UBS: 1Q20 Net Profit USD 1.6bn, 17.7% RoCET1

PBT USD 2.0bn, +30% YoY and net profit +40% YoY; return on CET1 capital¹ 17.7%; cost/income ratio 72.3%; diluted EPS USD 0.43

Strong capital position with CET1 capital ratio 12.8%; CET1 leverage ratio² 3.8%; tier 1 leverage ratio^2,3 5.4%, all excluding any regulatory relief

In highly volatile and uncertain markets, UBS remained a reliable partner to its clients, extending credit well beyond government-sponsored programs

UBS demonstrated strong front-to-back operational resilience, facilitating uninterrupted connectivity with a substantial increase in volumes and client interactions

UBS is fully committed to playing its part in mitigating the effects of the COVID-19 crisis; supporting employees, clients and communities

ZURICH--(BUSINESS WIRE)--Regulatory News:

UBS's (NYSE:UBS) (SWX:UBSN) first quarter 2020 results reflected high client transaction volumes in Global Wealth Management and the Investment Bank. Operating income grew by 10% despite a rise in credit loss expenses, and operating expenses increased by 4%. Profit before tax (PBT) was USD 2,008m, up 30% year over year (YoY), while the Group’s cost/income ratio improved 6 percentage points to 72.3%. Net profit attributable to shareholders was USD 1,595m, up 40% YoY. Return on CET1 capital¹ (RoCET1) was 17.7%. The results were driven by strong performances across all businesses, and without the help of special items.

"As a result of years of disciplined strategic execution, risk management and sustained technology investments, we enter these turbulent times from a position of strength. This quarter, UBS performed at its best in all dimensions, and demonstrated the true character of our organization and our people in that we were able to support our clients with advice, credit and liquidity at the time they need it the most and provide support to the communities in which we operate, while creating value for shareholders."
Sergio P. Ermotti, Group Chief Executive Officer

As previously announced, UBS no longer reports adjusted results in its financial reports, as the effects of the legacy cost programs have been phased out and all of its financial targets are now based on reported results.

Global Wealth Management (GWM) PBT was USD 1,218m, up 41% YoY on excellent operating income reflecting client activity and progress on strategic levers; double-digit PBT growth in all regions. Personal & Corporate Banking PBT was USD 334m, down 14% YoY, reflecting credit loss expenses (CLE) that offset solid operating performance. Asset Management (AM) PBT was up 52% YoY to USD 157m, with 11% positive operating leverage and very strong net inflows. The Investment Bank (IB) delivered PBT of USD 709m, with the increase driven by significantly higher client activity in its Global Markets business and good Global Banking results; annualized return on attributed equity was 22.8%. Group Functions loss before tax was USD 410m, mainly due to negative income from accounting asymmetries that are expected to mean-revert to zero, and valuation losses.

UBS's first quarter 2020 results included credit loss expenses totaling USD 268m; this represents 5bps of credit cost on the Group’s loan portfolio⁴.

UBS’s capital position remains strong, with capital ratios consistent with its guidance and comfortably above regulatory requirements. Not factoring in any temporary concessions or relief², UBS's CET1 capital ratio was 12.8% (guidance: ~13%, or 12.7-13.3%), CET1 leverage ratio was 3.8% (guidance: ~3.7%), and the tier 1 leverage ratio³ was 5.4% as of 31.3.20.

Outlook

The COVID-19 pandemic and the measures taken to contain it have dramatically changed the global economic outlook for the foreseeable future. Global GDP is expected to contract in the near term.

The disruption to many businesses and rising unemployment as a result of the pandemic are expected to lead to elevated levels of credit loss expenses for the industry. The majority of our credit exposures are either with our GWM clients or within Switzerland, and are of high quality. We are confident that Switzerland's proven ability to deploy effective crisis management measures will help it withstand this shock to the economy.

Looking ahead, the range of possible outcomes remains very wide, and it is too early to make reliable predictions about the timing and shape of any potential economic recovery. Lower asset prices will reduce our recurring fee income, lower interest rates will present a headwind to net interest income, and client activity levels will likely decrease, affecting transaction-based income. The continued disciplined execution of our strategic plans will help to mitigate this.

We are focused on supporting our employees, clients and the economies in which we operate while executing on our strategic plans, and maintaining our disciplined approach to managing risks across the firm.

First quarter 2020 performance overview

UBS’s first quarter PBT was USD 2,008m (up 30% YoY). The cost/income ratio was 72.3%, a 6 percentage point improvement YoY. Net profit attributable to shareholders was USD 1,595m (up 40% YoY), with diluted earnings per share of USD 0.43 (up 43% YoY). Return on CET1 capital¹ was 17.7%.

