Reported PBT USD 1.3bn; adjusted1 PBT USD 1.5bn
Reported RoCET12 12.1% for 3Q19 and 13.8% for 9M19
CET1 capital ratio 13.1% and CET1 leverage ratio 3.8%; tier 1
leverage ratio3 5.6%
Invested assets of USD 3.4trn in GWM and AM combined, with
NNM of USD 49bn
UBS confirmed leader in Dow Jones Sustainability Index for
fifth year running
Regulatory News:
In a challenging environment, UBS (NYSE:UBS) (SWX:UBSN)
delivered solid third quarter 2019 results. Reported profit before
tax (PBT) was USD 1,345m, down 21% year over year (YoY), and
adjusted PBT decreased by 18% to USD 1,459m. The Group's adjusted
cost/income ratio was 79.1%. Net profit attributable to
shareholders was USD 1,049m, down 16% YoY. Reported return on CET1
capital2 (RoCET1) was 12.1%.
Global Wealth Management (GWM) adjusted PBT was USD 919m;
invested assets reached a new high of USD 2,502bn; recurring net
fee income increased from the prior quarter. Personal &
Corporate Banking adjusted PBT was USD 362m; net new business
volume growth in personal banking was strong at 3.0% (3.1% in CHF).
Asset Management (AM) adjusted PBT was USD 135m with higher
operating income YoY; invested assets rose to USD 858bn mainly on
strong net new money (NNM) inflows. The Investment Bank (IB)
delivered adjusted PBT of USD 203m; adjusted annualized RoAE was
6.6%. Corporate Center adjusted loss before tax was USD 160m.
UBS’s capital position remains strong, with a CET1 capital ratio
of 13.1%, a CET1 leverage ratio of 3.8%, a fully applied tier 1
leverage ratio3 of 5.6%, and total loss-absorbing capacity of USD
88bn. During the third quarter of 2019, UBS repurchased USD 306m of
its shares under its share repurchase program; year-to-date
repurchases were USD 604m. Equity attributable to shareholders
increased by USD 3bn, of which USD 2bn related to other
comprehensive income from defined benefit plans, predominantly
reflecting the recognition of the Swiss pension plan surplus that
had no impact on CET1 capital.
"We delivered solid results generating attractive returns,
considering the market conditions. We continue to take actions to
grow profitability and further capitalize on the strengths of our
diversified franchise, delivering long-term value for our clients
and shareholders." Sergio P. Ermotti, Group Chief Executive
Officer
1 Adjusted results are non-GAAP financial measures defined by
SEC regulations. Refer to the “Performance of our business
divisions and Corporate Center – reported and adjusted“ table in
this news release.
Outlook
Stimulus measures and easing of monetary policy by central banks
may help to mitigate slowing global economic growth over the medium
term. Geopolitical tensions and trade disputes continue to impact
investor confidence. Positive momentum toward resolving these
issues would likely improve confidence and the economic
outlook.
Low and persistent negative interest rates and expectations of
further monetary easing will adversely affect net interest income
compared with last year. Our regional and business diversification,
along with actions that we are taking, will help to mitigate these
headwinds. Recurring revenues should also benefit from higher
invested assets.
As we execute on our strategy, we are balancing investments for
growth while managing for efficiency. We remain committed to
delivering on our capital return objectives and creating
sustainable long-term value for our shareholders.
Third quarter 2019 performance overview
UBS’s third quarter adjusted1 PBT was USD 1,459m (down 18% YoY),
and reported PBT was USD 1,345m (down 21% YoY). Adjusted figures
this quarter exclude USD 69m of restructuring expenses, as well as
USD 46m of net foreign currency translation losses. The adjusted
cost/income ratio was 79.1%. Net profit attributable to
shareholders was USD 1,049m (down 16% YoY), with diluted earnings
per share of USD 0.28 (down 14% YoY). Reported return on CET1
capital2 was 12.1%.
Global Wealth Management (GWM) adjusted PBT USD 919m, (2%)
YoY
Recurring net fee income rose for the second quarter in a row on
higher invested assets, but was down YoY. Transaction-based income
increased by 14%, while net interest income decreased by 3%.
Mandate penetration was stable at 34.4% of invested assets. Loans
were stable sequentially, as positive net new loans were largely
offset by currency effects. The adjusted cost/income ratio was
77.7%. Net new money was USD 15.7bn; the net new money growth rate
was 2.5%. Adjusted net margin was 15bps.
