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: February 28, 2020
UBS Group AG
Commission File Number: 1-36764
UBS AG
Commission File Number: 1-15060
(Registrants' Name)
Bahnhofstrasse 45, Zurich, Switzerland and
Aeschenvorstadt 1, Basel, Switzerland
(Address of principal executive offices)
Indicate by check mark whether the registrants file or will
file annual reports under cover of Form 20‑F or Form 40-F.
This Form 6-K consists of the UBS AG audited standalone
financial statements for the year ended 31 December 2019, as well as the
consent of Ernst & Young Ltd. with respect thereto, which appear
immediately following this page.
UBS AG
Standalone financial statements and
regulatory information
for the year ended 31 December 2019
UBS AG
standalone financial statements (audited)
UBS AG standalone financial statements
(audited)
Income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
USD million
|
|
CHF million
|
|
|
|
|
For the year ended
|
|
For the year ended
|
|
|
Note
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Interest and discount income1
|
|
|
|
7,421
|
6,439
|
|
7,380
|
6,347
|
Interest and dividend income from trading portfolio1
|
|
|
|
3,322
|
2,708
|
|
3,300
|
2,666
|
Interest and dividend income from financial investments
|
|
|
|
470
|
401
|
|
467
|
395
|
Interest expense2
|
|
|
|
(10,474)
|
(9,240)
|
|
(10,427)
|
(9,106)
|
Gross interest income
|
|
|
|
739
|
308
|
|
721
|
301
|
Credit loss (expense) / recovery
|
|
|
|
(43)
|
(54)
|
|
(43)
|
(54)
|
Net interest income
|
|
|
|
695
|
254
|
|
677
|
248
|
Fee and commission income from securities and investment
business and other fee and commission income
|
|
25
|
|
3,164
|
2,491
|
|
3,146
|
2,454
|
Credit-related fees and commissions
|
|
|
|
154
|
152
|
|
153
|
150
|
Fee and commission expense
|
|
|
|
(674)
|
(844)
|
|
(670)
|
(832)
|
Net fee and commission income
|
|
|
|
2,643
|
1,799
|
|
2,629
|
1,772
|
Net trading income
|
|
3
|
|
3,337
|
4,443
|
|
3,342
|
4,381
|
Dividend income from investments in subsidiaries and other participations
|
|
|
|
3,508
|
3,712
|
|
3,537
|
3,645
|
Income from real estate holdings
|
|
25
|
|
532
|
645
|
|
530
|
635
|
Sundry ordinary income
|
|
4, 25
|
|
1,579
|
1,786
|
|
1,569
|
1,761
|
Sundry ordinary expenses
|
|
4
|
|
(321)
|
(599)
|
|
(322)
|
(590)
|
Other income from ordinary activities
|
|
|
|
5,298
|
5,544
|
|
5,314
|
5,452
|
Total operating income
|
|
|
|
11,975
|
12,040
|
|
11,962
|
11,853
|
Personnel expenses
|
|
5, 25
|
|
3,330
|
3,456
|
|
3,310
|
3,407
|
General and administrative expenses
|
|
6, 25
|
|
3,676
|
4,212
|
|
3,650
|
4,151
|
Subtotal operating expenses
|
|
|
|
7,006
|
7,667
|
|
6,960
|
7,558
|
Impairment of investments in subsidiaries and other
participations
|
|
25
|
|
206
|
760
|
|
202
|
747
|
Depreciation, amortization and impairment of property,
equipment, software and intangible assets
|
|
|
|
762
|
712
|
|
755
|
702
|
Changes in provisions and other allowances and losses
|
|
25
|
|
112
|
399
|
|
108
|
394
|
Total operating expenses
|
|
|
|
8,086
|
9,539
|
|
8,026
|
9,400
|
Operating profit
|
|
|
|
3,889
|
2,501
|
|
3,935
|
2,452
|
Extraordinary income
|
|
7
|
|
204
|
170
|
|
199
|
167
|
Extraordinary expenses
|
|
7
|
|
1
|
0
|
|
1
|
0
|
Tax expense / (benefit)
|
|
8
|
|
245
|
(663)
|
|
244
|
(651)
|
Net profit / (loss)
|
|
|
|
3,848
|
3,333
|
|
3,890
|
3,269
|
1 Interest income includes negative interest income of
approximately USD 0.4 billion (CHF 0.4 billion) for the year ended 31
December 2019 (approximately USD 0.4 billion (CHF 0.4 billion) for the year
ended 31 December 2018). 2 Includes negative interest expense on
financial liabilities of approximately USD 0.3 billion (CHF 0.3 billion)
for the year ended 31 December 2019 (approximately USD 0.3
billion (CHF 0.3 billion) for the year ended
31 December 2018).
|
Balance sheet
|
|
|
|
|
|
|
|
|
|
|
USD million
|
|
CHF million
|
|
|
Note
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and balances at central banks
|
|
|
|
36,258
|
36,297
|
|
35,102
|
35,688
|
Due from banks
|
|
2, 22
|
|
27,474
|
29,761
|
|
26,598
|
29,262
|
Receivables from securities financing transactions
|
|
9, 22
|
|
62,844
|
77,893
|
|
60,841
|
76,587
|
Due from customers
|
|
2, 10, 11, 22
|
|
110,334
|
111,317
|
|
106,818
|
109,450
|
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
|
|
2
|
|
24,203
|
22,431
|
|
23,432
|
22,055
|
Mortgage loans
|
|
10, 11
|
|
4,664
|
4,727
|
|
4,515
|
4,648
|
Trading portfolio assets
|
|
12
|
|
116,843
|
95,612
|
|
113,119
|
94,009
|
Derivative financial instruments
|
|
13
|
|
12,436
|
15,139
|
|
12,039
|
14,885
|
Financial investments
|
|
14
|
|
23,463
|
25,666
|
|
22,715
|
25,235
|
Accrued income and prepaid expenses
|
|
|
|
1,400
|
1,410
|
|
1,356
|
1,387
|
Investments in subsidiaries and other participations
|
|
15
|
|
49,631
|
49,528
|
|
48,049
|
48,698
|
Property, equipment and software
|
|
|
|
6,227
|
6,546
|
|
6,029
|
6,437
|
Goodwill and other intangible assets
|
|
|
|
12
|
22
|
|
12
|
22
|
Other assets
|
|
11, 16
|
|
3,158
|
3,888
|
|
3,056
|
3,822
|
Total assets
|
|
|
|
478,946
|
480,238
|
|
463,681
|
472,184
|
of which: subordinated
assets
|
|
|
|
6,688
|
6,009
|
|
6,475
|
5,908
|
of which: subject to
mandatory conversion and/or debt waiver
|
|
|
|
4,885
|
4,332
|
|
4,729
|
4,260
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Due to banks
|
|
22
|
|
61,860
|
42,482
|
|
59,889
|
41,769
|
Payables from securities financing transactions
|
|
9, 22
|
|
27,022
|
44,016
|
|
26,160
|
43,278
|
Due to customers
|
|
22
|
|
120,417
|
112,794
|
|
116,580
|
110,903
|
Funding received from UBS Group AG and UBS Group Funding
(Switzerland) AG eligible as total loss-absorbing capacity at UBS AG level
|
|
2, 22
|
|
47,553
|
41,782
|
|
46,037
|
41,081
|
Trading portfolio liabilities
|
|
12
|
|
25,292
|
23,453
|
|
24,486
|
23,060
|
Derivative financial instruments
|
|
13
|
|
16,326
|
17,268
|
|
15,805
|
16,979
|
Financial liabilities designated at fair value
|
|
12, 19
|
|
65,647
|
56,226
|
|
63,555
|
55,283
|
of which: debt issued
designated at fair value
|
|
|
|
64,260
|
54,203
|
|
62,212
|
53,294
|
of which: other financial
liabilities designated at fair value
|
|
|
|
1,386
|
2,023
|
|
1,342
|
1,989
|
Bonds issued
|
|
|
|
55,014
|
83,743
|
|
53,261
|
82,339
|
of which: eligible as total
loss-absorbing capacity at UBS AG Level
|
|
|
|
7,266
|
7,468
|
|
7,034
|
7,343
|
Accrued expenses and deferred income
|
|
|
|
3,362
|
3,350
|
|
3,255
|
3,294
|
Other liabilities
|
|
16
|
|
3,551
|
2,601
|
|
3,439
|
2,557
|
Provisions
|
|
11
|
|
1,198
|
1,416
|
|
1,160
|
1,392
|
Total liabilities
|
|
|
|
427,242
|
429,130
|
|
413,626
|
421,934
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Share capital
|
|
20
|
|
393
|
393
|
|
386
|
386
|
General reserve
|
|
|
|
36,326
|
36,326
|
|
35,649
|
35,649
|
of which: statutory capital
reserve
|
|
|
|
36,326
|
36,326
|
|
35,649
|
35,649
|
of which: capital
contribution reserve1
|
|
|
|
36,326
|
36,326
|
|
35,649
|
35,649
|
Voluntary earnings reserve
|
|
|
|
11,138
|
11,054
|
|
10,130
|
10,946
|
Net profit / (loss) for the period
|
|
|
|
3,848
|
3,333
|
|
3,890
|
3,269
|
Total equity
|
|
|
|
51,705
|
51,107
|
|
50,055
|
50,250
|
Total liabilities and equity
|
|
|
|
478,946
|
480,238
|
|
463,681
|
472,184
|
of which: subordinated
liabilities
|
|
|
|
22,236
|
18,446
|
|
21,528
|
18,137
|
of which: subject to
mandatory conversion and/or debt waiver
|
|
|
|
21,674
|
17,721
|
|
20,984
|
17,423
|
UBS AG
standalone financial statements (audited)
Balance sheet (continued)
|
|
|
|
|
|
|
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
|
|
|
|
|
|
|
Off-balance sheet items
|
|
|
|
|
|
|
Contingent liabilities,
gross
|
|
13,116
|
16,019
|
|
12,698
|
15,750
|
Sub-participations
|
|
(1,489)
|
(1,675)
|
|
(1,441)
|
(1,647)
|
Contingent liabilities, net
|
|
11,627
|
14,344
|
|
11,257
|
14,103
|
of which: guarantees to
third parties related to subsidiaries
|
|
5,867
|
7,480
|
|
5,680
|
7,355
|
Irrevocable loan
commitments, gross
|
|
22,232
|
25,664
|
|
21,524
|
25,234
|
Sub-participations
|
|
(782)
|
(643)
|
|
(758)
|
(632)
|
Irrevocable loan
commitments, net
|
|
21,450
|
25,021
|
|
20,766
|
24,601
|
Forward starting
transactions2
|
|
12,372
|
8,536
|
|
11,978
|
8,393
|
of which: reverse repurchase
agreements
|
|
9,288
|
4,766
|
|
8,992
|
4,686
|
of which: securities
borrowing agreements
|
|
0
|
12
|
|
0
|
12
|
of which: repurchase
agreements
|
|
3,085
|
3,758
|
|
2,986
|
3,695
|
Liabilities for calls on
shares and other equity instruments
|
|
4
|
5
|
|
4
|
5
|
1 The Swiss Federal Tax Administration’s current position is
that, of the CHF 35.6 billion capital contribution reserve available as of 31
December 2019, an amount limited to CHF 20.5 billion is available from which
dividends may be paid without a Swiss withholding tax deduction. 2 Cash to
be paid in the future by either UBS AG or the counterparty.
|
Off-balance sheet items
Contingent liabilities include
indemnities and guarantees issued by UBS AG for the benefit of subsidiaries and
creditors of subsidiaries.
