Regulatory News:
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240205403311/en/
4Q23 and FY23 highlights (Graphic: UBS
Group AG)
UBS (NYSE:UBS) (SWX:UBSN):
4Q23 and FY23 highlights
- 4Q23 PBT of USD (751m), including losses of USD 508m
related to the investment in SIX Group, in addition to
integration-related expenses and pull-to-par and other PPA-related
benefits; underlying1 PBT of USD 592m
- FY23 PBT of USD 29,916m, including USD 28,925m negative
goodwill
- Completed first phase of strategic integration,
stabilized the franchise, achieved underlying profitability and
initiated restructuring
- USD 77bn of net new assets2 in GWM and USD 77bn of net new
deposits across GWM and P&C since the closing of the
acquisition in 2023; USD 22bn of NNA and USD 16bn of NND in GWM,
and CHF 7bn of NND in P&C in 4Q23, driven by strong momentum
with our clients
- Achieved USD ~4bn in exit rate gross cost savings in FY23 vs
FY22 combined
- Strong progress in NCL wind-down with RWA down USD 5.5bn
of which three quarters from active unwinds, LRD down USD 19bn and
underlying operating expenses down 9% QoQ
- Maintained capital strength with CET1 ratio of 14.5% and
CET1 leverage ratio of 4.7% comfortably above guidance
- Increase of 27% YoY in FY23 ordinary dividend, to USD 0.70
per share, subject to shareholder approval at the Annual
General Meeting
Investor update
highlights
- Re-iterating ~15% underlying RoCET1 and <70% underlying
cost/income ratio exit rate targets by end-2026; well
positioned to deliver long-term growth and higher returns with ~18%
reported RoCET1 in 2028
- Targeting USD ~13bn gross cost reductions by end-2026;
~50% of cumulative exit rate gross cost reductions expected by
end-2024
- Cost savings to provide necessary capacity for
reinvestment to reinforce the resilience of our combined
infrastructure as we absorb Credit Suisse and to drive sustainable
growth
- Ambition to surpass USD 5trn of invested assets in GWM by
2028, with USD ~100bn of NNA per annum through 2025, building
to USD ~200bn per annum by 2028
- NCL actively run down; underlying operating expenses
expected to be USD <1bn and underlying loss before tax expected
to be USD ~1bn by end-2026; RWA expected to be around 5% of Group
RWA
- Optimizing financial resources to enable sustainable
growth and higher returns; USD ~510bn of RWA expected by end-2026;
expecting USD ~45bn of RWA reductions in NCL and USD ~15bn of
business-led RWA reductions in core divisions from actions to
improve capital efficiency; Basel 3 finalization and migrating
Credit Suisse’s portfolios to UBS risk models are expected to
increase RWAs in the core divisions by USD 25bn
- Expecting up to USD 1bn of funding cost saves by 2026
relative to 2023 levels as a result of lower funding needs,
diversified and more stable funding sources, and disciplined
deposit pricing
- Merger of UBS AG and Credit Suisse AG planned to be
completed by the end of 2Q24 and merger of UBS Switzerland AG
and Credit Suisse (Schweiz) AG entities planned before the end of
3Q24, which is a critical step in enabling us to unlock the next
phase of the cost, capital and funding synergies we expect to
realize in 2025 and 2026
- Delivering attractive capital returns; planning to
reinstate share repurchases after completion of UBS AG and Credit
Suisse AG merger, with up to USD 1bn in 2024, committed to
progressive dividends and accruing for a mid-teen percentage
increase in the dividend per share for 2024; ambition for FY26
share repurchases to exceed FY22 levels
“2023 was a defining year in UBS’s history with the acquisition
of Credit Suisse. Thanks to the exceptional efforts of all of our
colleagues, we stabilized the franchise and have made tremendous
progress in the integration. In addition, clients entrusted us with
USD 77 billion of net new assets since the acquisition and relied
on our advice in a challenging geopolitical and macroeconomic
environment. As we move to the next phase of our journey, we will
focus on restructuring and optimizing the combined businesses.
While our progress over the next three years will not be measured
in a straight line, our strategy is clear. With enhanced scale and
capabilities across our leading client franchises and improved
resource discipline, we will drive sustainable long-term growth and
higher returns. By the end of 2026 and beyond, this will allow us
to deliver significant value for all our stakeholders and remain a
reliable economic partner, employer and taxpayer in the communities
where we operate.” Sergio P. Ermotti, Group CEO
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 fourth quarter of and
full year 2023 for a reconciliation of underlying to reported
results and definitions of the APMs.
