UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: March 10, 2017
UBS Group AG
Commission File Number: 1-36764
UBS AG
Commission File Number: 1-15060
(Registrants' Names)
Bahnhofstrasse 45, Zurich, Switzerland, and
Aeschenvorstadt 1, Basel, Switzerland
(Address of
principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20‑F or Form 40-F.
This Form 6-K consists of the UBS AG audited standalone
financial statements for the year ended 31 December 2016, as well as the
consent of Ernst & Young Ltd. with respect thereto, which appear immediately
following this page.
UBS AG
Standalone financial statements and
regulatory information
for the year ended 31 December 2016
UBS AG standalone financial statements
(audited)
Income
statement
|
|
|
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
Note
|
|
31.12.16
|
|
31.12.15¹
|
|
31.12.15
|
Interest and discount income
|
|
|
|
5,776
|
|
6,204
|
|
(7)
|
Interest and dividend income from trading portfolio
|
|
|
|
2,060
|
|
2,602
|
|
(21)
|
Interest and dividend income from financial investments
|
|
|
|
165
|
|
199
|
|
(17)
|
Interest expense
|
|
|
|
(6,251)
|
|
(5,917)
|
|
6
|
Gross interest income
|
|
|
|
1,749
|
|
3,088
|
|
(43)
|
Credit loss (expense) / recovery
|
|
|
|
(32)
|
|
(158)
|
|
(80)
|
Net interest income
|
|
|
|
1,717
|
|
2,929
|
|
(41)
|
Fee and commission income from securities and investment
business and other fee and commission income
|
|
|
|
2,154
|
|
3,526
|
|
(39)
|
Credit-related fees and commissions
|
|
|
|
217
|
|
285
|
|
(24)
|
Fee and commission expense
|
|
|
|
(829)
|
|
(1,012)
|
|
(18)
|
Net fee and commission income
|
|
|
|
1,541
|
|
2,799
|
|
(45)
|
Net trading income
|
|
3
|
|
3,930
|
|
3,725
|
|
6
|
Net income from disposal of financial investments
|
|
|
|
117
|
|
150
|
|
(22)
|
Dividend income from investments in subsidiaries and other
participations
|
|
|
|
3,041
|
|
1,218
|
|
150
|
Income from real estate holdings
|
|
|
|
563
|
|
565
|
|
0
|
Sundry ordinary income
|
|
4
|
|
4,740
|
|
4,706
|
|
1
|
Sundry ordinary expenses
|
|
4
|
|
(539)
|
|
(831)
|
|
(35)
|
Other income from ordinary activities
|
|
|
|
7,922
|
|
5,809
|
|
36
|
Total operating income
|
|
|
|
15,111
|
|
15,263
|
|
(1)
|
Personnel expenses
|
|
5
|
|
6,350
|
|
6,438
|
|
(1)
|
General and administrative expenses
|
|
6
|
|
5,073
|
|
5,615
|
|
(10)
|
Subtotal operating expenses
|
|
|
|
11,422
|
|
12,053
|
|
(5)
|
Impairment of investments in subsidiaries and other
participations
|
|
|
|
1,099
|
|
413
|
|
166
|
Depreciation and impairment of property, equipment and software
|
|
|
|
700
|
|
674
|
|
4
|
Amortization and impairment of goodwill and other intangible
assets
|
|
|
|
22
|
|
22
|
|
0
|
Changes in provisions and other allowances and losses
|
|
|
|
109
|
|
25
|
|
336
|
Total operating expenses
|
|
|
|
13,352
|
|
13,187
|
|
1
|
Operating profit
|
|
|
|
1,759
|
|
2,076
|
|
(15)
|
Extraordinary income
|
|
7
|
|
1,637
|
|
10,264
|
|
(84)
|
Extraordinary expenses
|
|
7
|
|
2
|
|
136
|
|
(99)
|
Tax expense / (benefit)
|
|
8
|
|
150
|
|
220
|
|
(32)
|
Net profit / (loss)
|
|
|
|
3,244
|
|
11,984
|
|
(73)
|
1 Comparative amounts presented for the year ended 31 December
2015 include the results of the Personal & Corporate Banking and Wealth
Management businesses booked in Switzerland for the first three months of
2015. These businesses were transferred from UBS AG to UBS Switzerland AG
effective 1 April 2015. Refer to “Establishment of UBS Switzerland AG” in the
“Legal entity financial and regulatory information” section of the UBS Group
AG Annual Report 2015 for more information.
|
Balance
sheet
|
|
|
|
|
|
|
|
|
% change from
|
CHF million
|
|
Note
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and balances with central banks
|
|
|
|
40,778
|
|
45,125
|
|
(10)
|
Due from banks
|
|
|
|
40,700
|
|
40,611
|
|
0
|
Receivables from securities financing transactions
|
|
9
|
|
59,778
|
|
90,479
|
|
(34)
|
of which: cash collateral on
securities borrowed
|
|
|
|
6,561
|
|
27,925
|
|
(77)
|
of which: reverse repurchase
agreements
|
|
|
|
53,217
|
|
62,553
|
|
(15)
|
Due from customers
|
|
10, 11
|
|
103,880
|
|
97,401
|
|
7
|
Mortgage loans
|
|
10, 11
|
|
4,312
|
|
4,679
|
|
(8)
|
Trading portfolio assets
|
|
12
|
|
74,282
|
|
94,210
|
|
(21)
|
Positive replacement values
|
|
13
|
|
20,951
|
|
20,987
|
|
0
|
Financial investments
|
|
14
|
|
34,669
|
|
27,528
|
|
26
|
Accrued income and prepaid expenses
|
|
|
|
1,595
|
|
1,708
|
|
(7)
|
Investments in subsidiaries and other participations
|
|
|
|
48,262
|
|
43,791
|
|
10
|
Property, equipment and software
|
|
|
|
6,961
|
|
6,503
|
|
7
|
Goodwill and other intangible assets
|
|
|
|
13
|
|
36
|
|
(64)
|
Other assets
|
|
15
|
|
3,295
|
|
3,986
|
|
(17)
|
Total assets
|
|
|
|
439,476
|
|
477,045
|
|
(8)
|
of which: subordinated
assets
|
|
|
|
6,851
|
|
5,752
|
|
19
|
of which: subject to
mandatory conversion and / or debt waiver
|
|
|
|
4,521
|
|
4,020
|
|
12
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Due to banks
|
|
|
|
32,781
|
|
36,669
|
|
(11)
|
Payables from securities financing transactions
|
|
9
|
|
30,275
|
|
55,457
|
|
(45)
|
of which: cash collateral on
securities lent
|
|
|
|
13,193
|
|
34,094
|
|
(61)
|
of which: repurchase
agreements
|
|
|
|
17,082
|
|
21,363
|
|
(20)
|
Due to customers
|
|
|
|
152,690
|
|
144,842
|
|
5
|
Trading portfolio liabilities
|
|
12
|
|
15,535
|
|
21,179
|
|
(27)
|
Negative replacement values
|
|
13
|
|
23,896
|
|
24,669
|
|
(3)
|
Financial liabilities designated at fair value
|
|
12, 18
|
|
51,806
|
|
58,104
|
|
(11)
|
Bonds issued
|
|
|
|
71,215
|
|
72,750
|
|
(2)
|
Accrued expenses and deferred income
|
|
|
|
4,125
|
|
4,356
|
|
(5)
|
Other liabilities
|
|
15
|
|
4,113
|
|
5,505
|
|
(25)
|
Provisions
|
|
11
|
|
1,501
|
|
1,786
|
|
(16)
|
Total liabilities
|
|
|
|
387,937
|
|
425,316
|
|
(9)
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Share capital
|
|
19
|
|
386
|
|
386
|
|
0
|
General reserve
|
|
|
|
38,149
|
|
33,669
|
|
13
|
of which: statutory capital
reserve
|
|
|
|
38,149
|
|
38,149
|
|
0
|
of which: capital
contribution reserve
|
|
|
|
38,149
|
|
38,149
|
|
0
|
of which: statutory earnings
reserve
|
|
|
|
0
|
|
(4,480)
|
|
(100)
|
Voluntary earnings reserve
|
|
|
|
9,760
|
|
5,689
|
|
72
|
Net profit / (loss) for the period
|
|
|
|
3,244
|
|
11,984
|
|
(73)
|
Total equity
|
|
|
|
51,539
|
|
51,728
|
|
0
|
Total liabilities and equity
|
|
|
|
439,476
|
|
477,045
|
|
(8)
|
of which: subordinated
liabilities
|
|
|
|
17,692
|
|
16,139
|
|
10
|
of which: subject to
mandatory conversion and / or debt waiver
|
|
|
|
15,877
|
|
11,858
|
|
34
|
|
UBS AG standalone financial statements (audited)
Balance
sheet (continued)
|
|
|
|
|
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
|
|
|
|
|
|
|
Off-balance
sheet items
|
|
|
|
|
|
|
Contingent liabilities,
gross
|
|
25,395
|
|
27,787
|
|
(9)
|
Sub-participations
|
|
(1,905)
|
|
(1,866)
|
|
2
|
Contingent liabilities, net
|
|
23,489
|
|
25,920
|
|
(9)
|
of which: guarantees to
third parties related to subsidiaries
|
|
17,505
|
|
19,392
|
|
(10)
|
of which: credit guarantees
and similar instruments
|
|
3,607
|
|
4,224
|
|
(15)
|
of which: performance
guarantees and similar instruments
|
|
68
|
|
26
|
|
162
|
of which: documentary
credits
|
|
2,310
|
|
2,278
|
|
1
|
Irrevocable commitments,
gross
|
|
47,273
|
|
50,901
|
|
(7)
|
Sub-participations
|
|
(1,512)
|
|
(1,559)
|
|
(3)
|
Irrevocable commitments, net
|
|
45,761
|
|
49,342
|
|
(7)
|
of which: loan commitments
|
|
45,761
|
|
49,342
|
|
(7)
|
Forward starting
transactions¹
|
|
10,549
|
|
4,195
|
|
151
|
of which: reverse repurchase
agreements
|
|
7,238
|
|
1,626
|
|
345
|
of which: securities
borrowing agreements
|
|
36
|
|
6
|
|
500
|
of which: repurchase
agreements
|
|
3,267
|
|
2,561
|
|
28
|
of which: securities lending
agreements
|
|
8
|
|
2
|
|
300
|
Liabilities for calls on
shares and other equity instruments
|
|
5
|
|
7
|
|
(29)
|
1 Cash to be paid in the future by either UBS AG or the
counterparty.
|
Off-balance sheet
items
Off-balance sheet items include
indemnities and guarantees issued by UBS AG for the benefit of subsidiaries and
creditors of subsidiaries.
