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UBS: 3Q21 Net Profit of USD 2.3Bn, 20.8% Return on CET1 Capital (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)

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ZURICH & BASEL, Switzerland, October 26, 2021--(BUSINESS WIRE)--Regulatory News:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211025005837/en/

Ralph Hamers Quote (Graphic: UBS Group AG)

(NYSE:UBS) (SWX:UBSN):

UBS’s 3Q21 results materials are available at ubs.com/investors
The audio webcast of the earnings call starts at 09:00 CEST, 26 October 2021

Group highlights

  • We are executing relentlessly for our clients
    Our clients continued to put their trust in us, as was evident from the continued momentum in flows and volume growth throughout the year to-date. Together with favorable market conditions and investor sentiment, this led to growth across the firm. During 9M21, GWM saw USD 80bn of net new fee-generating assets with inflows in all regions, and there was USD 23bn in net new lending across GWM and P&C Personal Banking, while strong client activity drove YoY increases of 8% in transaction-based income in GWM and 44% in Global Banking income.

  • We are delivering on our strategic initiatives to drive growth and efficiency
    During 9M21, we facilitated USD 26bn of investments into private markets from private and institutional investors, helping our private clients benefit from our scale to receive institutional-like access and pricing. Sustainability remains an important topic for our clients and for us, and sustainability-focused and impact investments grew an annualized 63% year-to-date and reached USD 207bn. Our integrated SMA offering in the US continues to attract inflows, as do our mandates through My Way.

  • We are committed to driving higher returns by unlocking the power of UBS
    3Q21 PBT was USD 2,865m (up 11% YoY), including net credit loss releases of USD 14m. The cost/income ratio was 68.7%, 1.7 percentage points lower YoY. Operating income increased by 2% YoY, while operating expenses decreased by 1%. Net profit attributable to shareholders was USD 2,279m (up 9% YoY), with diluted earnings per share of USD 0.63. Return on CET1 capital 1 was 20.8%. The quarter-end CET1 capital ratio was 14.9% (guidance: ~13%) and the CET1 leverage ratio was 4.31% (guidance: >3.7%), both up QoQ. We repurchased USD 2.0bn of shares in 9M21. We intend to repurchase up to USD 0.6bn of shares during 4Q21.

Ralph Hamers, UBS’s Group CEO

"Our business momentum, our focus on fueling growth, on disciplined execution and on delivering our full ecosystem to clients – all of this led to another strong quarter financially across all of our business divisions and regions.

The market and economic backdrop were broadly positive in the third quarter; although there has been some uncertainty recently. Regardless of the backdrop, we have continued and will continue to provide our clients with valuable advice and quality execution, enabling them to navigate volatility and capture opportunities.

We made tremendous progress last quarter in delivering on our client promise by putting clients at the center of all we do – whether it be by working across the firm to provide new investment opportunities, further developing targeted offerings based on client preferences so we can offer a more personalized experience, or partnering externally to develop the largest dedicated impact investment fund in biotech history.

Today, we are seeing the benefits of delivering our full ecosystem to clients in a seamless way as One UBS. And there is so much more we can and must do.

This will be key to the success of our strategy. And we’re looking forward to presenting to you what this means for clients and for shareholders with our strategic update on 1 February 2022."

Financial performance – selected highlights

Group

3Q21

9M21

Return on CET1 capital

20.8%

19.5%

Target: 12–15%

Return on tangible equity

17.2%

15.5%

Cost/income ratio

68.7%

71.4%

Target: 75–78%

Net profit attributable to shareholders

USD 2.3bn

USD 6.1bn

CET1 capital ratio

14.9%

14.9%

Guidance: ~13%

CET1 leverage ratio

4.31%

4.31%

Guidance: >3.7%

Tangible book value per share

USD 15.62

USD 15.62

Global Wealth Management

Profit before tax

USD 1.5bn

USD 4.2bn

PBT growth

43%

34%

Target: 10–15% over the cycle

Invested assets

USD 3.2trn

USD 3.2trn

Net new fee-generating assets

USD 19bn

USD 80bn

Personal & Corporate Banking

Profit before tax

CHF 0.4bn

CHF 1.3bn

Return on attributed equity (CHF)