Total net credit loss expenses were USD 268m, of which USD 122m in the Investment Bank, USD 77m in Personal & Corporate Banking, USD 53m in Global Wealth Management, and USD 16m in Non-core and Legacy Portfolio.

Risk-weighted assets increased by USD 27bn during the quarter, or 10%, to USD 286bn. Higher credit risk RWA was mainly driven by new business and draws on existing credit facilities, a rise in derivative exposures as a result of higher market volatility and client activity, as well as more securities financing transactions. Higher average regulatory and stressed Value-at-Risk from unprecedented and sharp market moves across asset classes drove higher market risk RWA. The leverage ratio denominator (LRD) increased by USD 45 billion to USD 956 billion. As of 31.3.20, UBS's CET1 capital ratio was 12.8% and its CET1 leverage ratio was 3.8% (excluding temporary LRD relief²).

Global Wealth Management (GWM) PBT USD 1,218m, +41% YoY
Operating income rose by 14% with consistently high revenues in each month, resulting in the highest level since the financial crisis. Excellent client engagement led to a 46% improvement in transaction based income, with net interest income up 2% on higher lending revenues, and despite further pressure on interest rates. Recurring net fee income increased by 10%, also the best result since the financial crisis, reflecting higher invested assets at the beginning of the year. Credit loss expenses were USD 53m, of which stage 3 credit loss expenses were USD 41m from a small number of collateralized lending positions. The cost/income ratio improved to 72.4%, down 6 percentage points YoY. Loans grew by 3% QoQ to USD 185bn, with USD 3.9bn of net new loans. Invested assets at quarter-end were USD 2,339bn, down 11% sequentially. Net new money was USD 12bn, or 28bn excluding USD 16bn of outflows related to the deposit program. Net margin was 20bps, up 5bps YoY.

Personal & Corporate Banking (P&C) PBT CHF 322m, (16%) YoY
The main driver of the reduction in PBT was CHF 74m of credit loss expenses (CLE), of which stage 3 credit loss expenses were CHF 60m, which predominantly stem from a deterioration in the recoveries expected from loans to corporate counterparties that were already credit-impaired at 31 December 2019. The cost/income ratio was 58.0%. As of 24 April 2020, UBS has processed over 21,000 applications under the Swiss program for loans to small and medium-sized corporate (SME) clients and has committed more than CHF 2.5bn of loans under this program. P&C has provided around CHF 2bn of additional loans on top of the Swiss government-backed lending program during the first quarter of 2020.

Asset Management (AM) PBT USD 157m, +52% YoY
Operating income increased by 15% on strong performance with both higher management and performance fees. Net management fees increased by 14%, reflecting higher average invested assets as well as continued positive momentum in net new run rate fees. Performance fees increased by USD 9m. The cost/income ratio was 69.5%. Invested assets reduced QoQ despite net new money of USD 33bn (USD 23bn excluding money market flows).

Investment Bank (IB) PBT USD 709m, +242% YoY
Global Markets revenue increased by 44% or USD 619m, due to significantly higher volumes and volatility, particularly in Foreign Exchange, Rates and Cash Equities revenues, reflecting the impact of the COVID-19 pandemic on client activity levels. Global Banking also rose 44% or USD 164m, reflecting the closing of a number of large transactions in Advisory and higher Equity Capital Markets revenues; mark-to-market losses in Capital Markets were more than offset by gains on related hedges. Credit loss expenses were USD 122m, of which stage 3 credit loss expenses were USD 60m, driven by losses of 44m on energy-related exposures, and losses of 16m on securities financing transactions with a number of real estate investment trusts. Operating expenses increased by 12%. The cost/income ratio improved to 67.7%. Annualized return on attributed equity was 22.8%.

Group Functions loss before tax was USD 410m, including income in Group Treasury from accounting asymmetries (which tend to mean-revert to zero over time) including hedge accounting ineffectiveness of net negative USD 167 million and valuation losses in Non-core and Legacy Portfolio of USD 143 million on auction rate securities.

Using financial strength to help fight COVID-19 and support clients and society

At the beginning of the current coronavirus (COVID-19) outbreak, the firm's main focus was on safeguarding its employees' well-being, serving clients and maintaining operational continuity. The ensuing pandemic has caused a public health crisis and economic shock that is putting strain on the whole of society. The scale of this challenge demands a huge collective effort and UBS is strongly committed to playing its part, using its capital strength and proven business model to support clients and the communities the firm operates in. UBS is also providing support to its employees: >95% of employees are enabled to work from home and the firm is providing extra flexibility for parents to care for their children and for employees to address other evolving needs.