Personal & Corporate Banking (P&C)
adjusted PBT CHF 360m, (10%) YoY
Operating income decreased despite higher transaction-based
income, mainly on an increase in credit loss expenses, which was
primarily driven by a provision on a single exposure, as well as
lower net interest income. Adjusted operating expenses were
unchanged despite continued investments in technology. The adjusted
cost/income ratio was 58.7%. Business momentum remained strong,
with Personal Banking net new business volume growth of 3.1%; loans
also grew sequentially. Net interest margin was 150bps.
Asset Management (AM) adjusted PBT USD 135m, +6% YoY
Adjusted PBT grew YoY for the fourth consecutive quarter. For
the quarter, net management fees increased by USD 12m, reflecting
higher average invested assets. Performance fees decreased by USD
3m. The adjusted cost/income ratio improved to 71.1%. Invested
assets rose to USD 858bn, and net new money inflows excluding money
markets were USD 24.1bn.
Investment Bank (IB) adjusted PBT USD 203m, (59%) YoY
Lower revenues were driven by Corporate Client Solutions (down
19%), in part due to a reduction in global fee pools, as well as a
decrease in Equities (down 7%) and FX, Rates & Credit (down
1%), both partly reflecting a strong prior-year quarter. Operating
expenses increased, partly as the third quarter of 2018 included
net releases for litigation expenses. The adjusted cost/income
ratio was 88.4%. Adjusted return on attributed equity was 6.6%.
Associated with structural changes in the Investment Bank,
restructuring expenses in the fourth quarter of 2019 are expected
to be around USD 100m.
Corporate Center adjusted loss before tax was USD
160m.
1 Adjusted results are non-GAAP financial measures defined by
SEC regulations. Refer to the “Performance of our business
divisions and Corporate Center – reported and adjusted“ table in
this news release.
Commitment to sustainable performance
UBS is committed to creating long-term value for its clients,
employees, investors and society. This is illustrated by the
ongoing recognition UBS receives for its activities and
capabilities related to sustainable investing, philanthropy,
environmental and human rights policies governing client and
supplier relationships, the firm's environmental footprint and
community investment.
Confirmed leader in sustainability
UBS was ranked first in the Diversified Financial Services and
Capital Markets Industry of the Dow Jones Sustainability Index
(DJSI) for the fifth year in a row. UBS is not only the industry
leader in the overall assessment; it also tops all three
dimensions: Economic, Environmental and Social. The index, in which
more than 3,500 of the world's largest companies are covered, is
the most widely recognized corporate sustainability rating
globally.
UBS is proud to be among the founding signatories of the
Principles for Responsible Banking, as announced in September. With
these principles, leading banks around the globe, holding a
collective USD 47trn in assets representing one third of the global
banking sector, pledged to strategically align their businesses
with the UN Sustainable Development Goals (UN SDGs) and the Paris
Agreement on Climate Change, and increase their contribution to the
achievement of both.
Providing innovative sustainable and impact investing
solutions
In September, UBS announced it had raised USD 225m from its
private clients for the KKR Global Impact Fund, marking a
significant step toward meeting its commitment to allocate USD 5bn
of client assets to new impact investments dedicated to the UN SDGs
by the end of 2021. The sum represents one of the largest
investments to date in the private equity impact investment
vehicle.
Sustainable investment solutions include UBS's award-winning
Climate Aware strategy, which recently reached USD 2bn in invested
assets, underpinned by its active corporate engagement program that
is helping to drive positive change toward a low-carbon economy.
Also, with the successful final close of UBS Clean Energy
Infrastructure Switzerland 2, the firm has raised a total of CHF
472m in commitments to the second offering of its pioneering
investment solution, providing institutional investors access to a
diversified portfolio of investments in growth areas of sustainable
energy production, energy efficiency and supply infrastructure with
a focus on Switzerland.
Information in this news release is presented for UBS Group AG
on a consolidated basis unless otherwise specified. Financial
information for UBS AG (consolidated) does not differ materially
from UBS Group AG (consolidated) and a comparison between UBS Group
AG (consolidated) and UBS AG (consolidated) is provided at the end
of this news release.
1 Adjusted results are non-GAAP financial measures defined by
SEC regulations. Refer to the “Performance of our business
divisions and Corporate Center – reported and adjusted“ table in
this news release. 2 Return on CET1 capital. Net profit
attributable to shareholders (annualized as applicable) divided by
average common equity tier 1 capital. 3 Going concern ratio under
Swiss SRB rules applicable as of 1 January 2020.