21%

20%

Net new loans, Personal Banking

CHF 0.7bn

CHF 2.1bn

Asset Management

Profit before tax

USD 0.2bn

USD 0.7bn

Invested assets

USD 1.2trn

USD 1.2trn

Net new money excl. money markets

USD 1bn

USD 32bn

Investment Bank

Profit before tax

USD 0.8bn

USD 1.9bn

Return on attributed equity

26%

20%

RWA and LRD vs. Group

33% / 31%

33% / 31%

Guidance: up to 1/3

Third quarter 2021 performance overview

Group PBT USD 2,865m, +11% YoY

PBT was USD 2,865m (up 11% YoY), including net credit loss releases of USD 14m. The cost/income ratio was 68.7%, 1.7 percentage points lower YoY. Operating income increased by 2% YoY, while operating expenses decreased by 1%. Net profit attributable to shareholders was USD 2,279m (up 9% YoY), with diluted earnings per share of USD 0.63. Return on CET1 capital1 was 20.8%.

Global Wealth Management (GWM) PBT USD 1,516m, +43% YoY

GWM delivered double-digit PBT growth in all regions. Operating income increased by 17% YoY. Recurring net fee income increased by 23%, primarily driven by higher average fee-generating assets, reflecting positive market performance and net new fee-generating assets. Net interest income increased by 15%, on higher loan revenues from higher volumes and margins, as well as higher deposit revenues. Transaction-based income rose 4%, mainly driven by high levels of client activity in the Americas, EMEA and Switzerland. Net credit loss releases were USD 11m, compared with net credit loss releases of USD 22m in 3Q20. The cost/income ratio improved to 69.8%, down 5.8 percentage points YoY, as income increased by 17% and operating expenses increased by 8% driven by financial advisor variable compensation. Loans increased to USD 231bn, with USD 3bn of net new loans, driven by the Americas. Invested assets decreased by 1% sequentially to USD 3,198bn. Fee-generating assets2 were slightly down sequentially to USD 1,412bn. Net new fee-generating assets2 were USD 18.8bn, supported by inflows in nearly all regions, and represented an annualized growth rate of 5% in the quarter.

Personal & Corporate Banking (P&C) PBT CHF 439m, +44% YoY

Operating income increased by 18% with increases across recurring net fee, net interest, and transaction-based income lines, with a benefit from net credit loss releases of CHF 6m compared with net credit loss expenses of CHF 84m in 3Q20. Recurring net fee income increased by 18%, primarily reflecting higher custody, mandate and investment fund fees. Net interest income was up 5% mainly driven by proactive deposit management that led to a decrease in liquidity and funding costs. Revenue from credit card and foreign exchange transactions was the main driver of the 7% improvement in transaction-based income, reflecting a continued increase in travel and leisure spending by clients as pandemic restrictions ease. The cost/income ratio was 56.6%, an improvement of 1.7 percentage points YoY, as income increased by 6% and operating expenses increased by 3%.

Asset Management (AM) PBT USD 214m, (71%) YoY

Excluding a gain of USD 571m from the sale of a majority investment in Fondcenter AG (now Clearstream Fund Centre AG) in 3Q20, PBT would have increased by 27%. Excluding this gain, operating income would have been broadly flat YoY, as an increase in net management fees offset a decrease in performance fees. The cost/income ratio was 63.9%, a 7.4 percentage point improvement YoY when excluding the aforementioned gain, with income flat YoY and 10% lower operating expenses. Invested assets decreased by 2% sequentially to USD 1,154bn. Net new money was USD 1.5bn (USD 1.1bn excluding money market flows).