2 Net new assets includes net new
money, dividends and interest
4Q23 and FY23 Group
performance
Delivered on integration priorities in 2023
In 2023 we made strong progress following the announcement of
the Credit Suisse acquisition, with closing completed in three
months, the repayment of the Public Liquidity Backstop and
Emergency Liquidity Assistance Plus, the return of the Loss
Protection Agreement, the decision to integrate CS (Schweiz) AG and
the definition of the NCL perimeter.
Strong momentum with our clients was evidenced by USD 77bn of
NNA in GWM and USD 77bn of NND across GWM and P&C since the
closing of the acquisition, of which USD 22bn of NNA in and USD
16bn of NND in GWM and CHF 7bn of NND in P&C in 4Q23. The
repayment of the government-guaranteed extraordinary liquidity
support and the voluntary termination of the loss-protection
agreement substantially reduced funding costs by USD ~550m per
quarter since 2Q23. Our strategy for the wind down of the NCL
portfolio led to reductions of USD 5.5bn in RWA, of which
three-quarters from active unwinds, and USD 19bn in LRD in 4Q23, in
addition to a 9% QoQ decrease in underlying operating expenses.
The Group achieved USD ~4bn in exit rate gross cost savings vs.
FY22 combined and we are on track to realize USD ~13bn in exit rate
cumulative gross cost saves by end-2026.
Achieved underlying profitability following closing of the
acquisition
4Q23 PBT of USD (751m) included integration-related expenses and
losses related to our investment in SIX Group. 4Q23 underlying PBT
of USD 592m was down 35% QoQ, mainly driven by lower client
activity and billable invested assets, as well as USD 75m of bank
levy expenses and USD 60m from a US Federal Deposit Insurance
Corporation special assessment to recover losses incurred by the
deposit insurance fund in connection with the failures of Silicon
Valley Bank and Signature Bank.
FY23 PBT was USD 29,916m, including USD 28,925m negative
goodwill and USD 4,680m of integration-related expenses and
acquisition costs.
Maintained a balance sheet for all seasons
Capital strength is a key pillar of our strategy and we remain
committed to maintaining a balance sheet for all seasons. The
year-end CET1 capital ratio was 14.5% and the CET1 leverage ratio
was 4.7%, both in excess of our guidance of ~14% and >4.0%,
respectively. We also maintained healthy liquidity buffers with an
LCR of 216% and an NSFR of 124%.
For 2023, the Board of Directors intends to propose a dividend
to UBS Group AG shareholders of USD 0.70 per share, a 27% increase
YoY. Subject to approval at the Annual General Meeting, scheduled
for 24 April 2024, the dividend will be paid on 3 May 2024 to
shareholders of record on 2 May 2024. The ex-dividend date will be
30 April 2024.
Investor update confirms financial
targets
Targeting ~15% underlying RoCET1 by year-end 2026; aim to
deliver ~18% reported RoCET1 in 2028
Based on our execution of the integration to date and the
completion of our business planning process, we have confirmed our
performance targets and capital guidance for the Group. We have
also set ambitions for each of the business divisions that
collectively are the building blocks towards achieving our
targets.
We aim to deliver an underlying return on CET1 capital of ~15%
and a cost/income ratio of <70% by 2026 exit rate. We aim to
maintain a Group CET1 capital ratio of ~14% and a CET1 leverage
ratio of >4.0%. We also aim to deliver a reported return on CET1
capital of ~18% in 2028.
Sustainable growth and long-term value creation
Throughout 2024 we will deliver on our priorities while creating
long-term sustainable value.
Building on our unrivaled global scale and footprint, GWM aims
to surpass USD 5trn of invested assets by 2028, with USD ~100bn of
NNA per annum through 2025, building to USD ~200bn by 2028. This
enhanced scale alongside our cost and capital efficiency measures
will support GWM’s ability to deliver improved profitability with
an underlying cost/income ratio ambition of <70% by the end of
2026 (exit rate).
Our consistent investments to improve the client experience and
increase efficiency for our combined franchise in Switzerland will
help P&C to achieve its ambition of a <50% underlying
cost/income ratio by the end of 2026 (exit rate).
