03:00 Tue 23 Jul 2019
2Q19 net profit USD 1.4bn, highest 2Q since 2010
1H19 net profit of ; 1H19 reported RoCET1 14.6%23
2Q19 reported and adjusted PBT1
2Q19 reported RoCET1 16.0%; diluted EPS , +2% YoY3
CET1 capital ratio 13.3% and CET1 leverage ratio 3.8%; tier 1 leverage ratio 5.5%4
Record invested assets of in GWM and AM combined
Record GWM Americas PBT; very strong IB CCS performance
and BOTTLETOP launch #TOGETHERBAND in support of the UN Sustainable Development Goals
--(BUSINESS WIRE)--
delivered strong second quarter 2019 results. Reported profit before tax (PBT) increased by 3% year over year (YoY) to and adjusted PBT decreased by 2% to . The Group's adjusted cost/income ratio was 76.1%. Net profit attributable to shareholders was , up 1% YoY. Reported return on CET1 capital (RoCET1) was 16.0%.
Global Wealth Management (GWM) adjusted PBT was ; invested assets reached a new high of ; recurring net fee income increased from the prior quarter; and profits in the region were a record. Personal & Corporate Banking adjusted PBT rose 10% to (+11% YoY in CHF) on higher transaction-based income and lower credit loss expenses; net new business volume growth in personal banking was strong at 4.4%. Asset Management (AM) adjusted PBT increased by 10% to , on higher operating income; invested assets reached a record of . (IB) delivered adjusted PBT of , with very strong Advisory revenue growth against a lower global fee pool YoY, the highest M&A revenues since 2012, and an adjusted return on attributed equity of 14.2%. Corporate Center adjusted loss before tax was .
UBS’s capital position remains strong, with a CET1 capital ratio of 13.3%, a CET1 leverage ratio of 3.8%, a fully applied tier 1 leverage ratio of 5.5%, and total loss-absorbing capacity of . During the second quarter of 2019, repurchased of its shares.4
"In the second quarter we achieved the highest 2Q net profit since 2010 and an improvement on an already strong 2Q18. Once again we showed the strength of our business model and its ability to generate competitive returns even with market conditions far from last year’s. Overall, our goals remain unchanged: to deliver sustainable and profitable long-term growth while investing in our businesses and providing attractive shareholder returns."
, Group Chief Executive Officer
Adjusted results are non-GAAP financial measures defined by regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.1
Outlook
The overall pace of global growth has stabilized at a lower level after a synchronized global slowdown in prior quarters. Downside risks remain due to political uncertainties and geopolitical tensions. Central banks are indicating a reversal of monetary policy normalization and embarking on new stimulus measures.
A sharp drop in interest rates and expected rate cuts will continue to adversely affect net interest income compared with last year. Our regional and business diversification, along with higher invested assets benefitting recurring revenues, will help to mitigate this. An improvement in investor sentiment and higher market volatility could help to offset the typical third quarter seasonality.
We are executing our strategy with discipline, focusing on balancing efficiency and investments for growth, to deliver on our capital return objectives and to create sustainable long-term value for our shareholders.
Second quarter 2019 performance overview
UBS’s second quarter adjusted PBT was (down 2% YoY), and reported PBT was (up 3% YoY). Adjusted figures this quarter exclude of restructuring expenses, as well as of net foreign currency translation gains. The adjusted cost/income ratio was 76.1%. Net profit attributable to shareholders was (up 1% YoY), with diluted earnings per share of (up 2% YoY). Reported return on CET1 capital was 16.0%.13
Global Wealth Management (GWM) adjusted PBT , (12%) YoY
Recurring net fee income recovered quarter-on-quarter, although down YoY, as invested assets rose to a record by the end of . Transaction-based income rose 3%, while net interest income decreased. Regionally, the posted record profits. Mandate penetration increased to 34.4% of invested assets. Loans increased by sequentially. The adjusted cost/income ratio was 78.1%. Net new money was negative , driven by the US, primarily reflecting seasonal tax-related outflows of approximately , while other regions had net new money inflows. Invested assets increased by (+2%) during the quarter. Adjusted net margin was 14bps.
Personal & CorporateBanking(P&C) adjusted PBT , +11% YoY
Transaction-based income increased and credit loss expenses reduced, while the other revenue lines were broadly unchanged. Despite continued investments in technology, adjusted operating expenses decreased slightly. The adjusted cost/income ratio was 59.0%. Business momentum remained strong, with Personal Banking net new business volume growth of 4.4%; loans also grew. Net interest margin was 152bps.