UBS is supporting emergency measures announced by the Swiss Federal Council to support the economy in conjunction with other Swiss banks. In Switzerland, as of 24 April 2020, UBS has processed over 21,000 applications under the Swiss program for loans to small and medium-sized corporate (SME) clients and has committed more than CHF 2.5bn of loans under this program. UBS has further committed to forgo any profits on these loans. Should any profits result, UBS will donate those to support projects that aid communities in Switzerland.

In the US, UBS is supporting the lending programs created under the CARES Act for small businesses. Working with a partner, UBS expects to make available up to USD 2bn to fund loans under the Paycheck Protection Program. Any profit generated will be donated to provide relief through emergency grants and funding to small business owners.

UBS recognizes the strain and hardship the current situation is causing across our communities. Being in a position to help in various areas, in order to support those who are directly involved in battling the spread of the virus, UBS will donate USD 30m to various COVID-19-related aid projects that support communities across regions in which we operate. Additionally, members of the Group Executive Board have decided to donate 50% of their salaries over the next six months to COVID-19-related relief efforts.

Swiss certification for equal pay practices

UBS takes pay equity seriously and it is important that employees with similar roles, performance and experience are rewarded equally and fairly. The firm has already embedded pay equity into its compensation policies and practices, conducts regular internal reviews and also has its remuneration data across the globe checked by an independent third party. UBS is proud to announce that at the end of April 2020, it will be one of the first banks certified by the Swiss foundation EQUAL-SALARY for its equal pay practices in Switzerland. This builds upon our global commitment on this important topic and we will continue to pursue this topic around the world.

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 Return on CET1 capital is calculated as net profit attributable to shareholders divided by average common equity tier 1 capital.

^2 Excluding the effects of the temporary exemption of central bank sight deposits for going concern leverage ratio calculation granted by the Swiss Financial Market Supervisory Authority (FINMA) on 25 March 2020 in connection with COVID-19.

^3 Going concern leverage ratio under Swiss SRB rules.

^4 Sum of on-balance sheet loans and advances to customers and financial advisors, securities financing transactions, as well as off-balance sheet financial instruments and other credit lines in scope of expected credit loss.

Performance of our business divisions and Group Functions
	For the quarter ended 31.3.20
USD million	Global Wealth Management	Personal & Corporate Banking	Asset Manage- ment	Investment Bank	Group Functions	UBS
Operating income	4,547	904	514	2,449	(480)	7,934
Operating expenses	3,329	570	357	1,741	(71)	5,926
of which: net restructuring expenses^1	61	1	5	19	0	86
of which: net expenses for litigation, regulatory and similar matters^2	7	0	0	(1)	(1)	6
Operating profit / (loss) before tax	1,218	334	157	709	(410)	2,008
	For the quarter ended 31.3.19
USD million	Global Wealth Management	Personal & Corporate Banking	Asset Manage- ment	Investment Bank	Group Functions	UBS
Operating income	4,003	957	446	1,765	47	7,218
Operating expenses	3,140	570	343	1,558	62	5,672
of which: net restructuring expenses^1	10	4	6	13	(2)	31
of which: net expenses for litigation, regulatory and similar matters^2	0	0	0	(1)	(8)	(8)
Operating profit / (loss) before tax	863	387	103	207	(15)	1,546

1 Reflects expenses for new restructuring initiatives. Prior-year comparative figures also include restructuring expenses related to legacy cost programs. 2 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 first quarter 2020 report for more information. Also includes recoveries from third parties of USD 1 million and USD 7 million for the quarters ended 31 March 2020 and 31 March 2019, respectively.