In AM, we expect our improved strategic positioning and product
offering, in addition to the realization of cost synergies, to help
achieve our ambition of <70% underlying cost/income ratio by the
end of 2026 (exit rate).
Our focus in the IB remains on increasing client relevance while
maintaining capital discipline. The IB aims to achieve a ~15%
underlying return on attributed equity through the cycle while
consuming no more than 25% of the Group’s RWA.
Expecting completion of UBS AG and Credit Suisse AG merger by
end of 2Q24
In December 2023, the Board of Directors of UBS Group AG
approved the merger of UBS AG and Credit Suisse AG, and both
entities entered into a definitive merger agreement. The completion
of the merger is subject to regulatory approvals and is expected to
occur by the end of 2Q24. We also expect to transition to a single
US intermediate holding company in 2Q24 and complete the planned
merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG in
3Q24.
Completing the mergers of our significant legal entities is a
critical step in enabling us to unlock the next phase of the cost,
capital and funding synergies we expect to realize in 2025 and
2026. These significant legal-entity mergers are a pre-requisite
for the first wave of client migrations and will allow us to begin
streamlining and decommissioning legacy Credit Suisse platforms in
the second half of 2024.
Targeting USD ~13bn gross cost reductions to achieve <70%
underlying cost income ratio by end-2026
We expect the execution of our integration plans and the
run-down of NCL to result in USD ~13bn in gross cost saves by
end-2026 compared to FY22 combined, with ~50% of cumulative gross
cost reductions expected by end-2024. We expect NCL 2026 exit rate
underlying operating expenses to be USD <1bn, with an underlying
loss before tax of USD ~1bn as we exit positions and decommission
legacy infrastructure. Our gross cost savings will provide
necessary capacity for reinvestment to reinforce the resilience of
our infrastructure as we absorb Credit Suisse and to drive
sustainable growth by investing in talent, products and
services.
Optimizing financial resources to enable efficient long-term
growth and sustainably higher returns
Group RWA is expected to be USD ~510bn by end-2026, assuming
constant FX rates, including reductions of USD ~45bn in NCL, with
the remaining portfolio representing ~5% of Group RWA at end-2026.
We furthermore expect actions to improve capital efficiency to
result in USD ~15bn of business-led RWA reductions in our core
businesses. We expect finalized Basel 3 rules to increase RWA in
our core divisions by USD ~15bn and migrating Credit Suisse’s
portfolios to UBS risk models to increase RWA in our core divisions
by an additional USD ~10bn.
As a result of lower funding needs, diversified and more stable
funding sources, and disciplined deposit pricing, we expect to
realize funding cost saves of up to USD 1bn by 2026 relative to
2023.
Reaffirming our capital return policy; proposing USD 0.70
dividend per share
For 2023, the Board of Directors plans to propose a dividend to
UBS Group AG shareholders of USD 0.70 per share. Subject to
approval at the Annual General Meeting, scheduled for 24 April
2024, the dividend will be paid on 3 May 2024 to shareholders of
record on 2 May 2024. The ex-dividend date will be 30 April 2024.
We remain committed to progressive dividends and are accruing for a
mid-teen percentage increase in the dividend per share for the 2024
financial year.
In 2023, we bought back USD 1.3bn of our shares before we
announced the acquisition. In 2024 we expect to repurchase up to
USD 1bn of our shares, commencing after the completion of the
merger of UBS AG and Credit Suisse AG.
Our ambition is for share repurchases to exceed our
pre-acquisition levels by 2026.
Outlook
Central banks are widely expected to lower short-term interest
rates in 2024. The timing and magnitude of such cuts are still
highly uncertain, given the ongoing debate around the pace of
inflation converging with central bank targets. In addition,
ongoing geopolitical tensions, including the conflicts in the
Middle East and Eastern Europe, may impact supply chains and
inflation, with consequences for the macroeconomic outlook and
market volatility.
Notwithstanding the challenges mentioned above, we continue to
execute on our strategy and integration plans at pace, and we will
actively reduce non-core assets and costs. In the first quarter of
2024, we expect revenues to be positively influenced by seasonal
factors, such as higher client activity levels compared with the
fourth quarter of 2023. We also expect the Investment Bank to
return to profitability, due to improving market activity, a
growing banking pipeline and advanced progress on the integration.
