in technology. The adjusted cost/income ratio was 58.7%. Business momentum remained strong, with Personal Banking net new business volume growth of 3.1%; loans also grew sequentially. Net interest margin was 150bps.

Asset Management (AM) adjusted PBT USD 135m, +6% YoY

Adjusted PBT grew YoY for the fourth consecutive quarter. For the quarter, net management fees increased by USD 12m, reflecting higher average invested assets. Performance fees decreased by USD 3m. The adjusted cost/income ratio improved to 71.1%. Invested assets rose to USD 858bn, and net new money inflows excluding money markets were USD 24.1bn.

Investment Bank (IB) adjusted PBT USD 203m, (59%) YoY

Lower revenues were driven by Corporate Client Solutions (down 19%), in part due to a reduction in global fee pools, as well as a decrease in Equities (down 7%) and FX, Rates & Credit (down 1%), both partly reflecting a strong prior-year quarter. Operating expenses increased, partly as the third quarter of 2018 included net releases for litigation expenses. The adjusted cost/income ratio was 88.4%. Adjusted return on attributed equity was 6.6%. Associated with structural changes in the Investment Bank, restructuring expenses in the fourth quarter of 2019 are expected to be around USD 100m.

Corporate Center adjusted loss before tax was USD 160m.

1 Adjusted results are non-GAAP financial measures defined by SEC regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.

Commitment to sustainable performance

UBS is committed to creating long-term value for its clients, employees, investors and society. This is illustrated by the ongoing recognition UBS receives for its activities and capabilities related to sustainable investing, philanthropy, environmental and human rights policies governing client and supplier relationships, the firm's environmental footprint and community investment.

Confirmed leader in sustainability

UBS was ranked first in the Diversified Financial Services and Capital Markets Industry of the Dow Jones Sustainability Index (DJSI) for the fifth year in a row. UBS is not only the industry leader in the overall assessment; it also tops all three dimensions: Economic, Environmental and Social. The index, in which more than 3,500 of the world's largest companies are covered, is the most widely recognized corporate sustainability rating globally.

UBS is proud to be among the founding signatories of the Principles for Responsible Banking, as announced in September. With these principles, leading banks around the globe, holding a collective USD 47trn in assets representing one third of the global banking sector, pledged to strategically align their businesses with the UN Sustainable Development Goals (UN SDGs) and the Paris Agreement on Climate Change, and increase their contribution to the achievement of both.

Providing innovative sustainable and impact investing solutions

In September, UBS announced it had raised USD 225m from its private clients for the KKR Global Impact Fund, marking a significant step toward meeting its commitment to allocate USD 5bn of client assets to new impact investments dedicated to the UN SDGs by the end of 2021. The sum represents one of the largest investments to date in the private equity impact investment vehicle.

Sustainable investment solutions include UBS's award-winning Climate Aware strategy, which recently reached USD 2bn in invested assets, underpinned by its active corporate engagement program that is helping to drive positive change toward a low-carbon economy. Also, with the successful final close of UBS Clean Energy Infrastructure Switzerland 2, the firm has raised a total of CHF 472m in commitments to the second offering of its pioneering investment solution, providing institutional investors access to a diversified portfolio of investments in growth areas of sustainable energy production, energy efficiency and supply infrastructure with a focus on Switzerland.

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.

1 Adjusted results are non-GAAP financial measures defined by SEC regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.
2 Return on CET1 capital. Net profit attributable to shareholders (annualized as applicable) divided by average common equity tier 1 capital.
3 Going concern ratio under Swiss SRB rules applicable as of 1 January 2020.

Performance of our business divisions and Corporate Center – reported and adjusted1,2

 

 

For the quarter ended 30.9.19

USD million

 

Global Wealth Management

Personal &

Corporate

Banking

Asset

Management

Investment Bank

Corporate Center3

UBS

Operating income as reported

 

4,142

919

465

1,752

(191)

7,088

of which: net foreign currency translations losses4

 

 

 

 

 

(46)

(46)

Operating income (adjusted)

 

4,142

919

465

1,752

(145)

7,133

 

 

 

 

 

 

 

 

Operating expenses as reported

 

3,248

565

341

1,580

9

5,743

of which: personnel-related restructuring expenses5

 

0

0

1

1

44

46

of which: non-personnel-related restructuring expenses5

 