Where the indemnity amount issued by UBS AG
is not specifically defined, the indemnity relates to the solvency or minimum
capitalization of a subsidiary, and therefore no amount is included in the
table above.
In addition, UBS AG is jointly and severally
liable for the combined value added tax (VAT) liability of UBS entities that
belong to the VAT group of UBS in Switzerland. This contingent liability is not
included in the table above.
Guarantee to UBS Limited
UBS AG has issued a guarantee for the
benefit of each counterparty of UBS Limited. Under this guarantee, UBS AG
irrevocably and unconditionally guarantees each and every obligation that UBS
Limited enters into. UBS AG promises to pay to that counterparty on demand any
unpaid balance of such liabilities under the terms of the guarantee.
Joint and several liability
In June 2015, the Personal &
Corporate Banking and Wealth Management businesses booked in Switzerland were
transferred from UBS AG to UBS Switzerland AG through an asset transfer in
accordance with the Swiss Merger Act. Under the Swiss Merger Act, UBS AG
assumed joint liability for obligations existing on the asset transfer date, 14
June 2015, that were transferred to UBS Switzerland AG, excluding the
collateralized portion of secured contractual obligations.
As of the asset transfer date, this joint
liability amounted to approximately CHF 260 billion. UBS AG has no liability
for new obligations incurred by UBS Switzerland AG after the asset transfer
date. The joint liability amount declines as obligations mature, terminate or
are novated following the asset transfer date.
As of 31 December 2016, the joint liability
of UBS AG for contractual obligations of UBS Switzerland AG amounted to less
than CHF 1 billion compared with CHF 55 billion as of 31 December 2015. As of
31 December 2016, the probability of an outflow under this joint and several
liability was assessed to be remote, and as a result, the table above does not
include any exposures arising under this joint and several liability.
®
Refer to “Establishment of UBS Switzerland AG” in the “Legal entity
financial and regulatory information” section of the UBS Group AG Annual Report
2015 for more information
Limited indemnity UBS Europe SE
In connection with the establishment
of UBS Europe SE in 2016, UBS AG entered into an agreement with UBS Europe SE
under which UBS AG would provide UBS Europe SE with limited indemnification of
payment obligations that may arise from certain litigation, regulatory and
similar matters.
As of 31 December 2016, the amount of such
potential payment obligations could not be reliably estimated and the table
above does therefore not include any amount related to this limited
indemnification.
Statement
of changes in equity
|
CHF million
|
|
Share capital
|
|
Statutory capital reserve
|
|
Statutory earnings reserve
|
|
Voluntary earnings reserve
|
|
Net profit / (loss) for the period
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of 1 January 2015
|
|
384
|
|
40,782
|
|
(12,329)
|
|
5,689
|
|
7,849
|
|
42,376
|
Capital increase
|
|
1
|
|
|
|
|
|
|
|
|
|
1
|
Dividends and other distributions
|
|
|
|
(2,633)
|
|
|
|
|
|
|
|
(2,633)
|
Net profit / (loss) appropriation
|
|
|
|
|
|
7,849
|
|
|
|
(7,849)
|
|
0
|
Net profit / (loss) for the period
|
|
|
|
|
|
|
|
|
|
11,984
|
|
11,984
|
Balance as of 31 December
2015
|
|
386
|
|
38,149
|
|
(4,480)
|
|
5,689
|
|
11,984
|
|
51,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of 1 January 2016
|
|
386
|
|
38,149
|
|
(4,480)
|
|
5,689
|
|
11,984
|
|
51,728
|
Capital increase
|
|
|
|
|
|
|
|
|
|
|
|
0
|
Dividends and other distributions
|
|
|
|
|
|
(3,434)
|
|
|
|
|
|
(3,434)
|
Net profit / (loss) appropriation
|
|
|
|
|
|
7,914
|
|
4,070
|
|
(11,984)
|
|
0
|
Net profit / (loss) for the period
|
|
|
|
|
|
|
|
|
|
3,244
|
|
3,244
|
Balance as of 31 December
2016
|
|
386
|
|
38,149
|
|
0
|
|
9,760
|
|
3,244
|
|
51,539
|
Statement of appropriation of retained earnings and proposed
dividend distribution out of capital contribution reserve
Proposed appropriation of retained
earnings
The Board of Directors proposes that
the Annual General Meeting of Shareholders (AGM) on
2
March 2017
approve the following appropriation of retained earnings.
|
|
|
|
|
For the year ended
|
CHF million
|
|
31.12.16
|
Net profit for the period
|
|
3,244
|
Retained earnings carried forward
|
|
0
|
Total retained earnings
available for appropriation
|
|
3,244
|
|
|
|
Appropriation of retained
earnings
|
|
|
Appropriation to voluntary earnings reserve
|
|
(3,244)
|
Retained earnings carried
forward
|
|
0
|
Proposed dividend distribution out
of capital contribution reserve
The Board of Directors proposes that
the Annual General Meeting of Shareholders (AGM) on 2 March 2017 approve an
ordinary dividend distribution of CHF 2,250 million out of the capital
contribution reserve.
|
|
|
|
|
For the year ended
|
CHF million
|
|
31.12.16
|
Total statutory capital
reserve: capital contribution reserve before distribution¹
|
|
38,149
|
Distribution of capital contribution reserve within statutory
capital reserve
|
|
(2,250)
|
Total capital contribution
reserve after distribution
|
|
35,899
|
1 Effective 1 January 2011, the Swiss withholding tax law
provides that payments out of the capital contribution reserve are not
subject to withholding tax. This law has led to interpretational differences
between the Swiss Federal Tax Administration and companies about the
qualifying amounts of capital contribution reserve and the disclosure in the
financial statements. In view of this, the Swiss Federal Tax Administration
has confirmed that UBS AG would be able to repay to shareholders CHF 23.0
billion of disclosed capital contribution reserve (status as of 1 January
2015) without being subject to the withholding tax deduction that applies to
dividends paid out of retained earnings. This amount has not changed
subsequent to the dividend payment in 2016 out of retained earnings. The
decision about the remaining amount has been deferred to a future point in
time.
|
UBS AG standalone financial statements (audited)
Note
1 Name,
legal form and registered office
UBS AG is incorporated and domiciled
in Switzerland. Its registered offices are at Bahnhofstrasse 45, CH-8001 Zurich
and Aeschenvorstadt 1, CH-4051 Basel, Switzerland. UBS AG operates under the
Swiss Code of Obligations and Swiss federal banking law as a corporation limited
by shares (Aktiengesellschaft), a corporation that has issued shares of
common stock to investors. UBS AG is 100% owned by UBS Group AG, the ultimate
parent of the UBS Group.
Note
2 Accounting
policies
UBS AG standalone financial
statements are prepared in accordance with Swiss GAAP (FINMA Circular 2015 / 1
and Banking Ordinance) and represent "reliable assessment statutory
single-entity financial statements". The accounting policies are
principally the same as for the consolidated financial statements of UBS AG
outlined in Note 1 to the consolidated financial statements of UBS AG included
in the UBS Group AG and UBS AG Annual Report 2016. Major differences between
the Swiss GAAP requirements and International Financial Reporting Standards are
described in Note 36 to the consolidated financial statements of UBS AG. The
significant accounting policies applied for the standalone financial statements
of UBS AG are discussed below.
®
Refer to the UBS Group AG and UBS AG Annual Report 2016 for more
information
Risk management
UBS AG is fully integrated into the
Group-wide risk management process described in the audited part of the “Risk
management and control” section of the UBS Group AG and UBS AG Annual Report
2016.
Further information on the use of derivative
instruments and hedge accounting is provided in Notes 1 and 12 to the
consolidated financial statements of UBS AG.
®
Refer to the UBS Group AG and UBS AG Annual Report 2016 for more
information
Compensation policy
The compensation structure and
processes of UBS AG conform to the compensation principles and framework of UBS
Group AG. For detailed information refer to the Compensation Report of UBS Group
AG.
Foreign currency translation
Transactions denominated in foreign
currency are translated into Swiss francs at the spot exchange rate on the date
of the transaction. At the balance sheet date, all monetary assets and
liabilities, as well as equity instruments recorded in
Trading portfolio assets
and
Financial investments
denominated in foreign currency, are translated into Swiss francs using the
closing exchange rate. Non-monetary items measured at historic cost are
translated at the spot exchange rate on the date of the transaction. Assets and
liabilities of foreign branches are translated into Swiss francs at the closing
exchange rate. Income and expense items of foreign branches are translated at
weighted average exchange rates for the period. All currency translation
effects are recognized in the income statement.
The main currency translation rates used by
UBS AG are provided in Note 34 to the consolidated financial statements of UBS
AG.