We expect NII for Personal & Corporate Banking and Global
Wealth Management combined, and in US dollar terms, to be roughly
flat sequentially in the first quarter, with higher rates broadly
offsetting the residual effects of deposit mix shifts and the
initial impact of financial resource optimization. These factors
are expected to result in substantial sequential improvement in
reported net profit in the first quarter, including around USD 1bn
of integration-related expenses and around USD 0.7bn of pull to par
and other purchase price allocation (PPA) accretion effects.
Our focus remains on helping clients navigate challenging market
environments to manage the inherent risks and opportunities while
continuing to grow our invested assets and delivering on our
financial targets.
Fourth quarter 2023 performance
overview – Group
Group PBT USD (751m), underlying PBT USD 592m
PBT was USD (751m) and the underlying PBT was USD 592m,
including credit loss expenses of USD 136m. The cost/income ratio
was 105.7% and the underlying cost/income ratio was 93.0%. Net
profit attributable to shareholders was USD (279m), with diluted
earnings per share of USD (0.09). Return on CET1 capital was (1.4%)
and 4.7% on an underlying basis.
Global Wealth Management (GWM) PBT USD 381m, underlying PBT
USD 778m
Total revenues increased 18% to USD 5,444m, mainly due to the
consolidation of Credit Suisse revenues, and included USD 284m of
accretion of PPA adjustments on financial instruments and other
effects, partly offset by losses of USD 190m related to our
investment in SIX Group. Excluding accretion effects and the
aforementioned losses, underlying total revenues were USD 5,351m.
Net credit loss releases were USD 7m, compared with net expenses of
USD 3m in the fourth quarter of 2022. Operating expenses increased
43% to USD 5,070m, largely due to the consolidation of Credit
Suisse expenses, integration-related expenses, higher financial
advisor variable compensation and a USD 60m charge for the special
assessment by the US Federal Deposit Insurance Corporation to
recover losses incurred by the deposit insurance fund in connection
with the failures of Silicon Valley Bank and Signature Bank.
Excluding integration-related expenses of USD 490m, underlying
operating expenses were USD 4,580m. The cost/income ratio was 93.1%
and the underlying cost/income ratio was 85.6%. Invested assets
increased 6% sequentially to USD 3,850bn. Net new assets were USD
21.8bn.
Personal & Corporate Banking (P&C) PBT CHF 701m,
underlying PBT CHF 794m
Total revenues increased 98% to CHF 2,136m, mainly due to the
consolidation of Credit Suisse revenues, and included CHF 362m of
accretion of PPA adjustments on financial instruments and other
effects, with the underlying increase largely reflecting increases
across almost all business income lines, predominantly in net
interest income. This was partly offset by losses of CHF 267m
related to our investment in SIX Group in other income. Excluding
the aforementioned accretion effects and losses, underlying total
revenues were CHF 2,042m. Net credit loss expenses were CHF 72m,
primarily related to stage 3 positions, compared with net releases
of CHF 3m in the fourth quarter of 2022. Operating expenses
increased 136% to CHF 1,363m, largely due to the consolidation of
Credit Suisse expenses, with the remaining increase mostly
reflecting integration-related expenses. Excluding
integration-related expenses of CHF 163m and CHF 25m of
amortization from newly recognized intangibles resulting from the
acquisition of the Credit Suisse Group, underlying operating
expenses were CHF 1,175m. The cost/income ratio was 63.8% and the
underlying cost/income ratio was 57.6%.
Asset Management (AM) PBT USD 115m, underlying PBT USD
180m
Total revenues increased 63% to USD 805m, reflecting the
consolidation of Credit Suisse revenues and net gains on sale of
USD 27m. Operating expenses increased 86% to USD 691m, mainly
reflecting the consolidation of Credit Suisse expenses. The
increase was also due to integration-related expenses, increases in
personnel expenses, adverse foreign currency effects and increases
in technology expenses. Excluding integration-related expenses of
USD 66m, underlying operating expenses were USD 625m. The
cost/income ratio was 85.8% and the underlying cost/income ratio
was 77.7%. Invested assets increased 6% sequentially to USD
1,649bn. Net new money was USD (12.2bn), and USD (13.8bn) excluding
money market flows and associates.
Investment Bank (IB) PBT USD (169m), underlying PBT USD
(280m)
Total revenues increased 27% to USD 2,139m, mainly due to the
consolidation of Credit Suisse revenues, and included USD 277m of
accretion of PPA adjustments on financial instruments. Underlying
total revenues increased 11%, largely driven by higher Global
Banking revenues, partly offset by lower Global Markets revenues.