Where the indemnity amount issued by UBS AG
is not specifically defined, the indemnity relates to the solvency or minimum
capitalization of a subsidiary, and therefore no amount is included in the
table above.
Joint and
several liability – Value added tax (VAT)
UBS AG is jointly and
severally liable for the combined VAT liability of UBS entities that belong to
the VAT group of UBS in Switzerland. This contingent liability is not included
in the table above.
Guarantees – UBS
Europe SE
Following the
combined UK business transfer and cross-border merger of UBS Limited into UBS
Europe SE in March 2019, UBS AG issued a guarantee for the benefit of
counterparties of UBS Europe SE’s Investment Bank, covering transactions
subject to master netting agreements.
A similar guarantee that UBS AG issued in
2003 for the benefit of each counterparty of UBS Limited continues to be
effective. This guarantee covers transactions in accordance with and
contemplated under any agreement entered into by UBS Limited prior to the
merger into UBS Europe SE, to the extent such an agreement has not been amended
by UBS Europe SE thereafter.
Under both guarantees, UBS AG promises to pay
to the beneficiary counterparties any unpaid balance of liabilities covered under
the terms of the guarantees on demand. These guarantees are included as
Contingent liabilities in the off-balance sheet items table above.
Indemnities – UBS Europe SE
In connection with the establishment
of UBS Europe SE in 2016, UBS AG entered into an agreement with UBS Europe SE
under which UBS AG would provide UBS Europe SE with limited indemnification of
payment obligations that may arise from certain litigation, regulatory and
similar matters.
As of 31 December 2019, the amount of
such potential payment obligations could not be reliably estimated and the
table above does therefore not include any amount related to this limited
indemnification.
In addition, in accordance with the bylaws of
the Deposit Protection Fund of the
Association of German Banks, UBS AG issued on behalf of UBS Europe SE an
indemnity in favor of this fund. The probability of an outflow was assessed to
be remote, and as a result, the table above does not include any exposure
arising under this indemnity.
Statement of changes in equity
|
|
|
|
|
|
USD million
|
Share capital
|
Statutory capital reserve
|
Voluntary earnings
reserve and
profit / (loss)
carried forward
|
Net profit / (loss)
for the period
|
Total equity
|
|
|
|
|
|
|
Balance as of 1 January 2019
|
393
|
36,326
|
11,054
|
3,333
|
51,107
|
Dividends and other distributions
|
|
|
(3,250)
|
|
(3,250)
|
Net profit / (loss) appropriation
|
|
|
3,333
|
(3,333)
|
0
|
Net profit / (loss) for the period
|
|
|
|
3,848
|
3,848
|
Balance as of 31 December
2019
|
393
|
36,326
|
11,138
|
3,848
|
51,705
|
CHF million
|
Share capital
|
Statutory capital reserve
|
Voluntary earnings
reserve and
profit / (loss)
carried forward
|
Net profit / (loss)
for the period
|
Total equity
|
|
|
|
|
|
|
Balance as of 1 January 2019
|
386
|
35,649
|
10,946
|
3,269
|
50,250
|
Dividends and other distributions
|
|
|
(3,312)
|
|
(3,312)
|
Net profit / (loss) appropriation
|
|
|
3,269
|
(3,269)
|
0
|
Net profit / (loss) for the period
|
|
|
|
3,890
|
3,890
|
Currency translation difference
|
|
|
(773)
|
|
(773)
|
Balance as of 31 December
2019
|
386
|
35,649
|
10,130
|
3,890
|
50,055
|
UBS AG standalone
financial statements (audited)
Statement of
proposed appropriation of total profit and dividend distribution
The Board of Directors proposes that
the Annual General Meeting of Shareholders (AGM) on 27 April 2020 approve the
appropriation of total profit and an ordinary dividend distribution of USD
3,848 million as follows:
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
|
31.12.19
|
Net profit for the period
|
|
3,848
|
|
3,890
|
Profit / (loss) carried forward
|
|
0
|
|
0
|
Total profit available for
appropriation
|
|
3,848
|
|
3,890
|
|
|
|
|
|
Appropriation of total
profit
|
|
|
|
|
Appropriation to voluntary earnings reserve
|
|
0
|
|
(165)
|
Dividend distribution
|
|
(3,848)
|
|
(3,725)1
|
Profit / (loss) carried
forward
|
|
0
|
|
0
|
1 For illustrative purposes, translated at closing exchange rate
as of 31 December 2019 (CHF / USD 1.03).
|
The ordinary dividend distribution is
declared and paid in USD. The total amount of the dividend distribution will be
capped at CHF 7,696 million (Cap). To the extent that the CHF equivalent
of the total dividend distribution of USD 3,848 million would exceed the
Cap on the day of the AGM, based on the exchange rate determined by the Board
of Directors in its reasonable opinion, the USD per share amount of the
dividend will be reduced on a pro-rata basis so that the total CHF amount does
not exceed the Cap. To the extent the CHF equivalent of the total dividend
distribution exceeds CHF 3,890 million but does not exceed the Cap, the
total dividend distribution in USD remains as is and is booked against the
total profit in USD, while the CHF currency difference of maximum CHF 3,806
million is balanced through the CHF
translation of the voluntary earnings reserve account.
Note 1 Name,
legal form and registered office
UBS AG is incorporated and domiciled
in Switzerland. Its registered offices are at Bahnhofstrasse 45, CH-8001 Zurich
and Aeschenvorstadt 1, CH-4051 Basel, Switzerland. UBS AG operates under art.
620 et seq. of the Swiss Code of Obligations and Swiss banking law as an
Aktiengesellschaft, a corporation limited by shares.
UBS AG is a regulated bank in Switzerland and
is 100% owned by UBS Group AG, the ultimate parent of the UBS Group. UBS AG
holds investments in and provides funding to subsidiaries, including the other
banking subsidiaries of the UBS Group. In addition, UBS AG operates globally,
including business activities from all four UBS business divisions and
Corporate Center. In the ordinary course of business, main contributors to the
net profit / (loss) of UBS AG are Global Wealth Management, the Investment
Bank, Group Treasury and Corporate Center - Services. The balance sheet is
mainly composed of financial assets and liabilities from the Investment Bank, Group
Treasury and Global Wealth Management business booked outside of Switzerland as
well as investments in subsidiaries and other participations in Group Treasury
and fixed assets of Corporate Center – Services.
UBS AG employed 10,365 personnel on a
full-time equivalent basis as of 31 December 2019 compared with 11,099 personnel
as of 31 December 2018.
Note 2 Accounting
policies
a)
Significant accounting policies
UBS AG standalone financial
statements are prepared in accordance with Swiss GAAP (FINMA Circular 2015/1
and the Banking Ordinance) and represent “reliable assessment statutory
single-entity financial statements.” The accounting policies are principally
the same as for the consolidated financial statements of UBS AG outlined in
Note 1 to the consolidated financial statements of UBS AG included in the UBS
Group AG and UBS AG Annual Report 2019. Major differences between the Swiss
GAAP requirements and International Financial Reporting Standards are described
in Note 38 of the consolidated financial statements of UBS AG. The significant
accounting policies applied for the standalone financial statements of UBS AG
are discussed below.
® Refer to the UBS Group AG and UBS AG Annual
Report 2019 for more information
Risk management
UBS AG is fully integrated into the Group-wide
risk management process described in the audited part of the “Risk management
and control” section of the UBS Group AG and UBS AG Annual Report 2019.
Further information on the use of derivative
instruments and hedge accounting is provided in Note 2b below and Notes 1, 11
and 28 to the consolidated financial statements of UBS AG.
® Refer to the UBS Group AG and UBS AG Annual
Report 2019 for more information
Compensation policy
The compensation structure and
processes of UBS AG conform to the compensation principles and framework of UBS
Group AG. For detailed information, refer to the Compensation Report of UBS
Group AG.
Deferred
compensation
Expenses for awards under employee
share, option, notional fund and deferred cash compensation plans granted to
UBS AG employees are generally charged by UBS Group AG to UBS AG. Obligations
related to other compensation vehicles, such as local awards, are held by the
relevant employing and / or sponsoring subsidiaries, such as UBS AG.
® Refer to Note 30 of the UBS AG consolidated
financial statements in the UBS Group AG and UBS AG Annual Report 2019 for more
information
Foreign currency translation
Transactions denominated in foreign
currency are translated into US dollars at the spot exchange rate on the date
of the transaction. At the balance sheet date, all monetary assets and
liabilities, as well as equity instruments recorded in
Trading portfolio assets and Financial investments
denominated in foreign currency, are translated into US dollars using the
closing exchange rate. Non-monetary items measured at historic cost are
translated at the spot exchange rate on the date of the transaction. Assets and
liabilities of branches with functional currencies other than the US dollar are
translated into US dollars at the closing exchange rate. Income and expense
items of such branches are translated at weighted average exchange rates for
the period. All currency translation effects are recognized in the income
statement.
The main currency translation rates used by
UBS AG are provided in Note 37 of the consolidated financial statements of UBS
AG.
® Refer to the UBS Group AG and UBS AG Annual
Report 2019 for more information
UBS AG
standalone financial statements (audited)
Note 2
Accounting policies (continued)
Presentation
currencies
As the
primary presentation currency of the financial statements of UBS AG is US
dollars, amounts in Swiss francs are additionally presented for each component
of the financial statements. UBS AG applies the modified closing rate method
for translating the US dollar amounts into Swiss francs: assets and liabilities
are translated at the closing rate, equity positions at historic rates and
income and expense items at the weighted average rate for the period. All
resulting currency translation effects are recognized separately in Voluntary
earnings reserve, amounting to a negative currency translation effect of
CHF 675 million as of 31 December 2019 (positive CHF 98 million as of 31
December 2018).
Structured debt instruments
Structured debt instruments comprise
debt instruments issued and transacted over-the-counter and include a host
contract and one or more embedded derivatives that do not relate to UBS AG’s
own equity. By applying the fair value option, the vast majority of structured
debt instruments are measured at fair value as a whole and recognized in Financial liabilities designated at fair value. The fair value option for structured debt instruments can be
applied only if the following criteria are cumulatively met:
–
The structured debt
instrument is measured on a fair value basis and is subject to risk management
that is equivalent to risk management for trading activities;
–
The application of the fair
value option eliminates or significantly reduces an accounting mismatch that
would otherwise arise;
–
Changes in fair value
attributable to changes in unrealized own credit are not recognized.
Fair value changes related to Financial liabilities designated at fair value, excluding
changes in unrealized own credit, are recognized in Net
trading income. Interest expense on Financial
liabilities designated at fair value is recognized in Interest expense.
Where the designation criteria for the fair
value option are not met, the embedded derivatives are assessed for bifurcation
for measurement purposes. Bifurcated embedded derivatives are measured at fair
value through profit or loss and presented in the same balance sheet line as
the host contract.