Performance of our business divisions
and Corporate Center – reported and adjusted1,2
For the quarter ended
30.9.19
USD million
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment Bank
Corporate Center3
UBS
Operating income as reported
4,142
919
465
1,752
(191)
7,088
of which: net foreign currency
translations losses4
(46)
(46)
Operating income (adjusted)
4,142
919
465
1,752
(145)
7,133
Operating expenses as reported
3,248
565
341
1,580
9
5,743
of which: personnel-related
restructuring expenses5
0
0
1
1
44
46
of which: non-personnel-related
restructuring expenses5
0
0
2
1
20
23
of which: restructuring
expenses allocated from Corporate Center5,6
25
8
8
28
(70)
0
Operating expenses (adjusted)
3,223
557
331
1,549
15
5,674
of which: net expenses for
litigation, regulatory and similar matters7
69
0
0
0
(4)
65
Operating profit / (loss) before tax as
reported
894
354
124
172
(200)
1,345
Operating profit / (loss) before tax
(adjusted)
919
362
135
203
(160)
1,459
For the quarter ended 30.9.18
USD million
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment Bank
Corporate Center3
UBS
Operating income as reported
4,084
972
457
1,944
(29)
7,428
of which: gains on sale of real
estate
31
31
of which: gains on sale of
subsidiaries and businesses
25
25
Operating income (adjusted)
4,084
972
457
1,944
(85)
7,371
Operating expenses as reported
3,220
574
339
1,490
100
5,724
of which: personnel-related
restructuring expenses5
11
1
2
1
44
60
of which: non-personnel-related
restructuring expenses5
0
0
1
3
59
63
of which: restructuring
expenses allocated from Corporate Center5,6
61
8
6
32
(106)
0
Operating expenses (adjusted)
3,148
565
330
1,455
103
5,601
of which: net expenses for
litigation, regulatory and similar matters7
28
0
0
(59)
34
2
Operating profit / (loss) before tax as
reported
864
398
118
453
(128)
1,704
Operating profit / (loss) before tax
(adjusted)
936
407
127
489
(188)
1,770
1 Adjusted results are non-GAAP financial
measures as defined by SEC regulations. 2 Prior-year comparative
figures in this table have been restated for the changes in
Corporate Center cost and resource allocation to the business
divisions and the changes in the equity attribution framework.
Refer to “Note 2 Segment reporting” in the “Consolidated financial
statements” section of the UBS Group third quarter 2019 report for
more information. Comparatives may additionally differ as a result
of adjustments following organizational changes, restatements due
to the retrospective adoption of new accounting standards or
changes in accounting policies, and events after the reporting
period. 3 Corporate Center operating expenses presented in this
table are after service allocations to business divisions. 4
Related to the disposal or closure of foreign operations. 5
Reflects restructuring expenses related to legacy cost programs as
well as expenses for new restructuring initiatives. 6 Prior periods
may include allocations (to) / from other business divisions. 7
Reflects the net increase in / (release of) provisions for
litigation, regulatory and similar matters recognized in the income
statement. Refer to ”Note 16 Provisions and contingent liabilities”
in the “Consolidated financial statements” section of the UBS Group
third quarter 2019 report for more information. Also includes
recoveries from third parties (third quarter of 2019: USD 2
million; third quarter of 2018: USD 0 million).