Excluding the aforementioned accretion effects, underlying total
revenues were USD 1,861m. Net credit loss expenses were USD 48m,
compared to net expenses of USD 8m in the fourth quarter of 2022.
Operating expenses increased 45% to USD 2,260m, largely due to
integration-related expenses, the consolidation of Credit Suisse
expenses, higher variable compensation recognized in the quarter
and higher technology expenses. Excluding integration-related
expenses of USD 166m, underlying operating expenses were USD
2,094m. The cost/income ratio was 105.7% and the underlying
cost/income ratio was 112.5%.
Non-core and Legacy (NCL) PBT USD (1,726m), underlying PBT
USD (977m)
Total revenues were USD 162m, mainly due to the transfer of
assets and liabilities into Non-core and Legacy following the
acquisition of the Credit Suisse Group, and mainly driven by net
gains from position marks and unwinds. Net credit loss expenses
were USD 15m, compared with net expenses of USD 0m in the fourth
quarter of 2022. Operating expenses were USD 1,873m, compared with
USD 21m in the fourth quarter of 2022, mainly driven by the
acquisition of the Credit Suisse Group, and included
integration-related expenses of USD 749m. Integration-related
expenses included real estate impairments and personnel costs.
Excluding integration-related expenses, underlying operating
expenses were USD 1,124m.
Group Items PBT USD (140m), underlying PBT USD (17m)
Changes to the Pension Fund of Credit Suisse in
Switzerland
As of 1 January 2027, the Pension Fund of Credit Suisse will
align its Swiss pension scheme to that of the Pension Fund of
UBS.
In accordance with International Financial Reporting Standards,
the alignment and related mitigating measures led to an increase in
UBS’s pension obligations in Switzerland resulting in a one-time
pre-tax loss of USD 245m (CHF 207m) and an offsetting gain in other
comprehensive income in the fourth quarter of 2023 with no impact
on equity or CET1 capital.
UBS’s sustainability approach through
the integration
Following the acquisition of Credit Suisse, our ambition is
unchanged: to be a global leader in sustainable finance. We want to
be the provider of choice for clients who wish to mobilize capital
toward the achievement of the United Nations 17 Sustainable
Development Goals and the orderly transition to a low-carbon
economy.
We are currently evaluating the implications of the acquisition
of Credit Suisse for our carbon reduction goals, given the
different shape and activities of the businesses. We are conducting
a robust risk analysis, assessing and re-baselining the emissions
of the combined firm. An update will be provided in our 2023
Sustainability Report to be published on 28 March.
Increasing our focus on nature; first TNFD-aligned
disclosures for 2024
To support our increasing focus on natural capital, we
announced, through our 2024 financial disclosures, UBS will become
an Early Adopter of the Taskforce on Nature-related Financial
Disclosures meaning we will provide information on nature-related
risks and opportunities.
UBS Asset Management became a founding member of the Nature
Action 100 collaborative engagement initiative and joined the
Principles for Responsible Investment’s Advisory Committee for its
stewardship initiative on nature.
In addition, UBS published and discussed a white paper ‘Bloom or
bust’ on how finance can help unlock the deployment of technologies
at the speed and scale needed to reduce biodiversity loss by 2030,
at the World Economic Forum (WEF) Annual Meeting in January.
UBS’s membership in the Dow Jones Sustainability Index
reconfirmed
In December 2023, S&P Dow Jones Indices, the world’s leading
index provider, announced the results of the annual Dow Jones
Sustainability Indices rebalancing and reconstitution. As of
year-end, UBS is ranked in the top ten of 669 companies in its
industry group.
Using quantum computing to accelerate progress towards
achieving UN SDGs
UBS is partnering with the Geneva Science and Diplomacy
Anticipator Foundation (GESDA), CERN, the Swiss Federal Department
of Foreign Affairs, and Swiss higher-education institutions ETH
Zurich and EPFL to create the Open Quantum Institute (OQI), which
was officially launched in October 2023.
In its projects, the OQI endeavors to maximize the potential of
quantum computing to accelerate progress towards achieving the SDGs
and solving some of the world’s most pressing issues in fields such
as health, energy, climate action, clean water and food security.
As a lead partner to the OQI, UBS intends to provide funding of up
to CHF 2m annually and strategic expertise over the next several
years.