Asset Management (AM) adjusted PBT , +10% YoY
Net management fees increased, reflecting slightly higher average invested assets. Performance fees rose by . The adjusted cost/income ratio improved to 71.7%. Invested assets rose to a record , and net new money outflows excluding money markets were .
(IB) adjusted PBT , (23%) YoY
Corporate Client Solutions (+18% YoY) had a very strong quarter, mainly driven by revenues. Equities revenues decreased by 9% as a result of lower volumes, market volatility, and client activity. FX, Rates & Credit was down approximately 7% YoY excluding net income of around mainly related to the recognition of previously deferred day-1 profits in the prior-year quarter and gains related to Tradeweb in both quarters. The adjusted cost/income ratio was 78.7%. Adjusted return on attributed equity was 14.2%.
adjusted loss before tax was , driven by lower litigation expenses, gains from accounting asymmetries and hedge accounting ineffectiveness, as well as other gains.Corporate Center
Adjusted results are non-GAAP financial measures defined by regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.1
First half of 2019 performance overview
UBS’s first half adjusted PBT was (down 12% YoY), and reported PBT was (down 13% YoY). Adjusted figures exclude of restructuring expenses, as well as of net foreign currency translation gains. The adjusted cost/income ratio was 77.0%, with a 5% reduction in operating expenses partially offsetting a 7% reduction in operating income. Net profit attributable to shareholders was , with diluted earnings per share of . Reported return on CET1 capital was 14.6%.13
Global Wealth Management (GWM) adjusted PBT , (17%) YoY
Recurring net fee income decreased on lower average invested assets, while transaction-based income declined on lower client activity, particularly in APAC and, to a lesser extent, in the , and net interest income decreased. Mandate penetration increased to a record 34.4% of invested assets. Loans decreased by YoY, due to deleveraging in APAC. Adjusted operating expenses decreased mainly due to lower personnel expenses. The adjusted cost/income ratio was 78.1%. Net new money was (2% annualized growth rate) with record inflows in APAC, while invested assets increased by (+10%) year-to-date. Adjusted net margin was 15bps.
Personal & CorporateBanking(P&C) adjusted PBT , +10% YoY
All revenue lines increased. Despite continued investments in technology, adjusted operating expenses were stable. The adjusted cost/income ratio was 59.2%. Business momentum remained strong and in Personal Banking, net new business volume growth was strong at 6.3%. Net interest margin was 151bps.
Asset Management (AM) adjusted PBT , +6% YoY
Lower adjusted operating expenses, down 3%, more than offset a decrease in operating income. Net management fees decreased, mainly reflecting lower average invested assets, largely due to lower market levels in the fourth quarter of 2018. Performance fees rose by . The adjusted cost/income ratio improved to 73.5%. Invested assets were , and net new money outflows excluding money markets were .
(IB) adjusted PBT , (44%) YoY
Challenging market conditions, which were most pronounced in the first quarter of 2019, affected both Corporate Client Solutions and Equities revenues. Partly offsetting this, FX, Rates & Credit had a good first half, down 2% YoY when excluding net income of around mainly related to the recognition of previously deferred day-1 profits in the second quarter of 2018 and gains related to Tradeweb in both periods. The adjusted cost/income ratio was 82.3%. Adjusted return on attributed equity was 10.7%.
adjusted loss before tax was , driven by lower litigation expenses, gains from accounting asymmetries and hedge accounting ineffectiveness, as well as other gains.Corporate Center
Adjusted results are non-GAAP financial measures defined by regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.1
Commitment to sustainable performance
is committed to creating long-term positive value for its clients, employees, investors and society. This is illustrated by the ongoing recognition receives for its activities and capabilities related to sustainable investing, philanthropy, environmental and human rights policies governing client and supplier relationships, the firm's environmental footprint and community investment.
Confirmed leader in sustainability
ISS-oekom recently confirmed corporate responsibility prime status, which was reviewed during the second quarter. Prime status is awarded to companies that meet specific minimum requirements in Corporate Ratings and achieve the best ESG scores among their sector peers. A company's management of ESG issues is analyzed on the basis of up to 100 rating criteria, most of which are sector-specific.
Promoting the UN Sustainable Development Goals
BOTTLETOP and jointly launched the #TOGETHERBAND campaign () on , World , setting out to engage the world with the 17 (UN) (SDGs). The campaign is designed to raise public awareness and inspire action to achieve the Goals. It is supported by a group of high-profile ambassadors and experts with a strong commitment to sustainability.
