REG-UBS AG UBS 1Q24 net profit of USD 1.8bn and underlying PBT of USD 2.6bn; integration priorities on track (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)
07/05/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240507:nBwb5Tswka&default-theme=true
UBS 1Q24 net profit of USD 1.8bn and underlying PBT of USD 2.6bn; integration
priorities on track (Ad hoc announcement pursuant to Article 53 of the SIX
Exchange Regulation Listing Rules)
UBS (NYSE:UBS) (SWX:UBSN):
Key highlights
* 1Q24 PBT of USD 2.4bn and underlying(1) PBT of USD 2.6bn reflecting our
commitment to stay close to clients and the execution of our restructuring
plans at pace; significant positive operating leverage with underlying revenue
growth of 15% QoQ and underlying operating expenses reduction of 5% QoQ; net
profit of USD 1.8bn
* Continued franchise strength and client momentum with net new assets of USD
27bn in Global Wealth Management and increased transaction activity levels
across Global Wealth Management, Personal & Corporate Banking and the
Investment Bank
* Non-core and Legacy RWA reduced by USD 16bn, mainly from active unwinds;
underlying operating expenses declined 26% QoQ reflecting significant progress
in our cost reduction plans; revenues of USD 1bn
* Achieved USD ~1bn of additional gross cost savings, majority reflected in 1Q24
underlying operating expenses
* CET1 capital ratio of 14.8% and CET1 leverage ratio of 4.9%; RWA of USD 526bn
with USD 20bn QoQ decrease, allowing execution of our 2024 capital return
targets
* Merger of UBS AG and Credit Suisse AG expected on 31 May 2024; transition to a
single US intermediate holding company planned for 2Q24 and the merger of UBS
Switzerland AG and Credit Suisse (Schweiz) AG entities continues to be planned
for 3Q24, all subject to remaining regulatory approvals
* UBS named top employer for business students in Switzerland, according to the
Universum Most Attractive Employer rankings 2024
“A little over a year ago, we were asked to play a critical role in
stabilizing the Swiss and global financial systems through the acquisition of
Credit Suisse and we are delivering on our commitments. This quarter marks the
return to reported net profits and further capital accretion – a testament
to the strength of our business and client franchises and our ability to
deliver significant progress on our integration plans while actively
optimizing our financial resources.” Sergio P. Ermotti, Group CEO
Selected financials for 1Q24
Profit before tax Cost/income ratio RoCET1 capital Net profit CET1 capital ratio
2.4
80.5
9.0
1.8
14.8
USD bn
%
%
USD bn
%
Underlying(1 Underlying(1 Underlying(1 Diluted CET1
) ) )
EPS
leverage ratio
profit before tax cost/income ratio RoCET1 capital
0.52
4.9
2.6
77.2
9.6
USD
%
USD bn
%
%
Information in this news release is presented for UBS Group AG on a
consolidated basis unless otherwise specified.
1 Underlying results exclude items of profit or loss that management believes
are not representative of the underlying performance. Underlying results are a
non-GAAP financial measure and alternative performance measure (APM). Refer to
“Group Performance” and “Appendix-Alternative Performance Measures” in
the financial report for the first quarter of 2024 for a reconciliation of
underlying to reported results and definitions of the APMs.
Group summary
Return to reported pre- and post-tax profitability
In 1Q24, we reported PBT of USD 2,376m and underlying PBT of USD 2,617m, with
15% QoQ growth in underlying revenues alongside 5% QoQ reduction in underlying
operating expenses, resulting in significant positive operating leverage. Net
profit attributable to shareholders was USD 1,755m.
Total reported revenues reached USD 12.7bn. Group underlying revenues of USD
12.0bn were driven by strong sequential gains in GWM, IB and NCL, and included
a net gain from the conclusion of agreements relating to the former Credit
Suisse securitized products group as previously communicated. Group operating
expenses decreased 11% QoQ to USD 10,257m, or 5% QoQ on an underlying basis to
USD 9,236m, with the largest reductions in NCL, GWM and IB.
Continued franchise strength and client momentum
We remain focused on serving our clients. This was evidenced by USD 27bn of
net new assets, with strong contributions from the Americas, Switzerland and
APAC, as well as net new fee generating assets of USD 18bn and USD 8bn of net
new deposits in GWM in the quarter.
We also saw client demand in AM, with USD 21bn of net new money including
money market flows. Deposit balances in P&C in Swiss francs remained
roughly stable, with inflows in personal banking largely offset by outflows in
corporate balances with lower liquidity value.
In the IB, we carried positive momentum in Global Banking with underlying
revenues up by 52% YoY to USD 584m as we outperformed fee pools in all
regions, most notably in the US where Banking now contributes a third of total
IB revenues, up from less than 20% a year ago.