®
Refer to the UBS Group AG and UBS AG Annual Report 2016 for more
information
Structured debt instruments
Structured debt instruments consist
of a host contract and one or more embedded derivatives that do not relate to
UBS AG’s own equity. The embedded derivatives are assessed for bifurcation for
measurement purposes and presented in the same balance sheet line as the host
contract. By applying the fair value option, the vast majority of structured
debt instruments are measured at fair value as a whole and recognized in
Financial liabilities designated at fair value.
Structured debt instruments comprise structured debt instruments
issued and structured over-the-counter debt instruments. The fair value option
for structured debt instruments can be applied only if the following criteria
are cumulatively met:
–
the structured debt instrument is measured on a
fair value basis and is subject to risk management that is equivalent to risk
management for trading activities;
–
the application of the fair value option
eliminates or significantly reduces an accounting mismatch that would otherwise
arise; and
–
changes in fair value attributable to changes in
unrealized own credit are not recognized in the income statement and the
balance sheet.
Fair value changes related to
Financial liabilities designated at fair value,
excluding
changes in unrealized own credit, are recognized in
Net
trading income.
Interest expense on
Financial
liabilities designated at fair value
is recognized in
Interest expense.
®
Refer to Note 18 for more information
Note
2 Accounting policies
(continued)
Investments in subsidiaries and other
participations
Investments in
subsidiaries and other participations
are equity
interests that are held to carry on the business of UBS AG or for other strategic
purposes. They include all subsidiaries directly held by UBS AG through which
UBS AG conducts its business on a global basis. The investments are measured
individually and carried at cost less impairment. The carrying value is tested
for impairment when indications for a decrease in value exist, which include
incurrence of significant operating losses or a severe depreciation of the
currency in which the investment is denominated. If an investment in a
subsidiary is impaired, its value is generally written down to the net asset
value. Subsequent recoveries in value are recognized up to the original cost
value based on either the increased net asset value or a value above the net
asset value if, in the opinion of management, forecasts of future profitability
provide sufficient evidence that a carrying value above net asset value is
supported. Management may exercise its discretion as to what extent and in
which period a recovery in value is recognized.
Impairments of investments are presented
as Impairment of investments in subsidiaries and other
participations.
Reversals of impairments are presented as
Extraordinary income
in the income statement. Impairments
and partial or full reversals of impairments for a subsidiary during the same
annual period are determined on a net basis.
Deferred taxes
Deferred tax assets are not
recognized in UBS AG’s standalone financial statements. However, deferred tax
liabilities may be recognized for taxable temporary differences. Changes in the
deferred tax liability balance are recognized in the income statement.
Services provided to and received from subsidiaries,
affiliated entities and UBS Group AG
Services provided to and received
from UBS Group AG or any of its subsidiaries are settled in cash as hard cost
transfers or hard revenue transfers paid or received.
When the nature of the underlying transaction
between UBS AG and UBS Group AG or any of its subsidiaries contains a single,
clearly identifiable service element, related income and expenses are presented
in the respective income statement line item, e.g.,
Fee and
commission income from securities and investment business, Other fee and
commission income, Fee and commission expense, Net trading income
or
General and administrative expenses.
To the extent the nature of the
underlying transaction contains various service elements and is not clearly
attributable to a particular income statement line item, related income and
expenses are presented in
Sundry ordinary income
and
Sundry ordinary expenses
.
®
Refer to Notes 4 and 6 for more information
Pension and other
post-employment benefit plans
Swiss GAAP permits the use of IFRS or
Swiss accounting standards for pension and other post-employment benefit plans,
with the election made on a plan-by-plan basis.
UBS AG has elected to apply Swiss GAAP (FER
16) for the Swiss pension plan in its standalone financial statements. The
requirements of Swiss GAAP are better aligned with the specific nature of Swiss
pension plans, which are hybrid in that they combine elements of defined
contribution and defined benefit plans, but are treated as defined benefit
plans under IFRS. Swiss GAAP requires that the employer contributions to the
pension fund are recognized as
Personnel expenses
in
the income statement. The employer contributions to the Swiss pension fund are
determined as a percentage of contributory compensation. Furthermore, Swiss
GAAP requires an assessment as to whether, based on the financial statements of
the pension fund prepared in accordance with Swiss accounting standards (FER
26), an economic benefit to, or obligation of, UBS AG arises from the pension
fund and is recognized in the balance sheet when conditions are met. Conditions
for recording a pension asset or liability would be met if, for example, an
employer contribution reserve is available or UBS AG is required to contribute
to the reduction of a pension deficit (on a FER 26 basis).
Key differences between Swiss GAAP and IFRS
include the treatment of dynamic elements, such as future salary increases and
future interest credits on retirement savings, which are not considered under
the static method used in accordance with Swiss GAAP. Also, the discount rate
used to determine the defined benefit obligation in accordance with IFRS is
based on the yield of high-quality corporate bonds of the market in the
respective pension plan country. The discount rate used in accordance with
Swiss GAAP, i.e., the technical interest rate, is determined by the Pension
Foundation Board based on the expected returns of the Board’s investment
strategy.
®
Refer to Note 20 for more information
UBS AG has elected to apply IFRS (IAS 19) for
its non-Swiss defined benefit plans. However, remeasurements of the defined
benefit obligation and the plan assets are recognized in the income statement
rather than directly in equity. For corresponding disclosures in accordance
with IAS 19 requirements, refer to Note 26 to the consolidated financial
statements of UBS AG.
®
Refer to the UBS Group AG and UBS AG Annual Report 2016 for more
information
UBS AG standalone financial statements (audited)
Note
2
Accounting policies
(continued)
Subordinated
assets and liabilities
Subordinated assets are comprised of
claims that, based on an irrevocable written declaration, in the event of
liquidation, bankruptcy or restructuring of the debtor, rank after the claims
of all other creditors and may not be offset against amounts payable to the
debtor nor secured by its assets. Subordinated liabilities are comprised of
corresponding obligations.
Subordinated assets and liabilities that
contain a point-of-non-viability clause in accordance with Swiss capital
requirements per articles 29 and 30 of the Capital Adequacy Ordinance are
disclosed as being
subject to mandatory conversion and / or
debt waiver
and provide for the claim or the obligation to be written
off or converted into equity in the event that the issuing bank reaches a point
of non-viability.
Dispensations in
the standalone financial statements
As UBS AG prepares consolidated
financial statements in accordance with IFRS, UBS AG is exempt from various
disclosures in the standalone financial statements. The dispensations include
the management report, the statement of cash flows and various note
disclosures, as well as the publication of interim financial statements.
Note
3a Net trading income by business
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Investment Bank
|
|
3,203
|
|
3,520
|
|
(9)
|
of which: Corporate Client
Solutions
|
|
(2)
|
|
318
|
|
|
of which: Investor Client
Services
|
|
3,205
|
|
3,203
|
|
0
|
Other business divisions and Corporate Center
|
|
727
|
|
205
|
|
255
|
Total net trading income
|
|
3,930
|
|
3,725
|
|
6
|
Note
3b
Net trading income by underlying risk category
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Interest rate instruments (including funds)
|
|
939
|
|
(346)
|
|
|
Foreign exchange instruments
|
|
1,208
|
|
1,912
|
|
(37)
|
Equity instruments (including funds)
|
|
1,797
|
|
1,822
|
|
(1)
|
Credit instruments
|
|
(44)
|
|
290
|
|
|
Precious metals / commodities
|
|
31
|
|
47
|
|
(34)
|
Total net trading income
|
|
3,930
|
|
3,725
|
|
6
|
of which: net gains /
(losses) from financial liabilities designated at fair value¹
|
|
(1,416)
|
|
3,139
|
|
|
1 Excludes fair value changes of hedges related to financial
liabilities designated at fair value and foreign currency effects arising
from translating foreign currency transactions into the respective functional
currency, both of which are reported within Net trading income.
|
Note
4 Sundry ordinary income and expenses
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Gains from sale of loans and receivables
|
|
0
|
|
23
|
|
(100)
|
Income from hard cost transfers¹
|
|
4,699
|
|
4,580
|
|
3
|
Other
|
|
41
|
|
104
|
|
(61)
|
Total sundry ordinary income
|
|
4,740
|
|
4,706
|
|
1
|
Losses from early redemption of debt
|
|
(2)
|
|
(275)
|
|
(99)
|
Expenses from hard revenue transfers
|
|
(440)
|
|
(497)
|
|
(11)
|
Other
|
|
(97)
|
|
(59)
|
|
64
|
Total sundry ordinary
expenses
|
|
(539)
|
|
(831)
|
|
(35)
|
1 Represents income received from UBS Group AG and subsidiaries
in the UBS Group for services provided by UBS AG. Services provided by UBS AG
primarily related to Corporate Center functions.
|
UBS AG standalone financial statements (audited)
Note
5 Personnel expenses
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Salaries
|
|
2,901
|
|
3,459
|
|
(16)
|
Variable compensation – performance awards
|
|
1,448
|
|
1,707
|
|
(15)
|
Variable compensation – other
|
|
164
|
|
191
|
|
(14)
|
Contractors
|
|
331
|
|
303
|
|
9
|
Social security
|
|
314
|
|
408
|
|
(23)
|
Pension and other post-employment benefit plans
|
|
966
|
|
122
|
|
692
|
of which: value adjustments
for economic benefits or obligations from pension funds¹
|
|
620
|
|
(318)
|
|
|
Wealth Management Americas: Financial advisor compensation
|
|
9
|
|
8
|
|
13
|
Other personnel expenses
|
|
218
|
|
240
|
|
(9)
|
Total personnel expenses
|
|
6,350
|
|
6,438
|
|
(1)
|
1 Reflects the remeasurement of the defined benefit obligation
and return on plan assets excluding amounts included in interest income for
the non-Swiss defined benefit plans, for which IAS 19 is applied.