® Refer to Note 19 for more information
Group-internal funding
UBS AG obtains funding from UBS Group
AG in the form of loans that qualify as going concern additional tier 1 capital
at the UBS AG consolidated and standalone levels and as gone concern
loss-absorbing capacity at the UBS AG consolidated level. A portion of
Group-internal funding obtained is further on-lent by UBS AG to certain
subsidiaries in the form of loans.
Where such Group-internal funding is eligible
to meet the requirements for total loss-absorbing capacity (TLAC) at the level
of UBS AG consolidated or standalone, or at the levels of significant regulated
subsidiaries as defined for Pillar 3 disclosure purposes, the aggregate amounts
of the respective obligations and claims are separately disclosed on the
balance sheet. For those TLAC instruments that are eligible to meet the going
concern capital requirements (i.e., are subordinated and subject to mandatory
conversion and / or debt waiver, as explained below), the aggregate
corresponding amounts are disclosed on the balance sheet.
UBS AG obligations arising from
Group-internal funding it has received are presented as Funding received
from UBS Group AG and UBS Group Funding (Switzerland) AG eligible as total
loss-absorbing capacity at UBS AG level and measured at amortized cost. UBS AG claims arising from Group-internal
funding it has provided are presented as Funding provided to significant
regulated subsidiaries eligible as total loss-absorbing capacity and
measured at amortized cost less any allowance for credit losses. Previously,
these claims were presented as part of Due from banks and Due from
customers, as outlined in the following table.
Change of the presentation of
UBS AG claims arising from Group-internal funding
|
|
|
USD million
|
|
CHF million
|
|
|
As disclosed in the Annual Report 2019
|
As disclosed in the Annual Report 2018
|
|
As disclosed in the Annual Report 2019
|
As disclosed in the Annual Report 2018
|
|
31.12.18
|
31.12.18
|
|
31.12.18
|
31.12.18
|
Due from banks
|
|
29,761
|
46,092
|
|
29,262
|
45,319
|
Due from customers
|
|
111,317
|
117,417
|
|
109,450
|
115,448
|
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
|
|
22,431
|
|
|
22,055
|
|
Total
|
|
163,508
|
163,508
|
|
160,767
|
160,767
|
Note 2 Accounting policies (continued)
Subordinated assets and liabilities
Subordinated assets are comprised of
claims that, based on an irrevocable written declaration, in the event of
liquidation, bankruptcy or composition concerning the debtor, rank after the
claims of all other creditors and may not be offset against amounts payable to
the debtor nor be secured by its assets. Subordinated liabilities are comprised
of corresponding obligations.
Subordinated assets and liabilities that
contain a point-of-non-viability clause in accordance with Swiss capital
requirements per articles 29 and 30 of the Capital Adequacy Ordinance are
disclosed as being Subject to mandatory conversion and / or
debt waiver and provide for the claim or the obligation to be written
off or converted into equity in the event that the issuing bank reaches a point
of non-viability.
Investments in
subsidiaries and other participations
Investments in
subsidiaries and other participations are equity
interests that are held to carry on the business of UBS AG or for other
strategic purposes. They include all subsidiaries directly held by UBS AG
through which UBS AG conducts its business on a global basis. The investments
are measured individually and carried at cost less impairment. The carrying
amount is tested for impairment annually and when indications for a decrease in
value exist, which include incurrence of significant operating losses or a
severe depreciation of the currency in which the investment is denominated. If
an investment in a subsidiary is impaired, its value is generally written down
to the net asset value. Subsequent recoveries in value are recognized up to the
original cost value based on either the increased net asset value or a value
above the net asset value if, in the opinion of management, forecasts of future
profitability provide sufficient evidence that a carrying amount above net
asset value is supported. Management may exercise its discretion as to what
extent and in which period a recovery in value is recognized.
Impairments of investments are presented as Impairment of
investments in subsidiaries and other participations. Reversals of
impairments are presented as Extraordinary income in
the income statement. Impairments and partial or full reversals of impairments
for a subsidiary during the same annual period are determined on a net basis.
® Refer to Note 15 for more information
Services received from and provided to
Group entities
UBS AG
receives services from UBS Business Solutions AG, the main Group service
company, mainly relating to Group Technology, Group Operations and Group
Corporate Services, as well as certain other services from other Group
entities. UBS AG provides services to Group entities mainly relating to real
estate and selected other Corporate Center – Services functions. Services
received from and provided to Group entities are settled in cash as hard cost
transfers or hard revenue transfers paid or received.
When the nature of the underlying transaction
between UBS AG and the Group entity contains a single, clearly identifiable
service element, related income and expenses are presented in the respective income
statement line item, e.g., Fee and commission income from
securities and investment business and other fee and commission income, Fee and
commission expense, Net trading income or General and
administrative expenses.
To the extent the nature of the underlying transaction contains
various service elements and is not clearly attributable to a particular income
statement line item, related income and expenses are presented in Sundry ordinary income and Sundry ordinary
expenses.
® Refer to Notes 4 and 6 for more information
Pension and other post-employment
benefit plans
Swiss GAAP permits the use of IFRS or
Swiss accounting standards for pension and other post-employment benefit plans,
with the election made on a plan-by-plan basis.
UBS AG has
elected to apply Swiss GAAP (FER 16) for the Swiss pension plan in its
standalone financial statements. The requirements of Swiss GAAP are better aligned
with the specific nature of Swiss pension plans, which are hybrid in that they
combine elements of defined contribution and defined benefit plans, but are
treated as defined benefit plans under IFRS. Swiss GAAP requires that the
employer contributions to the pension fund are recognized as Personnel expenses in the income statement. The employer
contributions to the Swiss pension fund are determined as a percentage of
contributory compensation. Furthermore, Swiss GAAP requires an assessment as to
whether, based on the financial statements of the pension fund prepared in
accordance with Swiss accounting standards (FER 26), an economic benefit to, or
obligation of, UBS AG arises from the pension fund which is recognized in the
balance sheet when conditions are met. Conditions for recording a pension asset
or liability would be met if, for example, an employer contribution reserve is
available or UBS AG is required to contribute to the reduction of a pension
deficit (on a FER 26 basis).
Key differences between Swiss GAAP and IFRS
include the treatment of dynamic elements, such as future salary increases and
future interest credits on retirement savings, which are not considered under
the static method used in accordance with Swiss GAAP. Also, the discount rate
used to determine the defined benefit obligation in accordance with IFRS is
based on the yield of high-quality corporate bonds of the market in the
respective pension plan country. The discount rate used in accordance with
Swiss GAAP, i.e., the technical interest rate, is determined by the Pension
Foundation Board based on the expected returns of the Board’s investment
strategy.
® Refer to Note 21 for more information
UBS AG
standalone financial statements (audited)
Note 2 Accounting policies (continued)
UBS AG has elected to apply IFRS (IAS 19) for
its non-Swiss defined benefit plans. However, remeasurements of the defined
benefit obligation and the plan assets are recognized in the income statement
rather than directly in equity. For corresponding disclosures in accordance
with IAS 19 requirements, refer to Note 29 of the consolidated financial
statements of UBS AG.
® Refer to the UBS Group AG and UBS AG Annual
Report 2019 for more information
Deferred taxes
Deferred tax assets
are not recognized in UBS AG’s standalone financial statements. However,
deferred tax liabilities may be recognized for taxable temporary differences.
Changes in the deferred tax liability balance are recognized in the income
statement.
Dispensations in
the standalone financial statements
As UBS AG prepares consolidated
financial statements in accordance with IFRS, UBS AG is exempt from various
disclosures in the standalone financial statements. The dispensations include
the management report, the statement of cash flows and various note
disclosures, as well as the publication of full interim financial statements. As
a Swiss issuer of debt, in order to validly issue debt throughout the year, UBS
AG discloses interim mid-year financial information as per the requirements of
Article 1156 in conjunction with Article 652a of the Swiss Code of Obligations,
including an income statement, a balance sheet and a note on the basis of
accounting.
b) Changes in accounting policies
Hedge accounting for Investments in
subsidiaries and other participations
Since 1 July 2019 UBS AG applies
hedge accounting for certain investments in subsidiaries and other
participations denominated in currencies other than the US dollar, which are
designated as hedged item. For this purpose, foreign exchange (FX) derivatives,
mainly FX forwards and FX swaps are used and designated as hedging instruments.
The hedged risk is determined as the change
in the carrying amount of the hedged item arising solely from changes in spot
foreign exchange rates. Consequently, UBS AG only designates the spot element
of the FX derivatives as hedging instruments. Changes in the fair value of the
hedging instruments
attributable to changes in forward points and the effect of discounting are not
part of a hedge accounting designation. These amounts, therefore, do not form
part of the effectiveness assessment and are recognized in Net trading
income.
The effective portion of gains and losses of
these FX derivatives is deferred on the balance sheet as Other assets or
Other liabilities to the extent no change is recognized in the carrying
amount of the hedged item arising from changes in spot foreign exchange rates.
Otherwise the effective portion of gains and losses of these FX derivatives is matched
with the corresponding valuation adjustments of the hedged item recorded in the
income statement and recorded as a reduction of Impairment of investments in
subsidiaries and other participations and of Extraordinary income, respectively.
Note 2 Accounting policies (continued)
c) Accounting
policies to be adopted in the future
Amendment of accounting standards
applicable to banks and security dealers
On 14 November 2019, FINMA published
amended accounting standards applicable to banks and security dealers in
Switzerland. UBS AG will be required to apply an expected credit loss (ECL)
approach in its standalone financial statements under Swiss GAAP and may
substantially apply the ECL approach which is applied in its consolidated
financial statements under IFRS. UBS AG will adopt the new ECL requirements on
1 January 2021. A transition period is granted until 31 December 2025, during
which allowances and provisions for ECL can be phased-in on a straight-line
basis. Apart from these amendments, the existing guidance in FINMA Circular
2015/1 Accounting – banks remains materially unchanged and was incorporated
into the new FINMA Accounting Ordinance and the new FINMA Circular 2020/1
Accounting – banks.