On track with cost and balance sheet reduction plans, supporting delivery of
integration priorities
We continue to execute our integration plans at pace. In 1Q24, we realized an
additional USD ~1bn in gross cost savings, for a total of USD ~5bn in
annualized exit rate gross cost savings vs. FY22 combined, nearly 40% of our
2026 exit-rate ambition of USD ~13bn. We aim to achieve another USD ~1.5bn in
gross cost savings by the end of 2024.
We made substantial progress in reducing the NCL portfolio. RWA decreased by
USD 16bn QoQ as we accelerated the wind-down of several complex and
longer-dated positions. LRD declined USD 49bn QoQ. Underlying operating
expenses decreased 26% QoQ, mainly driven by our good progress in taking out
costs and streamlining our operations. We remain focused on accelerating
position exits in a manner that continues to optimize value.
We expect to complete the merger of UBS AG and Credit Suisse AG on 31 May
2024, subject to remaining regulatory approvals. The transition to a single US
intermediate holding company is planned for the second quarter of 2024, and
the merger of Credit Suisse (Schweiz) AG and UBS Switzerland AG continues to
be planned for the third quarter of 2024, both also subject to remaining
regulatory approvals. These critical milestones will facilitate the migration
of clients onto UBS platforms beginning later this year, and unlock the next
phase of the cost, capital, funding and tax benefits from the second half of
2024, and by the end of 2025 and into 2026.
Significant progress on financial resources optimization for sustainably
higher returns
We made significant progress in reducing financial resource consumption across
the bank, with USD 20bn decline in Group RWA to USD 526bn in 1Q24, primarily
driven by the active run-down of NCL and balance sheet management initiatives
across the core businesses as well as currency effects.
On 6 May 2024 we repaid CHF 9bn of the ELA central bank liquidity facility. We
have now repaid a total of CHF 29bn and expect to repay the remaining CHF 9bn
in the coming months.
Maintained a balance sheet for all seasons
The CET1 capital ratio was 14.8% and the CET1 leverage ratio was 4.9%,
allowing execution of our 2024 capital return targets. At the end of the
quarter, LCR stood at 220% and NSFR at 126%.
Outlook
Although monetary easing is expected in the Eurozone, the US and Switzerland,
the timing and magnitude of rate cuts by central banks are unclear, as
inflation remains above their target range. In addition, the ongoing
geopolitical tensions, combined with consequential elections in several major
economies, continue to create uncertainty regarding the macroeconomic and
geopolitical outlooks.
In the second quarter of 2024, we expect a low-to-mid single-digit decline in
net interest income in Global Wealth Management, due to moderately lower
lending and deposit volumes and lower interest rates in Switzerland, partly
offset by additional revenues, primarily from higher US dollar rates, combined
with our repricing efforts. We expect a mid-to-high single-digit decrease in
net interest income in Personal & Corporate Banking in US dollar terms, as
the Swiss central bank’s interest rate cut in March 2024 takes effect for a
full quarter. In line with our strategy to actively reduce assets and costs in
Non-core and Legacy, we continue to expect revenues in the closing out of any
positions to approximately reflect their current book value. We also expect
our reported revenues to include around USD 0.6bn of pull-to-par and other PPA
accretion effects, while we incur around USD 1.3bn of integration-related
expenses. The tax rate for the second quarter is expected to return to more
elevated levels, with our effective tax rate still expected to be around 40%
by the end of 2024.
In addition to executing on our integration plans, we will remain focused on
serving our clients, following through on our strategy, investing in our
people and remaining a pillar of economic support in the communities where we
live and work.
First quarter 2024 performance overview – Group
Group PBT USD 2,376m, underlying PBT USD 2,617m
PBT of USD 2,376m included PPA effects and other integration items of USD 779m
and integration-related expenses and PPA effects of USD 1,021m. Underlying PBT
was USD 2,617m, including credit loss expenses of USD 106m. The cost/income
ratio was 80.5% and the underlying cost/income ratio was 77.2%. Net profit
attributable to shareholders was USD 1,755m, with diluted earnings per share
of USD 0.52. Return on CET1 capital was 9.0%, and 9.6% on an underlying basis.
Global Wealth Management (GWM) PBT USD 1,102m, underlying PBT USD 1,272m
Total revenues increased 28% to USD 6,143m, largely driven by the
consolidation of Credit Suisse revenues, and included USD 234m of PPA effects
and other integration items. Excluding these effects, underlying total
revenues were USD 5,909m. Net credit loss releases were USD 3m, compared with
net expenses of USD 15m in the first quarter of 2023. Operating expenses
increased 42% to USD 5,044m, largely due to the consolidation of Credit Suisse
expenses, and included integration-related expenses of USD 402m and higher
financial advisor compensation. Excluding integration-related expenses and PPA
effects of USD 404m, underlying operating expenses were USD 4,640m. The
cost/income ratio was 82.1% and the underlying cost/income ratio was 78.5%.
Invested assets increased 3% sequentially to USD 4,023bn. Net new assets were
USD 27.4bn.