|
Note
6 General and administrative expenses
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Occupancy
|
|
589
|
|
588
|
|
0
|
Rent and maintenance of IT equipment
|
|
384
|
|
383
|
|
0
|
Communication and market data services
|
|
313
|
|
322
|
|
(3)
|
Administration
|
|
1,334
|
|
1,413
|
|
(6)
|
of which: hard cost
transfers paid¹
|
|
929
|
|
955
|
|
(3)
|
Marketing and public relations
|
|
231
|
|
283
|
|
(18)
|
Travel and entertainment
|
|
167
|
|
226
|
|
(26)
|
Fees to audit firms
|
|
44
|
|
53
|
|
(17)
|
of which: financial and
regulatory audits
|
|
41
|
|
44
|
|
(7)
|
of which: audit-related
services
|
|
2
|
|
6
|
|
(67)
|
of which: tax and other
services
|
|
1
|
|
3
|
|
(67)
|
Other professional fees
|
|
584
|
|
776
|
|
(25)
|
Outsourcing of IT and other services
|
|
1,427
|
|
1,571
|
|
(9)
|
Total general and
administrative expenses
|
|
5,073
|
|
5,615
|
|
(10)
|
1 Represents expenses for services provided by UBS Group AG and
subsidiaries in the UBS Group to UBS AG.
|
Note
7 Extraordinary income and expenses
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Gains from disposals of subsidiaries and other participations
|
|
78
|
|
334
|
|
(77)
|
Reversal of impairments and provisions of subsidiaries and other
participations
|
|
1,415
|
|
9,551
|
|
(85)
|
Net gains from disposals of properties
|
|
121
|
|
378
|
|
(68)
|
Other extraordinary income
|
|
23
|
|
1
|
|
|
Total extraordinary income
|
|
1,637
|
|
10,264
|
|
(84)
|
Losses from disposals of subsidiaries and other participations
|
|
1
|
|
1
|
|
0
|
Other extraordinary expenses
|
|
1
|
|
134
|
|
(99)
|
Total extraordinary expenses
|
|
2
|
|
136
|
|
(99)
|
In 2016, UBS AG contributed the
majority of its non-US participations conducting Asset Management businesses
into UBS Asset Management AG, a direct subsidiary of UBS AG. The contribution
was made at the aggregate cost value of the transferred investments of CHF 1.5
billion. This resulted in a gain of CHF 1.1 billion, recognized within
Extraordinary
income
, as impairment losses recorded in previous years on some of these
investments were reversed.
Also in 2016, UBS AG’s direct Wealth
Management subsidiaries UBS (Italia) SpA, UBS (Luxembourg) S.A. (including its
branches in Austria, Denmark and Sweden), UBS Bank S.A. (Madrid) and UBS Bank
(Netherlands) B.V. were merged into UBS Deutschland AG, which was renamed to
UBS Europe SE and is headquartered in Frankfurt, Germany. The merger resulted
in the recognition of a gain of CHF 0.3 billion, recognized within
Extraordinary
income
, as certain impairment losses recorded in previous years were
reversed.
In 2015, UBS AG contributed its
participations in UBS Americas Inc., UBS Securities LLC and three Asset
Management subsidiaries into UBS Americas Holding LLC, a direct subsidiary of
UBS AG. This contribution was made at a fair value of CHF 21.2 billion, resulting
in a gain of CHF 10.0 billion that was recognized in the income statement,
largely as
Extraordinary income
, and which increased UBS AG’s investment
value in UBS Americas Holding LLC.
|
|
For the year ended
|
|
% change from
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
|
31.12.15
|
Income tax expense / (benefit)
|
|
118
|
|
186
|
|
(37)
|
of which: current
|
|
109
|
|
185
|
|
(41)
|
of which: deferred
|
|
9
|
|
1
|
|
800
|
Capital tax
|
|
32
|
|
34
|
|
(6)
|
Total tax expense /
(benefit)
|
|
150
|
|
220
|
|
(32)
|
For the year ended 31 December 2016,
the average tax rate, defined as income tax expense divided by the sum of
operating profit and extraordinary income minus extraordinary expenses and
capital tax, was 3.5% (2015: 1.5%). Income tax expense for the year ended 31
December 2016 included a benefit of CHF 256 million (2015: CHF 3,188 million) from
the utilization of tax losses carried forward in UBS AG’s main tax
jurisdictions.
UBS AG standalone financial statements (audited)
Note
9 Securities financing transactions
CHF billion
|
|
31.12.16
|
|
31.12.15
|
|
|
|
|
|
On-balance
sheet
|
|
|
|
|
Receivables from securities financing transactions, gross
|
|
109.3
|
|
133.3
|
Netting of securities financing transactions
|
|
(49.5)
|
|
(42.8)
|
Receivables from securities financing transactions, net
|
|
59.8
|
|
90.5
|
Payables from securities financing transactions, gross
|
|
79.8
|
|
98.2
|
Netting of securities financing transactions
|
|
(49.5)
|
|
(42.8)
|
Payables from securities financing transactions, net
|
|
30.3
|
|
55.5
|
Assets pledged as collateral in connection with securities
financing transactions
|
|
39.9
|
|
54.0
|
of which: trading portfolio
assets
|
|
39.1
|
|
52.8
|
of which: assets which may
be sold or repledged by counterparties
|
|
38.4
|
|
51.9
|
of which: financial assets
available for sale
|
|
0.8
|
|
1.2
|
of which: assets which may
be sold or repledged by counterparties
|
|
0.8
|
|
1.2
|
|
|
|
|
|
Off-balance
sheet
|
|
|
|
|
Fair value of assets received as collateral in connection with
securities financing transactions
|
|
257.1
|
|
249.9
|
of which: repledged
|
|
199.4
|
|
183.0
|
of which: sold in connection
with short sale transactions
|
|
15.5
|
|
21.2
|
Note
10a Collateral for loans and off-balance sheet transactions
|
|
31.12.16
|
|
31.12.15
|
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements²
|
|
|
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements²
|
|
|
|
|
CHF million
|
|
Real estate
|
|
Other
collateral¹
|
|
|
|
|
|
|
Real estate
|
|
Other
collateral¹
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-balance
sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from customers, gross³
|
|
4
|
|
60,922
|
|
224
|
|
42,811⁴
|
|
103,961
|
|
4
|
|
64,223
|
|
1,457
|
|
31,947⁴
|
|
97,630
|
Mortgage loans, gross
|
|
4,314
|
|
0
|
|
0
|
|
0
|
|
4,314
|
|
4,681
|
|
0
|
|
0
|
|
0
|
|
4,681
|
of which: residential
mortgages
|
|
4,225
|
|
|
|
|
|
|
|
4,225
|
|
4,605
|
|
|
|
|
|
|
|
4,605
|
of which: office and
business premises mortgages
|
|
36
|
|
|
|
|
|
|
|
36
|
|
4
|
|
|
|
|
|
|
|
4
|
of which: industrial
premises mortgages
|
|
30
|
|
|
|
|
|
|
|
30
|
|
44
|
|
|
|
|
|
|
|
44
|
of which: other mortgages
|
|
23
|
|
|
|
|
|
|
|
23
|
|
28
|
|
|
|
|
|
|
|
28
|
Total on-balance sheet,
gross
|
|
4,319
|
|
60,922
|
|
224
|
|
42,811
|
|
108,275
|
|
4,684
|
|
64,223
|
|
1,457
|
|
31,947
|
|
102,311
|
Allowances
|
|
(2)
|
|
(20)
|
|
0
|
|
(62)
|
|
(83)
|
|
(2)
|
|
(152)
|
|
0
|
|
(77)
|
|
(231)
|
Total on-balance sheet, net
|
|
4,317
|
|
60,902
|
|
224
|
|
42,749
|
|
108,192
|
|
4,683
|
|
64,071
|
|
1,457
|
|
31,870
|
|
102,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-balance
sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross
|
|
0
|
|
2,219
|
|
1,993
|
|
21,183
|
|
25,395
|
|
0
|
|
2,121
|
|
2,093
|
|
23,573
|
|
27,787
|
Irrevocable commitments, gross
|
|
342
|
|
12,301
|
|
5,516
|
|
29,114
|
|
47,273
|
|
456
|
|
9,673
|
|
7,515
|
|
33,256
|
|
50,901
|
Forward starting reverse repurchase and securities borrowing
transactions
|
|
0
|
|
7,196
|
|
0
|
|
78
|
|
7,274
|
|
0
|
|
1,632
|
|
0
|
|
0
|
|
1,632
|
Liabilities for calls on shares and other equities
|
|
0
|
|
0
|
|
0
|
|
5
|
|
5
|
|
0
|
|
0
|
|
0
|
|
7
|
|
7
|
Total off-balance sheet
|
|
342
|
|
21,716
|
|
7,509
|
|
50,380
|
|
79,946
|
|
456
|
|
13,425
|
|
9,608
|
|
56,837
|
|
80,327
|
1 Mainly comprised of cash and securities. 2 Includes credit
default swaps and guarantees. 3 Includes prime brokerage margin lending
receivables and prime brokerage receivables relating to securities financing
transactions. 4 Primarily comprised of amounts due from subsidiaries.