Performance of our business divisions
and Corporate Center – reported and adjusted1,2
Year-to-date 30.9.19
USD million
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment Bank
Corporate Center3
UBS
Operating income as reported
12,202
2,834
1,386
5,588
(174)
21,838
of which: net foreign currency
translations losses4
(35)
(35)
Operating income (adjusted)
12,202
2,834
1,386
5,588
(139)
21,873
Operating expenses as reported
9,571
1,703
1,035
4,782
97
17,188
of which: personnel-related
restructuring expenses5
0
0
6
3
80
89
of which: non-personnel-related
restructuring expenses5
0
0
6
5
40
50
of which: restructuring
expenses allocated from Corporate Center5,6
48
14
15
49
(126)
0
Operating expenses (adjusted)
9,524
1,690
1,008
4,725
103
17,049
of which: net expenses for
litigation, regulatory and similar matters7
88
0
0
(1)
(26)
61
Operating profit / (loss) before tax as
reported
2,631
1,131
352
806
(271)
4,650
Operating profit / (loss) before tax
(adjusted)
2,678
1,145
378
864
(242)
4,823
Year-to-date 30.9.18
USD million
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment Bank
Corporate Center3
UBS
Operating income as reported
12,656
2,883
1,384
6,520
(203)
23,240
of which: gains on sale of real
estate
31
31
of which: gains on sale of
subsidiaries and businesses
25
25
Operating income (adjusted)
12,656
2,883
1,384
6,520
(259)
23,184
Operating expenses as reported
9,729
1,731
1,064
4,956
251
17,730
of which: personnel-related
restructuring expenses5
17
3
18
15
138
191
of which: non-personnel-related
restructuring expenses5
15
0
7
8
152
182
of which: restructuring
expenses allocated from Corporate Center5,6
149
26
21
97
(293)
0
of which: gain related to
changes to the Swiss pension plan8
(66)
(38)
(10)
(5)
(122)
(241)
Operating expenses (adjusted)
9,612
1,739
1,028
4,841
377
17,599
of which: net expenses for
litigation, regulatory and similar matters7
113
(1)
0
(59)
70
123
Operating profit / (loss) before tax as
reported
2,927
1,152
320
1,564
(454)
5,510
Operating profit / (loss) before tax
(adjusted)
3,044
1,144
356
1,679
(637)
5,585
1 Adjusted results are non-GAAP financial
measures as defined by SEC regulations. 2 Prior-year comparative
figures in this table have been restated for the changes in
Corporate Center cost and resource allocation to the business
divisions and the changes in the equity attribution framework.
Refer to “Note 2 Segment reporting” in the “Consolidated financial
statements” section of the UBS Group third quarter 2019 report for
more information. Comparatives may additionally differ as a result
of adjustments following organizational changes, restatements due
to the retrospective adoption of new accounting standards or
changes in accounting policies, and events after the reporting
period. 3 Corporate Center operating expenses presented in this
table are after service allocations to business divisions. 4
Related to the disposal or closure of foreign operations. 5
Reflects restructuring expenses related to legacy cost programs as
well as expenses for new restructuring initiatives. 6 Prior periods
may include allocations (to) / from other business divisions. 7
Reflects the net increase in / (release of) provisions for
litigation, regulatory and similar matters recognized in the income
statement. Refer to ”Note 16 Provisions and contingent liabilities”
in the “Consolidated financial statements” section of the UBS Group
third quarter 2019 report for more information. Also includes
recoveries from third parties of USD 10 million and USD 28 million
for the first nine months of 2019 and 2018, respectively. 8 Changes
to the pension fund of UBS in Switzerland in the first quarter of
2018 resulted in a reduction in the pension obligation recognized
by UBS. As a consequence, a pre-tax gain of USD 241 million was
recognized in the income statement in the first quarter of 2018,
with no overall effect on total equity. Refer to “Note 29 Pension
and other post-employment benefit plans” in the “Consolidated
financial statements” section of our Annual Report 2018 for more
information.
Our key figures
As of or for the quarter
ended
As of or year-to-date
USD million, except where indicated
30.9.19
30.6.19
31.12.18
30.9.18
30.9.19
30.9.18
Group results
Operating income
7,088
7,532
6,972
7,428
21,838
23,240
Operating expenses
5,743
5,773
6,492
5,724
17,188
17,730
Operating profit / (loss) before tax
1,345
1,759
481
1,704
4,650
5,510
Net profit / (loss) attributable to
shareholders
1,049
1,392
315
1,253
3,582
4,201
Diluted earnings per share (USD)1
0.28
0.37
0.08
0.33
0.95
1.09
Profitability and growth2
Return on equity (%)3
7.7
10.4
2.4
9.7
8.9
10.7
Return on tangible equity (%)4
8.7
11.9
2.7
11.1
10.1
12.2
Return on common equity tier 1 capital
(%)5
12.1
16.0
3.7
14.5
13.8
16.3
Return on risk-weighted assets, gross