Personal & Corporate Banking (P&C) PBT CHF 859m, underlying PBT CHF
774m
Total revenues increased 81% to CHF 2,139m, mainly due to the consolidation of
Credit Suisse revenues, and included CHF 226m of PPA effects and other
integration items. The remaining increase largely reflected increases across
net interest income, transaction-based income and recurring net fee income.
Excluding the aforementioned PPA effects, underlying total revenues were CHF
1,913m. Net credit loss expenses were CHF 39m, compared with net expenses of
CHF 14m in the first quarter of 2023, largely due to the consolidation of
Credit Suisse. Operating expenses increased 103% to CHF 1,241m, largely due to
the consolidation of Credit Suisse expenses, and included integration-related
expenses of CHF 119m. Excluding integration-related expenses and PPA effects
of CHF 141m, underlying operating expenses were CHF 1,100m. The cost/income
ratio was 58.0% and the underlying cost/income ratio was 57.5%.
Asset Management (AM) PBT USD 111m, underlying PBT USD 182m
Total revenues increased 54% to USD 776m, reflecting the consolidation of
Credit Suisse revenues. Operating expenses increased 63% to USD 665m, mainly
reflecting the consolidation of Credit Suisse expenses, and included
integration-related expenses of USD 71m. The increase was also due to adverse
foreign currency effects and increases in technology expenses and general and
administrative expenses. Excluding the aforementioned integration-related
expenses, underlying operating expenses were USD 594m. The cost/income ratio
was 85.8% and the underlying cost/income ratio was 76.6%. Invested assets
increased 3% sequentially to USD 1,691bn. Net new money was USD 21bn, and USD
9bn excluding money market flows and associates.
Investment Bank (IB) PBT USD 555m, underlying PBT USD 404m
Total revenues increased 16% to USD 2,751m, due to higher Global Banking
revenues, partly offset by lower Global Markets revenues. The consolidation of
Credit Suisse revenues included USD 293m of PPA effects. Excluding these
effects, underlying total revenues were USD 2,458m. Net credit loss expenses
were USD 32m, compared to net expenses of USD 7m in the first quarter of 2023.
Operating expenses increased 16% to USD 2,164m, largely due to the
consolidation of Credit Suisse expenses, and included integration-related
expenses of USD 143m. Excluding integration-related expenses, underlying
operating expenses were USD 2,022m. The cost/income ratio was 78.7% and the
underlying cost/income ratio was 82.3%.
Non-core and Legacy (NCL) PBT USD (46m), underlying PBT USD 197m
Total revenues were USD 1,001m, mainly due to the transfer of assets and
liabilities into NCL following the acquisition of the Credit Suisse Group, and
included net gains from position exits, along with net interest income from
securitized products and credit products. Net credit loss expenses were USD
36m. Operating expenses were USD 1,011m, and included integration-related
expenses of USD 242m. Excluding integration-related expenses, underlying
operating expenses were USD 769m.
Group Items PBT USD (320m), underlying PBT USD (315m)
UBS’s sustainability approach through the integration
In March 2024, we published our 2023 Sustainability Report providing an update
on the significant progress we are making on the execution of UBS’s
sustainability and impact strategy, as well as outlining how we are aligning
our sustainability frameworks following the acquisition of Credit Suisse and
our revised decarbonization targets. We are guided by our ambition to be a
global leader in sustainability. We remain committed to supporting our clients
in the transition to a low-carbon world, leading by example in our own
operations, and sharing our lessons learned along the way.
Integrated policy frameworks and processes
Following the acquisition of Credit Suisse, we have implemented a revised
Sustainability & Climate Risk framework and associated processes to
reflect the full suite of activities of the combined business and ensure a
consistent approach. We have also moved swiftly to transition portfolios in
carbon-intensive sectors that do not align with our approach and risk appetite
into Non-Core and Legacy to be managed off our balance sheet over time.
New baselines and financing targets
We have established new baselines and updated UBS’s 2030 emissions targets
for fossil fuels, power generation, cement and real estate mortgage lending.
In addition, we added a target for iron and steel and continue disclosing
in-scope ship finance portfolios according to the Poseidon Principles
decarbonization trajectories with the aim of aligning.
We remain committed to our ambition to achieve net-zero greenhouse gas
emissions across our scope 1 and 2, and specified scope 3 activities by 2050,
with decarbonization targets for 2025, 2030 and 2035. At the same time, we
recognize there is more to do and aim to phase in additional scope 3
activities over time.
UBS named top employer for business students in Switzerland
Business students across Switzerland voted UBS as the No. 1 employer,
according to the Universum Most Attractive Employer rankings 2024. The survey
also reflects the ongoing efforts in championing diversity at UBS, as we climb
to third place amongst female business students.
