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Key highlights (Graphic: UBS Group
AG)
UBS (NYSE:UBS) (SWX:UBSN):
Key highlights
- 1Q24 PBT of USD 2.4bn and underlying1 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
2.4
USD bn
Cost/income ratio
80.5
%
RoCET1 capital
9.0
%
Net profit
1.8
USD bn
CET1 capital ratio
14.8
%
Underlying1 profit before
tax
2.6
USD bn
Underlying1 cost/income
ratio
77.2
%
Underlying1 RoCET1
capital
9.6
%
Diluted EPS
0.52
USD
CET1 leverage
ratio
4.9
%
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 &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
6,143
2,423
776
2,751
1,001
(355)
12,739
of which: PPA effects and other
integration items1
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 effects2
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
31.12.233
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
5,554
2,083
825
2,141
145
107
10,855
of which: PPA effects and other
integration items1
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 effects2
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
31.3.234
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
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
31.12.231
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 growth3,4,5
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)
Resources3
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 capital8
78,147
78,485
44,590
Risk-weighted assets8
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 denominator8
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 capitalization2,12
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 profit or loss
4,182
3,158
2,681
32
56
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
(consolidated)
UBS AG
(standalone)
Credit Suisse AG
(consolidated)
All values in million, except where
indicated
USD
USD
CHF
Financial and regulatory requirements
IFRS Accounting Standards
Swiss SRB rules
IFRS Accounting Standards
Swiss SRB rules
US GAAP
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 information1
Income statement
Total operating income2
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
Capital3
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
denominator3
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 ratio3
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
268.74
260.2
263.35
265.1
Net stable funding ratio3
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
95.26
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.
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 with a simultaneous
slide show.
Webcast playback
An audio playback of the results
presentation will be made available at ubs.com/investors later in
the day.
Cautionary statement regarding forward-looking
statements
This news release contains statements that constitute
“forward-looking statements,” including but not limited to
management’s outlook for UBS’s financial performance, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506952345/en/
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
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