Investment Bank (IB) PBT USD 837m, +32% YoY

Operating income increased by 1% YoY, or 11% excluding a USD 215m gain from the sale of intellectual property rights associated with the Bloomberg Commodity Index family in 3Q20. Global Banking revenues increased by 22%, or USD 141m, driven by Advisory and Capital Market revenues, outperforming the overall global fee pool. Global Markets revenues decreased by 7% or USD 126m. Excluding the aforementioned gain, revenues would have increased by 5%, primarily driven by higher revenues in equity derivatives, cash equities, prime brokerage and capital market financing. Net credit loss expenses were USD 5m, compared with net credit loss expenses of USD 15m in 3Q20. The cost/income ratio was 66.5%, a 7.6 percentage point improvement YoY, as income increased by 1% and operating expenses decreased by 10%, as 3Q20 included USD 229m of expenses relating to the modification of certain outstanding deferred compensation awards. Annualized return on attributed equity was 26.4%.

Group Functions PBT USD (180)m, compared with USD (184)m in 3Q20

Extending UBS’s leadership in sustainable finance

Sustainable finance has been a firm-wide priority at UBS for years. UBS’s aim is to continue to help private and institutional clients meet their investment objectives through sustainable finance, making it a critical component of UBS’s strategy. In addition, the firm wants to be the provider of choice for clients who wish to mobilize capital toward the achievement of the United Nations 17 Sustainable Development Goals.

Tailored advice on sustainable investing topics

According to the UBS Investor Sentiment survey, published in July 2021, business owners see an array of potential benefits in sustainability over the next three years. Of those surveyed, 61% believe sustainability could generate more revenue, 57% believe it could improve client relationships and 55% believe it could do the same for employee relationships.

In July, UBS announced its next step in providing personalized, tailored sustainable investing advice for its wealth management clients. With the new offering, clients can tailor the advice they receive along six sustainable investing topics: Climate change, Water, Pollution and waste, People, Products and services, and Governance. These have been identified by UBS Global Wealth Management’s Chief Investment Office as being those that are most important to drive businesses and industries to a sustainable future.

For the second time in a row, UBS Group ranked 1st out of 78 firms in the 2021 Global Association of Risk Professionals Climate Risk Survey. This reflects UBS’s well-established climate governance, strategy, risk management and disclosure. UBS is making good progress in developing its climate action plan, which will be communicated in the firm’s climate reporting in March 2022.

UBS has also become a member of the Taskforce on Nature-related Financial Disclosures (the TNFD). The TNFD brings together experts in biodiversity, data, metrics, standards and disclosure frameworks into a single collaborative endeavor that aims to create a practical framework for nature-related risks. Its goal is to accelerate the shift in global financial flows from nature-negative to nature-positive outcomes.

Investing with impact

In September, UBS launched the India chapter of its independent philanthropic arm, UBS Optimus Foundation. For more than two decades, UBS Optimus Foundation has been at the forefront of impactful philanthropy, delivering scalable solutions for social and environmental issues.

The new chapter will give philanthropists and UBS clients a direct channel to participate in some of the ground-breaking work achieved by UBS Optimus Foundation in India and elsewhere. It also deepens UBS’s commitment to the region and to clients seeking to alleviate social inequality and its root causes. These programs have benefited four million children and helped train nearly 240,000 professionals since 2015.

To harness the power of collective philanthropy, in October, UBS Collectives was announced. This innovative social-impact initiative connects UBS’s philanthropic clients, bringing together their expertise and mobilizing their capital to address the issues that matter most to them in the areas of child protection, climate change, health and education.

UBS Global Wealth Management clients have also invested USD 650m in MPM Capital’s Oncology Impact Fund 2 (OIF 2), an impact investing initiative that invests in private and public companies developing innovative treatments for cancer. This represents more than 75% of the total USD 850m raised for the fund. The total sum raised makes OIF 2 the largest dedicated impact investment fund in biotech history.

Information in this news release is presented for UBS Group AG on a consolidated basis unless otherwise specified. Financial information for UBS AG (consolidated) does not differ materially from UBS Group AG (consolidated) and a comparison between UBS Group AG (consolidated) and UBS AG (consolidated) is provided at the end of this news release.