At the heart of the #TOGETHERBAND campaign are 17 sustainably and ethically produced friendship bands in the colors of the SDGs. The production of the bands is generating skills and livelihoods for women working as artisans in . Each purchase comes with two bands, one to wear and one to share, including on social media, helping spread the critical message of the SDGs and fund projects that support their achievement.
Extending leading position in sustainable and impact investing
In May, announced it had raised more than as an exclusive wealth management partner for Sustainable Solutions Fund III, a growth equity fund from the sustainable investment firm . The fund aims to generate long-term returns through investments in high growth, sustainable companies, defined as providing goods and services consistent with a low-carbon, prosperous, equitable, healthy and safe society.
The partnership extends leading position in sustainable and impact investing solutions, which include: launching the first 100% sustainable cross-asset portfolio for private clients, which now has under management; pledging to raise at least in SDG-related impact investments over five years; creating the , the largest healthcare impact investment to date; and partnering with the to offer development bank bond investments to wealth management clients, as well as serving on the steering committee, and being a founding signatory, of the new Operating Principles for Impact Management.
Information in this news release is presented for UBS Group AG on a consolidated basis unless otherwise specified. Financial information for UBS AG (consolidated) does not differ materially from UBS Group AG (consolidated) and a comparison between UBS Group AG (consolidated) and UBS AG (consolidated) is provided at the end of this news release.
Adjusted results are non-GAAP financial measures defined by regulations. Refer to the “Performance of our business divisions and Corporate Center – reported and adjusted“ table in this news release.
Net profit attributable to shareholders
Return on CET1 capital. Net profit attributable to shareholders (annualized as applicable) divided by average common equity tier 1 capital.
Going concern ratio under Swiss SRB rules applicable as of .1234
UBS’s second quarter 2019 report, news release and slide presentation will be available from , , at .
will hold a presentation of its second quarter 2019 results on Tuesday, . The results will be presented by , Group Chief Executive Officer, , Group Chief Financial Officer, , Head Investor Relations ad interim, and , Group .
Time
• 09:00–11:00 CEST
• 08:00–10:00 BST
• 03:00–05:00 US EDT
Audio webcast
The presentation for analysts can be followed live on with a simultaneous slide show.www.ubs.com/quarterlyreporting
Webcast playback
An audio playback of the results presentation will be made available at later in the day.www.ubs.com/investors
UBS Group AG and UBS AG
Investor contact
: +41-44-234 41 00
Media contact
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Cautionary Statement Regarding Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance and statements relating to the anticipated effect of transactions and strategic initiatives on UBS’s business and future development. While these forward-looking statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. These factors include, but are not limited to: (i) the degree to which is successful in the ongoing execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), including to counteract regulatory-driven increases, liquidity coverage ratio and other financial resources, and the degree to which is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (ii) the continuing low or negative interest rate environment in and other jurisdictions, developments in the macroeconomic climate and in the markets in which operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, and currency exchange rates, and the effects of economic conditions, market developments, and geopolitical tensions on the financial position or creditworthiness of UBS’s clients and counterparties as well as on client sentiment and levels of activity; (iii) changes in the availability of capital and funding, including any changes in UBS’s credit spreads and ratings, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (iv) changes in or the implementation of financial legislation and regulation in , the US, the , the and other financial centers that have imposed, or resulted in, or may do so in the future, more stringent or entity-specific capital, TLAC, leverage ratio, liquidity and funding requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints on transfers of capital and liquidity and sharing of operational costs across the Group or other measures, and the effect these will or would have on UBS’s business activities; (v) the degree to which is successful in implementing further changes to its legal structure to improve its resolvability and meet related regulatory requirements and the potential need to