(%)6
10.8
11.4
10.8
11.6
11.0
12.1
Return on leverage ratio denominator,
gross (%)6
3.1
3.3
3.1
3.3
3.2
3.4
Cost / income ratio (%)7
80.6
76.5
92.4
77.0
78.5
76.1
Adjusted cost / income ratio (%)8
79.1
76.1
92.2
75.9
77.7
75.7
Effective tax rate (%)
21.9
20.8
34.4
26.3
23.0
23.6
Net profit growth (%)9
(16.2)
0.7
27.6
(14.7)
24.1
Resources
Total assets
973,118
968,728
958,489
950,192
973,118
950,192
Equity attributable to shareholders
56,187
53,180
52,928
52,094
56,187
52,094
Common equity tier 1 capital10
34,673
34,948
34,119
34,816
34,673
34,816
Risk-weighted assets10
264,626
262,135
263,747
257,041
264,626
257,041
Common equity tier 1 capital ratio
(%)10
13.1
13.3
12.9
13.5
13.1
13.5
Going concern capital ratio (%)10
19.2
19.1
17.5
17.9
19.2
17.9
Total loss-absorbing capacity ratio
(%)10
33.3
33.3
31.7
31.8
33.3
31.8
Leverage ratio denominator10
901,914
911,379
904,598
915,066
901,914
915,066
Common equity tier 1 leverage ratio
(%)10
3.84
3.83
3.77
3.80
3.84
3.80
Going concern leverage ratio (%)10
5.6
5.5
5.1
5.0
5.6
5.0
Total loss-absorbing capacity leverage
ratio (%)10
9.8
9.6
9.3
8.9
9.8
8.9
Liquidity coverage ratio (%)11
138
145
136
135
138
135
Other
Invested assets (USD billion)12
3,422
3,381
3,101
3,330
3,422
3,330
Personnel (full-time equivalents)
67,634
66,922
66,888
65,556
67,634
65,556
Market capitalization13,14
41,210
43,491
45,907
58,856
41,210
58,856
Total book value per share (USD)13
15.47
14.53
14.35
13.98
15.47
13.98
Total book value per share (CHF)13,15
15.45
14.18
14.11
13.72
15.45
13.72
Tangible book value per share (USD)13
13.67
12.72
12.55
12.25
13.67
12.25
Tangible book value per share
(CHF)13,15
13.64
12.42
12.33
12.02
13.64
12.02
1 Refer to “Note 9 Earnings per share
(EPS) and shares outstanding” in the “Consolidated financial
statements” section of the UBS Group third quarter 2019 report for
more information. 2 Refer to the “Performance targets and
measurement” section of our Annual Report 2018 for more information
about our performance targets. 3 Calculated as net profit
attributable to shareholders (annualized as applicable) divided by
average equity attributable to shareholders. 4 Calculated as net
profit attributable to shareholders (annualized as applicable)
divided by average equity attributable to shareholders less average
goodwill and intangible assets. Effective 1 January 2019, the
definition of the numerator for return on tangible equity has been
revised to align with numerators for return on equity and return on
common equity tier 1 capital; i.e., we no longer adjust for
amortization and impairment of goodwill and intangible assets.
Prior periods have been restated. 5 Calculated as net profit
attributable to shareholders (annualized as applicable) divided by
average common equity tier 1 capital. 6 Calculated as operating
income before credit loss expense or recovery (annualized as
applicable) divided by average risk-weighted assets and average
leverage ratio denominator, respectively. 7 Calculated as operating
expenses divided by operating income before credit loss expense or
recovery. 8 Calculated as adjusted operating expenses divided by
adjusted operating income before credit loss expense or recovery. 9
Calculated as change in net profit attributable to shareholders
from continuing operations between current and comparison periods
divided by net profit attributable to shareholders from continuing
operations of comparison period. 10 Based on the Swiss systemically
relevant bank framework as of 1 January 2020. Refer to the “Capital
management” section of the UBS Group third quarter 2019 report for
more information. 11 Refer to the “Balance sheet, liquidity and
funding management” section of the UBS Group third quarter 2019
report for more information. 12 Includes invested assets for Global
Wealth Management, Asset Management and Personal & Corporate
Banking. 13 Refer to “UBS shares” in the “Capital management”
section of the UBS Group third quarter 2019 report for more
information. 14 Beginning with our Annual Report 2018, the
calculation of market capitalization has been amended to reflect
total shares outstanding multiplied by the share price at the end
of the period. The calculation was previously based on total shares
issued multiplied by the share price at the end of the period.
Market capitalization has been reduced by USD 2.1 billion as of 31
December 2018 and by USD 2.0 billion as of 30 September 2018 as a
result. 15 Total book value per share and tangible book value per
share in Swiss francs are calculated based on a translation of
equity under our US dollar presentation currency. As a consequence
of the restatement to a US dollar presentation currency, amounts
may differ from those originally published in our quarterly and
annual reports.
