Ubs Group Ag · SIX:UBSG
Ubs — Q4 2022 Earnings Presentation
40 slides from Ubs's earnings presentation, Jan 31, 2023
Slide 1: Form 6-K Report of Foreign Private Issuer
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date: January 31, 2023 UBS Group AG Commission File Number: 1-36764 UBS AG Commission File N
Slide 2: Form 6-K presentation slides note
This Form 6-K consists of the presentation slides related to the Fourth Quarter 2022 Results of UBS Group AG and UBS AG which appear immediately following this page.
Slide 3: Full year and fourth quarter 2022 financial results
UBS Full year and fourth quarter 2022 Financial results 31 January 2023
Slide 4: Important information
Important information Looking 5: This presentation contains st that constitute “forward-looking statements,” including but net 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 an
Slide 5: Agenda
Agenda Key messages Ralph Hamers, Group CEO UBS Financial performance Sarah Youngwood, Group CFO Q&A
Slide 6: What differentiates us for our shareholders
What differentiates us for our shareholders Leading and truly global Disciplined risk wealth manager and cost manager - The leading wealth manager in - Carefully managed risk profile APAC', EMEA2 and Switzerland2, with over half of our 3trn invested ~ Strong capital and liquidity position assets in
Slide 7: Key messages
Key messages Strong momentum with our clients in challenging markets Executing on our strategy and achieved our Group targets in 2022 Positioned to fund growth and deliver strong capital returns in 2023 ~@g ce (CC e& UBS 14.7% RoCET1 capital 17.0% RoCET1 capital 75.8% Cost/ income ratio 72.1% Cost/
Slide 8: Our momentum with clients is strong in challenging markets
Our momentum with clients is strong in challenging markets Invested assets Invested assets GWM AM 1.2tm, 1.1trn FY21—FY22 4Q22 FY22 422 FY22 +23bn +60bn +11bn +25bn Net new fee- Net new money generating assets NNM excl. MM (6bn)in 4Q22 and (2bn) in FY22 Deposits Loans GWM + P&C GWM + P&C 548bn 529bn
Slide 9: We are executing our strategy across the regions
We are executing our strategy across the Americas PBT 2.0bn; Ch 86% — GWMNII+35% YoY — 10bnin net private market commitmentsin GWM — >20% of Barron's 2022 Top 100 PWM teams — 21bnNNM in AM from SMA 4on 1bn (2bn) 17bn 9bn (21bn) NNFGA NNloans NN deposits UBS page 22 for detail on regional a ; 2 Eurom
Slide 10: Making technology a differentiator
Making technology a differentiator ~Abn technology P&L expense ~18,500 employees transitionedto Agile@UBS >600 decommissioned applications in FY22 UBS ~200m technology gross cost savings by FY23, to be fully reinvested 68% technology team members that have transitionedto Agile@UBS are engineers, +13
Slide 11: We maintain a strong balance sheet and disciplined risk management
We maintain a strong balance sheet and disciplined risk management Strong capital and liquidity position Balance sheet for all seasons Disciplined risk management FY22 7.5b6n capital generation’ 164% liquidity coverage ratio” 95% of loans collateralized bn increase in CET1 capital, 1.7bn dividend ac
Slide 12: Committed to sustainable finance
10 Committed to sustainable finance Selected 2022 achievemer Planet 2 People 11% 28% vs. 30% 2025 target reduction achieved in scope global fernale representation at senior 182 emissions YoY in FY22 levels (Director and above) 23% vs. 26% 2025 target ethnic minority representation at senior levels (
Slide 13: Delivered on our RoCET1 and cost/income targets for the full year
Delivered on our ROCET1 and cost/income targets for the full year ROCET1 Target: 15-18% 17.4% 17.5% 17.0% Cost/ income ratio Target: 70-73% 80.5% FY19 FY20 Fy21 FY22 AAS UBS 111296) 0xc1. us 657m provision fr French cross border matter in 4Q21; 2 (884) exc. USD 857m provision for Franch cross-border
Slide 14: Our financial targets remain unchanged; expecting >5bn of buybacks in 2023
12 Our financial targets remain Financia targets - of Return on CET1 capital 15-18% 70-73% cost / income ratio GWM PBT growth 10-15% overthe gate UBS unchanged; expecting >5bn of buybacks in 2023 Capita guidance ~13% >3.7% >5bn CET1 capital ratio CET1 leverage ratio share repurchases, FY23 Commercia