UBS AG
standalone financial statements (audited)
Note 3a Net
trading income by business
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Investment Bank
|
|
3,098
|
4,079
|
|
3,094
|
4,024
|
of which: Corporate Client
Solutions
|
|
27
|
634
|
|
30
|
621
|
of which: Investor Client
Services
|
|
3,071
|
3,446
|
|
3,065
|
3,403
|
Other business divisions and Corporate Center
|
|
239
|
364
|
|
247
|
358
|
Total net trading income
|
|
3,337
|
4,443
|
|
3,342
|
4,381
|
Note 3b
Net trading income by underlying risk category
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Interest rate and credit instruments (including funds)
|
|
660
|
842
|
|
661
|
817
|
Foreign exchange instruments
|
|
889
|
1,164
|
|
890
|
1,145
|
Equity instruments (including funds)
|
|
1,698
|
2,374
|
|
1,701
|
2,353
|
Other
|
|
90
|
63
|
|
90
|
66
|
Total net trading income
|
|
3,337
|
4,443
|
|
3,342
|
4,381
|
of which: net gains /
(losses) from financial liabilities designated at fair value1
|
|
(6,816)
|
6,999
|
|
(6,733)
|
6,956
|
1 Excludes fair value changes of hedges related to financial
liabilities designated at fair value and foreign currency effects arising
from translating foreign currency transactions into the respective functional
currency, both of which are reported within Net trading income.
|
Note 4 Sundry ordinary income and expenses
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Income from services provided to UBS Group AG or its
subsidiaries1
|
|
1,297
|
1,746
|
|
1,288
|
1,722
|
Other
|
|
2832
|
40
|
|
2812
|
40
|
Total sundry ordinary income
|
|
1,579
|
1,786
|
|
1,569
|
1,761
|
Expenses from revenue transfers to UBS Group AG or its
subsidiaries
|
|
(306)
|
(516)
|
|
(307)
|
(509)
|
Other
|
|
(15)
|
(83)
|
|
(15)
|
(81)
|
Total sundry ordinary
expenses
|
|
(321)
|
(599)
|
|
(322)
|
(590)
|
1 Services provided by UBS AG primarily related to Corporate
Center functions. Includes the impact of the asset transfer from UBS Limited
to UBS AG. Refer to Note 25 for more information. 2 Includes compensation
received for the transfer of an onerous lease provision from a subsidiary to
UBS AG.
|
Note 5
Personnel expenses
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Salaries
|
|
1,639
|
1,748
|
|
1,629
|
1,722
|
Variable compensation – performance awards
|
|
1,069
|
1,218
|
|
1,063
|
1,199
|
Variable compensation – other
|
|
75
|
74
|
|
75
|
73
|
Contractors
|
|
57
|
70
|
|
57
|
69
|
Social security
|
|
176
|
199
|
|
175
|
196
|
Pension and other post-employment benefit plans
|
|
199
|
9
|
|
198
|
12
|
of which: value adjustments
for economic benefits or obligations from pension funds1
|
|
75
|
(131)
|
|
74
|
(126)
|
Other personnel expenses
|
|
115
|
139
|
|
114
|
136
|
Total personnel expenses
|
|
3,330
|
3,456
|
|
3,310
|
3,407
|
1 Reflects the remeasurement of the defined benefit obligation
and return on plan assets excluding amounts included in interest income for
the non-Swiss defined benefit plans, for which IAS 19 is applied.
|
Note 6 General and administrative expenses
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Occupancy
|
|
417
|
510
|
|
414
|
503
|
Rent and maintenance of IT equipment
|
|
44
|
38
|
|
44
|
37
|
Communication and market data services
|
|
139
|
150
|
|
138
|
147
|
Administration
|
|
2,598
|
2,857
|
|
2,579
|
2,817
|
of which: shared services
costs charged by UBS Group AG or its subsidiaries
|
|
2,389
|
2,543
|
|
2,372
|
2,507
|
Marketing and public relations
|
|
53
|
80
|
|
52
|
79
|
Travel and entertainment
|
|
87
|
115
|
|
87
|
113
|
Fees to audit firms
|
|
18
|
28
|
|
18
|
28
|
of which: financial and
regulatory audits
|
|
15
|
24
|
|
15
|
24
|
of which: audit-related
services
|
|
2
|
4
|
|
2
|
4
|
of which: tax and other
services
|
|
1
|
0
|
|
1
|
0
|
Other professional fees
|
|
199
|
285
|
|
198
|
281
|
Outsourcing of IT and other services
|
|
121
|
149
|
|
120
|
147
|
Total general and
administrative expenses
|
|
3,676
|
4,212
|
|
3,650
|
4,151
|
|
UBS AG
standalone financial statements (audited)
Note 7 Extraordinary income and expenses
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Gains from disposals of subsidiaries and other participations
|
|
26
|
30
|
|
26
|
29
|
Reversal of impairments of and provisions for subsidiaries and
other participations
|
|
166
|
63
|
|
161
|
62
|
Net gains from disposals of properties
|
|
7
|
40
|
|
7
|
39
|
Other extraordinary income
|
|
6
|
37
|
|
6
|
36
|
Total extraordinary income
|
|
204
|
170
|
|
199
|
167
|
Total extraordinary expenses
|
|
1
|
0
|
|
1
|
0
|
In 2019, UBS recorded a gain of
USD 23 million (CHF 23 million) on the sale of a participation. In 2018,
UBS recorded gains of USD 31 million (CHF 30 million) on the sale of
real estate and USD 25 million (CHF 25 million) on the sale of
subsidiaries and businesses, both related to the sale of Widder Hotel.
|
|
USD million
|
|
CHF million
|
|
|
For the year ended
|
|
For the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Income tax expense / (benefit)
|
|
203
|
(708)
|
|
202
|
(696)
|
of which: current
|
|
206
|
(715)
|
|
205
|
(703)
|
of which: deferred
|
|
(3)
|
7
|
|
(3)
|
7
|
Capital tax
|
|
42
|
45
|
|
41
|
45
|
Total tax expense /
(benefit)
|
|
245
|
(663)
|
|
244
|
(651)
|
There was an income
tax expense of USD 203
million (CHF 202 million)
for 2019, as compared to an income tax benefit of USD 708 million (CHF 696 million) for 2018. The income tax expense for
2019 was reduced by a benefit of USD 126 million (CHF 125 million) in respect of the utilization of tax losses carried
forward, primarily in Switzerland and the US. The income tax expense for 2019
relates to UBS AG’s taxable profits that were earned in other locations.
The income tax benefit for 2018 included a
benefit of USD 809 million
(CHF 795 million) in respect of compensation received from other group
companies in relation to tax losses that were utilized by those companies. This
benefit was mainly driven by a one-time election by UBS Securities LLC to
capitalize real estate costs for US tax purposes, resulting in a significant
amount of taxable income, which was offset by the utilization of UBS AG’s tax
losses. UBS AG agreed to waive the payment of the related benefit resulting in
a capital contribution by UBS AG into UBS Americas Holding LLC. The income tax
benefit for 2018 also included a benefit of USD 26 million (CHF 26 million) in respect of the utilization of tax losses carried
forward, primarily in Switzerland, and also an expense that related to UBS AG’s
taxable profits that were earned in other locations.
For 2019, the average tax rate, defined as
income tax expense divided by the sum of operating profit and extraordinary
income minus extraordinary expenses and capital tax, was 5.0% (2018: negative
27.0%).
Note 9 Securities financing transactions
|
|
USD billion
|
|
CHF billion
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
|
|
|
|
|
|
|
On-balance sheet
|
|
|
|
|
|
|
Receivables from securities financing transactions, gross
|
|
120.7
|
139.7
|
|
116.8
|
137.4
|
Netting of securities financing transactions
|
|
(57.8)
|
(61.8)
|
|
(56.0)
|
(60.8)
|
Receivables from securities financing transactions, net
|
|
62.8
|
77.9
|
|
60.8
|
76.6
|
Payables from securities financing transactions, gross
|
|
84.9
|
105.8
|
|
82.2
|
104.1
|
Netting of securities financing transactions
|
|
(57.8)
|
(61.8)
|
|
(56.0)
|
(60.8)
|
Payables from securities financing transactions, net
|
|
27.0
|
44.0
|
|
26.2
|
43.3
|
Assets pledged as collateral in connection with securities
financing transactions
|
|
59.7
|
49.8
|
|
57.8
|
49.0
|
of which: trading portfolio
assets
|
|
59.7
|
49.7
|
|
57.8
|
48.9
|
of which: assets that may be
sold or repledged by counterparties
|
|
58.3
|
48.1
|
|
56.4
|
47.3
|
of which: financial
investments
|
|
0.0
|
0.1
|
|
0.0
|
0.1
|
of which: assets that may be
sold or repledged by counterparties
|
|
0.0
|
0.1
|
|
0.0
|
0.1
|
|
|
|
|
|
|
|
Off-balance sheet
|
|
|
|
|
|
|
Fair value of assets received as collateral in connection with
securities financing transactions
|
|
307.1
|
302.5
|
|
297.3
|
297.5
|
of which: repledged
|
|
205.4
|
224.9
|
|
198.8
|
221.1
|
of which: sold in connection
with short sale transactions
|
|
25.3
|
23.5
|
|
24.5
|
23.1
|
Note 10a Collateral for loans and off-balance sheet transactions
|
|
31.12.19
|
|
31.12.18
|
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements2
|
|
|
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements2
|
|
|
|
|
USD million
|
|
Real estate
|
|
Other
collateral1
|
|
|
|
|
|
|
Real estate
|
|
Other
collateral1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from customers, gross3
|
|
3
|
|
84,812
|
|
50
|
|
25,6274
|
|
110,491
|
|
0
|
|
81,070
|
|
81
|
|
30,3044
|
|
111,455
|
Mortgage loans, gross
|
|
4,668
|
|
0
|
|
0
|
|
0
|
|
4,668
|
|
4,737
|
|
0
|
|
0
|
|
0
|
|
4,737
|
of which: residential
mortgages
|
|
4,507
|
|
|
|
|
|
|
|
4,507
|
|
4,580
|
|
|
|
|
|
|
|
4,580
|
of which: office and
business premises mortgages
|
|
69
|
|
|
|
|
|
|
|
69
|
|
59
|
|
|
|
|
|
|
|
59
|
of which: industrial
premises mortgages
|
|
0
|
|
|
|
|
|
|
|
0
|
|
29
|
|
|
|
|
|
|
|
29
|
of which: other mortgages
|
|
92
|
|
|
|
|
|
|
|
92
|
|
69
|
|
|
|
|
|
|
|
69
|
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
|
|
|
|
|
|
|
|
24,203
|
|
24,203
|
|
|
|
|
|
|
|
22,431
|
|
22,431
|
Total on-balance sheet,
gross
|
|
4,671
|
|
84,812
|
|
50
|
|
49,830
|
|
139,363
|
|
4,737
|
|
81,070
|
|
81
|
|
52,735
|
|
138,623
|
Allowances
|
|
(5)
|
|
(10)
|
|
0
|
|
(147)
|
|
(161)
|
|
(10)
|
|
(5)
|
|
0
|
|
(133)
|
|
(149)
|
Total on-balance sheet, net
|
|
4,666
|
|
84,802
|
|
50
|
|
49,683
|
|
139,201
|
|
4,727
|
|
81,065
|
|
81
|
|
52,602
|
|
138,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross
|
|
0
|
|
3,542
|
|
1,511
|
|
8,063
|
|
13,116
|
|
0
|
|
2,954
|
|
1,779
|
|
11,286
|
|
16,019
|
Irrevocable commitments, gross
|
|
285
|
|
8,743
|
|
993
|
|
12,211
|
|
22,232
|
|
557
|
|
9,525
|
|
1,071
|
|
14,511
|
|
25,664
|
Forward starting reverse repurchase and securities borrowing transactions
|
|
0
|
|
9,288
|
|
0
|
|
0
|
|
9,288
|
|
0
|
|
4,745
|
|
0
|
|
33
|
|
4,778
|
Liabilities for calls on shares and other equities
|
|
0
|
|
0
|
|
0
|
|
4
|
|
4
|
|
0
|
|
0
|
|
0
|
|
5
|
|
5
|
Total off-balance sheet
|
|
285
|
|
21,573
|
|
2,504
|
|
20,279
|
|
44,641
|
|
557
|
|
17,225
|
|
2,850
|
|
25,835
|
|
46,466
|
1 Mainly comprised of cash and securities. 2 Includes credit
default swaps and guarantees. 3 Includes prime brokerage margin lending
receivables and prime brokerage receivables relating to securities financing
transactions. 4 Primarily comprised of amounts due from subsidiaries and
other Group entities.