|
Note
10b Impaired financial instruments
|
|
31.12.16
|
|
31.12.15
|
CHF million
|
|
Gross impaired financial instruments
|
Allowances and
provisions
|
Estimated liquidation
proceeds of collateral
|
Net impaired financial instruments
|
|
Gross impaired financial instruments
|
Allowances and
provisions
|
Estimated liquidation
proceeds of collateral
|
Net impaired financial instruments
|
Amounts due from customers
|
|
157
|
81
|
0
|
76
|
|
474
|
229
|
0
|
245
|
Mortgage loans
|
|
5
|
2
|
3
|
0
|
|
5
|
2
|
4
|
0
|
Guarantees and loan commitments
|
|
24
|
13
|
0
|
11
|
|
17
|
3
|
0
|
14
|
Total impaired financial
instruments
|
|
186
|
96
|
3
|
87
|
|
496
|
234
|
4
|
259
|
CHF million
|
|
Balance
as of
31.12.15
|
Increase
recognized
in the
income
statement
|
|
Release
recognized
in the
income
statement
|
|
Write-offs
|
|
Recoveries
and past
due interest
|
|
Foreign
currency
translation
|
|
Balance
as of
31.12.16
|
Specific allowances for amounts due from customers and mortgage
loans
|
|
231
|
82
|
|
(64)
|
|
(168)
|
|
20
|
|
(22)
|
|
78
|
Specific allowances for amounts due from banks
|
|
0
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Collective allowances¹
|
|
0
|
5
|
|
0
|
|
0
|
|
0
|
|
0
|
|
5
|
Total allowances
|
|
231
|
87
|
|
(64)
|
|
(168)
|
|
20
|
|
(22)
|
|
83
|
1 Mainly relates to amounts due from customers.
|
CHF million
|
|
Balance
as of
31.12.15
|
Increase
recognized
in the
income
statement
|
|
Release
recognized
in the
income
statement
|
|
Provisions
used in
conformity
with
designated
purpose
|
|
Recoveries
|
|
Foreign
currency
translation
|
|
Balance
as of
31.12.16
|
Default risk related to loan commitments and guarantees
|
|
3
|
15
|
|
(5)
|
|
0
|
|
0
|
|
0
|
|
13
|
Operational risks
|
|
20
|
6
|
|
(2)
|
|
(7)
|
|
0
|
|
(1)
|
|
15
|
Litigation, regulatory and similar matters¹
|
|
1,063
|
167
|
|
(67)
|
|
(66)
|
|
0
|
|
(2)
|
|
1,096
|
Restructuring
|
|
288
|
169
|
|
(49)
|
|
(233)
|
|
6
|
|
(2)
|
|
178
|
Real estate²
|
|
94
|
4
|
|
0
|
|
(19)
|
|
0
|
|
(2)
|
|
77
|
Employee benefits
|
|
165
|
3
|
|
(22)
|
|
(85)
|
|
1
|
|
(12)
|
|
50
|
Parental support to subsidiaries
|
|
96
|
0
|
|
0
|
|
(96)
|
|
0
|
|
0
|
|
0
|
Deferred taxes
|
|
10
|
9
|
|
0
|
|
0
|
|
0
|
|
0
|
|
18
|
Other
|
|
47
|
15
|
|
(7)
|
|
0
|
|
0
|
|
0
|
|
54
|
Total provisions
|
|
1,786
|
387
|
|
(153)
|
|
(506)
|
|
7
|
|
(19)
|
|
1,501
|
1 Includes provisions for litigation resulting from security
risks. 2 Includes provisions for onerous lease contracts of CHF 16 million
as of 31 December 2016 (31 December 2015: CHF 25 million) and reinstatement
cost provisions for leasehold improvements of CHF 61 million as of 31
December 2016 (31 December 2015: CHF 69 million).
|
UBS AG standalone financial statements (audited)
Note
12 Trading portfolio and other financial instruments
measured at fair value
CHF million
|
|
31.12.16
|
31.12.15
|
|
|
|
|
Assets
|
|
|
|
Trading portfolio assets
|
|
74,282
|
94,210
|
of which: debt instruments¹
|
|
16,073
|
22,261
|
of which: listed
|
|
11,840
|
13,831
|
of which: equity instruments
|
|
55,304
|
70,035
|
of which: precious metals
and other physical commodities
|
|
2,905
|
1,915
|
Total assets measured at
fair value
|
|
74,282
|
94,210
|
of which: fair value derived
using a valuation model
|
|
11,159
|
18,783
|
of which: securities
eligible for repurchase transactions in accordance with liquidity
regulations²
|
|
10,249
|
15,894
|
|
|
|
|
Liabilities
|
|
|
|
Trading portfolio liabilities
|
|
15,535
|
21,179
|
of which: debt instruments¹
|
|
3,884
|
4,190
|
of which: listed
|
|
3,540
|
3,899
|
of which: equity instruments
|
|
11,651
|
16,989
|
Financial liabilities designated at fair value³
|
|
51,806
|
58,104
|
Total liabilities measured
at fair value
|
|
67,341
|
79,283
|
of which: fair value derived
using a valuation model
|
|
53,974
|
60,520
|
1 Includes money market paper. 2 Consists of high quality
liquid debt securities that are eligible for repurchase transactions at the
Swiss National Bank or other central banks. 3 Refer to Note 18 for more
information.
|
Note
13 Derivative instruments
|
|
31.12.16
|
|
31.12.15
|
CHF billion
|
|
PRV²
|
NRV³
|
|
Total notional values
|
|
PRV²
|
NRV³
|
|
Total notional values
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards¹
|
|
0.1
|
0.2
|
|
2,283
|
|
0.1
|
0.3
|
|
2,458
|
Swaps
|
|
47.3
|
39.8
|
|
8,222
|
|
69.3
|
60.7
|
|
7,636
|
of which: designated in
hedge accounting relationships
|
|
0.2
|
0.0
|
|
4
|
|
0.4
|
0.0
|
|
6
|
Futures
|
|
0.0
|
0.0
|
|
319
|
|
0.0
|
0.0
|
|
335
|
Over-the-counter (OTC) options
|
|
12.5
|
13.9
|
|
959
|
|
17.4
|
19.2
|
|
1,132
|
Exchange-traded options
|
|
0.0
|
0.0
|
|
146
|
|
0.0
|
0.0
|
|
208
|
Total
|
|
59.9
|
54.0
|
|
11,928
|
|
86.9
|
80.1
|
|
11,769
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
21.7
|
19.0
|
|
1,365
|
|
17.7
|
16.5
|
|
1,388
|
Interest and currency swaps
|
|
43.3
|
42.4
|
|
2,393
|
|
38.8
|
38.0
|
|
2,837
|
Futures
|
|
0.0
|
0.0
|
|
6
|
|
0.0
|
0.0
|
|
8
|
Over-the-counter (OTC) options
|
|
11.1
|
11.0
|
|
1,045
|
|
9.6
|
9.3
|
|
975
|
Exchange-traded options
|
|
0.0
|
0.1
|
|
9
|
|
0.0
|
0.0
|
|
8
|
Total
|
|
76.2
|
72.5
|
|
4,818
|
|
66.1
|
63.8
|
|
5,217
|
Equity / index contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
0.1
|
0.1
|
|
14
|
|
0.1
|
0.1
|
|
15
|
Swaps
|
|
4.5
|
5.6
|
|
147
|
|
3.5
|
4.6
|
|
150
|
Futures
|
|
0.0
|
0.0
|
|
28
|
|
0.0
|
0.0
|
|
25
|
Over-the-counter (OTC) options
|
|
3.8
|
5.8
|
|
149
|
|
4.7
|
6.7
|
|
156
|
Exchange-traded options
|
|
6.1
|
7.0
|
|
299
|
|
5.5
|
6.5
|
|
231
|
Total
|
|
14.4
|
18.4
|
|
637
|
|
13.8
|
18.0
|
|
577
|
Credit derivative contracts
|
|
|
|
|
|
|
|
|
|
|
Credit default swaps
|
|
3.7
|
3.8
|
|
251
|
|
6.0
|
5.9
|
|
318
|
Total return swaps
|
|
0.2
|
0.9
|
|
10
|
|
0.6
|
0.7
|
|
12
|
Other
|
|
0.0
|
0.0
|
|
3
|
|
0.0
|
0.0
|
|
4
|
Total
|
|
3.9
|
4.8
|
|
264
|
|
6.7
|
6.5
|
|
334
|
Commodity, precious metals
and other contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
0.3
|
0.2
|
|
8
|
|
0.3
|
0.3
|
|
5
|
Swaps
|
|
0.4
|
0.5
|
|
24
|
|
0.7
|
0.5
|
|
19
|
Futures
|
|
0.0
|
0.0
|
|
9
|
|
0.0
|
0.0
|
|
8
|
Over-the-counter (OTC) options
|
|
0.5
|
0.2
|
|
24
|
|
0.9
|
0.6
|
|
19
|
Exchange-traded options
|
|
0.7
|
0.7
|
|
19
|
|
0.7
|
0.9
|
|
11
|
Total
|
|
1.9
|
1.7
|
|
84
|
|
2.5
|
2.3
|
|
63
|
Total before netting
|
|
156.4
|
151.3
|
|
17,732
|
|
176.0
|
170.7
|
|
17,960
|
of which: trading
derivatives
|
|
156.2
|
151.3
|
|
|
|
175.6
|
170.7
|
|
|
of which: fair value derived
using a valuation model
|
|
155.9
|
150.8
|
|
|
|
175.2
|
170.3
|
|
|
of which: derivatives
designated in hedge accounting relationships
|
|
0.2
|
0.0
|
|
|
|
0.4
|
0.0
|
|
|
of which: fair value derived
using a valuation model
|
|
0.2
|
0.0
|
|
|
|
0.4
|
0.0
|
|
|
Netting with cash collateral payables / receivables
|
|
(19.5)
|
(11.5)
|
|
|
|
(18.7)
|
(9.7)
|
|
|
Replacement value netting
|
|
(115.9)
|
(115.9)
|
|
|
|
(136.3)
|
(136.3)
|
|
|
Total after netting
|
|
21.0
|
23.9
|
|
|
|
21.0
|
24.7
|
|
|
of which: with central
clearing counterparties
|
|
0.0
|
0.2
|
|
|
|
0.0
|
0.6
|
|
|
of which: with bank and
broker-dealer counterparties
|
|
7.7
|
8.6
|
|
|
|
7.4
|
9.2
|
|
|
of which: other client
counterparties
|
|
13.2
|
15.0
|
|
|
|
13.6
|
14.9
|
|
|
1 Includes forward rate agreements. 2 PRV: positive replacement
values. 3 NRV: negative replacement values.