1 Return on CET1 capital is calculated as annualized net profit attributable to shareholders divided by average common equity tier 1 capital.

2 New performance measure for our Global Wealth Management business: Beginning with the first quarter of 2021, we introduced net new fee-generating assets as a new performance measure for our Global Wealth Management business. The new measure captures the growth in clients’ invested assets from net flows related to mandates, investment funds with recurring fees, hedge funds and private markets investments, combined with dividend and interest payments into mandates, less fees paid to UBS by clients. The underlying assets and products generate most of Global Wealth Management’s recurring net fee income and a portion of its transaction-based income. Compared with net new money, net new fee-generating assets exclude flows related to assets that primarily generate revenues when traded in the form of commissions and transaction spreads, or borrowed against in the form of net interest income, and also exclude deposit flows that generate net interest income, and custody positions that generate custody fees. We will no longer report net new money for Global Wealth Management in our quarterly reports, but will continue to disclose this measure in our annual reports.

Selected financial information of our business divisions and Group Functions1

For the quarter ended 30.9.21

USD million

Global
Wealth
Management

Personal &
Corporate
Banking

Asset
Management

Investment
Bank

Group
Functions

Total

Operating income

5,002

1,091

593

2,510

(68)

9,128

of which: gain from the sale of domestic wealth management business in Austria

100

100

Operating expenses

3,486

613

379

1,673

112

6,264

of which: net restructuring expenses2

21

7

6

14

17

66

Operating profit / (loss) before tax

1,516

478

214

837

(180)

2,865

For the quarter ended 30.9.20

USD million

Global
Wealth
Management

Personal &
Corporate
Banking

Asset
Management

Investment
Bank

Group
Functions

Total

Operating income

4,280

931

1,162

2,485

78

8,935

of which: net gain from the sale of a majority stake in Fondcenter AG

60

571

631

of which: gain from the sale of intellectual property rights

215

215

of which: net gains from properties sold or held for sale

64

64

of which: gain related to investment in associates

6

19

26

of which: gain from the sale of equity investment measured at fair value through profit or loss

4

18

22

Operating expenses

3,223

596

423

1,853

262

6,357

of which: acceleration of expenses in relation to outstanding deferred compensation awards

46

3

22

229

58

359

of which: expenses associated with terminated real estate leases

72

72

Operating profit / (loss) before tax

1,057

335

739

632

(184)

2,578

1 The "of which" components of operating income and operating expenses disclosed in this table are items that are not recurring or necessarily representative of the underlying business performance for the reporting period specified. 2 Includes curtailment gains of USD 8 million (second quarter of 2021: USD 59 million), which represent a reduction in the defined benefit obligation related to the Swiss pension plan resulting from a decrease in headcount following restructuring activities.

Our key figures

As of or for the quarter ended

As of or year-to-date

USD million, except where indicated

30.9.21

30.6.21

31.12.20

30.9.20

30.9.21

30.9.20

Group results

Operating income

9,128

8,976

8,117

8,935

26,810

24,273

Operating expenses

6,264

6,384

6,132

6,357

19,054

18,103

Operating profit / (loss) before tax

2,865

2,593

1,985

2,578

7,755

6,169

Net profit / (loss) attributable to shareholders

2,279

2,006

1,636

2,093

6,109

4,921

Diluted earnings per share (USD)1

0.63

0.55

0.44

0.56

1.68

1.33

Profitability and growth2

Return on equity (%)

15.3

13.7

11.0

14.4

13.8

11.5

Return on tangible equity (%)

17.2

15.4

12.4

16.2

15.5

12.9

Return on common equity tier 1 capital (%)

20.8

19.3

16.8

21.9

19.5

17.6

Return on risk-weighted assets, gross (%)

12.2

12.2

11.4

12.7

12.2

11.8

Return on leverage ratio denominator, gross (%)3

3.5

3.4

3.2

3.7

3.4

3.5

Cost / income ratio (%)