0

0

2

1

20

23

of which: restructuring expenses allocated from Corporate Center5,6

 

25

8

8

28

(70)

0

Operating expenses (adjusted)

 

3,223

557

331

1,549

15

5,674

of which: net expenses for litigation, regulatory and similar matters7

 

69

0

0

0

(4)

65

 

 

 

 

 

 

 

 

Operating profit / (loss) before tax as reported

 

894

354

124

172

(200)

1,345

Operating profit / (loss) before tax (adjusted)

 

919

362

135

203

(160)

1,459

 

 

 

 

 

 

 

 

 

 

For the quarter ended 30.9.18

USD million

 

Global Wealth Management

Personal &

Corporate

Banking

Asset

Management

Investment Bank

Corporate Center3

UBS

Operating income as reported

 

4,084

972

457

1,944

(29)

7,428

of which: gains on sale of real estate

 

 

 

 

 

31

31

of which: gains on sale of subsidiaries and businesses

 

 

 

 

 

25

25

Operating income (adjusted)

 

4,084

972

457

1,944

(85)

7,371

 

 

 

 

 

 

 

 

Operating expenses as reported

 

3,220

574

339

1,490

100

5,724

of which: personnel-related restructuring expenses5

 

11

1

2

1

44

60

of which: non-personnel-related restructuring expenses5

 

0

0

1

3

59

63

of which: restructuring expenses allocated from Corporate Center5,6

 

61

8

6

32

(106)

0

Operating expenses (adjusted)

 

3,148

565

330

1,455

103

5,601

of which: net expenses for litigation, regulatory and similar matters7

 

28

0

0

(59)

34

2

 

 

 

 

 

 

 

 

Operating profit / (loss) before tax as reported

 

864

398

118

453

(128)

1,704

Operating profit / (loss) before tax (adjusted)

 

936

407

127

489

(188)

1,770

1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 Prior-year comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to “Note 2 Segment reporting” in the “Consolidated financial statements” section of the UBS Group third quarter 2019 report for more information. Comparatives may additionally differ as a result of 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 Corporate Center operating expenses presented in this table are after service allocations to business divisions. 4 Related to the disposal or closure of foreign operations. 5 Reflects restructuring expenses related to legacy cost programs as well as expenses for new restructuring initiatives. 6 Prior periods may include allocations (to) / from other business divisions. 7 Reflects the net increase in / (release of) provisions for litigation, regulatory and similar matters recognized in the income statement. Refer to ”Note 16 Provisions and contingent liabilities” in the “Consolidated financial statements” section of the UBS Group third quarter 2019 report for more information. Also includes recoveries from third parties (third quarter of 2019: USD 2 million; third quarter of 2018: USD 0 million).

Performance of our business divisions and Corporate Center – reported and adjusted1,2

 

 

Year-to-date 30.9.19

USD million

 

Global Wealth Management

Personal &

Corporate

Banking

Asset

Management

Investment Bank

Corporate Center3

UBS

Operating income as reported

 

12,202

2,834

1,386

5,588

(174)

21,838

of which: net foreign currency translations losses4

 

 

 

 

 

(35)

(35)

Operating income (adjusted)

 

12,202

2,834

1,386

5,588

(139)

21,873

 

 

 

 

 

 

 

 

Operating expenses as reported

 

9,571

1,703

1,035

4,782

97

17,188

of which: personnel-related restructuring expenses5

 

0

0

6

3

80

89

of which: non-personnel-related restructuring expenses5

 

0

0

6

5

40

50

of which: restructuring expenses allocated from Corporate Center5,6

 

48

14

15

49

(126)

0

Operating expenses (adjusted)

 

9,524

1,690

1,008

4,725

103

17,049

of which: net expenses for litigation, regulatory and similar matters7

 

88

0

0

(1)

(26)

61

 

 

 

 

 

 

 

 

Operating profit / (loss) before tax as reported

 

2,631

1,131

352

806

(271)

4,650

Operating profit / (loss) before tax (adjusted)

 

2,678

1,145

378

864

(242)

4,823

 

 

 

 

 

 

 

 

 

 

Year-to-date 30.9.18

USD million

 

Global Wealth Management

Personal &

Corporate

Banking

Asset

Management

Investment Bank

Corporate Center3

UBS

Operating income as reported

 