make further changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements, proposals in and other jurisdictions for mandatory structural reform of banks or systemically important institutions or to other external developments, and the extent to which such changes will have the intended effects; (vi) UBS’s ability to maintain and improve its systems and controls for the detection and prevention of money laundering and compliance with sanctions to meet evolving regulatory requirements and expectations, in particular in the US; (vii) the uncertainty arising from the timing and nature of the UK’s exit from the EU; (viii) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS’s ability to compete in certain lines of business; (ix) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including recently enacted and proposed measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (x) the liability to which may be exposed, or possible constraints or sanctions that regulatory authorities might impose on , due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses, potentially large fines or monetary penalties, or the loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of our RWA as well as the amount of capital available for return to shareholders; (xi) the effects on UBS’s cross-border banking business of tax or regulatory developments and of possible changes in UBS’s policies and practices relating to this business; (xii) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors; (xiii) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xiv) UBS’s ability to implement new technologies and business methods, including digital services and technologies and ability to successfully compete with both existing and new financial service providers, some of which may not be regulated to the same extent; (xv) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xvi) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks, and systems failures; (xvii) restrictions on the ability of UBS Group AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xviii) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS’s ability to maintain its stated capital return objective; and (xix) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the . More detailed information about those factors is set forth in documents furnished by and filings made by with the , including UBS’s Annual Report on Form 20-F for the year ended . is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
Rounding
Numbers presented throughout this news release may not add up precisely to the totals provided in the tables and text. Percentages, percent changes, and adjusted results are calculated on the basis of unrounded figures. Information on 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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View source version on :businesswire.comhttps://www.businesswire.com/news/home/20190722005752/en/
Source: UBS AG
Performance of our business divisions and Corporate Center – reported and adjusted1,2 | |||||||
|
| For the quarter ended | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
Operating income as reported |
| 4,057 | 958 | 475 | 2,071 | (30) | 7,532 |
of which: net foreign currency translations gains4 |
|
|
|
|
| 10 | 10 |
Operating income (adjusted) |
| 4,057 | 958 | 475 | 2,071 | (40) | 7,522 |
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Operating expenses as reported |
| 3,183 | 568 | 351 | 1,644 | 26 | 5,773 |
of which: personnel-related restructuring expenses5 |
| 0 | 0 | 3 | 1 | 22 | 25 |
of which: non-personnel-related restructuring expenses5 |
| 0 | 0 | 2 | 2 | 10 | 13 |
of which: restructuring expenses allocated from Corporate Center5 |
| 12 | 2 | 5 | 10 | (30) | 0 |
Operating expenses (adjusted) |
| 3,171 | 566 | 340 | 1,631 | 25 | 5,735 |
of which: net expenses for litigation, regulatory and similar matters6 |
| 19 | 0 | 0 | (1) | (14) | 4 |
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Operating profit / (loss) before tax as reported |
| 874 | 390 | 124 | 427 | (56) | 1,759 |
Operating profit / (loss) before tax (adjusted) |
| 886 | 392 | 135 | 440 | (65) | 1,787 |
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|
| For the quarter ended | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
Operating income as reported |
| 4,164 | 930 | 461 | 2,162 | (73) | 7,644 |
Operating income (adjusted) |
| 4,164 | 930 | 461 | 2,162 | (73) | 7,644 |
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Operating expenses as reported |
| 3,202 | 584 | 365 | 1,627 | 160 | 5,938 |
of which: personnel-related restructuring expenses5 |
| 3 | 1 | 15 | 2 | 43 | 64 |
of which: non-personnel-related restructuring expenses5 |
| 5 | 0 | 3 | 3 | 40 | 51 |
of which: restructuring expenses allocated from Corporate Center5 |
| 39 | 9 | 8 | 32 | (88) | 0 |
Operating expenses (adjusted) |
| 3,155 | 574 | 339 | 1,591 | 165 | 5,823 |
of which: net expenses for litigation, regulatory and similar matters6 |
| 53 | 0 | 0 | 2 | 78 | 132 |