68.7

71.8

74.9

70.4

71.4

72.7

Effective tax rate (%)

20.1

22.4

17.2

18.8

21.0

20.1

Net profit growth (%)

8.9

62.8

126.7

99.5

24.2

37.4

Resources2

Total assets

1,088,773

1,086,519

1,125,765

1,065,153

1,088,773

1,065,153

Equity attributable to shareholders

60,219

58,765

59,445

59,451

60,219

59,451

Common equity tier 1 capital4

45,022

42,583

39,890

38,197

45,022

38,197

Risk-weighted assets4

302,426

293,277

289,101

283,133

302,426

283,133

Common equity tier 1 capital ratio (%)4

14.9

14.5

13.8

13.5

14.9

13.5

Going concern capital ratio (%)4

20.0

20.2

19.4

19.2

20.0

19.2

Total loss-absorbing capacity ratio (%)4

34.0

35.6

35.2

34.5

34.0

34.5

Leverage ratio denominator3,4

1,044,916

1,039,939

1,037,150

994,366

1,044,916

994,366

Common equity tier 1 leverage ratio (%)3,4

4.31

4.09

3.85

3.84

4.31

3.84

Going concern leverage ratio (%)3,4

5.8

5.7

5.4

5.5

5.8

5.5

Total loss-absorbing capacity leverage ratio (%)4

9.8

10.0

9.8

9.8

9.8

9.8

Liquidity coverage ratio (%)5

157

156

152

154

157

154

Net stable funding ratio (%)5

118

115

119

117

118

117

Other

Invested assets (USD billion)6

4,432

4,485

4,187

3,807

4,432

3,807

Personnel (full-time equivalents)

71,427

71,304

71,551

71,230

71,427

71,230

Market capitalization1

55,423

53,218

50,013

40,113

55,423

40,113

Total book value per share (USD)1

17.48

16.90

16.74

16.57

17.48

16.57

Total book value per share (CHF)1

16.30

15.64

14.82

15.27

16.30

15.27

Tangible book value per share (USD)1

15.62

15.05

14.91

14.78

15.62

14.78

Tangible book value per share (CHF)1

14.57

13.92

13.21

13.61

14.57

13.61

1 Refer to the "Share information and earnings per share" section of the UBS Group third quarter 2021 report for more information. 2 Refer to the "Performance targets and capital guidance" section of our Annual Report 2020 for more information about our performance targets. 3 Leverage ratio denominators and leverage ratios for the respective periods in 2020 do not reflect the effects of the temporary exemption that applied from 25 March 2020 until 1 January 2021 and was granted by FINMA in connection with COVID-19. Refer to the "Regulatory and legal developments" section of our Annual Report 2020 for more information. 4 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the "Capital management" section of the UBS Group third quarter 2021 report for more information. 5 Prior-period "Net stable funding ratio" is based on estimated pro forma reporting. Refer to the "Liquidity and funding management" section of the UBS Group third quarter 2021 report for more information. 6 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 our Annual Report 2020 for more information.

Income statement

For the quarter ended

% change from

Year-to-date

USD million

30.9.21

30.6.21

30.9.20

2Q21

3Q20

30.9.21

30.9.20

Net interest income

1,693

1,628

1,517

4

12

4,934

4,240

Other net income from financial instruments measured at fair value through profit or loss

1,697

1,479

1,769

15

(4)

4,485

5,507

Credit loss (expense) / release

14

80

(89)

(83)

121

(628)

Fee and commission income

6,119

6,041

5,211

1

17

18,330

15,418

Fee and commission expense

(510)

(484)

(440)

5

16

(1,472)

(1,316)

Net fee and commission income

5,610

5,557

4,771

1

18

16,858

14,103

Other income

115

233

967

(51)

(88)

412

1,052

Total operating income

9,128

8,976

8,935

2

2

26,810

24,273

Personnel expenses

4,598

4,772

4,631

(4)

(1)

14,170

13,235

General and administrative expenses

1,148

1,103

1,173

4

(2)