Joining the Bill & Melinda Gates Foundation and others to
help eliminate NTD
As announced in December 2023, UBS Optimus Foundation is proud
to join the Bill & Melinda Gates Foundation and others in the
fight to eliminate neglected tropical disease (NTD) by pledging
match funding of up to USD 50m. The pledges made by UBS Optimus
Foundation and a number of other organizations will help close the
funding gap needed to expedite progress towards the WHO roadmap
targets, which call for at least 100 countries to have eliminated
at least one NTD by 2030.
Selected financial information of our
business divisions and Group Items
For the quarter ended
31.12.23
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
5,444
2,431
805
2,139
162
(126)
10,855
of which: accretion of PPA adjustments on
financial instruments and other effects
284
414
277
(32)
944
of which: losses related to investment in
SIX Group
(190)
(317)
(508)
Total revenues (underlying)
5,351
2,334
805
1,861
162
(94)
10,419
Credit loss expense / (release)
(7)
83
(1)
48
15
(2)
136
Operating expenses as reported
5,070
1,560
691
2,260
1,873
17
11,470
of which: integration-related expenses
490
188
66
166
749
93
1,751
of which: acquisition-related costs
(1)
(1)
of which: amortization from newly
recognized intangibles resulting from the acquisition of the Credit
Suisse Group
29
29
Operating expenses (underlying)
4,580
1,343
625
2,094
1,124
(75)
9,690
Operating profit / (loss) before tax as
reported
381
788
115
(169)
(1,726)
(140)
(751)
Operating profit / (loss) before tax
(underlying)
778
908
180
(280)
(977)
(17)
592
For the quarter ended 30.9.23
revised1
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
5,810
2,871
755
2,151
350
(242)
11,695
of which: accretion of PPA adjustments on
financial instruments and other effects
318
446
251
(57)
958
Total revenues (underlying)
5,492
2,426
755
1,900
350
(186)
10,737
Credit loss expense / (release)
2
168
0
4
59
6
239
Operating expenses as reported
4,801
1,579
724
2,377
2,152
7
11,640
of which: integration-related expenses
431
166
125
365
918
(2)
2,003
of which: acquisition-related costs
26
26
of which: amortization from newly
recognized intangibles resulting from the acquisition of the Credit
Suisse Group
28
28
Operating expenses (underlying)
4,370
1,385
599
2,012
1,234
(17)
9,583
Operating profit / (loss) before tax as
reported
1,007
1,124
31
(230)
(1,861)
(255)
(184)
Operating profit / (loss) before tax
(underlying)
1,119
872
156
(116)
(943)
(174)
914
For the quarter ended
31.12.22
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
4,601
1,130
495
1,682
53
67
8,029
of which: gain from sales of real
estate
68
68
Total revenues (underlying)
4,601
1,130
495
1,682
53
(1)
7,961
Credit loss expense / (release)
3
(4)
0
8
0
0
7
Operating expenses as reported
3,540
605
372
1,563
21
(15)
6,085
Operating profit / (loss) before tax as
reported
1,058
529
124
112
33
81
1,937
Operating profit / (loss) before tax
(underlying)
1,058
529
124
112
33
13
1,869
1 Comparative-period information has been
revised. Refer to “Accounting for the acquisition of the Credit
Suisse Group” in the “Consolidated financial information” section
of the UBS Group fourth quarter 2023 report for more
information.