Selected financial information of our business divisions and Group Items
For the quarter ended 31.3.24
USD m Global Wealth Management Personal & Asset Investment Non-core and Legacy Group Items Total
Corporate
Management
Bank
Banking
Total revenues as reported 6,143 2,423 776 2,751 1,001 (355) 12,739
of which: PPA effects and other integration items(1) 234 256 293 (4) 779
Total revenues (underlying) 5,909 2,166 776 2,458 1,001 (351) 11,960
Credit loss expense / (release) (3) 44 0 32 36 (2) 106
Operating expenses as reported 5,044 1,404 665 2,164 1,011 (33) 10,257
of which: integration-related expenses and PPA effects(2) 404 160 71 143 242 1 1,021
Operating expenses (underlying) 4,640 1,245 594 2,022 769 (34) 9,236
Operating profit / (loss) before tax as reported 1,102 975 111 555 (46) (320) 2,376
Operating profit / (loss) before tax (underlying) 1,272 878 182 404 197 (315) 2,617
For the quarter ended 31.12.23(3)
USD m Global Wealth Management Personal & Asset Investment Non-core and Legacy Group Items Total
Corporate
Management
Bank
Banking
Total revenues as reported 5,554 2,083 825 2,141 145 107 10,855
of which: PPA effects and other integration items(1) 349 306 277 12 944
of which: losses related to investment in SIX Group (190) (317) (508)
Total revenues (underlying) 5,395 2,094 825 1,864 145 95 10,419
Credit loss expense / (release) (8) 85 (1) 48 15 (2) 136
Operating expenses as reported 5,282 1,398 704 2,283 1,787 16 11,470
of which: integration-related expenses and PPA effects(2) 502 187 64 167 750 109 1,780
of which: acquisition-related costs (1) (1)
Operating expenses (underlying) 4,780 1,210 639 2,116 1,037 (92) 9,690
Operating profit / (loss) before tax as reported 280 601 122 (190) (1,657) 93 (751)
Operating profit / (loss) before tax (underlying) 624 800 186 (300) (907) 189 592
For the quarter ended 31.3.23(4)
USD m Global Wealth Management Personal & Asset Investment Non-core and Legacy Group Items Total
Corporate
Management
Bank
Banking
Total revenues as reported 4,788 1,277 503 2,365 23 (211) 8,744
Total revenues (underlying) 4,788 1,277 503 2,365 23 (211) 8,744
Credit loss expense / (release) 15 16 0 7 0 0 38
Operating expenses as reported 3,561 663 408 1,866 699 14 7,210
of which: acquisition-related costs 70 70
Operating expenses (underlying) 3,561 663 408 1,866 699 (57) 7,140
Operating profit / (loss) before tax as reported 1,212 598 95 492 (676) (225) 1,495
Operating profit / (loss) before tax (underlying) 1,212 598 95 492 (676) (155) 1,566
1 Includes accretion of PPA adjustments on financial instruments and other PPA
effects, as well as temporary and incremental items directly related to the
integration. 2 Includes temporary, incremental operating expenses directly
related to the integration, as well as amortization of newly recognized
intangibles resulting from the acquisition of the Credit Suisse Group. 3
Comparative-period information has been restated for changes in business
division perimeters, Group Treasury allocations and Non-core and Legacy cost
allocations. Refer to “Changes to segment reporting in 2024” in the “UBS
business divisions and Group Items” section below and “Note 3 Segment
reporting” in the “Consolidated financial statements” section of the UBS
Group first quarter 2024 report, available under “Quarterly reporting” at
ubs.com/investors, for more information. 4 Comparative-period information has
been restated for changes in Group Treasury allocations. Refer to “Changes
to segment reporting in 2024” in the “UBS business divisions and Group
Items” section below and “Note 3 Segment reporting” in the
“Consolidated financial statements” section of the UBS Group first quarter
2024 report, available under “Quarterly reporting” at ubs.com/investors,
for more information.