3,340

3,369

Depreciation and impairment of property, equipment and software

511

500

538

2

(5)

1,520

1,452

Amortization and impairment of goodwill and intangible assets

7

9

15

(22)

(54)

24

47

Total operating expenses

6,264

6,384

6,357

(2)

(1)

19,054

18,103

Operating profit / (loss) before tax

2,865

2,593

2,578

10

11

7,755

6,169

Tax expense / (benefit)

576

581

485

(1)

19

1,629

1,242

Net profit / (loss)

2,289

2,012

2,094

14

9

6,127

4,927

Net profit / (loss) attributable to non-controlling interests

9

6

0

67

18

6

Net profit / (loss) attributable to shareholders

2,279

2,006

2,093

14

9

6,109

4,921

Comprehensive income

Total comprehensive income

1,678

2,602

2,180

(35)

(23)

3,941

6,584

Total comprehensive income attributable to non-controlling interests

(5)

20

7

6

9

Total comprehensive income attributable to shareholders

1,683

2,582

2,173

(35)

(23)

3,935

6,575

Comparison between UBS Group AG consolidated and UBS AG consolidated

As of or for the quarter ended 30.9.21

As of or for the quarter ended 30.6.21

As of or for the quarter ended 31.12.20

USD million, except where indicated

UBS Group AG
consolidated

UBS AG
consolidated

Difference
(absolute)

UBS Group AG
consolidated

UBS AG
consolidated

Difference
(absolute)

UBS Group AG
consolidated

UBS AG
consolidated

Difference
(absolute)

Income statement

Operating income

9,128

9,224

(95)

8,976

9,071

(94)

8,117

8,220

(103)

Operating expenses

6,264

6,512

(248)

6,384

6,589

(206)

6,132

6,324

(192)

Operating profit / (loss) before tax

2,865

2,712

152

2,593

2,481

111

1,985

1,896

89

of which: Global Wealth Management

1,516

1,500

16

1,294

1,273

21

864

855

9

of which: Personal & Corporate Banking

478

479

(1)

498

496

2

353

353

(1)

of which: Asset Management

214

214

0

255

254

1

401

401

0

of which: Investment Bank

837

833

4

668

655

14

529

528

1

of which: Group Functions

(180)

(314)

134

(124)

(197)

73

(161)

(241)

79

Net profit / (loss)

2,289

2,163

125

2,012

1,919

93

1,645

1,572

73

of which: net profit / (loss) attributable to shareholders

2,279

2,154

125

2,006

1,913

93

1,636

1,563

73

of which: net profit / (loss) attributable to non-controlling interests

9

9

0

6

6

0

9

9

0

Statement of comprehensive income

Other comprehensive income

(610)

(598)

(12)

591

592

(1)

83

54

29

of which: attributable to shareholders

(596)

(584)

(12)

576

578

(1)

65

36

29

of which: attributable to non-controlling interests

(14)

(14)

0

14

14

0

18

18

0

Total comprehensive income

1,678

1,565

113

2,602

2,510

92

1,728

1,626

102

of which: attributable to shareholders

1,683

1,570

113

2,582

2,491

92

1,701

1,599

102

of which: attributable to non-controlling interests

(5)

(5)

0

20

20

0

27

27

0

Balance sheet

Total assets

1,088,773

1,088,246

528

1,086,519

1,085,861

658

1,125,765

1,125,327

438

Total liabilities

1,028,221

1,030,828

(2,607)

1,027,469

1,030,216

(2,746)

1,066,000

1,067,254

(1,254)

Total equity

60,552

57,418

3,134

59,050

55,645

3,405

59,765

58,073

1,691

of which: equity attributable to shareholders

60,219

57,085

3,134

58,765

55,361

3,405

59,445

57,754

1,691

of which: equity attributable to non-controlling interests

333

333

0

284

284

0

319

319

0

Capital information

Common equity tier 1 capital

45,022

41,356

3,665

42,583

40,190

2,393

39,890

38,181

1,709

Going concern capital

60,369

55,334

5,035

59,188

55,398

3,790

56,178

52,610

3,567

Risk-weighted assets

302,426

299,612

2,814

293,277

290,470

2,807

289,101

286,743

2,358

Common equity tier 1 capital ratio (%)