|
UBS AG
standalone financial statements (audited)
Note 10a Collateral for loans and
off-balance sheet transactions (continued)
|
|
31.12.19
|
|
31.12.18
|
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
Secured
|
|
Unsecured
|
|
Total
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements2
|
|
|
|
|
|
Secured by collateral
|
|
Secured by
other credit
enhancements2
|
|
|
|
|
CHF million
|
|
Real estate
|
|
Other
collateral1
|
|
|
|
|
|
|
Real estate
|
|
Other
collateral1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from customers, gross3
|
|
3
|
|
82,109
|
|
48
|
|
24,8104
|
|
106,970
|
|
0
|
|
79,711
|
|
79
|
|
29,7964
|
|
109,586
|
Mortgage loans, gross
|
|
4,520
|
|
0
|
|
0
|
|
0
|
|
4,520
|
|
4,658
|
|
0
|
|
0
|
|
0
|
|
4,658
|
of which: residential
mortgages
|
|
4,363
|
|
|
|
|
|
|
|
4,363
|
|
4,503
|
|
|
|
|
|
|
|
4,503
|
of which: office and
business premises mortgages
|
|
67
|
|
|
|
|
|
|
|
67
|
|
58
|
|
|
|
|
|
|
|
58
|
of which: industrial
premises mortgages
|
|
0
|
|
|
|
|
|
|
|
0
|
|
29
|
|
|
|
|
|
|
|
29
|
of which: other mortgages
|
|
89
|
|
|
|
|
|
|
|
89
|
|
68
|
|
|
|
|
|
|
|
68
|
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
|
|
|
|
|
|
|
|
23,432
|
|
23,432
|
|
|
|
|
|
|
|
22,055
|
|
22,055
|
Total on-balance sheet,
gross
|
|
4,522
|
|
82,109
|
|
48
|
|
48,242
|
|
134,921
|
|
4,658
|
|
79,711
|
|
79
|
|
51,851
|
|
136,299
|
Allowances
|
|
(4)
|
|
(9)
|
|
0
|
|
(143)
|
|
(156)
|
|
(10)
|
|
(5)
|
|
0
|
|
(131)
|
|
(146)
|
Total on-balance sheet, net
|
|
4,518
|
|
82,100
|
|
48
|
|
48,099
|
|
134,765
|
|
4,648
|
|
79,706
|
|
79
|
|
51,720
|
|
136,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross
|
|
0
|
|
3,429
|
|
1,463
|
|
7,806
|
|
12,698
|
|
0
|
|
2,905
|
|
1,749
|
|
11,096
|
|
15,750
|
Irrevocable commitments, gross
|
|
276
|
|
8,465
|
|
961
|
|
11,822
|
|
21,524
|
|
548
|
|
9,366
|
|
1,053
|
|
14,267
|
|
25,234
|
Forward starting reverse repurchase and securities borrowing transactions
|
|
0
|
|
8,992
|
|
0
|
|
0
|
|
8,992
|
|
0
|
|
4,666
|
|
0
|
|
32
|
|
4,698
|
Liabilities for calls on shares and other equities
|
|
0
|
|
0
|
|
0
|
|
4
|
|
4
|
|
0
|
|
0
|
|
0
|
|
5
|
|
5
|
Total off-balance sheet
|
|
276
|
|
20,885
|
|
2,424
|
|
19,632
|
|
43,218
|
|
548
|
|
16,936
|
|
2,802
|
|
25,401
|
|
45,687
|
1 Mainly comprised of cash and securities. 2 Includes credit
default swaps and guarantees. 3 Includes prime brokerage margin lending
receivables and prime brokerage receivables relating to securities financing
transactions. 4 Primarily comprised of amounts due from subsidiaries and
other Group entities.
|
Note 10b Impaired financial instruments
|
|
31.12.19
|
|
31.12.18
|
USD million
|
|
Gross impaired financial instruments
|
Allowances and
provisions
|
Estimated liquidation
proceeds of collateral
|
Net impaired financial instruments
|
|
Gross impaired financial instruments
|
Allowances and
provisions
|
Estimated liquidation
proceeds of collateral
|
Net impaired financial instruments
|
Amounts due from customers
|
|
428
|
156
|
199
|
72
|
|
381
|
138
|
155
|
87
|
Mortgage loans
|
|
196
|
4
|
192
|
0
|
|
65
|
10
|
55
|
0
|
Other assets
|
|
373
|
16
|
0
|
357
|
|
365
|
24
|
0
|
341
|
Guarantees and loan commitments
|
|
8
|
0
|
8
|
0
|
|
14
|
0
|
14
|
0
|
Total impaired financial
instruments
|
|
1,005
|
177
|
400
|
429
|
|
825
|
173
|
224
|
428
|
|
|
|
31.12.19
|
|
31.12.18
|
CHF million
|
|
Gross impaired financial instruments
|
Allowances and
provisions
|
Estimated liquidation
proceeds of collateral
|
Net impaired financial instruments
|
|
Gross impaired financial instruments
|
Allowances and
provisions
|
Estimated liquidation
proceeds of collateral
|
Net impaired financial instruments
|
Amounts due from customers
|
|
414
|
151
|
193
|
69
|
|
374
|
136
|
153
|
86
|
Mortgage loans
|
|
190
|
4
|
186
|
0
|
|
64
|
10
|
54
|
0
|
Other assets
|
|
361
|
15
|
0
|
346
|
|
359
|
23
|
0
|
335
|
Guarantees and loan commitments
|
|
8
|
0
|
8
|
0
|
|
14
|
0
|
14
|
0
|
Total impaired financial
instruments
|
|
973
|
171
|
387
|
415
|
|
811
|
170
|
221
|
421
|
|
USD million
|
Balance
as of
31.12.18
|
Increase
recognized
in the
income
statement
|
Release
recognized
in the
income
statement
|
Write-offs
|
Recoveries
and past
due interest
|
Foreign
currency
translation
|
Balance
as of
31.12.19
|
Specific allowances for amounts due from customers and mortgage
loans
|
149
|
51
|
(4)
|
(40)
|
3
|
2
|
161
|
Allowances for other assets
|
24
|
1
|
(2)
|
(10)
|
2
|
0
|
16
|
Total allowances
|
173
|
53
|
(6)
|
(49)
|
5
|
3
|
177
|
|
|
|
CHF million
|
Balance
as of
31.12.18
|
Increase
recognized
in the
income
statement
|
Release
recognized
in the
income
statement
|
Write-offs
|
Recoveries
and past
due interest
|
Foreign
currency
translation
|
Balance
as of
31.12.19
|
Specific allowances for amounts due from customers and mortgage
loans
|
146
|
51
|
(4)
|
(40)
|
3
|
0
|
156
|
Allowances for other assets
|
23
|
1
|
(2)
|
(10)
|
2
|
0
|
15
|
Total allowances
|
170
|
52
|
(6)
|
(49)
|
5
|
0
|
171
|
|
|
|
USD million
|
Balance
as of
31.12.18
|
Increase
recognized
in the
income
statement
|
Release
recognized
in the
income
statement
|
Provisions
used in
conformity
with
designated
purpose
|
Recoveries
|
Reclassifications / other
|
Foreign
currency
translation
|
Balance
as of
31.12.19
|
Operational risks
|
11
|
2
|
0
|
(1)
|
0
|
0
|
0
|
12
|
Litigation, regulatory and similar matters1
|
1,149
|
113
|
(106)
|
(274)
|
1
|
0
|
(15)
|
867
|
Restructuring
|
50
|
1502
|
(9)
|
(51)
|
1
|
(3)
|
1
|
140
|
Real estate3
|
71
|
3
|
0
|
(7)
|
0
|
(1)
|
1
|
67
|
Employee benefits
|
29
|
4
|
(5)
|
0
|
0
|
(1)
|
0
|
26
|
Deferred taxes
|
52
|
0
|
(3)
|
0
|
0
|
0
|
0
|
50
|
Other
|
54
|
3
|
(12)
|
(8)
|
0
|
(1)
|
1
|
36
|
Total provisions
|
1,416
|
274
|
(135)
|
(341)
|
2
|
(6)
|
(12)
|
1,198
|
1 Includes provisions for litigation resulting from security
risks. 2 Includes a transfer of an onerous lease provision from a
subsidiary to UBS AG, for which UBS AG was compensated. This compensation was
reflected as part of Sundry ordinary income. 3 Includes provisions for
onerous lease contracts of USD 9 million as of 31 December 2019 (31
December 2018: USD 12 million) and reinstatement cost provisions for
leasehold improvements of USD 58 million as of 31 December 2019 (31 December
2018: USD 59 million).
|
CHF million
|
Balance
as of
31.12.18
|
Increase
recognized
in the
income
statement
|
Release
recognized
in the
income
statement
|
Provisions
used in
conformity
with
designated
purpose
|
Recoveries
|
Reclassifications / other
|
Foreign
currency
translation
|
Balance
as of
31.12.19
|
Operational risks
|
11
|
2
|
0
|
(1)
|
0
|
0
|
0
|
12
|
Litigation, regulatory and similar matters1
|
1,130
|
112
|
(106)
|
(272)
|
1
|
0
|
(25)
|
839
|
Restructuring
|
49
|
1462
|
(9)
|
(50)
|
1
|
(3)
|
0
|
135
|
Real estate3
|
70
|
3
|
0
|
(7)
|
0
|
0
|
(1)
|
65
|
Employee benefits
|
29
|
4
|
(5)
|
0
|
0
|
(1)
|
0
|
26
|
Deferred taxes
|
51
|
0
|
(3)
|
0
|
0
|
0
|
0
|
48
|
Other
|
53
|
3
|
(12)
|
(8)
|
0
|
(1)
|
0
|
35
|
Total provisions
|
1,392
|
269
|
(134)
|
(338)
|
2
|
(5)
|
(26)
|
1,160
|
1 Includes provisions for litigation resulting from security
risks. 2 Includes a transfer of an onerous lease provision from a
subsidiary to UBS AG, for which UBS AG was compensated. This compensation was
reflected as part of Sundry ordinary income. 3 Includes provisions for
onerous lease contracts of CHF 9 million as of 31 December 2019 (31
December 2018: CHF 12 million) and reinstatement cost provisions for
leasehold improvements of CHF 56 million as of 31 December 2019 (31
December 2018: CHF 58 million).