Our key figures
As of or for the quarter ended
USD m, except where indicated 31.3.24 31.12.23(1) 31.3.23
Group results
Total revenues 12,739 10,855 8,744
Credit loss expense / (release) 106 136 38
Operating expenses 10,257 11,470 7,210
Operating profit / (loss) before tax 2,376 (751) 1,495
Net profit / (loss) attributable to shareholders 1,755 (279) 1,029
Diluted earnings per share (USD)(2) 0.52 (0.09) 0.32
Profitability and growth(3,4,5)
Return on equity (%) 8.2 (1.3) 7.2
Return on tangible equity (%) 9.0 (1.4) 8.1
Underlying return on tangible equity (%)(6) 9.6 4.8 8.7
Return on common equity tier 1 capital (%) 9.0 (1.4) 9.1
Underlying return on common equity tier 1 capital (%)(6) 9.6 4.7 9.8
Return on leverage ratio denominator, gross (%) 3.1 2.6 3.4
Cost / income ratio (%) 80.5 105.7 82.5
Underlying cost / income ratio (%)(6) 77.2 93.0 81.7
Effective tax rate (%) 25.8 n.m.(7) 30.7
Net profit growth (%) 70.6 n.m. (51.8)
Resources(3)
Total assets 1,607,120 1,717,246 1,053,134
Equity attributable to shareholders 85,260 86,108 56,754
Common equity tier 1 capital(8) 78,147 78,485 44,590
Risk-weighted assets(8) 526,437 546,505 321,660
Common equity tier 1 capital ratio (%)(8) 14.8 14.4 13.9
Going concern capital ratio (%)(8) 17.8 16.9 17.9
Total loss-absorbing capacity ratio (%)(8) 37.5 36.5 34.3
Leverage ratio denominator(8) 1,599,646 1,695,403 1,014,446
Common equity tier 1 leverage ratio (%)(8) 4.9 4.6 4.4
Liquidity coverage ratio (%)(9) 220.2 215.7 161.9
Net stable funding ratio (%) 126.4 124.7 117.7
Other
Invested assets (USD bn)(4,10,11) 5,848 5,714 4,184
Personnel (full-time equivalents) 111,549 112,842 73,814
Market capitalization(2,12) 106,440 107,355 74,276
Total book value per share (USD)(2) 26.59 26.83 18.59
Tangible book value per share (USD)(2) 24.29 24.49 16.54
1 Comparative-period information has been revised. Refer to “Note 2
Accounting for the acquisition of the Credit Suisse Group” in the
“Consolidated financial statements” section of the UBS Group Annual Report
2023, available under “Annual reporting” at ubs.com/investors, for more
information. 2 Refer to the “Share information and earnings per share”
section of the UBS Group first quarter 2024 report, available under
“Quarterly reporting” at ubs.com/investors, for more information. 3 Refer
to the “Targets, capital guidance and ambitions” section of the UBS Group
Annual Report 2023, available under “Annual reporting” at
ubs.com/investors, for more information about our performance targets. 4 Refer
to “Alternative performance measures” in the appendix to the UBS Group
first quarter 2024 report, available under “Quarterly reporting” at
ubs.com/investors, for the definition and calculation method. 5 Profit or loss
information for each of the first quarter of 2024 and the fourth quarter of
2023 is presented on a consolidated basis, including for each quarter Credit
Suisse data for three months and for the purpose of the calculation of return
measures has been annualized multiplying such by four. Profit or loss
information for the first quarter of 2023 includes pre-acquisition UBS data
for three months and for the purpose of the calculation of return measures has
been annualized multiplying such by four. 6 Refer to the “Group
performance” section of the UBS Group first quarter 2024 report, available
under “Quarterly reporting” at ubs.com/investors, for more information
about underlying results. 7 The effective tax rate for the fourth quarter of
2023 is not a meaningful measure, due to the distortive effect of current
unbenefited tax losses at the former Credit Suisse entities. 8 Based on the
Swiss systemically relevant bank framework as of 1 January 2020. Refer to the
“Capital management” section of the UBS Group first quarter 2024 report,
available under “Quarterly reporting” at ubs.com/investors, for more
information. 9 The disclosed ratios represent quarterly averages for the
quarters presented and are calculated based on an average of 61 data points in
the first quarter of 2024, 63 data points in the fourth quarter of 2023 and 64
data points in the first quarter of 2023. Refer to the “Liquidity and
funding management” section of the UBS Group first quarter 2024 report,
available under “Quarterly reporting” at ubs.com/investors, for more
information. 10 Consists of invested assets for Global Wealth Management,
Asset Management and Personal & Corporate Banking. Refer to “Note 32
Invested assets and net new money” in the “Consolidated financial
statements” section of the UBS Group Annual Report 2023, available under
“Annual reporting” at ubs.com/investors, for more information. 11 Starting
with the second quarter of 2023, invested assets include invested assets from
associates in the Asset Management business division, to better reflect the
business strategy. Comparative figures have been restated to reflect this
change. 12 In the second quarter of 2023, the calculation of market
capitalization was amended to reflect total shares issued multiplied by the
share price at the end of the period. The calculation was previously based on
total shares outstanding multiplied by the share price at the end of the
period. Market capitalization was increased by USD 10.0bn as of 31 March 2023
as a result.