Our key figures
	As of or for the quarter ended
USD million, except where indicated	31.3.20	31.12.19	31.3.19
Group results
Operating income	7,934	7,052	7,218
Operating expenses	5,926	6,124	5,672
Operating profit / (loss) before tax	2,008	928	1,546
Net profit / (loss) attributable to shareholders	1,595	722	1,141
Diluted earnings per share (USD)^1	0.43	0.19	0.30
Profitability and growth^2
Return on equity (%)	11.3	5.2	8.6
Return on tangible equity (%)	12.8	5.9	9.8
Return on common equity tier 1 capital (%)	17.7	8.2	13.3
Return on risk-weighted assets, gross (%)	12.0	10.8	10.9
Return on leverage ratio denominator, gross (%)^3	3.5	3.1	3.2
Cost / income ratio (%)	72.3	86.8	78.4
Effective tax rate (%)	20.4	21.6	26.3
Net profit growth (%)	39.8	129.4	(27.1)
Resources^2
Total assets	1,098,099	972,183	956,579
Equity attributable to shareholders	57,949	54,533	53,667
Common equity tier 1 capital^4	36,691	35,582	34,658
Risk-weighted assets^4	286,256	259,208	267,556
Common equity tier 1 capital ratio (%)^4	12.8	13.7	13.0
Going concern capital ratio (%)^4	18.1	20.0	18.5
Total loss-absorbing capacity ratio (%)^4	32.7	34.6	32.7
Leverage ratio denominator^4	955,932	911,325	910,993
Leverage ratio denominator (with temporary FINMA exemption)^5	877,463
Common equity tier 1 leverage ratio (%)^4	3.84	3.90	3.80
Common equity tier 1 leverage ratio (%) (with temporary FINMA exemption)^5	4.18
Going concern leverage ratio (%)^4	5.4	5.7	5.4
Going concern leverage ratio (%) (with temporary FINMA exemption)^5	5.9
Total loss-absorbing capacity leverage ratio (%)^4	9.8	9.8	9.6
Liquidity coverage ratio (%)^6	139	134	153
Other
Invested assets (USD billion)^7	3,236	3,607	3,318
Personnel (full-time equivalents)	69,437	68,601	67,481
Market capitalization^8	33,649	45,661	45,009
Total book value per share (USD)^8	16.17	15.08	14.45
Total book value per share (CHF)^8	15.58	14.60	14.39
Tangible book value per share (USD)^8	14.38	13.29	12.67
Tangible book value per share (CHF)^8	13.86	12.87	12.62

1 Refer to “Note 9 Earnings per share (EPS) and shares outstanding” in the “Consolidated financial statements” section of the UBS Group first quarter 2020 report for more information. 2 Refer to the “Performance targets and measurement” section of our Annual Report 2019 for more information about our performance targets. 3 The leverage ratio denominator as of 31 March 2020, used for the return calculation, does not reflect the effect of the temporary exemption granted by FINMA in connection with COVID-19. Refer to the “Recent developments” section of the UBS Group first quarter 2020 report for more information. 4 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the “Capital management” section of the UBS Group first quarter 2020 report for more information. 5 Refer to the “Recent developments” section and the “Capital management” section of the UBS Group first quarter 2020 report for further details about the temporary FINMA exemption. 6 Refer to the “Balance sheet, liquidity and funding management” section of the UBS Group first quarter 2020 report for more information. 7 Includes invested assets for Global Wealth Management, Asset Management and Personal & Corporate Banking. 8 Refer to “UBS shares” in the “Capital management” section of the UBS Group first quarter 2020 report for more information.

Income statement
	For the quarter ended			% change from
USD million	31.3.20	31.12.19	31.3.19	4Q19	1Q19
Net interest income	1,330	1,262	1,123	5	18
Other net income from financial instruments measured at fair value through profit or loss	1,807	1,381	1,935	31	(7)
Credit loss (expense) / recovery	(268)	(8)	(20)
Fee and commission income	5,477	4,856	4,541	13	21
Fee and commission expense	(456)	(458)	(409)	0	12
Net fee and commission income	5,021	4,398	4,132	14	22
Other income	43	19	49	131	(11)
Total operating income	7,934	7,052	7,218	13	10
Personnel expenses	4,321	3,902	4,043	11	7
General and administrative expenses	1,133	1,618	1,187	(30)	(5)
Depreciation and impairment of property, equipment and software	456	480	427	(5)	7
Amortization and impairment of goodwill and intangible assets	16	125	16	(88)	(1)
Total operating expenses	5,926	6,124	5,672	(3)	4
Operating profit / (loss) before tax	2,008	928	1,546	116	30
Tax expense / (benefit)	410	200	407	105	1
Net profit / (loss)	1,598	727	1,139	120	40
Net profit / (loss) attributable to non-controlling interests	3	6	(2)	(50)
Net profit / (loss) attributable to shareholders	1,595	722	1,141	121	40
Comprehensive income
Total comprehensive income	4,195	(1,567)	1,039		304
Total comprehensive income attributable to non-controlling interests	(2)	10	2
Total comprehensive income attributable to shareholders	4,197	(1,577)	1,037		305