12,656

2,883

1,384

6,520

(203)

23,240

of which: gains on sale of real estate

 

 

 

 

 

31

31

of which: gains on sale of subsidiaries and businesses

 

 

 

 

 

25

25

Operating income (adjusted)

 

12,656

2,883

1,384

6,520

(259)

23,184

 

 

 

 

 

 

 

 

Operating expenses as reported

 

9,729

1,731

1,064

4,956

251

17,730

of which: personnel-related restructuring expenses5

 

17

3

18

15

138

191

of which: non-personnel-related restructuring expenses5

 

15

0

7

8

152

182

of which: restructuring expenses allocated from Corporate Center5,6

 

149

26

21

97

(293)

0

of which: gain related to changes to the Swiss pension plan8

 

(66)

(38)

(10)

(5)

(122)

(241)

Operating expenses (adjusted)

 

9,612

1,739

1,028

4,841

377

17,599

of which: net expenses for litigation, regulatory and similar matters7

 

113

(1)

0

(59)

70

123

 

 

 

 

 

 

 

 

Operating profit / (loss) before tax as reported

 

2,927

1,152

320

1,564

(454)

5,510

Operating profit / (loss) before tax (adjusted)

 

3,044

1,144

356

1,679

(637)

5,585

1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 Prior-year comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to “Note 2 Segment reporting” in the “Consolidated financial statements” section of the UBS Group third quarter 2019 report for more information. Comparatives may additionally differ as a result of 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 Corporate Center operating expenses presented in this table are after service allocations to business divisions. 4 Related to the disposal or closure of foreign operations. 5 Reflects restructuring expenses related to legacy cost programs as well as expenses for new restructuring initiatives. 6 Prior periods may include allocations (to) / from other business divisions. 7 Reflects the net increase in / (release of) provisions for litigation, regulatory and similar matters recognized in the income statement. Refer to ”Note 16 Provisions and contingent liabilities” in the “Consolidated financial statements” section of the UBS Group third quarter 2019 report for more information. Also includes recoveries from third parties of USD 10 million and USD 28 million for the first nine months of 2019 and 2018, respectively. 8 Changes to the pension fund of UBS in Switzerland in the first quarter of 2018 resulted in a reduction in the pension obligation recognized by UBS. As a consequence, a pre-tax gain of USD 241 million was recognized in the income statement in the first quarter of 2018, with no overall effect on total equity. Refer to “Note 29 Pension and other post-employment benefit plans” in the “Consolidated financial statements” section of our Annual Report 2018 for more information.

Our key figures

 

 

 

 

 

 

 

 

 

 

As of or for the quarter ended

 

As of or year-to-date

USD million, except where indicated

 

30.9.19

30.6.19

31.12.18

30.9.18

 

30.9.19

30.9.18

Group results

 

 

 

 

 

 

 

 

Operating income

 

7,088

7,532

6,972

7,428

 

21,838

23,240

Operating expenses

 

5,743

5,773

6,492

5,724

 

17,188

17,730

Operating profit / (loss) before tax

 

1,345

1,759

481

1,704

 

4,650

5,510

Net profit / (loss) attributable to shareholders

 

1,049

1,392

315

1,253

 

3,582

4,201

Diluted earnings per share (USD)1

 

0.28

0.37

0.08

0.33

 

0.95

1.09

Profitability and growth2

 

 

 

 

 

 

 

 

Return on equity (%)3

 

7.7

10.4

2.4

9.7

 

8.9

10.7

Return on tangible equity (%)4

 

8.7

11.9

2.7

11.1

 

10.1

12.2

Return on common equity tier 1 capital (%)5

 

12.1

16.0

3.7

14.5

 

13.8

16.3

Return on risk-weighted assets, gross (%)6

 

10.8

11.4

10.8

11.6

 

11.0

12.1

Return on leverage ratio denominator, gross (%)6

 

3.1

3.3

3.1

3.3

 

3.2

3.4

Cost / income ratio (%)7

 

80.6

76.5

92.4

77.0

 

78.5

76.1

Adjusted cost / income ratio (%)8

 

79.1

76.1

92.2

75.9

 

77.7

75.7

Effective tax rate (%)

 

21.9

20.8

34.4

26.3

 

23.0

23.6

Net profit growth (%)9

 

(16.2)

0.7

 

27.6

 

(14.7)