|
UBS AG
standalone financial statements (audited)
Note 12 Trading portfolio and other financial instruments
measured at fair value
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Trading portfolio assets
|
|
116,843
|
95,612
|
|
113,119
|
94,009
|
of which: debt instruments1
|
|
17,893
|
17,802
|
|
17,323
|
17,503
|
of which: listed
|
|
14,522
|
12,835
|
|
14,059
|
12,620
|
of which: equity instruments
|
|
96,034
|
75,079
|
|
92,973
|
73,820
|
of which: precious metals
and other physical commodities
|
|
2,916
|
2,732
|
|
2,823
|
2,686
|
Total assets measured at
fair value
|
|
116,843
|
95,612
|
|
113,119
|
94,009
|
of which: fair value derived
using a valuation model
|
|
11,755
|
13,099
|
|
11,380
|
12,879
|
of which: securities
eligible for repurchase transactions in accordance with liquidity regulations2
|
|
10,304
|
10,434
|
|
9,976
|
10,259
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Trading portfolio liabilities
|
|
25,292
|
23,453
|
|
24,486
|
23,060
|
of which: debt instruments1
|
|
4,019
|
3,474
|
|
3,891
|
3,416
|
of which: listed
|
|
3,799
|
3,193
|
|
3,678
|
3,140
|
of which: equity instruments
|
|
21,273
|
19,979
|
|
20,595
|
19,644
|
Financial liabilities designated at fair value3
|
|
65,647
|
56,226
|
|
63,555
|
55,283
|
Total liabilities measured
at fair value
|
|
90,939
|
79,679
|
|
88,041
|
78,342
|
of which: fair value derived
using a valuation model
|
|
69,286
|
59,645
|
|
67,078
|
58,645
|
1 Includes money market paper. 2 Consists of high-quality
liquid debt securities that are eligible for repurchase transactions at the
Swiss National Bank or other central banks. 3 Refer to Note 19 for more
information.
|
Note 13 Derivative instruments1
|
|
31.12.19
|
|
31.12.18
|
USD billion
|
|
Derivative
financial
assets
|
Derivative
financial
liabilities
|
|
Total notional values
|
|
Derivative
financial
assets
|
Derivative
financial
liabilities
|
|
Total notional values
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards2
|
|
0.1
|
0.4
|
|
3,167
|
|
0.1
|
0.3
|
|
2,890
|
Swaps
|
|
35.7
|
27.5
|
|
8,916
|
|
30.8
|
24.7
|
|
8,077
|
of which: designated in
hedge accounting relationships
|
|
0.0
|
0.0
|
|
108
|
|
0.0
|
0.0
|
|
102
|
Futures
|
|
0.0
|
0.0
|
|
544
|
|
0.0
|
0.0
|
|
510
|
Over-the-counter (OTC) options
|
|
8.1
|
10.0
|
|
951
|
|
7.6
|
9.0
|
|
1,113
|
Exchange-traded options
|
|
0.1
|
0.1
|
|
380
|
|
0.0
|
0.0
|
|
254
|
Total
|
|
43.9
|
37.9
|
|
13,958
|
|
38.5
|
34.0
|
|
12,843
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
22.4
|
23.4
|
|
1,902
|
|
20.2
|
20.9
|
|
1,441
|
of which: designated in
hedge accounting relationships3
|
|
0.0
|
0.0
|
|
0
|
|
|
|
|
|
Interest and currency swaps
|
|
23.2
|
24.0
|
|
3,043
|
|
25.0
|
24.7
|
|
2,533
|
of which: designated in
hedge accounting relationships3
|
|
0.0
|
0.2
|
|
11
|
|
|
|
|
|
Futures
|
|
0.0
|
0.0
|
|
1
|
|
0.0
|
0.0
|
|
0
|
Over-the-counter (OTC) options
|
|
7.3
|
6.9
|
|
1,267
|
|
8.4
|
7.8
|
|
1,192
|
Exchange-traded options
|
|
0.0
|
0.0
|
|
8
|
|
0.1
|
0.1
|
|
9
|
Total
|
|
52.9
|
54.3
|
|
6,221
|
|
53.7
|
53.6
|
|
5,176
|
Equity / index contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
0.0
|
0.1
|
|
25
|
|
0.3
|
0.2
|
|
28
|
Swaps
|
|
4.1
|
5.8
|
|
185
|
|
4.8
|
5.6
|
|
171
|
Futures
|
|
0.0
|
0.0
|
|
79
|
|
0.0
|
0.0
|
|
62
|
Over-the-counter (OTC) options
|
|
5.3
|
7.0
|
|
245
|
|
5.6
|
7.4
|
|
246
|
Exchange-traded options
|
|
8.6
|
8.0
|
|
569
|
|
12.9
|
14.0
|
|
516
|
Total
|
|
18.1
|
20.8
|
|
1,104
|
|
23.7
|
27.3
|
|
1,024
|
Credit derivative contracts
|
|
|
|
|
|
|
|
|
|
|
Credit default swaps
|
|
1.8
|
2.1
|
|
131
|
|
1.7
|
2.1
|
|
141
|
Total return swaps
|
|
0.3
|
0.9
|
|
5
|
|
0.3
|
0.8
|
|
7
|
Other
|
|
0.0
|
0.0
|
|
4
|
|
0.0
|
0.0
|
|
4
|
Total
|
|
2.1
|
3.0
|
|
141
|
|
2.0
|
2.9
|
|
152
|
Commodity, precious metals
and other contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
0.1
|
0.2
|
|
10
|
|
0.1
|
0.1
|
|
7
|
Swaps
|
|
0.4
|
0.6
|
|
29
|
|
0.7
|
0.4
|
|
25
|
Futures
|
|
0.0
|
0.0
|
|
12
|
|
0.0
|
0.0
|
|
8
|
Over-the-counter (OTC) options
|
|
1.0
|
0.4
|
|
51
|
|
0.4
|
0.3
|
|
35
|
Exchange-traded options
|
|
0.4
|
0.5
|
|
27
|
|
0.4
|
0.7
|
|
19
|
Total
|
|
1.8
|
1.7
|
|
129
|
|
1.7
|
1.4
|
|
94
|
Total before netting
|
|
118.7
|
117.6
|
|
21,553
|
|
119.6
|
119.1
|
|
19,289
|
of which: trading
derivatives
|
|
118.7
|
117.5
|
|
|
|
119.6
|
119.1
|
|
|
of which: fair value derived
using a valuation model
|
|
118.4
|
117.1
|
|
|
|
118.9
|
118.5
|
|
|
of which: derivatives
designated in hedge accounting relationships
|
|
0.1
|
0.2
|
|
|
|
0.0
|
0.0
|
|
|
of which: fair value derived
using a valuation model
|
|
0.1
|
0.2
|
|
|
|
0.0
|
0.0
|
|
|
Netting with cash collateral payables / receivables
|
|
(16.8)
|
(11.8)
|
|
|
|
(14.9)
|
(12.3)
|
|
|
Replacement value netting
|
|
(89.5)
|
(89.5)
|
|
|
|
(89.6)
|
(89.6)
|
|
|
Total after netting
|
|
12.4
|
16.3
|
|
|
|
15.1
|
17.3
|
|
|
of which: with central
clearing counterparties
|
|
0.4
|
0.6
|
|
|
|
0.5
|
0.6
|
|
|
of which: with bank and
broker-dealer counterparties
|
|
5.3
|
5.0
|
|
|
|
6.0
|
6.3
|
|
|
of which: other client
counterparties
|
|
6.7
|
10.7
|
|
|
|
8.6
|
10.4
|
|
|
1 Bifurcated embedded derivatives are presented on the same
balance sheet lines as their host contracts and are excluded from this table.
The replacement values and related notional values of these derivatives were
not material for the periods presented. 2 Includes forward rate
agreements. 3 Since 1 July 2019 UBS AG applies hedge accounting for
certain investments in subsidiaries and other participations denominated in
currencies other than the US dollar. Refer to Note 2b for more information.
|
UBS AG
standalone financial statements (audited)
Note 13 Derivative instruments (continued)1
|
|
31.12.19
|
|
31.12.18
|
CHF billion
|
|
Derivative
financial
assets
|
Derivative
financial
liabilities
|
|
Total notional values
|
|
Derivative
financial
assets
|
Derivative
financial
liabilities
|
|
Total notional values
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards2
|
|
0.1
|
0.3
|
|
3,066
|
|
0.1
|
0.3
|
|
2,842
|
Swaps
|
|
34.5
|
26.6
|
|
8,632
|
|
30.2
|
24.3
|
|
7,941
|
of which: designated in
hedge accounting relationships
|
|
0.0
|
0.0
|
|
104
|
|
0.0
|
0.0
|
|
100
|
Futures
|
|
0.0
|
0.0
|
|
527
|
|
0.0
|
0.0
|
|
501
|
Over-the-counter (OTC) options
|
|
7.9
|
9.7
|
|
921
|
|
7.5
|
8.9
|
|
1,094
|
Exchange-traded options
|
|
0.1
|
0.1
|
|
368
|
|
0.0
|
0.0
|
|
249
|
Total
|
|
42.5
|
36.7
|
|
13,513
|
|
37.9
|
33.5
|
|
12,628
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
21.7
|
22.6
|
|
1,842
|
|
19.9
|
20.6
|
|
1,417
|
of which: designated in
hedge accounting relationships3
|
|
0.0
|
0.0
|
|
0
|
|
|
|
|
|
Interest and currency swaps
|
|
22.4
|
23.2
|
|
2,946
|
|
24.6
|
24.3
|
|
2,490
|
of which: designated in
hedge accounting relationships3
|
|
0.0
|
0.2
|
|
10
|
|
|
|
|
|
Futures
|
|
0.0
|
0.0
|
|
1
|
|
0.0
|
0.0
|
|
0
|
Over-the-counter (OTC) options
|
|
7.1
|
6.6
|
|
1,227
|
|
8.2
|
7.7
|
|
1,172
|
Exchange-traded options
|
|
0.0
|
0.0
|
|
8
|
|
0.1
|
0.1
|
|
9
|
Total
|
|
51.2
|
52.5
|
|
6,023
|
|
52.8
|
52.7
|
|
5,089
|
Equity / index contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
0.0
|
0.1
|
|
24
|
|
0.3
|
0.2
|
|
28
|
Swaps
|
|
4.0
|
5.6
|
|
180
|
|
4.7
|
5.5
|
|
168
|
Futures
|
|
0.0
|
0.0
|
|
76
|
|
0.0
|
0.0
|
|
61
|
Over-the-counter (OTC) options
|
|
5.1
|
6.7
|
|
238
|
|
5.5
|
7.3
|
|
242
|
Exchange-traded options
|
|
8.3
|
7.7
|
|
551
|
|
12.7
|
13.8
|
|
508
|
Total
|
|
17.5
|
20.1
|
|
1,069
|
|
23.3
|
26.9
|
|
1,007
|
Credit derivative contracts
|
|
|
|
|
|
|
|
|
|
|
Credit default swaps
|
|
1.7
|
2.0
|
|
127
|
|
1.7
|
2.1
|
|
139
|
Total return swaps
|
|
0.3
|
0.8
|
|
5
|
|
0.3
|
0.8
|
|
7
|
Other
|
|
0.0
|
0.0
|
|
4
|
|
0.0
|
0.0
|
|
4
|
Total
|
|
2.0
|
2.9
|
|
136
|
|
1.9
|
2.8
|
|
150
|
Commodity, precious metals
and other contracts
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
0.1
|
0.2
|
|
10
|
|
0.1
|
0.1
|
|
6
|
Swaps
|
|
0.4
|
0.6
|
|
28
|
|
0.7
|
0.4
|
|
25
|
Futures
|
|
0.0
|
0.0
|
|
12
|
|
0.0
|
0.0
|
|
8
|
Over-the-counter (OTC) options
|
|
0.9
|
0.4
|
|
49
|
|
0.4
|
0.3
|
|
34
|
Exchange-traded options
|
|
0.3
|
0.5
|
|
26
|
|
0.4
|
0.6
|
|
18
|
Total
|
|
1.7
|
1.7
|
|
125
|
|
1.7
|
1.3
|
|
92
|
Total before netting
|
|
114.9
|
113.9
|
|
20,866
|
|
117.6
|
117.1
|
|
18,965
|
of which: trading
derivatives
|
|
114.9
|
113.7
|
|
|
|
117.6
|
117.1
|
|
|
of which: fair value derived
using a valuation model
|
|
114.6
|
113.4
|
|
|
|
116.9
|
116.5
|
|
|
of which: derivatives
designated in hedge accounting relationships
|
|
0.1
|
0.2
|
|
|
|
0.0
|
0.0
|
|
|
of which: fair value derived
using a valuation model
|
|
0.1
|
0.2
|
|
|
|
0.0
|
0.0
|
|
|
Netting with cash collateral payables / receivables
|
|
(16.3)
|
(11.5)
|
|
|
|
(14.6)
|
(12.1)
|
|
|
Replacement value netting
|
|
(86.6)
|
(86.6)
|
|
|
|
(88.1)
|
(88.1)
|
|
|
Total after netting
|
|
12.0
|
15.8
|
|
|
|
14.9
|
17.0
|
|
|
of which: with central
clearing counterparties
|
|
0.4
|
0.6
|
|
|
|
0.5
|
0.6
|
|
|
of which: with bank and
broker-dealer counterparties
|
|
5.1
|
4.9
|
|
|
|
5.9
|
6.2
|
|
|
of which: other client
counterparties
|
|
6.5
|
10.3
|
|
|
|
8.5
|
10.2
|
|
|
1 Bifurcated embedded derivatives are presented on the same
balance sheet lines as their host contracts and are excluded from this table.