Selected financial information of our
business divisions and Group Items
For the year ended
31.12.23
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Negative goodwill
Total
Total revenues as reported
21,190
8,436
2,639
8,661
741
(833)
40,834
of which: accretion of PPA adjustments on
financial instruments and other effects
719
1,013
583
(35)
2,280
of which: losses related to investment in
SIX Group
(190)
(317)
(508)
Total revenues (underlying)
20,661
7,741
2,639
8,078
741
(798)
39,062
Negative goodwill
28,925
28,925
Credit loss expense / (release)
147
501
0
190
193
6
1,037
Operating expenses as reported
17,454
4,787
2,321
8,515
5,290
440
38,806
of which: integration-related expenses
988
383
205
692
1,772
438
4,478
of which: acquisition-related costs
202
202
of which: amortization from newly
recognized intangibles resulting from the acquisition of the Credit
Suisse Group
65
65
Operating expenses (underlying)
16,466
4,338
2,116
7,823
3,518
(200)
34,061
Operating profit / (loss) before tax as
reported
3,589
3,148
318
(44)
(4,741)
(1,279)
28,925
29,916
Operating profit / (loss) before tax
(underlying)
4,048
2,902
522
64
(2,969)
(603)
3,963
For the year ended 31.12.22
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
18,967
4,302
2,961
8,717
237
(622)
34,563
of which: net gain from disposals
848
848
of which: gains from sales of subsidiary
and business
219
219
of which: losses in the first quarter of
2022 from transactions with Russian counterparties
(93)
(93)
of which: litigation settlement
62
62
of which: gain from sales of real
estate
68
68
Total revenues (underlying)
18,748
4,302
2,114
8,810
175
(690)
33,459
Credit loss expense / (release)
0
39
0
(12)
2
1
29
Operating expenses as reported
13,989
2,452
1,564
6,832
104
(12)
24,930
Operating profit / (loss) before tax as
reported
4,977
1,812
1,397
1,897
131
(611)
9,604
Operating profit / (loss) before tax
(underlying)
4,758
1,812
550
1,990
69
(679)
8,500
Our key figures
As of or for the quarter
ended
As of or for the year ended
USD m, except where indicated
31.12.23
30.9.231
31.12.22
31.12.23
31.12.22
Group results
Total revenues
10,855
11,695
8,029
40,834
34,563
Negative goodwill
28,925
Credit loss expense / (release)
136
239
7
1,037
29
Operating expenses
11,470
11,640
6,085
38,806
24,930
Operating profit / (loss) before tax
(751)
(184)
1,937
29,916
9,604
Net profit / (loss) attributable to
shareholders
(279)
(715)
1,653
29,027
7,630
Diluted earnings per share (USD)2
(0.09)
(0.22)
0.50
8.81
2.25
Profitability and growth3,4,5
Return on equity (%)
(1.3)
(3.3)
11.7
38.6
13.3
Return on tangible equity (%)
(1.4)
(3.6)
13.2
42.6
14.9
Underlying return on tangible equity
(%)
4.7
1.5
12.7
4.0
12.8
Return on common equity tier 1 capital
(%)
(1.4)
(3.6)
14.7
43.7
17.0
Underlying return on common equity tier 1
capital (%)
4.7
1.4
14.1
4.1
14.6
Return on leverage ratio denominator,
gross (%)
2.6
2.8
3.2
2.9
3.3
Cost / income ratio (%)6
105.7
99.5
75.8
95.0
72.1
Underlying cost / income ratio (%)6
93.0
89.3
76.4
87.2
74.5
Effective tax rate (%)
n.m.7
n.m.7
14.5
2.9
20.2
Net profit growth (%)
n.m.
n.m.
22.6
280.4
2.3
Resources3
Total assets
1,717,569
1,644,329
1,104,364
1,717,569
1,104,364
Equity attributable to shareholders
87,285
84,926
56,876
87,285
56,876
Common equity tier 1 capital8
79,263
78,587
45,457
79,263
45,457
Risk-weighted assets8
546,505
546,491
319,585
546,505
319,585
Common equity tier 1 capital ratio
(%)8
14.5
14.4
14.2
14.5
14.2
Going concern capital ratio (%)8
17.0
16.8
18.2
17.0
18.2
Total loss-absorbing capacity ratio
(%)8
36.6
35.7
33.0
36.6
33.0
Leverage ratio denominator8
1,695,403
1,615,817
1,028,461
1,695,403
1,028,461
Common equity tier 1 leverage ratio
(%)8
4.7
4.9
4.4
4.7
4.4
Liquidity coverage ratio (%)9
215.7
196.5
163.7
215.7
163.7
Net stable funding ratio (%)
124.1
120.7
119.8
124.1
119.8
Other
Invested assets (USD bn)4,10,11
5,714
5,373
3,981
5,714
3,981
Personnel (full-time equivalents)
112,842
115,981
72,597
112,842
72,597
Market capitalization2,12
107,355
85,768
65,608
107,355
65,608
Total book value per share (USD)2
27.20
26.27
18.30
27.20
18.30
Tangible book value per share (USD)2
24.86
23.96
16.28
24.86
16.28
1 Comparative-period information has been
revised. Refer to “Accounting for the acquisition of the Credit
Suisse Group” in the “Consolidated financial information” section
of the UBS Group fourth quarter 2023 report for more information. 2
Refer to the “Share information and earnings per share” section of
the UBS Group fourth quarter 2023 report for more information. 3
Refer to the “Recent developments” section of the UBS Group fourth
quarter 2023 report for more information about the updated targets,
guidance and ambitions. 4 Refer to “Alternative performance
measures” in the appendix to the UBS Group fourth quarter 2023
report for the definition and calculation method. 5 Profit or loss
information for each of the fourth quarter of 2023 and the third
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 2023
includes seven months (June to December 2023, inclusive) of Credit
Suisse data for the year-to-date return measure. 6 Negative
goodwill is not used in the calculation as it is presented in a
separate reporting line and is not part of total revenues. 7 The
effective tax rate for the fourth and third quarters 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 fourth quarter 2023 report for more information. 9 The
disclosed ratios represent quarterly averages for the quarters
presented and are calculated based on an average of 63 data points
in the fourth quarter of 2023, 63 data points in the third quarter
of 2023 and 63 data points in the fourth quarter of 2022. Refer to
the “Liquidity and funding management” section of the UBS Group
fourth quarter 2023 report for more information. 10 Consists of
invested assets for Global Wealth Management, Asset Management and
Personal & Corporate Banking. Refer to “Note 31 Invested assets
and net new money” in the “Consolidated financial statements”
section of the Annual Report 2022 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 has been increased by USD 7.8bn as of