24.1

Resources

 

 

 

 

 

 

 

 

Total assets

 

973,118

968,728

958,489

950,192

 

973,118

950,192

Equity attributable to shareholders

 

56,187

53,180

52,928

52,094

 

56,187

52,094

Common equity tier 1 capital10

 

34,673

34,948

34,119

34,816

 

34,673

34,816

Risk-weighted assets10

 

264,626

262,135

263,747

257,041

 

264,626

257,041

Common equity tier 1 capital ratio (%)10

 

13.1

13.3

12.9

13.5

 

13.1

13.5

Going concern capital ratio (%)10

 

19.2

19.1

17.5

17.9

 

19.2

17.9

Total loss-absorbing capacity ratio (%)10

 

33.3

33.3

31.7

31.8

 

33.3

31.8

Leverage ratio denominator10

 

901,914

911,379

904,598

915,066

 

901,914

915,066

Common equity tier 1 leverage ratio (%)10

 

3.84

3.83

3.77

3.80

 

3.84

3.80

Going concern leverage ratio (%)10

 

5.6

5.5

5.1

5.0

 

5.6

5.0

Total loss-absorbing capacity leverage ratio (%)10

 

9.8

9.6

9.3

8.9

 

9.8

8.9

Liquidity coverage ratio (%)11

 

138

145

136

135

 

138

135

Other

 

 

 

 

 

 

 

 

Invested assets (USD billion)12

 

3,422

3,381

3,101

3,330

 

3,422

3,330

Personnel (full-time equivalents)

 

67,634

66,922

66,888

65,556

 

67,634

65,556

Market capitalization13,14

 

41,210

43,491

45,907

58,856

 

41,210

58,856

Total book value per share (USD)13

 

15.47

14.53

14.35

13.98

 

15.47

13.98

Total book value per share (CHF)13,15

 

15.45

14.18

14.11

13.72

 

15.45

13.72

Tangible book value per share (USD)13

 

13.67

12.72

12.55

12.25

 

13.67

12.25

Tangible book value per share (CHF)13,15

 

13.64

12.42

12.33

12.02

 

13.64

12.02

1 Refer to “Note 9 Earnings per share (EPS) and shares outstanding” in the “Consolidated financial statements” section of the UBS Group third quarter 2019 report for more information. 2 Refer to the “Performance targets and measurement” section of our Annual Report 2018 for more information about our performance targets. 3 Calculated as net profit attributable to shareholders (annualized as applicable) divided by average equity attributable to shareholders. 4 Calculated as net profit attributable to shareholders (annualized as applicable) divided by average equity attributable to shareholders less average goodwill and intangible assets. Effective 1 January 2019, the definition of the numerator for return on tangible equity has been revised to align with numerators for return on equity and return on common equity tier 1 capital; i.e., we no longer adjust for amortization and impairment of goodwill and intangible assets. Prior periods have been restated. 5 Calculated as net profit attributable to shareholders (annualized as applicable) divided by average common equity tier 1 capital. 6 Calculated as operating income before credit loss expense or recovery (annualized as applicable) divided by average risk-weighted assets and average leverage ratio denominator, respectively. 7 Calculated as operating expenses divided by operating income before credit loss expense or recovery. 8 Calculated as adjusted operating expenses divided by adjusted operating income before credit loss expense or recovery. 9 Calculated as change in net profit attributable to shareholders from continuing operations between current and comparison periods divided by net profit attributable to shareholders from continuing operations of comparison period. 10 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the “Capital management” section of the UBS Group third quarter 2019 report for more information. 11 Refer to the “Balance sheet, liquidity and funding management” section of the UBS Group third quarter 2019 report for more information. 12 Includes invested assets for Global Wealth Management, Asset Management and Personal & Corporate Banking. 13 Refer to “UBS shares” in the “Capital management” section of the UBS Group third quarter 2019 report for more information. 14 Beginning with our Annual Report 2018, the calculation of market capitalization has been amended to reflect total shares outstanding multiplied by the share price at the end of the period. The calculation was previously based on total shares issued multiplied by the share price at the end of the period. Market capitalization has been reduced by USD 2.1 billion as of 31 December 2018 and by USD 2.0 billion as of 30 September 2018 as a result. 15 Total book value per share and tangible book value per share in Swiss francs are calculated based on a translation of equity under our US dollar presentation currency. As a consequence of the restatement to a US dollar presentation currency, amounts may differ from those originally published in our quarterly and annual reports.