Income statement
For the quarter ended % change from
USD m 31.3.24 31.12.23 31.3.23 4Q23 1Q23
Net interest income 1,940 2,095 1,388 (7) 40
Other net income from financial instruments measured at fair value through 4,182 3,158 2,681 32 56
profit or loss
Net fee and commission income 6,492 5,780 4,606 12 41
Other income 124 (179) 69 79
Total revenues 12,739 10,855 8,744 17 46
Credit loss expense / (release) 106 136 38 (22) 177
Personnel expenses 6,949 7,061 4,620 (2) 50
General and administrative expenses 2,413 2,999 2,065 (20) 17
Depreciation, amortization and impairment of non-financial assets 895 1,409 525 (37) 70
Operating expenses 10,257 11,470 7,210 (11) 42
Operating profit / (loss) before tax 2,376 (751) 1,495 59
Tax expense / (benefit) 612 (473) 459 33
Net profit / (loss) 1,764 (278) 1,037 70
Net profit / (loss) attributable to non-controlling interests 9 1 8 7
Net profit / (loss) attributable to shareholders 1,755 (279) 1,029 71
Comprehensive income
Total comprehensive income (245) 2,695 1,833
Total comprehensive income attributable to non-controlling interests (5) 18 13
Total comprehensive income attributable to shareholders (240) 2,677 1,820
Financial and regulatory key figures for our significant regulated
subsidiaries and sub-groups
UBS AG UBS AG Credit Suisse AG
(consolidated)
(standalone)
(consolidated)
All values in million, except where indicated USD USD CHF
Financial and regulatory requirements IFRS Accounting Standards IFRS Accounting Standards US GAAP
Swiss SRB rules
Swiss SRB rules
Swiss SRB rules
As of or for the quarter ended 31.3.24 31.12.23 31.3.24 31.12.23 31.3.24 31.12.23
Financial information(1)
Income statement
Total operating income(2) 9,056 7,951 2,365 2,254 1,606 1,268
Total operating expenses 7,677 7,618 2,203 2,205 3,011 4,005
Operating profit / (loss) before tax 1,379 333 163 49 (1,405) (2,737)
Net profit / (loss) 1,014 242 216 (48) (1,501) (2,749)
Balance sheet
Total assets 1,116,806 1,156,016 676,385 698,149 420,376 452,507
Total liabilities 1,061,443 1,100,448 621,007 642,602 382,177 414,391
Total equity 55,363 55,569 55,379 55,546 38,199 38,116
Capital(3)
Common equity tier 1 capital 43,863 44,130 51,971 52,553 38,382 38,187
Additional tier 1 capital 14,204 12,498 14,204 12,498 466 458
Total going concern capital / Tier 1 capital 58,067 56,628 66,175 65,051 38,848 38,646
Tier 2 capital 537 538 532 533
Total gone concern loss-absorbing capacity 54,773 54,458 54,768 54,452 37,933 38,284
Total loss-absorbing capacity 112,840 111,086 120,943 119,504 76,782 76,930
Risk-weighted assets and leverage ratio denominator(3)
Risk-weighted assets 328,732 333,979 356,821 354,083 173,285 181,690
Leverage ratio denominator 1,078,591 1,104,408 641,315 643,939 485,606 524,968
Capital and leverage ratios (%)(3)
Common equity tier 1 capital ratio 13.3 13.2 14.6 14.8 22.1 21.0
Going concern capital ratio / Tier 1 capital ratio 17.7 17.0 18.5 18.4 22.4 21.3
Total loss-absorbing capacity ratio 34.3 33.3 44.3 42.3
Going concern leverage ratio 5.4 5.1 10.3 10.1 8.0 7.4
Total loss-absorbing capacity leverage ratio 10.5 10.1 15.8 14.7
Gone concern capital coverage ratio 105.9 112.5
Liquidity coverage ratio(3)
High-quality liquid assets (bn) 251.0 254.5 123.7 130.0 149.6 142.6
Net cash outflows (bn) 131.3 134.3 46.1 50.4 56.8 53.8
Liquidity coverage ratio (%) 191.4 189.7 268.7(4) 260.2 263.3(5) 265.1
Net stable funding ratio(3)
Total available stable funding (bn) 589.3 602.6 274.6 279.8 272.9 287.1
Total required stable funding (bn) 484.7 503.8 288.3 304.9 199.4 213.1
Net stable funding ratio (%) 121.6 119.6 95.2(6) 91.7 136.9 134.7
1 The financial information disclosed does not represent financial statements
under the respective GAAP / IFRS Accounting Standards. 2 The total operating
income includes credit loss expense or release. 3 Refer to the 31 March 2024
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors, for more information. 4 In the first quarter of 2024, the
liquidity coverage ratio (the LCR) of UBS AG was 268.7%, remaining above the
prudential requirements communicated by FINMA. 5 In the first quarter of 2024,
the liquidity coverage ratio (the LCR) of Credit Suisse AG consolidated was
263.3%, remaining above the prudential requirements communicated by FINMA. 6
In accordance with Art. 17h para. 3 and 4 of the Liquidity Ordinance, UBS AG
standalone is required to maintain a minimum NSFR of at least 80% without
taking into account excess funding of UBS Switzerland AG and 100% after taking
into account such excess funding.
Information about results materials and the earnings call
UBS’s first quarter 2024 report, news release and slide presentation are
available from 06:45 CEST on Tuesday, 7 May 2024, at
ubs.com/quarterlyreporting.