Comparison between UBS Group AG consolidated and UBS AG consolidated
	As of or for the quarter ended 31.3.20			As of or for the quarter ended 31.12.19
USD 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	7,934	8,009	(75)	7,052	7,145	(93)
Operating expenses	5,926	6,210	(285)	6,124	6,332	(207)
Operating profit / (loss) before tax	2,008	1,799	209	928	814	114
of which: Global Wealth Management	1,218	1,201	18	766	754	12
of which: Personal & Corporate Banking	334	335	0	310	311	(1)
of which: Asset Management	157	157	0	180	180	0
of which: Investment Bank	709	679	30	(22)	(18)	(4)
of which: Group Functions	(410)	(572)	162	(306)	(413)	107
Net profit / (loss)	1,598	1,424	174	727	628	100
of which: net profit / (loss) attributable to shareholders	1,595	1,421	174	722	622	100
of which: net profit / (loss) attributable to non-controlling interests	3	3	0	6	6	0
Statement of comprehensive income
Other comprehensive income	2,597	2,671	(74)	(2,295)	(1,475)	(819)
of which: attributable to shareholders	2,602	2,675	(74)	(2,299)	(1,479)	(819)
of which: attributable to non-controlling interests	(5)	(5)	0	4	4	0
Total comprehensive income	4,195	4,095	100	(1,567)	(847)	(720)
of which: attributable to shareholders	4,197	4,097	100	(1,577)	(857)	(720)
of which: attributable to non-controlling interests	(2)	(2)	0	10	10	0
Balance sheet
Total assets	1,098,099	1,099,185	(1,085)	972,183	971,916	267
Total liabilities	1,039,981	1,041,201	(1,220)	917,476	917,988	(512)
Total equity	58,118	57,983	135	54,707	53,928	779
of which: equity attributable to shareholders	57,949	57,814	135	54,533	53,754	779
of which: equity attributable to non-controlling interests	169	169	0	174	174	0
Capital information
Common equity tier 1 capital	36,691	36,194	497	35,582	35,280	302
Going concern capital	51,916	47,115	4,801	51,888	47,237	4,650
Risk-weighted assets	286,256	284,706	1,551	259,208	257,831	1,376
Common equity tier 1 capital ratio (%)	12.8	12.7	0.1	13.7	13.7	0.0
Going concern capital ratio (%)	18.1	16.5	1.6	20.0	18.3	1.7
Total loss-absorbing capacity ratio (%)	32.7	32.1	0.6	34.6	33.9	0.7
Leverage ratio denominator	955,932	957,199	(1,267)	911,325	911,232	94
Leverage ratio denominator (with temporary FINMA exemption)^1	877,463	903,756	(26,293)
Common equity tier 1 leverage ratio (%)	3.84	3.78	0.06	3.90	3.87	0.03
Common equity tier 1 leverage ratio (%) (with temporary FINMA exemption)^1	4.18	4.00	0.18
Going concern leverage ratio (%)	5.4	4.9	0.5	5.7	5.2	0.5
Going concern leverage ratio (%) (with temporary FINMA exemption)^1	5.9	5.2	0.7
Total loss-absorbing capacity leverage ratio (%)	9.8	9.5	0.3	9.8	9.6	0.2

1 Refer to the “Recent developments” section and the “Capital management” section of the UBS Group first quarter 2020 report for further details about the temporary FINMA exemption.

UBS’s first quarter 2020 report, news release and slide presentation will be available from 06:45 CEST on Tuesday, 28 April 2020, at www.ubs.com/quarterlyreporting.

UBS will hold a presentation of its first quarter 2020 results on Tuesday, 28 April 2020. 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, Group External Communications.

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. The outbreak of COVID-19 and the measures being taken globally to reduce the peak of the resulting pandemic will likely have a significant adverse effect on global economic activity, including in China, the United States and Europe, and an adverse effect on the credit profile of some of our clients and other market participants, which may result in an increase in expected credit loss expense and credit impairments. The unprecedented scale of the measures to control the COVID-19 outbreak create significantly greater uncertainty about forward-looking statements in addition to the factors that generally affect our businesses, but 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), liquidity coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility and other changes related to the COVID-19 pandemic; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) the continuing low or negative interest rate environment in Switzerland and other jurisdictions; (iv) developments (including as a result of the COVID-19 pandemic) 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, and changes to national trade policies on the financial position or creditworthiness of UBS’s clients and counterparties as well as on client sentiment and levels of activity; (v) 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); (vi) 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, net stable funding ratio, liquidity and funding requirements, heightened operational resilience 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; (vii) 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; (viii) 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; (ix) the uncertainty arising from the UK’s exit from the EU; (x) 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; (xi) 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; (xii) 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; (xiii) 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; (xiv) 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; (xv) 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; (xvi) 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; (xvii) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xviii) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks and systems failures, the risk of which is increased while COVID-19 control measures require large portions of the staff of both UBS and its service providers to work remotely; (xix) 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; (xx) 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 (xxi) 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 2019. 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 and percent changes are calculated on the basis of unrounded figures. Information about absolute changes between reporting periods, which is provided in text and which 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.