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Operating profit / (loss) before tax as reported |
| 961 | 347 | 97 | 535 | (233) | 1,706 |
Operating profit / (loss) before tax (adjusted) |
| 1,009 | 357 | 122 | 571 | (238) | 1,821 |
1 Adjusted results are non-GAAP financial measures as defined by regulations. 2 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 second 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 of foreign branches and subsidiaries. 5 Reflects restructuring expenses related to legacy cost programs as well as expenses for new restructuring initiatives. 6 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 second quarter 2019 report for more information. Also includes recoveries from third parties (second quarter of 2019: ; first quarter of 2019: ; second quarter of 2018: ). |
Performance of our business divisions and Corporate Center – reported and adjusted1,2 | |||||||
|
| Year-to-date | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
Operating income as reported |
| 8,061 | 1,915 | 921 | 3,836 | 17 | 14,750 |
of which: net foreign currency translations gains4 |
|
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|
|
| 10 | 10 |
Operating income (adjusted) |
| 8,061 | 1,915 | 921 | 3,836 | 6 | 14,740 |
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Operating expenses as reported |
| 6,323 | 1,139 | 693 | 3,202 | 88 | 11,445 |
of which: personnel-related restructuring expenses5 |
| 0 | 0 | 5 | 2 | 36 | 43 |
of which: non-personnel-related restructuring expenses5 |
| 0 | 0 | 4 | 3 | 20 | 27 |
of which: restructuring expenses allocated from Corporate Center5 |
| 22 | 6 | 7 | 21 | (57) | 0 |
Operating expenses (adjusted) |
| 6,301 | 1,133 | 677 | 3,175 | 89 | 11,375 |
of which: net expenses for litigation, regulatory and similar matters6 |
| 20 | 0 | 0 | (2) | (22) | (4) |
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Operating profit / (loss) before tax as reported |
| 1,737 | 777 | 228 | 634 | (71) | 3,305 |
Operating profit / (loss) before tax (adjusted) |
| 1,759 | 783 | 244 | 661 | (82) | 3,364 |
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|
| Year-to-date | |||||
USD million |
| Global Wealth Management | Personal & Corporate Banking | Asset Management | Corporate Center3 | ||
Operating income as reported |
| 8,572 | 1,911 | 927 | 4,577 | (174) | 15,812 |
Operating income (adjusted) |
| 8,572 | 1,911 | 927 | 4,577 | (174) | 15,812 |
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Operating expenses as reported |
| 6,509 | 1,156 | 725 | 3,465 | 151 | 12,007 |
of which: personnel-related restructuring expenses5 |
| 6 | 2 | 16 | 14 | 93 | 131 |
of which: non-personnel-related restructuring expenses5 |
| 15 | 0 | 6 | 5 | 93 | 119 |
of which: restructuring expenses allocated from Corporate Center5 |
| 89 | 18 | 15 | 66 | (187) | 0 |
of which: gain related to changes to the Swiss pension plan7 |
| (66) | (38) | (10) | (5) | (122) | (241) |
Operating expenses (adjusted) |
| 6,465 | 1,174 | 698 | 3,387 | 274 | 11,997 |
of which: net expenses for litigation, regulatory and similar matters6 |
| 85 | 0 | 0 | 0 | 36 | 121 |
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Operating profit / (loss) before tax as reported |
| 2,064 | 754 | 202 | 1,111 | (325) | 3,806 |
Operating profit / (loss) before tax (adjusted) |
| 2,108 | 737 | 229 | 1,190 | (448) | 3,815 |
1 Adjusted results are non-GAAP financial measures as defined by regulations. 2 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 second 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 of foreign branches and subsidiaries. 5 Reflects restructuring expenses related to legacy cost programs as well as expenses for new restructuring initiatives. 6 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 second quarter 2019 report for more information. Also includes recoveries from third parties of and for the first six months of 2019 and 2018, respectively. 7 Changes to the in in the first quarter of 2018 resulted in a reduction in the pension obligation recognized by . As a consequence, a pre-tax gain of was recognized in the income statement in the first quarter of 2018, with no overall effect on total equity. Refer to “Note 29 Pension and other post-employment benefit plans” in the “Consolidated financial statements” section of our Annual Report 2018 for more information.
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Our key figures |
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| As of or for the quarter ended |
| As of or year-to-date | ||||
USD million, except where indicated |
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Group results |
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Operating income |
| 7,532 | 7,218 | 6,972 | 7,644 |
| 14,750 | 15,812 |
Operating expenses |
| 5,773 | 5,672 | 6,492 | 5,938 |
| 11,445 | 12,007 |
Operating profit / (loss) before tax |
| 1,759 | 1,546 | 481 | 1,706 |
| 3,305 | 3,806 |
Net profit / (loss) attributable to shareholders |
| 1,392 | 1,141 | 315 | 1,382 |
| 2,533 | 2,948 |