The replacement values and related notional values of these derivatives were
not material for the periods presented. 2 Includes forward rate
agreements. 3 Since 1 July 2019 UBS AG applies hedge accounting for
certain investments in subsidiaries and other participations denominated in currencies
other than the US dollar. Refer to Note 2b for more information.
|
Note 14a Financial investments by
instrument type
|
|
31.12.19
|
|
31.12.18
|
USD million
|
|
Carrying amount
|
Fair value
|
|
Carrying amount
|
Fair value
|
Debt instruments
|
|
23,402
|
23,523
|
|
25,442
|
25,460
|
of which: held to maturity
|
|
3,048
|
3,089
|
|
1,983
|
1,981
|
of which: available-for-sale
|
|
20,353
|
20,434
|
|
23,460
|
23,479
|
Equity instruments
|
|
60
|
68
|
|
222
|
257
|
of which: qualified
participations1
|
|
32
|
32
|
|
61
|
64
|
Property
|
|
1
|
1
|
|
2
|
2
|
Total financial investments
|
|
23,463
|
23,593
|
|
25,666
|
25,718
|
of which: securities
eligible for repurchase transactions in accordance with liquidity regulations2
|
|
18,978
|
19,095
|
|
25,421
|
25,436
|
1 Qualified participations are investments in which UBS AG holds
10% or more of the total capital or has at least 10% of total voting
rights. 2 Consists of high-quality liquid debt securities that are
eligible for repurchase transactions at the Swiss National Bank or other
central banks.
|
|
|
31.12.19
|
|
31.12.18
|
CHF million
|
|
Carrying amount
|
Fair value
|
|
Carrying amount
|
Fair value
|
Debt instruments
|
|
22,656
|
22,774
|
|
25,016
|
25,033
|
of which: held to maturity
|
|
2,951
|
2,991
|
|
1,949
|
1,948
|
of which: available-for-sale
|
|
19,705
|
19,783
|
|
23,066
|
23,085
|
Equity instruments
|
|
58
|
66
|
|
218
|
252
|
of which: qualified
participations1
|
|
31
|
31
|
|
60
|
63
|
Property
|
|
1
|
1
|
|
2
|
2
|
Total financial investments
|
|
22,715
|
22,841
|
|
25,235
|
25,287
|
of which: securities
eligible for repurchase transactions in accordance with liquidity regulations2
|
|
18,373
|
18,486
|
|
24,995
|
25,009
|
1 Qualified participations are investments in which UBS AG holds
10% or more of the total capital or has at least 10% of total voting
rights. 2 Consists of high-quality liquid debt securities that are
eligible for repurchase transactions at the Swiss National Bank or other
central banks.
|
Note 14b Financial investments by counterparty rating – debt
instruments
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Internal UBS rating1
|
|
|
|
|
|
|
0–1
|
|
17,945
|
17,204
|
|
17,373
|
16,916
|
2–3
|
|
5,456
|
8,237
|
|
5,282
|
8,099
|
4–5
|
|
1
|
0
|
|
1
|
0
|
6–8
|
|
0
|
0
|
|
0
|
0
|
9–13
|
|
0
|
0
|
|
0
|
0
|
Non-rated
|
|
0
|
2
|
|
0
|
2
|
Total financial investments
|
|
23,402
|
25,442
|
|
22,656
|
25,016
|
1 Refer to Note 18 for more information.
|
|
|
|
Note 15 Investments in subsidiaries and
other participations
|
Registered office
|
Equity interest accumulated in %
|
|
Carrying amount in USD million
|
|
Carrying amount in CHF million
|
|
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
UBS Americas Holding LLC1
|
Wilmington, Delaware, USA
|
100
|
|
32,159
|
31,935
|
|
31,134
|
31,400
|
UBS Switzerland AG
|
Zurich, Switzerland
|
100
|
|
7,982
|
7,982
|
|
7,728
|
7,848
|
UBS Europe SE2
|
Frankfurt, Germany
|
100
|
|
4,806
|
5,015
|
|
4,653
|
4,931
|
UBS Asset Management AG
|
Zurich, Switzerland
|
100
|
|
1,643
|
1,528
|
|
1,590
|
1,503
|
Other
|
|
|
|
3,041
|
3,069
|
|
2,944
|
3,017
|
Total investments in
subsidiaries and other participations
|
|
|
|
49,631
|
49,528
|
|
48,049
|
48,698
|
1 Includes the impact of the contribution of real estate assets
into UBS Americas Holding LLC. Refer to Note 25 for more information. 2 As
of 31 December 2018, UBS Europe SE holding reflects the combined UK business
transfer and cross-border merger of UBS Limited into UBS Europe SE, which was
formally concluded on 1 March 2019. Refer to Note 25 for more information.
|
UBS AG
standalone financial statements (audited)
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Deferral position for hedging instruments
|
|
0
|
464
|
|
0
|
456
|
Bail deposit1
|
|
1,282
|
1,300
|
|
1,241
|
1,278
|
Settlement and clearing accounts
|
|
64
|
304
|
|
62
|
299
|
VAT and other indirect tax receivables
|
|
192
|
99
|
|
186
|
97
|
Other
|
|
1,620
|
1,722
|
|
1,567
|
1,692
|
of which: other receivables
due from UBS Group AG and subsidiaries in the UBS Group
|
|
820
|
1,047
|
|
794
|
1,030
|
Total other assets
|
|
3,158
|
3,888
|
|
3,056
|
3,822
|
1 Refer to item 1 in Note 21b to the UBS AG consolidated
financial statements in the UBS Group AG and UBS AG Annual Report 2019 for
more information.
|
Note 16b Other liabilities
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Deferral position for hedging instruments
|
|
1,903
|
0
|
|
1,843
|
0
|
Settlement and clearing accounts
|
|
207
|
344
|
|
200
|
339
|
Net defined benefit liabilities
|
|
87
|
279
|
|
84
|
274
|
VAT and other indirect tax payables
|
|
97
|
72
|
|
94
|
71
|
Other
|
|
1,257
|
1,906
|
|
1,218
|
1,873
|
of which: other payables due
to UBS Group AG and subsidiaries in the UBS Group
|
|
1,024
|
1,461
|
|
991
|
1,436
|
Total other liabilities
|
|
3,551
|
2,601
|
|
3,439
|
2,557
|
|
|
|
|
The table below provides information
on assets that are primarily pledged in connection with derivative transactions
and properties. The table excludes securities financing transactions.
® Refer to Note 9 for more information on
securities financing transactions
|
|
31.12.19
|
|
31.12.18
|
USD million
|
|
Carrying amount of
pledged assets
|
|
Effective
commitment
|
|
Carrying amount of
pledged assets
|
|
Effective
commitment
|
Securities
|
|
4,356
|
|
38
|
|
4,532
|
|
187
|
Pledges of property, equipment and software2
|
|
2,651
|
|
0
|
|
2,636
|
|
0
|
Total pledged assets
|
|
7,007
|
|
38
|
|
7,168
|
|
187
|
1 Excludes assets placed with central banks related to undrawn
credit lines and for payment, clearing and settlement purposes (31 December
2019: USD 0.6 billion; 31 December 2018: USD 0.8 billion). 2 These pledged
properties serve as collateral for an existing mortgage loan from UBS
Switzerland AG.
|
|
|
31.12.19
|
|
31.12.18
|
CHF million
|
|
Carrying amount of
pledged assets
|
|
Effective
commitment
|
|
Carrying amount of
pledged assets
|
|
Effective
commitment
|
Securities
|
|
4,217
|
|
37
|
|
4,456
|
|
183
|
Pledges of property, equipment and software2
|
|
2,567
|
|
0
|
|
2,592
|
|
0
|
Total pledged assets
|
|
6,784
|
|
37
|
|
7,048
|
|
183
|
1 Excludes assets placed with central banks related to undrawn
credit lines and for payment, clearing and settlement purposes
(31 December 2019: CHF 0.6 billion; 31 December 2018:
CHF 0.8 billion). 2 These pledged properties serve as collateral for
an existing mortgage loan from UBS Switzerland AG.
|
Note 18 Country risk of total assets
The table below provides a breakdown
of total non-Swiss assets by credit rating. These credit ratings reflect the
sovereign credit rating of the country to which the ultimate risk of the underlying
asset is related. The ultimate country of risk for unsecured loan positions is
the domicile of the immediate borrower or, in the case of a legal entity, the
domicile of the ultimate parent entity. For collateralized or guaranteed
positions, the ultimate country of risk is the domicile of the provider of the
collateral or guarantor or, if applicable, the domicile of the ultimate parent
entity of the provider of the collateral or guarantor. For mortgage loans, the
ultimate country of risk is the country where the real estate is located.
Similarly, the ultimate country of risk for property and equipment is the
country where the property and equipment is located. Assets for which
Switzerland is the ultimate country of risk are provided separately in order to
reconcile them to total balance sheets assets.
