UBS UBS Group AG

Reported profit before tax (PBT) CHF 2.0bn, +17% YoY, +24% in USD

Adjusted1 RoTE excluding DTAs2 17.8%, diluted EPS CHF 0.39

CHF 1.1bn adjusted1 PBT in Global Wealth Management, +7% YoY, +14% in USD

CHF 50bn net new money in wealth and asset management businesses

CET1 capital ratio 13.1% and CET1 leverage ratio 3.76%

World's first 100% sustainable cross-asset portfolio for private clients launched

Regulatory News:

UBS (NYSE:UBS) (SWX:UBSN) delivered strong first-quarter 2018 results with reported PBT up 17% year over year to CHF 1,973m (up 24% in USD) and adjusted1 PBT down 3% to CHF 1,876m (up 3% in USD). Net profit attributable to shareholders was CHF 1,514m, up 19% from the first quarter of 2017.

Global Wealth Management had a very strong quarter with year-on-year profit growth and positive net new money in all regions. Adjusted1 PBT rose 7% year over year to CHF 1,126m (up 14% in USD), with new records in the Americas and Asia Pacific. Personal & Corporate Banking adjusted1 PBT was CHF 393m; transaction-based income and recurring net fee income increased, and net new business volume showed strong growth. Asset Management had strong net new money of CHF 27bn excluding money markets, taking invested assets to CHF 792bn, the highest in a decade; adjusted1 PBT was CHF 108m. The Investment Bank delivered a strong adjusted1 PBT of CHF 629m and an adjusted1 return on attributed equity of 25%, driven by strong revenues in Equities and Corporate Client Solutions. Corporate Center adjusted1 loss before tax was CHF 380m.

UBS’s capital position remains strong, with a CET1 capital ratio of 13.1%, a CET1 leverage ratio of 3.76% and total loss-absorbing capacity of CHF 79bn under Swiss SRB rules applicable as of 1 January 2020. Risk-weighted assets rose to CHF 254bn on increased market volatility during the quarter and regulatory, methodology and model updates/changes, while the leverage ratio denominator decreased to CHF 882bn. During the second quarter, UBS will commence buying back its shares under the program announced in the first quarter.

“We had an excellent start to 2018, with our results once again showing the power of our diversified business. Momentum in our business is good and we continue to invest for growth and efficiency.”Sergio P. Ermotti, Group Chief Executive Officer

Outlook

We remain confident that global economic growth prospects will continue to provide a supportive backdrop to markets, even though geopolitical tensions and the rise of protectionism remain a threat to investor confidence.

All of UBS's businesses are affected by economic growth expectations, interest rates, equity market levels and foreign exchange rates. While higher compared with last year's historic lows, market volatility remains muted overall which is usually less conducive to client activity. Due to seasonal factors, second quarter transaction-based income in our Investment Bank and Global Wealth Management businesses is also typically lower than in the first quarter.

In the second quarter, funding costs related to long-term debt and capital instruments issued to comply with regulatory funding and liquidity requirements will be higher compared with the same period in 2017.

We continue to expect US dollar interest rates to rise gradually and the US economy to further improve, both of which will likely be supportive of US dollar net interest income. Momentum in our businesses is good, and we expect our results in the second quarter to provide further evidence of the strengths of our diversified business model, as well as our progress towards achieving our strategic and financial targets.

First quarter 2018 performance overview

UBS’s first quarter adjusted1 PBT was CHF 1,876m, and reported PBT was CHF 1,973m. The first quarter of 2018 included a gain of CHF 225m related to changes to the pension fund of UBS in Switzerland, which is treated as an adjusting1 item and had no impact on CET1 capital. Results were also adjusted1 for CHF 128m of restructuring expenses. The adjusted1 cost/income ratio was 75%. Net profit attributable to shareholders was CHF 1,514m, with diluted earnings per share of CHF 0.39. Annualized adjusted1 return on tangible equity excluding DTAs2 was 17.8%.

Global Wealth Management (GWM) adjusted1 PBT CHF 1,126m, +7% YoY (+14% in USD)Higher invested asset levels and net interest margins, together with further progress on mandate penetration and loan growth, as well as increased client activity, led to an improvement in all revenue lines. Costs increased on higher financial advisor variable compensation, which was partly offset by lower expenses for compensation commitments with recruited financial advisors in the Americas. The adjusted1 cost/income ratio improved to 73%. Mandate and managed account penetration increased to a record 33.1% of invested assets, and loans increased by 10% (up 16% in USD). Net new money was CHF 19.0bn for the quarter, with positive contributions from all regions. Adjusted1 net margin was 19bps.