Income statement
For the quarter ended
% change from
Year-to-date
USD million
30.9.19
30.6.19
30.9.18
2Q19
3Q18
30.9.19
30.9.18
Net interest income
1,090
1,026
1,182
6
(8)
3,239
3,822
Other net income from financial
instruments measured at fair value through profit or loss
1,587
1,939
1,689
(18)
(6)
5,461
5,663
Credit loss (expense) / recovery
(38)
(12)
(10)
208
289
(70)
(64)
Fee and commission income
4,805
4,907
4,875
(2)
(1)
14,253
14,897
Fee and commission expense
(396)
(434)
(409)
(9)
(3)
(1,238)
(1,264)
Net fee and commission income
4,409
4,474
4,466
(1)
(1)
13,015
13,633
Other income
39
105
101
(63)
(61)
193
187
Total operating income
7,088
7,532
7,428
(6)
(5)
21,838
23,240
Personnel expenses
3,987
4,153
3,936
(4)
1
12,182
12,293
General and administrative expenses
1,308
1,175
1,462
11
(10)
3,670
4,504
Depreciation and impairment of property,
equipment and software
432
427
310
1
39
1,285
885
Amortization and impairment of intangible
assets
16
18
15
(7)
7
50
48
Total operating expenses
5,743
5,773
5,724
(1)
0
17,188
17,730
Operating profit / (loss) before tax
1,345
1,759
1,704
(24)
(21)
4,650
5,510
Tax expense / (benefit)
294
366
448
(20)
(34)
1,067
1,303
Net profit / (loss)
1,051
1,393
1,256
(25)
(16)
3,582
4,207
Net profit / (loss) attributable to
non-controlling interests
1
1
3
34
(60)
0
6
Net profit / (loss) attributable to
shareholders
1,049
1,392
1,253
(25)
(16)
3,582
4,201
Comprehensive income
Total comprehensive income
3,146
2,473
809
27
289
6,658
3,022
Total comprehensive income attributable to
non-controlling interests
(5)
(5)
4
1
(8)
4
Total comprehensive income attributable
to shareholders
3,151
2,478
805
27
291
6,666
3,018
Comparison between UBS Group AG
consolidated and UBS AG consolidated
As of or for the quarter ended
30.9.19
As of or for the quarter ended
30.6.19
As of or for the quarter ended
31.12.18
USD million, except where indicated
UBS Group AG
consolidated
UBS AG
consolidated
Difference
(absolute)
UBS Group AG
consolidated
UBS AG
consolidated
Difference
(absolute)
UBS Group AG
consolidated
UBS AG
consolidated
Difference
(absolute)
Income statement
Operating income
7,088
7,187
(100)
7,532
7,632
(100)
6,972
7,083
(111)
Operating expenses
5,743
5,942
(199)
5,773
5,975
(202)
6,492
6,667
(176)
Operating profit / (loss) before tax
1,345
1,245
100
1,759
1,657
102
481
416
65
of which: Global Wealth
Management
894
877
17
874
857
17
327
316
11
of which: Personal &
Corporate Banking
354
354
0
390
392
(2)
644
645
(1)
of which: Asset Management
124
124
0
124
124
0
106
105
1
of which: Investment Bank
172
165
7
427
419
8
(78)
(79)
1
of which: Corporate Center
(200)
(275)
75
(56)
(135)
79
(518)
(571)
53
Net profit / (loss)
1,051
969
82
1,393
1,308
85
315
273
42
of which: net profit / (loss)
attributable to shareholders
1,049
967
82
1,392
1,307
85
315
272
42
of which: net profit / (loss)
attributable to non-controlling interests
1
1
0
1
1
0
1
1
0
Statement of comprehensive
income
Other comprehensive income
2,095
1,274
821
1,080
1,076
4
893
895
(2)
of which: attributable to
shareholders
2,101
1,280
821
1,086
1,082
4
892
894
(2)
of which: attributable to
non-controlling interests
(6)
(6)
0
(6)
(6)
0
1
1
0
Total comprehensive income
3,146
2,243
903
2,473
2,384
89
1,208
1,168
41
of which: attributable to
shareholders
3,151
2,248
903
2,478
2,389
89
1,207
1,166
41
of which: attributable to
non-controlling interests
(5)
(5)
0
(5)
(5)
0
2
2
0
Balance sheet
Total assets
973,118
972,048
1,071
968,728
968,645
83
958,489
958,055
434
Total liabilities
916,768
917,271
(503)
915,378
916,116
(738)
905,386
905,624
(238)
Total equity
56,351
54,776
1,574
53,350
52,529
821
53,103
52,432
671
of which: equity attributable
to shareholders
56,187
54,613
1,574
53,180
52,359
821
52,928
52,256
671
of which: equity attributable
to non-controlling interests
163
163
0
170
170
0
176
176
0
Capital information
Common equity tier 1 capital
34,673
35,211
(538)
34,948
35,881
(933)
34,119
34,608
(489)
Going concern capital
50,702
46,895
3,807
49,993
46,500
3,493
46,279
42,413
3,865
Risk-weighted assets
264,626
263,777
849
262,135
261,364
772
263,747
262,840
907
Common equity tier 1 capital ratio (%)
13.1
13.3
(0.2)
13.3
13.7
(0.4)
12.9
13.2
(0.2)
Going concern capital ratio (%)
19.2
17.8
1.4
19.1
17.8
1.3
17.5
16.1
1.4
Total loss-absorbing capacity ratio
(%)
33.3
32.9
0.4
33.3
33.0
0.3
31.7
31.3
0.5
Leverage ratio denominator
901,914
901,926
(11)
911,379
911,601
(221)
904,598
904,458
140
Common equity tier 1 leverage ratio
(%)
3.84
3.90
(0.06)
3.83
3.94
(0.10)
3.77
3.83
(0.05)
Going concern leverage ratio (%)
5.6
5.2
0.4
5.5
5.1
0.4
5.1
4.7
0.4