|
UBS AG standalone financial statements (audited)
Note
14a Financial investments by
instrument type
|
|
31.12.16
|
|
31.12.15
|
CHF million
|
|
Carrying value
|
Fair value
|
|
Carrying value
|
Fair value
|
Debt instruments
|
|
34,427
|
34,463
|
|
27,296
|
27,354
|
of which: held to maturity
|
|
527
|
527
|
|
0
|
0
|
of which: available for sale
|
|
33,900
|
33,936
|
|
27,296
|
27,354
|
Equity instruments
|
|
233
|
244
|
|
223
|
234
|
of which: qualified
participations¹
|
|
82
|
84
|
|
133
|
137
|
Property
|
|
8
|
8
|
|
9
|
9
|
Total financial investments
|
|
34,669
|
34,715
|
|
27,528
|
27,598
|
of which: securities
eligible for repurchase transactions in accordance with liquidity
regulations²
|
|
33,326
|
33,360
|
|
27,127
|
27,181
|
1 Qualified participations are investments in which UBS AG holds
10% or more of the total capital or has at least 10% of total voting
rights. 2 Consists of high quality liquid debt securities that are
eligible for repurchase transactions at the Swiss National Bank or other
central banks.
|
Note
14b Financial investments by counterparty rating – debt instruments
CHF million
|
|
31.12.16
|
|
31.12.15
|
Internal UBS rating¹
|
|
|
|
|
0–1
|
|
27,607
|
|
26,632
|
2–3
|
|
6,817
|
|
653
|
4–5
|
|
0
|
|
0
|
6–8
|
|
0
|
|
0
|
9–13
|
|
0
|
|
0
|
Non-rated
|
|
4
|
|
10
|
Total financial investments
|
|
34,427
|
|
27,296
|
1 Refer to Note 17 for more information.
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
Settlement and clearing accounts
|
|
136
|
|
116
|
VAT and other indirect tax receivables
|
|
182
|
|
226
|
Bail deposit¹
|
|
1,202
|
|
1,210
|
Other
|
|
1,775
|
|
2,435
|
of which: other receivables
due from UBS Group AG and subsidiaries in the UBS Group
|
|
1,284
|
|
1,850
|
Total other assets
|
|
3,295
|
|
3,986
|
1 Refer to item 1 in Note 20b to the UBS AG consolidated
financial statements in the UBS Group AG and UBS AG Annual Report 2016 for
more information.
|
Note
15b Other liabilities
CHF million
|
|
31.12.16
|
|
31.12.15
|
Deferral position for hedging instruments
|
|
1,259
|
|
2,826
|
Settlement and clearing accounts
|
|
247
|
|
232
|
Net defined benefit liabilities
|
|
697
|
|
129
|
VAT and other indirect tax payables
|
|
126
|
|
110
|
Other
|
|
1,785
|
|
2,208
|
of which: other payables due
to UBS Group AG and subsidiaries in the UBS Group
|
|
1,521
|
|
1,694
|
Total other liabilities
|
|
4,113
|
|
5,505
|
As of 31 December 2016, assets
pledged by UBS AG were entirely comprised of securities with a carrying value of
CHF 1,809 million (31 December 2015: CHF 2,597 million) with a related
effective commitment of CHF 160 million (31 December 2015: CHF 258 million).
These assets were primarily pledged for derivative transactions and exclude
assets pledged for securities financing transactions. They also exclude assets
placed with central banks related to undrawn credit lines and for payment,
clearing and settlement purposes that together amounted to CHF 1.8 billion as
of 31 December 2016 (31 December 2015: CHF 2.1 billion).
®
Refer to Note 9 for more information on securities financing
transactions
Note
17 Country risk of total assets
The table below provides a breakdown
of total non-Swiss assets by credit rating. These credit ratings reflect the
sovereign credit rating of the country to which the ultimate risk of the
underlying asset is related. The ultimate country of risk for unsecured loan
positions is the domicile of the immediate borrower or, in the case of a legal
entity, the domicile of the ultimate parent entity. For collateralized or
guaranteed positions, the ultimate country of risk is the domicile of the
provider of the collateral or guarantor or, if applicable, the domicile of the
ultimate parent entity of the provider of the collateral or guarantor. For
mortgage loans, the ultimate country of risk is the country where the real
estate is located. Similarly, the ultimate country of risk for property and
equipment is the country where the property and equipment is located. Assets
for which Switzerland is the ultimate country of risk are provided separately
in order to reconcile them to total balance sheets assets.
®
Refer to the “Risk management and control” section of the UBS Group
AG and UBS AG Annual Report 2016 for more information
|
|
|
|
|
|
|
31.12.16
|
|
31.12.15
|
Classification
|
Internal UBS rating
|
Description
|
Moody’s Investors
Service
|
Standard & Poor’s
|
Fitch
|
|
CHF million
|
%
|
|
CHF million
|
%
|
|
0 and 1
|
Investment grade
|
Aaa
|
AAA
|
AAA
|
|
204,113
|
46
|
|
227,855
|
48
|
Low risk
|
2
|
|
Aa1 to Aa3
|
AA+ to AA–
|
AA+ to AA–
|
|
127,349
|
29
|
|
141,073
|
30
|
3
|
|
A1 to A3
|
A+ to A–
|
A+ to AA–
|
|
38,915
|
9
|
|
39,846
|
8
|
Medium risk
|
4
|
|
Baa1 to Baa2
|
BBB+ to BBB
|
BBB+ to BBB
|
|
13,810
|
3
|
|
19,053
|
4
|
5
|
|
Baa3
|
BBB–
|
BBB–
|
|
4,477
|
1
|
|
4,399
|
1
|
High risk
|
6
|
Sub-investment grade
|
Ba1
|
BB+
|
BB+
|
|
1,308
|
0
|
|
2,430
|
1
|
7
|
|
Ba2
|
BB
|
BB
|
|
1,241
|
0
|
|
84
|
0
|
8
|
|
Ba3
|
BB–
|
BB–
|
|
61
|
0
|
|
73
|
0
|
9
|
|
B1
|
B+
|
B+
|
|
192
|
0
|
|
173
|
0
|
Very high risk
|
10
|
|
B2
|
B
|
B
|
|
1,065
|
0
|
|
93
|
0
|
11
|
|
B3
|
B–
|
B–
|
|
156
|
0
|
|
954
|
0
|
12
|
|
Caa
|
CCC
|
CCC
|
|
361
|
0
|
|
216
|
0
|
13
|
|
Ca to C
|
CC to C
|
CC to C
|
|
121
|
0
|
|
82
|
0
|
Distressed
|
Default
|
Defaulted
|
D
|
D
|
D
|
|
6
|
0
|
|
5
|
0
|
Subtotal
|
|
|
|
|
|
|
393,175
|
89
|
|
436,336
|
91
|
Switzerland
|
|
|
|
|
|
|
46,301
|
11
|
|
40,709
|
9
|
Total assets
|
|
|
|
|
|
|
439,476
|
100
|
|
477,045
|
100
|
UBS AG standalone financial statements (audited)
Note
18 Structured debt instruments
The table
below provides a breakdown of financial liabilities designated at fair value that
are considered structured debt instruments.
CHF million
|
|
31.12.16
|
|
31.12.15
|
Fixed-rate bonds with structured features
|
|
1,778
|
|
3,017
|
Structured debt instruments issued:
|
|
|
|
|
Equity-linked
|
|
29,648
|
|
30,236
|
Rates-linked
|
|
10,013
|
|
16,118
|
Credit-linked
|
|
2,444
|
|
2,949
|
Commodities-linked¹
|
|
1,949
|
|
1,075
|
FX-linked
|
|
826
|
|
218
|
Structured over-the-counter (OTC) debt instruments
|
|
5,149
|
|
4,491
|
Total financial liabilities designated
at fair value
|
|
51,806
|
|
58,104
|
1 Includes precious metals-linked debt instruments issued.
|
In addition
to financial liabilities designated at fair value, certain structured debt
instruments were reported within the balance sheet lines
Due to banks, Due to customers
and
Bonds issued.
These instruments were bifurcated for measurement purposes. As of
31 December 2016, the total carrying value of the host instruments was CHF 5,197
million (31 December 2015: CHF 3,624 million) and the total carrying value of
the bifurcated embedded derivatives was positive CHF 116 million (31 December
2015: negative CHF 60 million).
UBS AG shares
UBS AG’s share capital consists of
fully paid up registered issued shares with a par value of CHF 0.10, which
entitle the holder to one vote at the UBS AG shareholders’ meeting, if entered
into the share register as having the right to vote, as well as a proportionate
share of distributed dividends. UBS AG does not apply any restrictions or
limitations on the transferability of shares.
As of 31 December 2016, shares issued by UBS
AG totaled 3,858,408,466 shares (unchanged from 31 December 2015) that were all
dividend bearing and held by UBS Group AG.
Additionally, as of 31 December 2016,
516,200,312 registered shares with a par value of CHF 0.10 each were available
to be issued out of conditional capital (31 December 2015: 552,352,759).
During 2016, there were no new share
issuances out of conditional capital. During 2015, shares issued by UBS AG
increased by 13,847,553 shares due to the issuance of new UBS AG shares out of
conditional share capital upon distribution of a share dividend in May 2015.