Personal & Corporate Banking (P&C) adjusted1 PBT CHF 393m, (10%) YoYTransaction-based income and recurring net fee income increased, offset by funding cost and interest rate headwinds, as well as higher expenses. The first quarter of 2017 included a CHF 20m one-time gain on the sale of a real estate loan portfolio. Credit losses expenses were CHF 13m with no material effect from the adoption of IFRS 9, compared with a credit loss recovery of CHF 7m in the first quarter of 2017. The adjusted1 cost/income ratio was 58%. Annualized net new business volume growth for personal banking was 6.3%, the second best quarter since 2007.

Asset Management (AM) adjusted1 PBT CHF 108m, (12%) YoYIncreased net management fees on higher average invested assets were offset by lower performance fees and higher personnel costs. The adjusted1 cost/income ratio was 76%. Net new money excluding money market flows was strong at CHF 26.6bn, and invested assets reached CHF 792bn, the highest in a decade.

Investment Bank (IB) adjusted1 PBT CHF 629m, +13% YoY (+20% in USD)Equities revenues were up 17% (up 25% in USD), with all regions and product lines improving. Corporate Client Solutions revenues increased 15% (up 22% in USD), driven by APAC. FX, Rates and Credit revenues were down 11% (down 6% in USD) from a strong first quarter of 2017. While performance in FX was resilient, market conditions for rates and credit flow products were challenging. Costs increased, reflecting higher personnel expenses as a result of improved performance. The adjusted1 cost/income ratio improved to 72%.

Corporate Center – Services recorded an adjusted1 loss before tax of CHF 147m. Group Asset and Liability Management adjusted1 loss before tax was CHF 222m, mainly due to the widening of US Treasury-OIS spreads, as well as increased retained costs from higher outstanding long-term debt and higher levels of high-quality liquid assets. Non-core and Legacy Portfolio posted an adjusted1 loss before tax of CHF 11m.

Commitment to sustainable performance

UBS is committed to creating long-term positive impact for its clients, employees, investors and society. This is illustrated by the ongoing recognition UBS has received for its activities and capabilities related to sustainable investing, philanthropy, environmental and human rights policies, the firm's environmental footprint and community investment.

Sustainable and impact investingIn January 2018, UBS launched the world's first 100% sustainable cross-asset portfolios for private clients, targeting a market rate-risk-adjusted return as well as positive social and environmental outcomes. These portfolios include an exclusive partnership with the World Bank on an allocation to World Bank debt instruments, as well as a new best-in-class shareholder engagement strategy to focus on generating additional social and/or environmental impact through public rather than private equity.

In the first quarter, UBS announced and started work on integrating environmental, social and governance (ESG) criteria into nearly all of Asset Management's actively managed equity and fixed income portfolios. The firm also announced the launch of the UBS Global Gender Equality ETF, a joint collaboration between Asset Management and Global Wealth Management as part of UBS's commitment to sustainable and impact investing. The ETF is the first of its kind combining gender equality and sustainability. It will dedicate 5% of its management fee to philanthropic projects via the UBS Optimus Foundation to support the empowerment of women and girls.

Climate changeWith its 2017 reporting, UBS has begun to align its disclosure with the Financial Stability Board's Task Force on Climate-related Financial Disclosures' recommendations. The firm plans to further do so over the five-year implementation pathway.

RecognitionFor the third consecutive year, UBS has been ranked first in the "Best Private Banking Services Overall – Global" category in Euromoney's annual Private Banking Survey. UBS also retained its leading position in all segment-specific categories on a global level and took the top spot in four regions, including Western Europe and Asia.

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 Refer to the “Performance by business division and Corporate Center unit – reported and adjusted“ table in this news release.2 Adjusted return on tangible equity excluding deferred tax expense/benefit and DTAs; calculated as adjusted net profit/loss attributable to shareholders excluding deferred tax expense/benefit, divided by average tangible equity attributable to shareholders excluding any DTAs that do not qualify as CET1 capital.