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ubs.com%2Fquarterlyreporting&esheet=53974778&newsitemid=20240506376616&lan=en-US&anchor=ubs.com%2Fquarterlyreporting.&index=1&md5=58e6967eb91e5ce42b45619e99885e75)
UBS will hold a presentation of its first quarter 2024 results on Tuesday, 7
May 2024. The results will be presented by Sergio P. Ermotti (Group Chief
Executive Officer), Todd Tuckner (Group Chief Financial Officer) and Sarah
Mackey (Head of Investor Relations).
UBS Group AG will publish its second quarter 2024 results on Wednesday, 14
August 2024.
Time
09:00 CEST
08:00 BST
03:00 US EDT
Audio webcast
The presentation for analysts can be followed live on
ubs.com/quarterlyreporting
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ubs.com%2Fquarterlyreporting&esheet=53974778&newsitemid=20240506376616&lan=en-US&anchor=ubs.com%2Fquarterlyreporting&index=2&md5=7567039702ca851cc2f4603703b254c5)
with a simultaneous slide show.
Webcast playback
An audio playback of the results presentation will be made available at
ubs.com/investors
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ubs.com%2Finvestors&esheet=53974778&newsitemid=20240506376616&lan=en-US&anchor=ubs.com%2Finvestors&index=3&md5=74bc04682d12f990458e36d2acba5c67)
later in the day.
Cautionary statement regarding forward-looking statements
This news release contains statements that constitute “forward-looking
statements,” including but not limited to management’s outlook for UBS’s
financial performance, statements relating to the anticipated effect of
transactions and strategic initiatives on UBS’s business and future
development and goals or intentions to achieve climate, sustainability and
other social objectives. While these forward-looking statements represent
UBS’s judgments, expectations and objectives 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. In particular, terrorist activity and conflicts in the Middle
East, as well as the continuing Russia–Ukraine war, may have significant
impacts on global markets, exacerbate global inflationary pressures, and slow
global growth. In addition, the ongoing conflicts may continue to cause
significant population displacement, and lead to shortages of vital
commodities, including energy shortages and food insecurity outside the areas
immediately involved in armed conflict. Governmental responses to the armed
conflicts, including, with respect to the Russia–Ukraine war, coordinated
successive sets of sanctions on Russia and Belarus, and Russian and Belarusian
entities and nationals, and the uncertainty as to whether the ongoing
conflicts will widen and intensify, may continue to have significant adverse
effects on the market and macroeconomic conditions, including in ways that
cannot be anticipated. UBS’s acquisition of the Credit Suisse Group has
materially changed our outlook and strategic direction and introduced new
operational challenges. The integration of the Credit Suisse entities into the
UBS structure is expected to take between three and five years and presents
significant risks, including the risks that UBS Group AG may be unable to
achieve the cost reductions and other benefits contemplated by the
transaction. This creates significantly greater uncertainty about
forward-looking statements. Other factors that may affect our performance and
ability to achieve our plans, outlook and other objectives also include, but
are not limited to: (i) the degree to which UBS is successful in the 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), liquidity coverage ratio and other
financial resources, including changes in RWA assets and liabilities arising
from higher market volatility and the size of the combined Group; (ii) the
degree to which UBS is successful in implementing changes to its businesses to
meet changing market, regulatory and other conditions, including as a result
of the acquisition of the Credit Suisse Group; (iii) increased inflation and
interest rate volatility in major markets; (iv) developments in the
macroeconomic climate and in the markets in which UBS operates or to which it
is exposed, including movements in securities prices or liquidity, credit
spreads, currency exchange rates, deterioration or slow recovery in
residential and commercial real estate markets, the effects of economic
conditions, including increasing inflationary pressures, market developments,
increasing geopolitical tensions, and changes to national trade policies on
the financial position or creditworthiness of UBS’s clients and
counterparties, as well as on client sentiment and levels of activity; (v)
changes in the availability of capital and funding, including any adverse
changes in UBS’s credit spreads and credit ratings of UBS, Credit Suisse,
sovereign issuers, structured credit products or credit-related exposures, as
well as availability and cost of funding to meet requirements for debt
eligible for total loss-absorbing capacity (TLAC), in particular in light of
the acquisition of the Credit Suisse Group; (vi) changes in central bank
policies or the implementation of financial legislation and regulation in
Switzerland, the US, the UK, the EU 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, net stable funding ratio,
liquidity and funding requirements, heightened operational resilience
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; (vii) UBS’s ability to successfully implement resolvability and
related regulatory requirements and the potential need to make further changes
to the legal structure or booking model of UBS in response to legal and
regulatory requirements and any additional requirements due to its acquisition
of the Credit Suisse Group, or other developments; (viii) UBS’s ability to
maintain and improve its systems and controls for complying with sanctions in
a timely manner and for the detection and prevention of money laundering to
meet evolving regulatory requirements and expectations, in particular in
current geopolitical turmoil; (ix) the uncertainty arising from domestic
stresses in certain major economies; (x) changes in UBS’s competitive