31 December 2022 as a result.
Income statement
For the quarter ended
% change from
For the year ended
USD m
31.12.23
30.9.231
31.12.22
3Q23
4Q22
31.12.23
31.12.22
Net interest income
2,095
2,107
1,589
(1)
32
7,297
6,621
Other net income from financial
instruments measured at fair value through profit or loss
3,158
3,226
1,876
(2)
68
11,583
7,517
Net fee and commission income
5,780
6,056
4,359
(5)
33
21,570
18,966
Other income
(179)
305
206
384
1,459
Total revenues
10,855
11,695
8,029
(7)
35
40,834
34,563
Negative goodwill
28,925
Credit loss expense / (release)
136
239
7
(43)
1,037
29
Personnel expenses
7,061
7,567
4,122
(7)
71
24,899
17,680
General and administrative expenses
2,999
3,124
1,420
(4)
111
10,156
5,189
Depreciation, amortization and impairment
of non-financial assets
1,409
950
543
48
159
3,750
2,061
Operating expenses
11,470
11,640
6,085
(1)
88
38,806
24,930
Operating profit / (loss) before
tax
(751)
(184)
1,937
307
29,916
9,604
Tax expense / (benefit)
(473)
526
280
873
1,942
Net profit / (loss)
(278)
(711)
1,657
(61)
29,043
7,661
Net profit / (loss) attributable to
non-controlling interests
1
4
4
(80)
(79)
16
32
Net profit / (loss) attributable to
shareholders
(279)
(715)
1,653
(61)
29,027
7,630
Comprehensive income
Total comprehensive income
2,695
(2,622)
2,208
22
30,035
3,167
Total comprehensive income attributable to
non-controlling interests
18
(8)
17
5
22
18
Total comprehensive income attributable
to shareholders
2,677
(2,614)
2,190
22
30,013
3,149
1 Comparative-period information has been
revised. Refer to “Accounting for the acquisition of the Credit
Suisse Group” in the “Consolidated financial information” section
of the UBS Group fourth quarter 2023 report for more
information.
Information about results materials and
the earnings call
UBS’s fourth quarter 2023 report, news release and slide
presentation are available from 06:45 CET on Tuesday, 6 February
2024, at ubs.com/quarterlyreporting.
UBS will hold a presentation of its fourth quarter 2023 results
on Tuesday, 6 February 2024. The results will be presented by
Sergio P. Ermotti (Group Chief Executive Officer), Todd Tuckner
(Group Chief Financial Officer), Sarah Mackey (Head of Investor
Relations), and Marsha Askins (Group Head Communications &
Branding).
Time
09:00 CET 08:00 GMT 03:00 US EST
Video webcast
The presentation for analysts can be followed live via video
webcast on ubs.com/quarterlyreporting with a simultaneous slide
show.
The video webcast of the results presentation remains available
on ubs.com/investors.
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 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 Risk Factors filed on Form 6-K with the
2Q23 UBS Group AG report on 31 August 2023 and the Annual Report on
Form 20-F for the year ended 31 December 2022. 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/20240205403311/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
UBS (NYSE:UBS)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
UBS (NYSE:UBS)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024