  Performance by business division and Corporate Center unit – reported and adjusted1,2         For the quarter ended 31.3.18 CHF million      

GlobalWealthManagement

   

Personal &CorporateBanking

   

AssetManage-ment

   

InvestmentBank

   

CC –Services3

   

CC –GroupALM

   

CC –Non-coreand

LegacyPortfolio

   

UBS

Operating income as reported       4,195     947     441     2,308     (38)     (204)     49     7,698 Operating income (adjusted)       4,195     947     441     2,308     (38)     (204)     49     7,698                             Operating expenses as reported       3,067     528     335     1,719     (2)     18     61     5,725 of which: personnel-related restructuring expenses4       3     1     1     11     47     0     0     64 of which: non-personnel-related restructuring expenses4       9     0     3     2     50     0     0     64 of which: restructuring expenses allocated from CC ­ Services4       47     9     7     32     (96)     1     1     0 of which: gain related to changes to the Swiss pension plan5       (61)     (35)     (10)     (5)     (114)                 (225) Operating expenses (adjusted)       3,069     553     333     1,679     110     18     60     5,822 of which: net expenses for litigation, regulatory and similar matters6       31     0     0     (2)     (24)     0     (16)     (11)   Operating profit / (loss) before tax as reported       1,129     419     106     589     (35)     (222)     (12)     1,973 Operating profit / (loss) before tax (adjusted)       1,126     393     108     629     (147)     (222)     (11)     1,876     For the quarter ended 31.3.17 CHF million      

GlobalWealthManagement

   

Personal &CorporateBanking

   

AssetManage-ment

   

InvestmentBank

   

CC –Services3

   

CC –GroupALM

   

CC –Non-coreand

LegacyPortfolio

    UBS Operating income as reported       3,979     958     450     2,098     (18)     65     0     7,532 Operating income (adjusted)       3,979     958     450     2,098     (18)     65     0     7,532   Operating expenses as reported       3,039     540     347     1,619     204     2     93     5,842 of which: personnel-related restructuring expenses4       2     2     2     18     92     0     0     116 of which: non-personnel-related restructuring expenses4       11     0     5     2     110     (1)     0     127 of which: restructuring expenses allocated from CC ­ Services4       98     17     13     57     (188)     0     2     0 Operating expenses (adjusted)       2,929     521     327     1,541     189     2     91     5,598 of which: net expenses for litigation, regulatory and similar matters6       36     0     0     0     (4)     0     1     33   Operating profit / (loss) before tax as reported       940     418     103     480     (222)     63     (93)     1,690 Operating profit / (loss) before tax (adjusted)       1,050     437     123     558     (207)     63     (91)     1,934 1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the reporting period. 3 Corporate Center ­ Services operating expenses presented in this table are after service allocations to business divisions and other Corporate Center units. 4 Reflects restructuring expenses related to legacy cost programs. 5 Refer to “Note 5 Personnel expenses” in the “Consolidated financial statements” section of the UBS Group first quarter 2018 report for more information. 6 Includes recoveries from third parties (first quarter of 2018: CHF 17 million; first quarter of 2017: CHF 1 million).                 Our key figures                       As of or for the quarter ended CHF million, except where indicated       31.3.18     31.12.17     31.3.17   Group results                     Operating income       7,698     7,122     7,532 Operating expenses       5,725     6,266     5,842 Operating profit / (loss) before tax       1,973     855     1,690 Net profit / (loss) attributable to shareholders       1,514     (2,336)     1,269 Diluted earnings per share (CHF)1       0.39     (0.63)     0.33   Key performance indicators2                     Profitability and growth                     Return on tangible equity (%)       13.6     (20.2)     10.9 Adjusted return on tangible equity excluding deferred tax expense / benefit and deferred tax assets (%)       17.8     8.6     17.4 Cost / income ratio (%)       74.1     86.9     77.6 Net profit growth (%)       19.4           79.5 Resources                     Common equity tier 1 capital ratio (%)3       13.1     13.8     14.1 Common equity tier 1 leverage ratio (%)3       3.76     3.69     3.55 Going concern leverage ratio (%)3       5.0     4.7     4.6   Additional information                     Profitability                     Return on equity (%)       11.8     (17.8)     9.5 Return on risk-weighted assets, gross (%)4       12.6     12.1     13.6 Return on leverage ratio denominator, gross (%)4       3.5     3.3     3.4 Resources                     Total assets       919,361     915,642     909,608 Equity attributable to shareholders       51,243     51,214     53,661 Common equity tier 1 capital3       33,151     32,671     31,311 Risk-weighted assets3       253,753     237,494     221,785 Going concern capital ratio (%)3       17.3     17.6     18.2 Total loss-absorbing capacity ratio (%)3       31.2     33.0     33.2 Leverage ratio denominator3       882,469     886,116     881,183 Total loss-absorbing capacity leverage ratio (%)3       9.0     8.8     8.4 Liquidity coverage ratio (%)5       136     143     128 Other                     Invested assets (CHF billion)6,7       3,155     3,179     2,922 Personnel (full-time equivalents)       62,537     61,253     59,416 Market capitalization8       64,752     69,125     61,736 Total book value per share (CHF)8       13.62     13.76     14.45 Tangible book value per share (CHF)8       11.97     12.04     12.71 1 Refer to “Note 8 Earnings per share (EPS) and shares outstanding” in the “Consolidated financial statements” section of the UBS Group first quarter 2018 report for more information. 2 Refer to the “Measurement of performance” section of our Annual Report 2017 for the definitions of our key performance indicators. 3 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 2018 report for more information. 4 Calculated as operating income before credit loss (annualized as applicable) / average risk-weighted assets and average leverage ratio denominator, respectively. 5 Refer to the “Balance sheet, liquidity and funding management” section of the UBS Group first quarter 2018 report for more information. 6 Includes invested assets for Personal & Corporate Banking. 7 Certain account types were corrected during the fourth quarter of 2017. As a result, invested assets as of 31 March 2017 were corrected by CHF 12 billion. 8 Refer to “UBS shares” in the “Capital management” section of the UBS Group first quarter 2018 report for more information.                         Income statement                                   For the quarter ended % change from CHF million       31.3.18     31.12.17     31.3.17     4Q17     1Q17 Net interest income       1,743     1,672     1,696     4     3 Fee and commission income       4,882     4,772     4,789     2     2 Fee and commission expense       (409)     (478)     (436)     (14)     (6) Net fee and commission income       4,473     4,294     4,353     4     3 Other net income from fair value changes on financial instruments       1,466     987     1,440     49     2 Credit loss (expense) / recovery       (25)     (89)     0     (72)       Other income       40     257     43     (84)     (6) Total operating income       7,698     7,122     7,532     8     2 of which: net interest income and other net income from fair value changes on financial instruments       3,210     2,659     3,136     21     2 Personnel expenses       4,014     3,923     4,060     2     (1) General and administrative expenses       1,424     2,054     1,506     (31)     (5) Depreciation and impairment of property, equipment and software       272     272     255     0     6 Amortization and impairment of intangible assets       16     17     21     (9)     (26) Total operating expenses       5,725     6,266     5,842     (9)     (2) Operating profit / (loss) before tax       1,973     855     1,690     131     17 Tax expense / (benefit)       457     3,165     375     (86)     22 Net profit / (loss)       1,516     (2,310)     1,315           15 Net profit / (loss) attributable to non-controlling interests       1     27     47     (95)     (97) Net profit / (loss) attributable to shareholders       1,514     (2,336)     1,269           19   Comprehensive income                                 Total comprehensive income       696     (2,125)     666           4 Total comprehensive income attributable to non-controlling interests       1     336     47     (100)     (98) Total comprehensive income attributable to shareholders       695     (2,461)     620           12               Comparison UBS Group AG (consolidated) versus UBS AG (consolidated)                           As of or for the quarter ended 31.3.18 As of or for the quarter ended 31.12.17 CHF million, except where indicated       UBS Group AG