Diluted earnings per share (USD)1 |
| 0.37 | 0.30 | 0.08 | 0.36 |
| 0.67 | 0.76 |
Profitability and growth2 |
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Return on equity (%)3 |
| 10.4 | 8.6 | 2.4 | 10.5 |
| 9.5 | 11.2 |
Return on tangible equity (%)4 |
| 11.9 | 9.8 | 2.7 | 12.0 |
| 10.8 | 12.8 |
Return on common equity tier 1 capital (%)5 |
| 16.0 | 13.3 | 3.7 | 16.1 |
| 14.6 | 17.2 |
Return on risk-weighted assets, gross (%)6 |
| 11.4 | 10.9 | 10.8 | 11.8 |
| 11.1 | 12.3 |
Return on leverage ratio denominator, gross (%)6 |
| 3.3 | 3.2 | 3.1 | 3.3 |
| 3.3 | 3.5 |
Cost / income ratio (%)7 |
| 76.5 | 78.4 | 92.4 | 77.4 |
| 77.4 | 75.7 |
Adjusted cost / income ratio (%)8 |
| 76.1 | 77.9 | 92.2 | 75.9 |
| 77.0 | 75.6 |
Net profit growth (%)9 |
| 0.7 | (27.1) |
| 19.9 |
| (14.1) | 22.6 |
Resources |
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Total assets |
| 968,728 | 956,579 | 958,489 | 952,817 |
| 968,728 | 952,817 |
Equity attributable to shareholders |
| 53,180 | 53,667 | 52,928 | 51,210 |
| 53,180 | 51,210 |
Common equity tier 1 capital10 |
| 34,948 | 34,658 | 34,119 | 34,116 |
| 34,948 | 34,116 |
Risk-weighted assets10 |
| 262,135 | 267,556 | 263,747 | 254,603 |
| 262,135 | 254,603 |
Common equity tier 1 capital ratio (%)10 |
| 13.3 | 13.0 | 12.9 | 13.4 |
| 13.3 | 13.4 |
Going concern capital ratio (%)10 |
| 19.1 | 18.5 | 17.5 | 17.8 |
| 19.1 | 17.8 |
Total loss-absorbing capacity ratio (%)10 |
| 33.3 | 32.7 | 31.7 | 32.3 |
| 33.3 | 32.3 |
Leverage ratio denominator10 |
| 911,379 | 910,993 | 904,598 | 910,383 |
| 911,379 | 910,383 |
Common equity tier 1 leverage ratio (%)10 |
| 3.83 | 3.80 | 3.77 | 3.75 |
| 3.83 | 3.75 |
Going concern leverage ratio (%)10 |
| 5.5 | 5.4 | 5.1 | 5.0 |
| 5.5 | 5.0 |
Total loss-absorbing capacity leverage ratio (%)10 |
| 9.6 | 9.6 | 9.3 | 9.0 |
| 9.6 | 9.0 |
Liquidity coverage ratio (%)11 |
| 145 | 153 | 136 | 144 |
| 145 | 144 |
Other |
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Invested assets (USD billion)12 |
| 3,381 | 3,318 | 3,101 | 3,271 |
| 3,381 | 3,271 |
Personnel (full-time equivalents) |
| 66,922 | 67,481 | 66,888 | 63,684 |
| 66,922 | 63,684 |
Market capitalization13,14 |
| 43,491 | 45,009 | 45,907 | 57,654 |
| 43,491 | 57,654 |
Total book value per share (USD)13 |
| 14.53 | 14.45 | 14.35 | 13.73 |
| 14.53 | 13.73 |
Total book value per share (CHF)13,15 |
| 14.18 | 14.39 | 14.11 | 13.61 |
| 14.18 | 13.61 |
Tangible book value per share (USD)13 |
| 12.72 | 12.67 | 12.55 | 12.00 |
| 12.72 | 12.00 |
Tangible book value per share (CHF)13,15 |
| 12.42 | 12.62 | 12.33 | 11.90 |
| 12.42 | 11.90 |
1 Refer to “Note 9 Earnings per share (EPS) and shares outstanding” in the “Consolidated financial statements” section of the UBS Group second quarter 2019 report for more information. 2 Refer to the “Performance targets and measurement” section of our Annual Report 2018 for more information on our performance targets. 3 Calculated as net profit attributable to shareholders (annualized as applicable) / average equity attributable to shareholders. 4 Calculated as net profit attributable to shareholders (annualized as applicable) / average equity attributable to shareholders less average goodwill and intangible assets. Effective , the definition of the numerator for return on tangible equity has been revised to align with numerators for return on equity and return on CET1 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) / average common equity tier 1 capital. 6 Calculated as operating income before credit loss expense or recovery (annualized as applicable) / average risk-weighted assets and average leverage ratio denominator, respectively. 7 Calculated as operating expenses / operating income before credit loss expense or recovery. 8 Calculated as adjusted operating expenses / 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 / net profit attributable to shareholders from continuing operations of comparison period. 10 Based on the Swiss systemically relevant bank framework as of . Refer to the “Capital management” section of the UBS Group second quarter 2019 report for more information. 11 Refer to the “Balance sheet, liquidity and funding management” section of the UBS Group second 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 second quarter 2019 report for more information. 14 Beginning with our Annual Report 2018, the calculation of market capitalization has been amended to reflect total shares outstanding multiplied by the share price at the end of the period. The calculation was previously based on total shares issued multiplied by the share price at the end of the period. Market capitalization has been reduced by as of and by as of as a result. 15 Total book value per share and tangible book value per share in Swiss francs are calculated based on a translation of equity under our US dollar presentation currency. As a consequence of the restatement to a US dollar presentation currency, amounts may differ from those originally published in our quarterly and annual reports.