Non-distributable reserves
Non-distributable reserves consist of
50% of the share capital of UBS AG, amounting to CHF 193 million as of 31
December 2016 (unchanged from 31 December 2015).
Note
19b Significant shareholders
The sole direct shareholder of UBS AG
is UBS Group AG, which holds 100% of UBS AG shares. These shares are entitled
to voting rights. Indirect shareholders of UBS AG included in the table below
comprise direct shareholders of UBS Group AG (acting in their own name or in
their capacity as nominees for other investors or beneficial owners) that were
registered in the UBS Group AG share register with 3% or more of the share
capital of UBS Group AG as of 31 December 2016 or as of 31 December 2015. The
shares and share capital of UBS AG held by indirect shareholders represent
their relative holding of UBS Group AG shares. They do not have voting rights
in UBS AG.
®
Refer to Note 23 to the UBS Group AG standalone financial statements
in the UBS Group AG Annual Report 2016 for more information on significant
shareholders of UBS Group AG
|
|
31.12.16
|
|
31.12.15
|
CHF million, except where
indicated
|
|
Share capital held
|
Shares held (%)
|
|
Share capital held
|
Shares held (%)
|
Significant direct
shareholder of UBS AG
|
|
|
|
|
|
|
UBS Group AG
|
|
386
|
100
|
|
386
|
100
|
Significant indirect
shareholders of UBS AG
|
|
|
|
|
|
|
Chase Nominees Ltd., London
|
|
36
|
9
|
|
35
|
9
|
GIC Private Limited, Singapore
|
|
|
|
|
25
|
6
|
DTC (Cede & Co.), New York¹
|
|
26
|
7
|
|
24
|
6
|
Nortrust Nominees Ltd., London
|
|
15
|
4
|
|
14
|
4
|
1 DTC (Cede & Co.), New York, “The Depository Trust
Company,” is a US securities clearing organization.
|
UBS AG standalone financial statements (audited)
Note
20 Swiss pension plan and non-Swiss
defined benefit plans
a)
Liabilities related to Swiss pension plan and non-Swiss defined benefit plans
|
|
|
|
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
Provision for Swiss pension plan
|
|
0
|
|
0
|
Net defined benefit liabilities for non-Swiss defined benefit
plans¹
|
|
697
|
|
129
|
Total provision for Swiss pension plan and net defined benefit
liabilities for non-Swiss defined benefit plans
|
|
697
|
|
129
|
Bank accounts at UBS and UBS debt instruments held by Swiss
pension fund
|
|
220
|
|
260
|
UBS derivative financial instruments held by Swiss pension fund
|
|
47
|
|
27
|
Total liabilities related to
Swiss pension plan and non-Swiss defined benefit plans
|
|
964
|
|
416
|
1 As of 31 December 2016, CHF 529 million related to the UK
defined benefit pension plan and CHF 26 million related to the UK
post-employment medical insurance plan. As of 31 December 2015, CHF 25
million related to the UK post-employment medical insurance plan. The UK
defined benefit pension plan was in a surplus situation as of 31 December
2015.
|
|
b)
Swiss pension plan
|
|
|
|
|
|
|
As of or for the year ended
|
CHF million
|
|
31.12.16
|
|
31.12.15
|
Pension plan surplus¹
|
|
2,508
|
|
2,243
|
Economic benefit / (obligation) of UBS AG
|
|
0
|
|
0
|
Change in economic benefit / obligation recognized in the income
statement
|
|
0
|
|
0
|
Employer contributions in the period recognized in the income
statement
|
|
216
|
|
270
|
Performance awards-related employer contributions accrued
|
|
21
|
|
30
|
Total pension expense
recognized in the income statement within Personnel expenses
|
|
238
|
|
300
|
1 The pension plan surplus is determined in accordance with FER
26 and consists of the reserve for the fluctuation in asset value. The
surplus did not represent an economic benefit for UBS AG in accordance with
FER 16 both as of 31 December 2016 and 31 December 2015.
|
UBS AG has elected to apply FER 16
for its Swiss pension plan and IFRS (IAS 19) for its UK and other non-Swiss
defined benefit plans. However, remeasurements of the defined benefit
obligations for UK and other non-Swiss defined benefit plans are recognized in
the income statement rather than directly in equity.
®
Refer to Note 2 for more information
®
Refer to Note 26 to the UBS AG consolidated financial statements in
the UBS Group AG and UBS AG Annual Report 2016 for more information on non-Swiss
defined benefit plans in accordance with IAS 19
The Swiss pension plan had no
employer contribution reserve both as of 31 December 2016 and 31 December 2015.
Note
21 Share-based compensation
Expenses for awards under employee
share, option, notional fund and deferred cash compensation plans granted to
UBS AG employees are generally charged by UBS Group AG to UBS AG. Obligations
related to other compensation vehicles, such as defined benefit pension plans
and other local awards, are held by the relevant employing and / or sponsoring
subsidiaries, such as UBS AG.
®
Refer to Note 27 to the UBS AG consolidated financial statements in
the UBS Group AG and UBS AG Annual Report 2016 for more information
Transactions with related parties are
conducted at internally agreed transfer prices, at arm’s length, or with
respect to loans, fixed advances and mortgages to non-independent members of
the Board of Directors and Group Executive Board members on the same terms and
conditions that are available to other employees.
|
|
31.12.16
|
|
31.12.15
|
CHF million
|
|
Amounts due from
|
|
Amounts due to
|
|
Amounts due from
|
|
Amounts due to
|
Qualified shareholders¹
|
|
522
|
|
8,536
|
|
581
|
|
5,776
|
of which: due from / to
customers
|
|
505
|
|
7,865
|
|
567
|
|
5,171
|
Subsidiaries
|
|
94,171
|
|
59,553
|
|
119,900
|
|
87,059
|
of which: due from / to
banks
|
|
36,151
|
|
25,256
|
|
37,278
|
|
28,685
|
of which: due from / to
customers
|
|
33,994
|
|
2,272
|
|
23,308
|
|
8,558
|
of which: receivables /
payables from securities financing transactions
|
|
19,029
|
|
25,114
|
|
54,422
|
|
44,149
|
Affiliated entities²
|
|
121
|
|
17,476
|
|
117
|
|
5,752
|
of which: due from / to
customers
|
|
108
|
|
17,291
|
|
39
|
|
5,699
|
Members of the Board of Directors and Group Executive Board
|
|
41
|
|
|
|
33
|
|
|
External auditors
|
|
|
|
11
|
|
|
|
20
|
Other related parties³
|
|
8
|
|
|
|
9
|
|
|
1 The qualified shareholder of UBS AG is UBS Group AG.
2 Affiliated entities of UBS AG are all direct subsidiaries of UBS
Group AG. 3 Primarily relates to SIX Group AG, in which UBS
AG has a 17.3% equity interest.
|
As of 31 December 2016, off-balance
sheet positions related to subsidiaries amounted to CHF 24.8 billion (31
December 2015: CHF 26.5 billion), of which CHF 17.5 billion were guarantees to
third parties (31 December 2015: CHF 19.4 billion) and CHF 4.5 billion were
loan commitments (31 December 2015: CHF 5.3 billion).
Note
23 Fiduciary transactions
CHF million
|
|
31.12.16
|
|
31.12.15
|
Fiduciary deposits
|
|
349
|
|
310
|
of which: placed with
third-party banks
|
|
349
|
|
310
|
of which: placed with
subsidiaries and affiliated entities
|
|
0
|
|
0
|
Total fiduciary transactions
|
|
349
|
|
310
|
Fiduciary transactions encompass
transactions entered into or granted by UBS AG that result in holding or
placing assets on behalf of individuals, trusts, defined benefit plans and
other institutions. Unless the recognition criteria for the assets are
satisfied, these assets and the related income are excluded from UBS AG’s
balance sheet and income statement, but disclosed in this Note as off-balance
sheet fiduciary transactions. Client deposits that are initially placed as
fiduciary transactions with UBS AG may be recognized on UBS AG’s balance sheet
in situations in which the deposit is subsequently placed within UBS AG. In
such cases, these deposits are not reported in the table above.
UBS AG standalone financial statements (audited)
Note
24a Invested assets and net new money
|
|
For the year ended
|
CHF billion
|
|
31.12.16
|
|
31.12.15
|
Fund assets managed
|
|
12
|
|
11
|
Discretionary assets
|
|
168
|
|
166
|
Other invested assets
|
|
329
|
|
311
|
Total invested assets
|
|
509
|
|
488
|
of which: double count
|
|
3
|
|
2
|
Net new money
|
|
17.2
|
|
0.0
|
Note
24b Development of invested assets
|
|
For the year ended
|
CHF billion
|
|
31.12.16
|
|
31.12.15
|
Total invested assets at the beginning of the year¹
|
|
488
|
|
1,076
|
Net new money
|
|
17
|
|
0
|
Market movements²
|
|
17
|
|
8
|
Foreign currency translation
|
|
0
|
|
(29)
|
Transfer to UBS Switzerland AG
|
|
|
|
(557)
|
Other effects
|
|
(13)
|
|
(10)
|
of which: acquisitions /
(divestments)
|
|
(12)
|
|
(10)
|
Total invested assets at the
end of the year¹
|
|
509
|
|
488
|
1 Includes double counts. 2 Includes interest and dividend
income.
|
|
|
|
|
®
Refer to Note 33 to the UBS AG consolidated financial statements in the
UBS Group AG and UBS AG Annual Report 2016 for more information
UBS AG standalone financial statements (audited)
UBS AG standalone financial statements (audited)
UBS AG standalone
regulatory information
UBS AG standalone regulatory information
Swiss SRB capital requirements and
capital information
UBS AG is considered a systemically relevant bank (SRB) under Swiss
banking law. However, on a standalone basis, UBS AG is not subject to the
revised too big to fail capital requirements.