(consolidated)

    UBS AG

(consolidated)

    Difference

(absolute)

    UBS Group AG

(consolidated)

    UBS AG

(consolidated)

    Difference

(absolute)

        Income statement                                       Operating income       7,698     7,823     (125)     7,122     7,242     (120) Operating expenses       5,725     6,040     (315)     6,266     6,487     (221) Operating profit / (loss) before tax       1,973     1,783     190     855     755     100 of which: Global Wealth Management       1,129     1,117     12     782     778     4 of which: Personal & Corporate Banking       419     420     (1)     392     393     (1) of which: Asset Management       106     106     0     238     238     0 of which: Investment Bank       589     577     12     49     50     (1) of which: Corporate Center       (270)     (437)     167     (605)     (704)     99 of which: Services       (35)     (210)     175     (155)     (252)     97 of which: Group ALM       (222)     (214)     (8)     (214)     (217)     3 of which: Non-core and Legacy Portfolio       (12)     (13)     1     (236)     (236)     0 Net profit / (loss)       1,516     1,371     144     (2,310)     (2,385)     75 of which: net profit / (loss) attributable to shareholders       1,514     1,370     144     (2,336)     (2,412)     76 of which: net profit / (loss) attributable to preferred noteholders             0     0           26     (26) of which: net profit / (loss) attributable to non-controlling interests       1     1     0     27     0     27   Statement of comprehensive income                                       Other comprehensive income       (819)     (732)     (87)     184     187     (3) of which: attributable to shareholders       (820)     (732)     (88)     (124)     (122)     (2) of which: attributable to preferred noteholders             0     0           307     (307) of which: attributable to non-controlling interests       0     0     0     309     2     307 Total comprehensive income       696     639     57     (2,125)     (2,198)     73 of which: attributable to shareholders       695     638     57     (2,461)     (2,534)     73 of which: attributable to preferred noteholders             0     0           333     (333) of which: attributable to non-controlling interests       1     1     0     336     3     333   Balance sheet                                       Total assets       919,361     920,280     (919)     915,642     916,363     (721) Total liabilities       868,056     869,430     (1,374)     864,371     865,588     (1,217) Total equity       51,305     50,850     455     51,271     50,775     496 of which: equity attributable to shareholders       51,243     50,788     455     51,214     50,718     496 of which: equity attributable to preferred noteholders             0     0           0     0 of which: equity attributable to non-controlling interests       62     62     0     57     57     0   Capital information                                       Common equity tier 1 capital       33,151     33,424     (273)     32,671     33,240     (569) Going concern capital       44,026     40,335     3,691     41,911     36,906     5,005 Risk-weighted assets       253,753     253,784     (32)     237,494     236,606     888 Common equity tier 1 capital ratio (%)       13.1     13.2     (0.1)     13.8     14.0     (0.2) Going concern capital ratio (%)       17.3     15.9     1.5     17.6     15.6     2.0 Total loss-absorbing capacity ratio (%)       31.2     30.7     0.5     33.0     31.4     1.6 Leverage ratio denominator       882,469     883,676     (1,207)     886,116     887,189     (1,073) Common equity tier 1 leverage ratio (%)       3.76     3.78     (0.03)     3.69     3.75     (0.06) Going concern leverage ratio (%)       5.0     4.6     0.4     4.7     4.2     0.5 Total loss-absorbing capacity leverage ratio (%)       9.0     8.8     0.2     8.8     8.4     0.4  