Income statement

 

 

 

 

 

 

 

 

 

 

 

 

For the quarter ended

 

% change from

 

Year-to-date

USD million

 

30.9.19

30.6.19

30.9.18

 

2Q19

3Q18

 

30.9.19

30.9.18

Net interest income

 

1,090

1,026

1,182

 

6

(8)

 

3,239

3,822

Other net income from financial instruments measured at fair value through profit or loss

 

1,587

1,939

1,689

 

(18)

(6)

 

5,461

5,663

Credit loss (expense) / recovery

 

(38)

(12)

(10)

 

208

289

 

(70)

(64)

Fee and commission income

 

4,805

4,907

4,875

 

(2)

(1)

 

14,253

14,897

Fee and commission expense

 

(396)

(434)

(409)

 

(9)

(3)

 

(1,238)

(1,264)

Net fee and commission income

 

4,409

4,474

4,466

 

(1)

(1)

 

13,015

13,633

Other income

 

39

105

101

 

(63)

(61)

 

193

187

Total operating income

 

7,088

7,532

7,428

 

(6)

(5)

 

21,838

23,240

Personnel expenses

 

3,987

4,153

3,936

 

(4)

1

 

12,182

12,293

General and administrative expenses

 

1,308

1,175

1,462

 

11

(10)

 

3,670

4,504

Depreciation and impairment of property, equipment and software

 

432

427

310

 

1

39

 

1,285

885

Amortization and impairment of intangible assets

 

16

18

15

 

(7)

7

 

50

48

Total operating expenses

 

5,743

5,773

5,724

 

(1)

0

 

17,188

17,730

Operating profit / (loss) before tax

 

1,345

1,759

1,704

 

(24)

(21)

 

4,650

5,510

Tax expense / (benefit)

 

294

366

448

 

(20)

(34)

 

1,067

1,303

Net profit / (loss)

 

1,051

1,393

1,256

 

(25)

(16)

 

3,582

4,207

Net profit / (loss) attributable to non-controlling interests

 

1

1

3

 

34

(60)

 

0

6

Net profit / (loss) attributable to shareholders

 

1,049

1,392

1,253

 

(25)

(16)

 

3,582

4,201

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

Total comprehensive income

 

3,146

2,473

809

 

27

289

 

6,658

3,022

Total comprehensive income attributable to non-controlling interests

 

(5)

(5)

4

 

1

 

 

(8)

4

Total comprehensive income attributable to shareholders

 

3,151

2,478

805

 

27

291

 

6,666

3,018

Comparison between UBS Group AG consolidated and UBS AG consolidated

 

 

 

 

 

 

As of or for the quarter ended 30.9.19

 

As of or for the quarter ended 30.6.19

 

As of or for the quarter ended 31.12.18

USD million, except where indicated

 

UBS Group AG

consolidated

UBS AG

consolidated

Difference

(absolute)

 

UBS Group AG

consolidated

UBS AG

consolidated

Difference

(absolute)

 

UBS Group AG

consolidated

UBS AG

consolidated

Difference

(absolute)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income statement

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

7,088

7,187

(100)

 

7,532

7,632

(100)

 

6,972

7,083

(111)

Operating expenses

 

5,743

5,942

(199)

 

5,773

5,975

(202)

 

6,492

6,667

(176)

Operating profit / (loss) before tax

 

1,345

1,245

100

 

1,759

1,657

102

 

481

416

65

of which: Global Wealth Management

 

894

877

17

 

874

857

17

 

327

316

11

of which: Personal & Corporate Banking

 

354

354

0

 

390

392

(2)

 

644

645

(1)

of which: Asset Management

 

124

124

0

 

124

124

0

 

106

105

1

of which: Investment Bank

 

172

165

7

 

427

419

8

 

(78)

(79)

1

of which: Corporate Center

 

(200)

(275)

75

 

(56)

(135)

79

 

(518)

(571)

53

Net profit / (loss)

 

1,051

969

82

 

1,393

1,308

85

 

315

273

42

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

 

1,049

967

82

 

1,392

1,307

85

 

315

272

42

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

 

1

1

0

 

1

1

0

 

1

1

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

2,095

1,274

821

 