14.9

13.8

1.1

14.5

13.8

0.7

13.8

13.3

0.5

Going concern capital ratio (%)

20.0

18.5

1.5

20.2

19.1

1.1

19.4

18.3

1.1

Total loss-absorbing capacity ratio (%)

34.0

32.6

1.4

35.6

34.6

1.0

35.2

34.2

1.0

Leverage ratio denominator1

1,044,916

1,044,438

479

1,039,939

1,039,375

564

1,037,150

1,036,771

379

Common equity tier 1 leverage ratio (%)1

4.31

3.96

0.35

4.09

3.87

0.23

3.85

3.68

0.16

Going concern leverage ratio (%)1

5.8

5.3

0.5

5.7

5.3

0.4

5.4

5.1

0.3

Total loss-absorbing capacity leverage ratio (%)

9.8

9.4

0.5

10.0

9.7

0.4

9.8

9.5

0.3

1 Leverage ratio denominators and leverage ratios for 31 December 2020 do not reflect the effects of the temporary exemption that applied from 25 March 2020 until 1 January 2021 and was granted by FINMA in connection with COVID-19. Refer to the "Regulatory and legal developments" section of our Annual Report 2020 for more information.

Information about results materials and the earnings call

UBS’s third quarter 2021 report, news release and slide presentation are available from 06:45 CEST on Tuesday, 26 October 2021, at ubs.com/quarterlyreporting.

UBS will hold a presentation of its third quarter 2021 results on Tuesday, 26 October 2021. The results will be presented by Ralph Hamers (Group Chief Executive Officer), Kirt Gardner (Group Chief Financial Officer), Martin Osinga (Investor Relations), and Marsha Askins (Head Communications & Branding).

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. The outbreak of COVID-19 and the measures taken in response to the pandemic have had and may continue to have a significant adverse effect on global economic activity, including disruptions to global supply chains, and an adverse effect on the credit profile of some of our clients and other market participants, which has resulted in and may continue to increase credit loss expense and credit impairments. In addition, we face heightened operational risks due to remote working arrangements, including risks to supervisory and surveillance controls, as well as increased fraud and data security risks. The unprecedented scale of the measures taken to respond to the pandemic, as well as the uncertainty surrounding vaccine supply, distribution, and efficacy against mutated virus strains create significantly greater uncertainty about forward-looking statements. 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 ongoing execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) the continuing low or negative interest rate environment in Switzerland and other jurisdictions; (iv) developments (including as a result of the COVID-19 pandemic) 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, and currency exchange rates, and the effects of economic conditions, market developments, and 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 changes in UBS’s credit spreads and ratings, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (vi) changes in central bank policies or the implementation of financial legislation and regulation in Switzerland, the US, the UK, the European Union 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 Group in response to legal and regulatory requirements, or other external developments; (viii) UBS’s ability to maintain and improve its systems and controls for the detection and prevention of money laundering and compliance with sanctions to meet evolving regulatory requirements and expectations, in particular in the US; (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 will 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, as well as the amount of capital available for return to shareholders; (xiii) the effects on UBS’s cross-border banking business of tax or regulatory developments and of possible changes in UBS’s policies and practices relating to this business; (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 while COVID-19 control measures require large portions of the staff of both UBS and its service providers to work remotely; (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 to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and governmental standards; and (xxii) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including UBS’s Annual Report on Form 20-F for the year ended 31 December 2020 and UBS’s First Quarter 2021 Report on Form 6K. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005837/en/

Contacts

UBS Group AG and UBS AG
Investor contact
Switzerland: +41 44 234 41 00
Americas: +1 212 882 57 34

Media contact
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UK: +44 207 567 47 14
Americas: +1 212 882 58 58
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