position, including whether differences in regulatory capital and other
requirements among the major financial centers adversely affect UBS’s
ability to compete in certain lines of business; (xi) changes in the standards
of conduct applicable to our businesses that may result from new regulations
or new enforcement of existing standards, including measures to impose new and
enhanced duties when interacting with customers and in the execution and
handling of customer transactions; (xii) the liability to which UBS may be
exposed, or possible constraints or sanctions that regulatory authorities
might impose on UBS, due to litigation, contractual claims and regulatory
investigations, including the potential for disqualification from certain
businesses, potentially large fines or monetary penalties, or the loss of
licenses or privileges as a result of regulatory or other governmental
sanctions, as well as the effect that litigation, regulatory and similar
matters have on the operational risk component of our RWA, including as a
result of its acquisition of the Credit Suisse Group, as well as the amount of
capital available for return to shareholders; (xiii) the effects on UBS’s
business, in particular cross-border banking, of sanctions, tax or regulatory
developments and of possible changes in UBS’s policies and practices; (xiv)
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; (xv) 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; (xvi) 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; (xvii)
limitations on the effectiveness of UBS’s internal processes for risk
management, risk control, measurement and modeling, and of financial models
generally; (xviii) the occurrence of operational failures, such as fraud,
misconduct, unauthorized trading, financial crime, cyberattacks, data leakage
and systems failures, the risk of which is increased with cyberattack threats
from both nation states and non-nation-state actors targeting financial
institutions; (xix) restrictions on the ability of UBS Group AG and UBS 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; (xx) 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; (xxi) uncertainty over the scope
of actions that may be required by UBS, governments and others for UBS to
achieve goals relating to climate, environmental and social matters, as well
as the evolving nature of underlying science and industry and the possibility
of conflict between different governmental standards and regulatory regimes;
(xxii) the ability of UBS to access capital markets; (xxiii) the ability of
UBS to successfully recover from a disaster or other business continuity
problem due to a hurricane, flood, earthquake, terrorist attack, war, conflict
(e.g., the Russia–Ukraine war), pandemic, security breach, cyberattack,
power loss, telecommunications failure or other natural or man-made event,
including the ability to function remotely during long-term disruptions such
as the COVID-19 (coronavirus) pandemic; (xxiv) the level of success in the
absorption of Credit Suisse, in the integration of the two groups and their
businesses, and in the execution of the planned strategy regarding cost
reduction and divestment of any non-core assets, the existing assets and
liabilities of Credit Suisse, the level of resulting impairments and
write-downs, the effect of the consummation of the integration on the
operational results, share price and credit rating of UBS – delays,
difficulties, or failure in closing the transaction may cause market
disruption and challenges for UBS to maintain business, contractual and
operational relationships; and (xxv) the effect that these or other factors or
unanticipated events, including media reports and speculations, 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 US Securities and Exchange Commission
(the SEC). More detailed information about those factors is set forth in
documents furnished by UBS and filings made by UBS with the SEC, including the
UBS Group AG and UBS AG Annual Reports on Form 20- F for the year ended 31
December 2023. UBS is not under any obligation to (and expressly disclaims any
obligation to) update or alter its forward-looking statements, whether as a
result of new information, future events, or otherwise.
Rounding
Numbers presented throughout this news release may not add up precisely to the
totals provided in the tables and text. Percentages and percent changes
disclosed in text and tables are calculated on the basis of unrounded figures.
Absolute changes between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on a rounded
basis.
Tables
Within tables, blank fields generally indicate non-applicability or that
presentation of any content would not be 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. Values that are zero on a rounded basis can be either negative or
positive on an actual basis.
Websites
In this news release, any website addresses are provided solely for
information and are not intended to be active links. UBS is not incorporating
the contents of any such websites into this report.
UBS Group AG, Credit Suisse AG and UBS AG
Investor contact
Switzerland: +41-44-234 41 00
Americas: +1-212-882 57 34
Media contact
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 58
APAC: +852-297-1 82 00
ubs.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ubs.com%2F&esheet=53974778&newsitemid=20240506376616&lan=en-US&anchor=ubs.com&index=4&md5=8246f50174db8f7ef40ea30437042098)
View source version on businesswire.com:
https://www.businesswire.com/news/home/20240506376616/en/
(https://www.businesswire.com/news/home/20240506376616/en/)
UBS AG
Copyright Business Wire 2024Recent news on UBS AG
See all newsREG - iShares Physical - Publication of Final Terms
AnnouncementREG - iShares Physical - Publication of Final Terms
AnnouncementREG - iShares Physical - Publication of Final Terms
AnnouncementREG - UBS AG - Pre Stabilisation Notice Julius Baer 5yr Senior
AnnouncementREG - UBS AG - Post Stabilisation Notice UBS EUR 4NC3 FRN
Announcement