Total loss-absorbing capacity leverage
ratio (%)
9.8
9.6
0.2
9.6
9.5
0.1
9.3
9.1
0.2
UBS’s third quarter 2019 report, news release and slide
presentation will be available from 06:45 CEST on Tuesday, 22
October 2019, at www.ubs.com/quarterlyreporting.
UBS will hold a presentation of its third quarter 2019 results
on Tuesday, 22 October 2019. The results will be presented by
Sergio P. Ermotti, Group Chief Executive Officer, Kirt Gardner,
Group Chief Financial Officer, Martin Osinga, Investor Relations,
and Mark Hengel, Communications & Branding.
Time
• 09:00–11:00 CEST
• 08:00–10:00 BST
• 03:00–05:00 US EDT
Audio webcast
The presentation for analysts can be followed live on
www.ubs.com/quarterlyreporting with a simultaneous slide show.
Webcast playback
An audio playback of the results presentation will be made
available at www.ubs.com/investors later in the day.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains statements that constitute
“forward-looking statements,” including but not limited to
management’s outlook for UBS’s financial performance and statements
relating to the anticipated effect of transactions and strategic
initiatives on UBS’s business and future development. While these
forward-looking statements represent UBS’s judgments and
expectations concerning the matters described, a number of risks,
uncertainties and other important factors could cause actual
developments and results to differ materially from UBS’s
expectations. These factors include, but are not limited to: (i)
the degree to which UBS is successful in the ongoing execution of
its strategic plans, including its cost reduction and efficiency
initiatives and its ability to manage its levels of risk-weighted
assets (RWA) and leverage ratio denominator (LRD), including to
counteract regulatory-driven increases, liquidity coverage ratio
and other financial resources, and the degree to which UBS is
successful in implementing changes to its businesses to meet
changing market, regulatory and other conditions; (ii) the
continuing low or negative interest rate environment in Switzerland
and other jurisdictions, developments in the macroeconomic climate
and in the markets in which UBS operates or to which it is exposed,
including movements in securities prices or liquidity, credit
spreads, and currency exchange rates, and the effects of economic
conditions, market developments, and geopolitical tensions on the
financial position or creditworthiness of UBS’s clients and
counterparties as well as on client sentiment and levels of
activity; (iii) changes in the availability of capital and funding,
including any changes in UBS’s credit spreads and ratings, as well
as availability and cost of funding to meet requirements for debt
eligible for total loss-absorbing capacity (TLAC); (iv) changes in
or the implementation of financial legislation and regulation in
Switzerland, the US, the UK, the European Union and other financial
centers that have imposed, or resulted in, or may do so in the
future, more stringent or entity-specific capital, TLAC, leverage
ratio, liquidity and funding requirements, incremental tax
requirements, additional levies, limitations on permitted
activities, constraints on remuneration, constraints on transfers
of capital and liquidity and sharing of operational costs across
the Group or other measures, and the effect these will or would
have on UBS’s business activities; (v) the degree to which UBS is
successful in implementing further changes to its legal structure
to improve its resolvability and meet related regulatory
requirements and the potential need to make further changes to the
legal structure or booking model of UBS Group in response to legal
and regulatory requirements, proposals in Switzerland and other
jurisdictions for mandatory structural reform of banks or
systemically important institutions or to other external
developments, and the extent to which such changes will have the
intended effects; (vi) UBS’s ability to maintain and improve its
systems and controls for the detection and prevention of money
laundering and compliance with sanctions to meet evolving
regulatory requirements and expectations, in particular in the US;
(vii) the uncertainty arising from the timing and nature of the
UK’s exit from the EU; (viii) changes in UBS’s competitive
position, including whether differences in regulatory capital and
other requirements among the major financial centers will adversely
affect UBS’s ability to compete in certain lines of business; (ix)
changes in the standards of conduct applicable to our businesses