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Income statement |
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| For the quarter ended |
| % change from |
| Year-to-date | ||||
USD million |
|
| 1Q19 | 2Q18 |
| |||||
Net interest income |
| 1,026 | 1,123 | 1,205 |
| (9) | (15) |
| 2,149 | 2,639 |
Other net income from financial instruments measured at fair value through profit or loss |
| 1,939 | 1,935 | 2,001 |
| 0 | (3) |
| 3,874 | 3,974 |
Credit loss (expense) / recovery |
| (12) | (20) | (29) |
| (40) | (57) |
| (33) | (55) |
Fee and commission income |
| 4,907 | 4,541 | 4,845 |
| 8 | 1 |
| 9,448 | 10,022 |
Fee and commission expense |
| (434) | (409) | (421) |
| 6 | 3 |
| (842) | (855) |
Net fee and commission income |
| 4,474 | 4,132 | 4,423 |
| 8 | 1 |
| 8,606 | 9,168 |
Other income |
| 105 | 49 | 44 |
| 116 | 141 |
| 154 | 86 |
Total operating income |
| 7,532 | 7,218 | 7,644 |
| 4 | (1) |
| 14,750 | 15,812 |
Personnel expenses |
| 4,153 | 4,043 | 4,102 |
| 3 | 1 |
| 8,196 | 8,357 |
General and administrative expenses |
| 1,175 | 1,187 | 1,533 |
| (1) | (23) |
| 2,362 | 3,042 |
Depreciation and impairment of property, equipment and software |
| 427 | 427 | 287 |
| 0 | 49 |
| 854 | 575 |
Amortization and impairment of intangible assets |
| 18 | 16 | 16 |
| 13 | 9 |
| 33 | 33 |
Total operating expenses |
| 5,773 | 5,672 | 5,938 |
| 2 | (3) |
| 11,445 | 12,007 |
Operating profit / (loss) before tax |
| 1,759 | 1,546 | 1,706 |
| 14 | 3 |
| 3,305 | 3,806 |
Tax expense / (benefit) |
| 366 | 407 | 322 |
| (10) | 14 |
| 773 | 855 |
Net profit / (loss) |
| 1,393 | 1,139 | 1,384 |
| 22 | 1 |
| 2,532 | 2,951 |
Net profit / (loss) attributable to non-controlling interests |
| 1 | (2) | 1 |
|
| (31) |
| (1) | 3 |
Net profit / (loss) attributable to shareholders |
| 1,392 | 1,141 | 1,382 |
| 22 | 1 |
| 2,533 | 2,948 |
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Comprehensive income |
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Total comprehensive income |
| 2,473 | 1,039 | 359 |
| 138 | 589 |
| 3,512 | 2,213 |
Total comprehensive income attributable to non-controlling interests |
| (5) | 2 | (3) |
|
| 51 |
| (3) | 0 |
Total comprehensive income attributable to shareholders |
| 2,478 | 1,037 | 362 |
| 139 | 584 |
| 3,515 | 2,213 |
Comparison between UBS Group AG consolidated and UBS AG consolidated | ||||||||||||
|
| As of or for the quarter ended |
| As of or for the quarter ended |
| As of or for the quarter ended | ||||||
USD million, except where indicated |
| UBS Group AG (consolidated) | UBS AG (consolidated) | Difference (absolute) |
| UBS Group AG (consolidated) | UBS AG (consolidated) | Difference (absolute) |
| UBS Group AG (consolidated) | UBS AG (consolidated) | Difference (absolute) |
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Income statement |
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Operating income |
| 7,532 | 7,632 | (100) |
| 7,218 | 7,343 | (125) |
| 6,972 | 7,083 | (111) |
Operating expenses |
| 5,773 | 5,975 | (202) |
| 5,672 | 5,890 | (217) |
| 6,492 | 6,667 | (176) |
Operating profit / (loss) before tax |
| 1,759 | 1,657 | 102 |
| 1,546 | 1,454 | 92 |
| 481 | 416 | 65 |
of which: Global Wealth Management |
| 874 | 857 | 17 |
| 863 | 848 | 16 |
| 327 | 316 | 11 |
of which: Personal & Corporate Banking |
