08:00 Tue 22 Oct 2019
3Q19 net profit USD 1,049m
Reported PBT ; adjusted PBT
Reported RoCET1 12.1% for 3Q19 and 13.8% for 9M192
CET1 capital ratio 13.1% and CET1 leverage ratio 3.8%; tier 1 leverage ratio 5.6%3
Invested assets of in GWM and AM combined, with NNM of
confirmed leader in Dow Jones Sustainability Index for fifth year running
--(BUSINESS WIRE)--
In a challenging environment, (NYSE:UBS) (SWX:UBSN) delivered solid third quarter 2019 results. Reported profit before tax (PBT) was , down 21% year over year (YoY), and adjusted PBT decreased by 18% to . The Group's adjusted cost/income ratio was 79.1%. Net profit attributable to shareholders was , down 16% YoY. Reported return on CET1 capital (RoCET1) was 12.1%.
Global Wealth Management (GWM) adjusted PBT was ; invested assets reached a new high of ; recurring net fee income increased from the prior quarter. Personal & Corporate Banking adjusted PBT was ; net new business volume growth in personal banking was strong at 3.0% (3.1% in CHF). Asset Management (AM) adjusted PBT was with higher operating income YoY; invested assets rose to mainly on strong net new money (NNM) inflows. (IB) delivered adjusted PBT of ; adjusted annualized RoAE was 6.6%. Corporate Center adjusted loss before tax was .
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 ratio of 5.6%, and total loss-absorbing capacity of . During the third quarter of 2019, repurchased of its shares under its share repurchase program; year-to-date repurchases were . Equity attributable to shareholders increased by , of which 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.3
"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."
, Group Chief Executive Officer
Adjusted results are non-GAAP financial measures defined by regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.1
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 adjusted PBT was (down 18% YoY), and reported PBT was (down 21% YoY). Adjusted figures this quarter exclude of restructuring expenses, as well as of net foreign currency translation losses. The adjusted cost/income ratio was 79.1%. Net profit attributable to shareholders was (down 16% YoY), with diluted earnings per share of (down 14% YoY). Reported return on CET1 capital was 12.1%.12
Global Wealth Management (GWM) adjusted PBT , (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 ; the net new money growth rate was 2.5%. Adjusted net margin was 15bps.
Personal & CorporateBanking(P&C) adjusted PBT , (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 , +6% YoY
Adjusted PBT grew YoY for the fourth consecutive quarter. For the quarter, net management fees increased by , reflecting higher average invested assets. Performance fees decreased by . The adjusted cost/income ratio improved to 71.1%. Invested assets rose to , and net new money inflows excluding money markets were .
(IB) adjusted PBT , (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 , restructuring expenses in the fourth quarter of 2019 are expected to be around .
adjusted loss before tax was .Corporate Center
Adjusted results are non-GAAP financial measures defined by regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.1
Commitment to sustainable performance
is committed to creating long-term value for its clients, employees, investors and society. This is illustrated by the ongoing recognition 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
was ranked first in the and Capital Markets Industry of the Dow Jones Sustainability Index (DJSI) for the fifth year in a row. 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.
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 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, announced it had raised from its private clients for the , marking a significant step toward meeting its commitment to allocate 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 award-winning Climate Aware strategy, which recently reached 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 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 .
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.
Adjusted results are non-GAAP financial measures defined by regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.
Return on CET1 capital. Net profit attributable to shareholders (annualized as applicable) divided by average common equity tier 1 capital.
Going concern ratio under Swiss SRB rules applicable as of .123
UBS’s third quarter 2019 report, news release and slide presentation will be available from , , at .
will hold a presentation of its third quarter 2019 results on Tuesday, . The results will be presented by , Group Chief Executive Officer, , Group Chief Financial Officer, , Investor Relations, and , 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 with a simultaneous slide show.www.ubs.com/quarterlyreporting
Webcast playback
An audio playback of the results presentation will be made available at later in the day.www.ubs.com/investors
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 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 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 and other jurisdictions, developments in the macroeconomic climate and in the markets in which 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 , the US, the , the 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 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 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 may be exposed, or possible constraints or sanctions that regulatory authorities might impose on , 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 . More detailed information about those factors is set forth in documents furnished by and filings made by with the , including UBS’s Annual Report on Form 20-F for the year ended . 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.
UBS Group AG and UBS AG
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View source version on :businesswire.comhttps://www.businesswire.com/news/home/20191021005805/en/
Source: UBS AG
Performance of our business divisions and Corporate Center – reported and adjusted1,2 | |||||||
|
| For the quarter ended | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
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 |
|
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|
|
|
|
|
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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 |
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|
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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 |
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|
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|
|
| For the quarter ended | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
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 |
|
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|
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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 |
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|
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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 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: ; third quarter of 2018: ). |
Performance of our business divisions and Corporate Center – reported and adjusted1,2 | |||||||
|
| Year-to-date | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
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 |
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|
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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 |
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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 |
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|
| Year-to-date | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
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 |
|
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|
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|
|
|
|
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 |
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|
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 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 and for the first nine months of 2019 and 2018, respectively. 8 Changes to the pension fund of in in the first quarter of 2018 resulted in a reduction in the pension obligation recognized by . As a consequence, a pre-tax gain of 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 |
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| As of or for the quarter ended |
| As of or year-to-date | ||||
USD million, except where indicated |
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Group results |
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|
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|
|
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 |
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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 |
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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 |
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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 , 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 . 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 as of and by as of 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 |
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| For the quarter ended |
| % change from |
| Year-to-date | ||||
USD million |
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| 2Q19 | 3Q18 |
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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 |
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Comprehensive income |
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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 |
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| (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 |
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| As of or for the quarter ended |
| As of or for the quarter ended |
| As of or for the quarter ended | ||||||
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) |
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Income statement |
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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: |
| 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 |
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Statement of comprehensive income |
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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 |
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Balance sheet |
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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 |
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Capital information |
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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 |
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