Slide 15: Financial performance
Financial performance Sarah Youngwood, Group CFO UBS
Slide 16: FY22 net profit USD 7.6bn; 17.0% RoCET1
FY22 net profit USD 7.6bn; 17.0% RoCET1 Net profit FY22 m +2% 20%) underlying 1 1,128 53 7,630 7,457 9.6bn 17.0% PBT, +1% YoY ROCET1 Underlying': (19%) YoY Underlying':16.1% 72.1% 14.9% cost/ income ratio RoTE (831) Underlying': 72.7% Underlying': 14.1% ° (178) 4% fe) Le) fw FX: (904m) ofw FX: +755m
Slide 17: 4Q22 net profit USD 1.7bn; 14.7% RoCET1
4Q22 net profit USD 1.7bn; 14.7% RoCET1 Net profit m 423% 2%) underying§ <~S 97 1,653, 919 1,348 (676) Ga) 8%! 13% Ww FX: (227m) fw FX: +202m ‘OW Litigation +777m 4Q21 Total Credit loss Operating Tax expense 4Q22 revenues expense/ release expenses and NCI SAS UBS 1 excusing items not representative
Slide 18: 4Q22 total revenues USD 8.0bn
16 4Q22 total revenues USD 8.0bn Total revenues m (8%) r %) underlying! excl. FX 8,705 475 295 8,029 (745) (172) (165) (365) + oW accounting asymmetries +235m YoY; 129m in 4Q22 ys. (106m) in 4Q21 + adv gains on sales and real estate +109m YoY; 109m in 4Q22 vs. 0 in 4Q21 + kw gain from a bankruptcy c
Slide 19: Net interest income
Net interest income Net interest income GWM + P&C bn 1.9 6.4 FY21 m 470 1,868 3Q22 interest rates UBS 4Q22 GWM + P&C FY22 Nil of 7,465m, +1,100m YoY, +17% 4Q22 Nil of 2,131m, +263m QoQ, +14% and +475m YoY, +29% — Total deposits +6% QoQ with 9bn of net new deposits FY23e 2023 GWM + P&C Nil expectedto
Slide 20: Executing our cost strategy
18 Executing our cost strategy Operating expenses bn t (4%) 26.1 | (08) 24.9 (0.6) FY21 FY22 p— +1.0% +1.2% YoY 7.0 (0.2) (0.8) 0.0) 01 6.1 421 FX Litigation Variable Costs excl 4922 compensation FX, litigation and variable comp 3% UBS FY22 Operating expenses (4%) YoY, +0.7% YoY excl. litigation and
Slide 21: Maintaining our cost discipline
Maintaining our cost discipline On track to achieve ~1.1bn by 2023 Major es undertaken to Internal reorganizations andstructural compensation adjustments ~18,500 staff transitioned to Agile@UBS Execution of workforce location strategy Optimization of branchnetwork and real estate portfolio UBS Reduc
Slide 22: Global Wealth Management
20 Global Wealth Management Total revenues, m rp 6%) 7 4,822 4,601 Profit before tax, m 563 4Q21 4Q22 246 UBS. eatances as of quarter-end; 1 USD 657m provision for Franch cros-border matter in 4021, excluding this provision, the cest/ income ratio would have been 75% in 4Q21 and 7296 in FY21; Total
Slide 23: Asset Management
Asset Management Total revenues, m F 31%) 721 | 495 Profit before tax, m fp (63%) 334 124 4Q21 4922 Total revenues Net management fees Performance fees Net gains from disposals Credit loss expense / (release) Operating expenses Profit before tax Cost/ income ratio Invested assets, on Net new money,
Slide 24: Investment Bank
22 Investment Bank Total revenues, m r (24%) 2,219 | 1,682 Profit before tax, m p 84%) 713 112 = 4Q21 4Q22 SKUBS 120122022 Total revenues Global Banking Advisory Capital Markets Global Markets Execution Services Derivatives & Solutions Financing Credit loss expense / (release) Operating expenses Pro
Slide 25: Personal & Corporate Banking (CHF)
Personal & Corporate Banking (CHF) Total revenues, m r +10% > Total revenues 985 nor Net interest income Recurring net fee income Transaction-based income Other income Credit loss expense / (release) Profit before tax, Operating expenses Profit before tax Cost/ income ratio Return on attributed equi
Slide 26: Common equity tier 1 capital
24 Common equity tier 1 capital CET1 capital ratio CET1, bn 447 16 (1.3) (0.4) (0.1) na 1.0 45.5 05% 14.4% (0.4%) cx a er (0.1% (0.0% %) a =. _ eo) een) (0.0%) Includes 1bn impact on CET1 capital offset by bn impact on RWA. 3Q22 Net profit! Sharerepurchase Dividend Other RWA, Currency 4Q22 program a
Slide 27: Delivering attractive capital returns