| 390 | 392 | (2) |
| 387 | 386 | 1 |
| 644 | 645 | (1) |
of which: Asset Management |
| 124 | 124 | 0 |
| 103 | 103 | 0 |
| 106 | 105 | 1 |
of which: |
| 427 | 419 | 8 |
| 207 | 187 | 20 |
| (78) | (79) | 1 |
of which: Corporate Center |
| (56) | (135) | 79 |
| (15) | (71) | 56 |
| (518) | (571) | 53 |
Net profit / (loss) |
| 1,393 | 1,308 | 85 |
| 1,139 | 1,067 | 72 |
| 315 | 273 | 42 |
of which: net profit / (loss) attributable to shareholders |
| 1,392 | 1,307 | 85 |
| 1,141 | 1,069 | 72 |
| 315 | 272 | 42 |
of which: net profit / (loss) attributable to non-controlling interests |
| 1 | 1 | 0 |
| (2) | (2) | 0 |
| 1 | 1 | 0 |
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Statement of comprehensive income |
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Other comprehensive income |
| 1,080 | 1,076 | 4 |
| (100) | (90) | (10) |
| 893 | 895 | (2) |
of which: attributable to shareholders |
| 1,086 | 1,082 | 4 |
| (104) | (94) | (10) |
| 892 | 894 | (2) |
of which: attributable to non-controlling interests |
| (6) | (6) | 0 |
| 4 | 4 | 0 |
| 1 | 1 | 0 |
Total comprehensive income |
| 2,473 | 2,384 | 89 |
| 1,039 | 977 | 62 |
| 1,208 | 1,168 | 41 |
of which: attributable to shareholders |
| 2,478 | 2,389 | 89 |
| 1,037 | 974 | 62 |
| 1,207 | 1,166 | 41 |
of which: attributable to non-controlling interests |
| (5) | (5) | 0 |
| 2 | 2 | 0 |
| 2 | 2 | 0 |
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Balance sheet |
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Total assets |
| 968,728 | 968,645 | 83 |
| 956,579 | 956,737 | (158) |
| 958,489 | 958,055 | 434 |
Total liabilities |
| 915,378 | 916,116 | (738) |
| 902,739 | 903,348 | (609) |
| 905,386 | 905,624 | (238) |
Total equity |
| 53,350 | 52,529 | 821 |
| 53,840 | 53,389 | 451 |
| 53,103 | 52,432 | 671 |
of which: equity attributable to shareholders |
| 53,180 | 52,359 | 821 |
| 53,667 | 53,216 | 451 |
| 52,928 | 52,256 | 671 |
of which: equity attributable to non-controlling interests |
| 170 | 170 | 0 |
| 173 | 173 | 0 |
| 176 | 176 | 0 |
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Capital information |
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Common equity tier 1 capital |
| 34,948 | 35,881 | (933) |
| 34,658 | 34,933 | (275) |
| 34,119 | 34,608 | (489) |
Going concern capital |
| 49,993 | 46,500 | 3,493 |
| 49,436 | 45,368 | 4,068 |
| 46,279 | 42,413 | 3,865 |
Risk-weighted assets |
| 262,135 | 261,364 | 772 |
| 267,556 | 266,581 | 976 |
| 263,747 | 262,840 | 907 |
Common equity tier 1 capital ratio (%) |
| 13.3 | 13.7 | (0.4) |
| 13.0 | 13.1 | (0.2) |
| 12.9 | 13.2 | (0.2) |
Going concern capital ratio (%) |
| 19.1 | 17.8 | 1.3 |
| 18.5 | 17.0 | 1.5 |
| 17.5 | 16.1 | 1.4 |
Total loss-absorbing capacity ratio (%) |
| 33.3 | 33.0 | 0.3 |
| 32.7 | 32.2 | 0.5 |
| 31.7 | 31.3 | 0.5 |
Leverage ratio denominator |
| 911,379 | 911,601 | (221) |
| 910,993 | 911,410 | (417) |
| 904,598 | 904,458 | 140 |
Common equity tier 1 leverage ratio (%) |
| 3.83 | 3.94 | (0.10) |
| 3.80 | 3.83 | (0.03) |
| 3.77 | 3.83 | (0.05) |
Going concern leverage ratio (%) |
| 5.5 | 5.1 | 0.4 |
| 5.4 | 5.0 | 0.4 |
| 5.1 | 4.7 | 0.4 |
Total loss-absorbing capacity leverage ratio (%) |
| 9.6 | 9.5 | 0.1 |
| 9.6 | 9.4 | 0.2 |
| 9.3 | 9.1 | 0.2 |
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