1,080

1,076

4

 

893

895

(2)

of which: attributable to shareholders

 

2,101

1,280

821

 

1,086

1,082

4

 

892

894

(2)

of which: attributable to non-controlling interests

 

(6)

(6)

0

 

(6)

(6)

0

 

1

1

0

Total comprehensive income

 

3,146

2,243

903

 

2,473

2,384

89

 

1,208

1,168

41

of which: attributable to shareholders

 

3,151

2,248

903

 

2,478

2,389

89

 

1,207

1,166

41

of which: attributable to non-controlling interests

 

(5)

(5)

0

 

(5)

(5)

0

 

2

2

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

973,118

972,048

1,071

 

968,728

968,645

83

 

958,489

958,055

434

Total liabilities

 

916,768

917,271

(503)

 

915,378

916,116

(738)

 

905,386

905,624

(238)

Total equity

 

56,351

54,776

1,574

 

53,350

52,529

821

 

53,103

52,432

671

of which: equity attributable to shareholders

 

56,187

54,613

1,574

 

53,180

52,359

821

 

52,928

52,256

671

of which: equity attributable to non-controlling interests

 

163

163

0

 

170

170

0

 

176

176

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital information

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital

 

34,673

35,211

(538)

 

34,948

35,881

(933)

 

34,119

34,608

(489)

Going concern capital

 

50,702

46,895

3,807

 

49,993

46,500

3,493

 

46,279

42,413

3,865

Risk-weighted assets

 

264,626

263,777

849

 

262,135

261,364

772

 

263,747

262,840

907

Common equity tier 1 capital ratio (%)

 

13.1

13.3

(0.2)

 

13.3

13.7

(0.4)

 

12.9

13.2

(0.2)

Going concern capital ratio (%)

 

19.2

17.8

1.4

 

19.1

17.8

1.3

 

17.5

16.1

1.4

Total loss-absorbing capacity ratio (%)

 

33.3

32.9

0.4

 

33.3

33.0

0.3

 

31.7

31.3

0.5

Leverage ratio denominator

 

901,914

901,926

(11)

 

911,379

911,601

(221)

 

904,598

904,458

140

Common equity tier 1 leverage ratio (%)

 

3.84

3.90

(0.06)

 

3.83

3.94

(0.10)

 

3.77

3.83

(0.05)

Going concern leverage ratio (%)

 

5.6

5.2

0.4

 

5.5

5.1

0.4

 

5.1

4.7

0.4

Total loss-absorbing capacity leverage ratio (%)

 

9.8

9.6

0.2

 

9.6

9.5

0.1

 

9.3

9.1

0.2

UBS’s third quarter 2019 report, news release and slide presentation will be available from 06:45 CEST on Tuesday, 22 October 2019, at www.ubs.com/quarterlyreporting.

UBS will hold a presentation of its third quarter 2019 results on Tuesday, 22 October 2019. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Kirt Gardner, Group Chief Financial Officer, Martin Osinga, Investor Relations, and Mark Hengel, 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 (LRD), including to counteract regulatory-driven increases, liquidity coverage ratio and other financial resources, and the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (ii) the continuing low or negative interest rate environment in Switzerland and other jurisdictions, 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, the European Union and other financial centers that have imposed, or resulted in, or may do so in the future, more stringent or entity-specific 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 will or would have on UBS’s business activities; (v) the degree to which UBS is successful in implementing further changes to its legal structure to improve its resolvability and meet related regulatory requirements 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, 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; (vi) UBS’s ability to maintain and improve its systems and controls for the detection and prevention of money laundering and compliance with sanctions to meet evolving regulatory requirements and expectations, in particular in the US; (vii) the uncertainty arising from the timing and nature of the UK’s exit from the EU; (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 regulations 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, potentially large fines or monetary penalties, or the 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 as well as the amount of capital available for return to shareholders; (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; (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 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 2018. 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 adjusted results are calculated on the basis of unrounded figures. Information about absolute changes between reporting periods, which is provided in text and that can be derived from figures displayed in the tables, is calculated on a rounded basis.

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.

Contacts

UBS Group AG and UBS AG

Investor contact
Switzerland: +41-44-234 41 00

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

www.ubs.com

Contacts

UBS Group AG and UBS AG

Investor contact
Switzerland: +41-44-234 41 00

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

www.ubs.com