Under Swiss SRB regulations, article 125
“Reliefs for financial groups and individual institutions” of the Capital
Adequacy Ordinance (CAO) stipulates that the Swiss Financial Market Supervisory
Authority (FINMA) may grant, under certain conditions, capital relief to
individual institutions to ensure that an individual institution’s compliance
with the capital requirements does not lead to a de facto overcapitalization of
the group of which it is a part of.
FINMA
granted relief concerning the regulatory capital requirements of UBS AG on a
standalone basis by means of a decree issued on 20 December 2013, which became
effective on 1 January 2014 and is still effective.
The tables in this
section provide UBS AG standalone capital information under Swiss SRB
regulations, as per the aforementioned FINMA decree. In addition to the 14.0%
total capital requirement set by the decree, UBS AG is required to comply with
countercyclical buffer requirements on a standalone basis. The effect of the countercyclical buffer capital requirements were
immaterial as of 31 December 2016.
Reconciliation
of Swiss federal banking law equity to Swiss SRB common equity tier 1 capital
|
|
CHF billion
|
31.12.16
|
31.12.15
|
Equity – Swiss federal
banking law¹
|
51.5
|
51.7
|
Deferred tax assets
|
1.2
|
1.9
|
Investments in the finance sector
|
(15.6)
|
(16.6)
|
Goodwill and intangible assets
|
(0.4)
|
(0.4)
|
Accruals for proposed dividends to shareholders
|
(2.3)
|
(3.4)
|
Other
|
(0.5)
|
(0.6)
|
Common equity tier 1 capital
(phase-in)
|
34.0
|
32.7
|
1 Equity under Swiss federal banking law is adjusted to derive
equity in accordance with IFRS and then further adjusted to derive common
equity tier 1 (CET1) capital in accordance with Swiss SRB requirements.
|
Capital
ratio requirements and information (phase-in)
|
|
|
Capital ratio (%)
|
|
Capital
|
|
|
Requirement
|
|
Actual
|
|
Requirement
|
|
Eligible
|
CHF million, except where
indicated
|
|
31.12.16
|
|
31.12.16
|
31.12.15
|
|
31.12.16
|
|
31.12.16
|
31.12.15
|
Common equity tier 1 capital
|
|
10.0
|
|
14.6
|
14.4
|
|
23,251
|
|
33,983
|
32,656
|
Tier 1 capital
|
|
10.8
|
|
14.6
|
14.4
|
|
25,111
|
|
33,983
|
32,656
|
Total capital
|
|
14.0
|
|
14.6
|
14.4
|
|
32,548
|
|
33,983
|
32,656
|
Capital
information (phase-in)
|
CHF million, except where
indicated
|
|
31.12.16
|
31.12.15
|
|
|
|
|
Capital
|
|
|
|
Common equity tier 1 capital
|
|
51,331
|
51,274
|
Deductions from common equity tier 1 capital
|
|
(17,348)
|
(18,618)
|
Total common equity tier 1
capital
|
|
33,983
|
32,656
|
High-trigger loss-absorbing additional tier 1 capital
|
|
3,919
|
1,252
|
Low-trigger loss-absorbing additional tier 1 capital
|
|
1,071
|
0
|
Deductions from high-trigger loss-absorbing additional tier 1
capital
|
|
(4,990)
|
(1,252)
|
Total loss-absorbing
additional tier 1 capital
|
|
0
|
0
|
Total tier 1 capital
|
|
33,983
|
32,656
|
Low-trigger loss-absorbing tier 2 capital
|
|
10,402
|
10,325
|
Phase-out hybrid tier 2 capital
|
|
642
|
1,954
|
Phase-out tier 2 capital
|
|
698
|
996
|
Deductions from tier 2 capital
|
|
(11,742)
|
(13,276)
|
Total tier 2 capital
|
|
0
|
0
|
Total capital
|
|
33,983
|
32,656
|
|
|
|
|
Risk-weighted
assets
|
|
|
|
Risk-weighted assets
|
|
232,422
|
227,170
|
|
|
|
|
Capital
ratios (%)
|
|
|
|
Common equity tier 1 capital ratio
|
|
14.6
|
14.4
|
Tier 1 capital ratio
|
|
14.6
|
14.4
|
Total capital ratio
|
|
14.6
|
14.4
|
UBS AG standalone regulatory information
Leverage
ratio information
Swiss
SRB leverage ratio requirements and information (phase-in)
|
|
|
Leverage ratio (%)
|
|
Leverage ratio capital
|
|
|
Requirement¹
|
|
Actual
|
|
Requirement
|
|
Eligible
|
CHF million, except where
indicated
|
|
31.12.16
|
|
31.12.16
|
31.12.15
|
|
31.12.16
|
|
31.12.16
|
31.12.15
|
Common equity tier 1 capital
|
|
2.4
|
|
6.0
|
5.2
|
|
13,488
|
|
33,983
|
32,656
|
Tier 1 capital
|
|
2.6
|
|
6.0
|
5.2
|
|
14,572
|
|
33,983
|
32,656
|
Total capital
|
|
3.4
|
|
6.0
|
5.2
|
|
18,883
|
|
33,983
|
32,656
|
1 Requirements for common equity tier 1 capital (24% of 10%),
tier 1 capital (24% of 10.8%) and total capital (24% of 14%).
|
Swiss
SRB leverage ratio (phase-in)
|
|
CHF billion
|
|
31.12.16
|
31.12.15
|
Swiss GAAP total assets
|
|
439.5
|
477.0
|
Difference between Swiss GAAP and IFRS total assets
|
|
151.3
|
170.0
|
Less: derivative exposures and SFTs¹
|
|
(248.3)
|
(295.5)
|
On-balance sheet exposures
(excluding derivative exposures and SFTs)
|
|
342.5
|
351.5
|
Derivative exposures
|
|
98.5
|
124.1
|
Securities financing transactions
|
|
93.5
|
130.8
|
Off-balance sheet items
|
|
40.7
|
42.6
|
Items deducted from Swiss SRB tier 1 capital
|
|
(13.2)
|
(14.9)
|
Total exposures (leverage
ratio denominator)
|
|
562.0
|
634.0
|
|
|
|
CHF million, except where
indicated
|
|
31.12.16
|
31.12.15
|
Common equity tier 1 capital
|
|
33,983
|
32,656
|
Additional tier 1 capital
|
|
0
|
0
|
Tier 2 capital
|
|
0
|
0
|
Total capital
|
|
33,983
|
32,656
|
Leverage ratio (%)
|
|
6.0
|
5.2
|
1 Consists of positive replacement values, cash collateral
receivables on derivative instruments, cash collateral on securities
borrowed, reverse repurchase agreements, margin loans and prime brokerage
receivables related to securities financing transactions, which are presented
separately under Derivative exposures and Securities financing transactions in
this table.
|
BIS
Basel III leverage ratio (phase-in)
|
CHF million, except where
indicated
|
|
31.12.16
|
30.9.16
|
30.6.16
|
31.3.16
|
31.12.15
|
Total tier 1 capital
|
|
33,983
|
34,844
|
34,128
|
33,678
|
32,656
|
Total exposures (leverage ratio denominator)
|
|
561,979
|
588,098
|
625,789
|
636,514
|
633,985
|
BIS Basel III leverage ratio (%)
|
|
6.0
|
5.9
|
5.5
|
5.3
|
5.2
|
Liquidity coverage ratio
UBS AG is required to maintain a
minimum LCR of 105% as communicated by FINMA.
Liquidity
coverage ratio
|
|
|
Weighted value¹
|
CHF billion, except where
indicated
|
|
Average 4Q16
|
High-quality liquid assets
|
|
98
|
Total net cash outflows
|
|
76
|
of which: cash outflows
|
|
188
|
of which: cash inflows
|
|
112
|
Liquidity coverage ratio (%)
|
|
129
|
1 Calculated after the application of haircuts and inflow and
outflow rates.
|
Notice
to investors |
This
document and the information contained herein are provided solely for
information purposes, and are not to be construed as solicitation of an offer
to buy or sell any securities or other financial instruments in Switzerland,
the United States or any other jurisdiction. No investment decision relating to
securities of or relating to UBS Group AG, UBS AG or their affiliates should be
made on the basis of this document. Refer to UBS’s Annual Report 2016 for
additional information. This report is available at www.ubs.com/investors.
Rounding
|
Numbers presented throughout this document may not add up precisely
to the totals provided in the tables and text. Percentages, percent changes and
absolute variances are calculated on the basis of rounded figures displayed in
the tables and text and may not precisely reflect the percentages, percent
changes and absolute variances that would be derived based on figures that are
not rounded.
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.
This Form 6-K is
hereby incorporated by reference into (1) each of the registration statements
of UBS AG on Form F-3 (Registration Number 333-204908) and of UBS Group AG on
Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; 333-200665;
333-215254; and 333-215255), and into each prospectus outstanding under any of
the foregoing registration statements, (2) any outstanding offering circular or
similar document issued or authorized by UBS AG that incorporates by reference
any Form 6-K’s of UBS 111572), the AG that are incorporated into its
registration statements filed with the SEC, and (3) the base prospectus of
Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration
Number 333- Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444),
and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust
dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and
033-91744-05).
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
UBS Group AG
By:
_/s/
David Kelly_____________
Name: David
Kelly
Title:
Managing Director
By:
_/s/ Sarah
M. Starkweather____
Name: Sarah M.
Starkweather
Title:
Executive Director
UBS AG
By:
_/s/
David Kelly_____________
Name: David
Kelly
Title:
Managing Director
By:
_/s/
Sarah M. Starkweather____
Name: Sarah M.
Starkweather
Title: Executive
Director
Date:
March 10, 2017
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