that may result from new regulations or new enforcement of existing
standards, including recently enacted and proposed measures to
impose new and enhanced duties when interacting with customers and
in the execution and handling of customer transactions; (x) the
liability to which UBS may be exposed, or possible constraints or
sanctions that regulatory authorities might impose on UBS, due to
litigation, contractual claims and regulatory investigations,
including the potential for disqualification from certain
businesses, potentially large fines or monetary penalties, or the
loss of licenses or privileges as a result of regulatory or other
governmental sanctions, as well as the effect that litigation,
regulatory and similar matters have on the operational risk
component of our RWA as well as the amount of capital available for
return to shareholders; (xi) the effects on UBS’s cross-border
banking business of tax or regulatory developments and of possible
changes in UBS’s policies and practices relating to this business;
(xii) UBS’s ability to retain and attract the employees necessary
to generate revenues and to manage, support and control its
businesses, which may be affected by competitive factors; (xiii)
changes in accounting or tax standards or policies, and
determinations or interpretations affecting the recognition of gain
or loss, the valuation of goodwill, the recognition of deferred tax
assets and other matters; (xiv) UBS’s ability to implement new
technologies and business methods, including digital services and
technologies, and ability to successfully compete with both
existing and new financial service providers, some of which may not
be regulated to the same extent; (xv) limitations on the
effectiveness of UBS’s internal processes for risk management, risk
control, measurement and modeling, and of financial models
generally; (xvi) the occurrence of operational failures, such as
fraud, misconduct, unauthorized trading, financial crime,
cyberattacks, and systems failures; (xvii) restrictions on the
ability of UBS Group AG to make payments or distributions,
including due to restrictions on the ability of its subsidiaries to
make loans or distributions, directly or indirectly, or, in the
case of financial difficulties, due to the exercise by FINMA or the
regulators of UBS’s operations in other countries of their broad
statutory powers in relation to protective measures, restructuring
and liquidation proceedings; (xviii) the degree to which changes in
regulation, capital or legal structure, financial results or other
factors may affect UBS’s ability to maintain its stated capital
return objective; and (xix) the effect that these or other factors
or unanticipated events may have on our reputation and the
additional consequences that this may have on our business and
performance. The sequence in which the factors above are presented
is not indicative of their likelihood of occurrence or the
potential magnitude of their consequences. Our business and
financial performance could be affected by other factors identified
in our past and future filings and reports, including those filed
with the SEC. More detailed information about those factors is set
forth in documents furnished by UBS and filings made by UBS with
the SEC, including UBS’s Annual Report on Form 20-F for the year
ended 31 December 2018. UBS is not under any obligation to (and
expressly disclaims any obligation to) update or alter its
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Rounding
Numbers presented throughout this news release may not add up
precisely to the totals provided in the tables and text.
Percentages, percent changes, and adjusted results are calculated
on the basis of unrounded figures. Information about absolute
changes between reporting periods, which is provided in text and
that can be derived from figures displayed in the tables, is
calculated on a rounded basis.
Tables
Within tables, blank fields generally indicate that the field is
not applicable or not meaningful, or that information is not
available as of the relevant date or for the relevant period. Zero
values generally indicate that the respective figure is zero on an
actual or rounded basis. Percentage changes are presented as a
mathematical calculation of the change between periods.
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UBS Group AG and UBS AG
Investor contact Switzerland: +41-44-234 41 00
Media contact Switzerland: +41-44-234 85 00 UK: +44-207-567 47
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www.ubs.com
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