UBS’s first quarter 2018 report, news release and slide presentation will be available from 06:45 CEST on Monday, 23 April 2018, at www.ubs.com/quarterlyreporting.

UBS will hold a presentation of its first quarter 2018 results on Monday, 23 April 2018. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Kirt Gardner, Group Chief Financial Officer, Caroline Stewart, Global Head Investor Relations, and Hubertus Kuelps, Group Head Communications & Branding.

Time

• 09:00–11:00 CEST
• 08:00–10:00 BST
• 03:00–05:00 US EDT

Audio webcastThe presentation for analysts can be followed live on www.ubs.com/quarterlyreporting with a simultaneous slide show.

Webcast playbackAn audio playback of the results presentation will be made available at www.ubs.com/investors later in the day.

Conference call for media Q&A sessionImmediately following the presentation and analyst Q&A, there will be a separate media Q&A session. Please note: This session will be held via conference call only.

Switzerland/Europe:     +41-58-310 50 07 UK: +44-121-281 80 12 Americas: +1-213-799 17 25 Other locations: +41-58-310 50 07  

Cautionary Statement Regarding Forward-Looking StatementsThis 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), including to counteract regulatory-driven increases, leverage ratio denominator, 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) continuing low or negative interest rate environment, developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, and currency exchange rates, and the effects of economic conditions, market developments, and geopolitical tensions on the financial position or creditworthiness of UBS’s clients and counterparties as well as on client sentiment and levels of activity; (iii) changes in the availability of capital and funding, including any changes in UBS’s credit spreads and ratings, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (iv) changes in or the implementation of financial legislation and regulation in Switzerland, the US, the UK and other financial centers that 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, to proposals in Switzerland and other jurisdictions for mandatory structural reform of banks or systemically important institutions or to other external developments, and the extent to which such changes will have the intended effects; (vi) uncertainty as to the extent to which the Swiss Financial Market Supervisory Authority (FINMA) will confirm limited reductions of gone concern requirements due to measures to reduce resolvability risk; (vii) the uncertainty arising from the timing and nature of the UK exit from the EU and the potential need to make changes in UBS’s legal structure and operations as a result of it; (viii) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS’s ability to compete in certain lines of business; (ix) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including recently enacted and proposed measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (x) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses or loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of our RWA; (xi) the effects on UBS’s cross-border banking business of tax or regulatory developments and of possible changes in UBS’s policies and practices relating to this business; (xii) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors including differences in compensation practices; (xiii) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters, including from changes to US taxation under the Tax Cuts and Jobs Act; (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 2017. 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.

RoundingNumbers presented throughout this news release may not add up precisely to the totals provided in the tables and text. Starting in 2018, percentages, percent changes and adjusted results presented in the tables and text are calculated on the basis of unrounded figures, with the exception of movement information provided in text that can be derived from figures displayed in the tables, which is calculated on a rounded basis. For prior periods, these values are calculated on the basis of rounded figures displayed in the tables and text.

TablesWithin tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented as a mathematical calculation of the change between periods.

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