Delivering attractive capital returns FY22 O. 55 +10% YoY ordinary dividend per share to be proposed for the financial year 2022! Committed to progressive dividends AE UBS 1 expeced key dates for dividend payment: AGM 5.4.22, exdigend date 12.428 5.6bn 95% of shares bought back total payout ratio2 7
Slide 28: Key messages
26 Key messages Strong momentum with our clients in challenging markets Executing on our strategy and achieved our Group targets in 2022 Positioned to fund growth and deliver strong capital returns in 2023 ~@g ce (CC e& UBS 14.7% RoCET1 capital 17.0% RoCET1 capital 75.8% Cost/ income ratio 72.1% Cos
Slide 29: Appendix
Appendix
Slide 30: Group results
28 Group results FY22 FY21 Total revenues 8,029 8,236 8,705 34,563 Credit loss expenses / (releases) 7 27) 29 Total operating expenses 6,085 5,916 7,003 24,930 26,058 Operating profit / (loss) before tax 937 2,323 1,729 9,604 9,484 Tax expense / (benefit) 280 370 1,942 1,998 of se 349 1,448 1 Net pr
Slide 31: Underlying results
Underlying results 4Q22 3Q22 4Q21 FY22 FY21 Operating profit/ (loss) before tax 1,937 2,323 1,729 9,604 9,484 aiw: Gain on sales and real estate 1091 219 1,130 238 aiw: Accounting asymmetries 1292 (153) (106) (375) (41) aw: Litigation settlement in Non-core and Legacy (in revenues) 412 62 103 45 ai:
Slide 32: 4Q22 Group results by region
30 4Q22 Group results by region Americas p (15%) | 3.9 Total revenues 3.3 bn 4Q21 4922 4022 Profit before tax bn 0.3 Operating expenses bn 3.0 Cost/ income 9, ratio 90% UBS Switzerland (5%) a 20 19 4Q21 4Q22 08 EMEA (6%) 4 16 15 4Q21 4Q22 0.4 tell 75% Asia Pacific p (11%) a8 1.2 4Q21 4922 12% Exclud
Slide 33: FY22 Group results by region
FY22 Group results by region Americas % [> (4%) 14.5 138 Total revenues bn Fy21 FY22 FY22 Profit before tax bn 2.0 Operating expenses tee 11.9 Cost/ income 26% ratio Excludes 0.5bn revenues, 0. 1bn expenses and 0.4bn PBT from items managed at the Group level in region global, such asthe Non-core and
Slide 34: 4Q22 Global Wealth Management results by region
4Q22 Global Wealth Management results by region Americas Switzerland EMEA Asia Pacific (20%) peal pam . Profit before tax a5 218 Hey ai EL pee 4 (230) 4Q21 4922 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 4022 Cost/ income 85.9% 59.8% 64.3% 69.7% ratio Invested assets 1,581 253 541 437 bn Netnew fee- generating a
Slide 35: FY22 Global Wealth Management results by region
FY22 Global Wealth Management results by region Americas Switzerland EMEA Asia Pacific 13%) . 2,001 | 9, pass cena (24%) Profit before tax 84) 1480. r | te 19% 4 4,237 [ 87 943 835750 B12 FY21FY22 Fy21FY22 Fy21 FY22 Fy21 FY22 FY22 Cost/ income 83.7% 55.2% 61.9% 63.2% ratio Invested assets 1,581 253
Slide 36: Capital and leverage ratios
Capital and leverage ratios Total loss-absorbing eapeoreis ---. 105bn 33.0% 10.24% 15bn 7 buffer 25bn buffer Gone concern x joss-absorbing ra) capacity s ry a 3 iS e Going concern 18.2% < 5.67% capital = 7bn t 12bn 1 emt 6 6 A capital 14.2% a 442% wd x r2tn | & sony = < xe S |8 _ = CETI capital - m
Slide 37: Risk-weighted assets
Risk-weighted assets Risk-weighted assets bn 319.6 81 310.6 (0.9) oa oo + Net currency effect on CET! ratio of (0.0%) * +0.5bn from model updates / changes + +1.2bn related to methodology and * (1.4bn) from asset size and other policy changes movernents, of which: (3.7bn) in IB, + +40.9bn in regulat
Slide 38: Regulatory RWA pipeline in line with prior guidance
36 Regulatory RWA pipeline in line with prior guidance Regulatory RWA pipeline! Business growth bn Expectatior 4Q21 results Expectation today FY22 8bn - below expectations due to ~30 =20, market conditions FY23-24e Ample capacity for business growth ~20 .: on : to accelerate if conditions continue B
Slide 39: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements Cautionary Staterrent Regarding Forward-Looking Statements | This presentation contains statemerts that constitute “forward-looking statements,” including but not limited to management's outlook for UBS's financial performance statements rela
Slide 40: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. UBS Group AG By: _/s/ David Kelly_______________ Name: David Kelly Title: Managing Director By: _/s