® Refer to the “Risk management and control”
section of the UBS Group AG and UBS AG Annual Report 2019 for more information
|
|
|
|
|
|
|
31.12.19
|
|
31.12.18
|
Classification
|
Internal UBS rating
|
Description
|
Moody’s Investors
Service
|
Standard & Poor’s
|
Fitch
|
|
USD million
|
%
|
|
USD million
|
%
|
|
0 and 1
|
Investment grade
|
Aaa
|
AAA
|
AAA
|
|
219,712
|
46
|
|
210,209
|
44
|
Low risk
|
2
|
|
Aa1 to Aa3
|
AA+ to AA–
|
AA+ to AA–
|
|
100,804
|
21
|
|
130,270
|
27
|
3
|
|
A1 to A3
|
A+ to A–
|
A+ to AA–
|
|
65,739
|
14
|
|
56,410
|
12
|
Medium risk
|
4
|
|
Baa1 to Baa2
|
BBB+ to BBB
|
BBB+ to BBB
|
|
12,915
|
3
|
|
11,928
|
2
|
5
|
|
Baa3
|
BBB–
|
BBB–
|
|
5,457
|
1
|
|
5,073
|
1
|
High risk
|
6
|
Sub-investment grade
|
Ba1
|
BB+
|
BB+
|
|
2,662
|
1
|
|
1,412
|
0
|
7
|
|
Ba2
|
BB
|
BB
|
|
3,427
|
1
|
|
2,512
|
1
|
8
|
|
Ba3
|
BB–
|
BB–
|
|
42
|
0
|
|
10
|
0
|
9
|
|
B1
|
B+
|
B+
|
|
493
|
0
|
|
679
|
0
|
Very high risk
|
10
|
|
B2
|
B
|
B
|
|
569
|
0
|
|
715
|
0
|
11
|
|
B3
|
B–
|
B–
|
|
84
|
0
|
|
163
|
0
|
12
|
|
Caa
|
CCC
|
CCC
|
|
228
|
0
|
|
66
|
0
|
13
|
|
Ca to C
|
CC to C
|
CC to C
|
|
34
|
0
|
|
72
|
0
|
Distressed
|
Default
|
Defaulted
|
D
|
D
|
D
|
|
75
|
0
|
|
17
|
0
|
Subtotal
|
|
|
|
|
|
|
412,241
|
86
|
|
419,536
|
87
|
Switzerland
|
|
|
|
|
|
|
66,706
|
14
|
|
60,701
|
13
|
Total assets
|
|
|
|
|
|
|
478,946
|
100
|
|
480,238
|
100
|
|
|
|
|
|
|
|
31.12.19
|
|
31.12.18
|
Classification
|
Internal UBS rating
|
Description
|
Moody’s Investors
Service
|
Standard & Poor’s
|
Fitch
|
|
CHF million
|
%
|
|
CHF million
|
%
|
|
0 and 1
|
Investment grade
|
Aaa
|
AAA
|
AAA
|
|
212,707
|
46
|
|
206,648
|
44
|
Low risk
|
2
|
|
Aa1 to Aa3
|
AA+ to AA–
|
AA+ to AA–
|
|
97,593
|
21
|
|
128,095
|
27
|
3
|
|
A1 to A3
|
A+ to A–
|
A+ to AA–
|
|
63,644
|
14
|
|
55,464
|
12
|
Medium risk
|
4
|
|
Baa1 to Baa2
|
BBB+ to BBB
|
BBB+ to BBB
|
|
12,503
|
3
|
|
11,726
|
2
|
5
|
|
Baa3
|
BBB–
|
BBB–
|
|
5,283
|
1
|
|
4,988
|
1
|
High risk
|
6
|
Sub-investment grade
|
Ba1
|
BB+
|
BB+
|
|
2,577
|
1
|
|
1,389
|
0
|
7
|
|
Ba2
|
BB
|
BB
|
|
3,317
|
1
|
|
2,470
|
1
|
8
|
|
Ba3
|
BB–
|
BB–
|
|
41
|
0
|
|
10
|
0
|
9
|
|
B1
|
B+
|
B+
|
|
477
|
0
|
|
668
|
0
|
Very high risk
|
10
|
|
B2
|
B
|
B
|
|
551
|
0
|
|
703
|
0
|
11
|
|
B3
|
B–
|
B–
|
|
81
|
0
|
|
160
|
0
|
12
|
|
Caa
|
CCC
|
CCC
|
|
220
|
0
|
|
65
|
0
|
13
|
|
Ca to C
|
CC to C
|
CC to C
|
|
33
|
0
|
|
71
|
0
|
Distressed
|
Default
|
Defaulted
|
D
|
D
|
D
|
|
73
|
0
|
|
17
|
0
|
Subtotal
|
|
|
|
|
|
|
399,101
|
86
|
|
412,472
|
87
|
Switzerland
|
|
|
|
|
|
|
64,580
|
14
|
|
59,712
|
13
|
Total assets
|
|
|
|
|
|
|
463,681
|
100
|
|
472,184
|
100
|
UBS AG
standalone financial statements (audited)
Note 19 Structured debt instruments
The table
below provides a breakdown of financial liabilities designated at fair value that
are considered structured debt instruments.
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Fixed-rate bonds with structured features
|
|
3,221
|
3,510
|
|
3,119
|
3,451
|
Structured debt instruments issued:
|
|
|
|
|
|
|
Equity-linked
|
|
41,466
|
34,528
|
|
40,145
|
33,949
|
Rates-linked
|
|
15,945
|
11,785
|
|
15,437
|
11,587
|
Credit-linked
|
|
1,621
|
2,331
|
|
1,569
|
2,292
|
Commodities-linked1
|
|
1,567
|
1,774
|
|
1,517
|
1,745
|
FX-linked
|
|
439
|
274
|
|
425
|
270
|
Structured over-the-counter (OTC) debt instruments
|
|
1,386
|
2,023
|
|
1,342
|
1,989
|
Total financial liabilities
designated at fair value
|
|
65,647
|
56,226
|
|
63,555
|
55,283
|
1 Includes precious metals-linked debt instruments issued.
|
In addition
to Financial liabilities designated at fair value, certain structured
debt instruments were reported within the balance sheet lines Due to banks, Due to customers and Bonds issued. These instruments were bifurcated for measurement purposes. As of
31 December 2019, the total carrying amount of the host instruments was USD 3,696
million (CHF 3,578 million) (31 December 2018: USD 4,465 million
(CHF 4,390 million)) and the total carrying amount of the bifurcated
embedded
derivatives was positive USD 54 million (CHF 52 million) (31 December
2018: positive USD 76 million (CHF 75 million)).
UBS AG shares
As of 31 December 2019, UBS AG’s
share capital of CHF 386 million (31 December
2018: CHF 386 million) consisted of fully paid up registered issued
shares with a par value of CHF 0.10, which entitle the holder to one vote
at the UBS AG shareholders’ meeting, if entered into the share register as
having the right to vote, as well as a proportionate share of distributed
dividends. UBS AG’s shares are not subject to any restrictions or limitations
on their transferability.
As of 31 December 2019, shares issued by
UBS AG totaled 3,858,408,466 shares (unchanged from 31 December 2018). The
shares were all dividend bearing and held by UBS Group AG.
Additionally, as of 31 December 2019, 380,000,000
registered shares with a par value of CHF 0.10 each were available to be
issued out of conditional capital (unchanged from 31 December 2018).
Non-distributable reserves
Non-distributable reserves consist of
50% of the share capital of UBS AG, amounting to USD 197 million
(CHF 193 million) as of 31 December 2019 (unchanged from 31 December
2018).
Note 20b Significant shareholders
The sole direct shareholder of UBS AG
is UBS Group AG, which holds 100% of UBS AG shares. These shares are entitled
to voting rights. Indirect shareholders of UBS AG included in the table below
comprise direct shareholders of UBS Group AG (acting in their own name or in
their capacity as nominees for other investors or beneficial owners) that were
registered in the UBS Group AG share register with 3% or more of the share
capital of UBS Group AG as of 31 December 2019 or as of 31 December
2018. The shares and share capital of UBS AG held by indirect shareholders, as
shown in the table below, represent their relative holding of UBS Group AG
shares. They do not have voting rights in UBS AG.
® Refer to Note 24 of the UBS Group AG standalone
financial statements in the UBS Group AG Annual Report 2019 for more
information on significant shareholders of UBS Group AG
|
|
31.12.19
|
|
31.12.18
|
USD million, except where
indicated
|
|
Share capital held
|
Shares held (%)
|
|
Share capital held
|
Shares held (%)
|
Significant direct
shareholder of UBS AG
|
|
|
|
|
|
|
UBS Group AG
|
|
393
|
100
|
|
393
|
100
|
Significant indirect
shareholders of UBS AG
|
|
|
|
|
|
|
Chase Nominees Ltd., London
|
|
43
|
11
|
|
48
|
12
|
DTC (Cede & Co.), New York1
|
|
30
|
8
|
|
28
|
7
|
Nortrust Nominees Ltd., London
|
|
19
|
5
|
|
16
|
4
|
1 DTC (Cede & Co.), New York, “The Depository Trust
Company,” is a US securities clearing organization.
|
|
|
31.12.19
|
|
31.12.18
|
CHF million, except where
indicated
|
|
Share capital held
|
Shares held (%)
|
|
Share capital held
|
Shares held (%)
|
Significant direct
shareholder of UBS AG
|
|
|
|
|
|
|
UBS Group AG
|
|
386
|
100
|
|
386
|
100
|
Significant indirect
shareholders of UBS AG
|
|
|
|
|
|
|
Chase Nominees Ltd., London
|
|
42
|
11
|
|
47
|
12
|
DTC (Cede & Co.), New York1
|
|
29
|
8
|
|
28
|
7
|
Nortrust Nominees Ltd., London
|
|
19
|
5
|
|
16
|
4
|
1 DTC (Cede & Co.), New York, “The Depository Trust
Company,” is a US securities clearing organization.
|
UBS AG
standalone financial statements (audited)
Note 21 Swiss pension plan and non-Swiss
defined benefit plans
a) Assets related to
non-Swiss defined benefit plans
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Net defined benefit assets for non-Swiss defined benefit plans1
|
|
9
|
0
|
|
9
|
0
|
Total assets for non-Swiss
defined benefit plans
|
|
9
|
0
|
|
9
|
0
|
1 As of 31 December 2019, USD 4 million (CHF 4
million) related to the UK defined benefit pension plan and USD 5 million
(CHF 5 million) related to the US defined benefit pension plan,
presented as Other assets.
|
|
|
|
|
b) Liabilities related to
Swiss pension plan and non-Swiss defined benefit plans
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Provision for Swiss pension plan
|
|
0
|
0
|
|
0
|
0
|
Net defined benefit liabilities for non-Swiss defined benefit
plans1
|
|
87
|
279
|
|
84
|
274
|
Total provision for Swiss pension plan and net defined benefit
liabilities for non-Swiss defined benefit plans
|
|
87
|
279
|
|
84
|
274
|
Bank accounts at UBS and UBS debt instruments held by Swiss
pension fund
|
|
12
|
18
|
|
12
|
18
|
UBS derivative financial instruments held by Swiss pension fund
|
|
2
|
5
|
|
2
|
5
|
Total liabilities related to
Swiss pension plan and non-Swiss defined benefit plans
|
|
101
|
302
|
|
98
|
297
|
1 As of 31 December 2019, USD 50 million (CHF 49 million)
related to the US plans and USD 22 million (CHF 21 million) related to the UK
post-employment medical insurance plan. As of 31 December 2018, USD 160
million (CHF 157 million) related to the UK defined benefit pension plan, USD
82 million (CHF 81 million) related to the US plans and USD 22 million (CHF
22 million) related to the UK post-employment medical insurance plan.
|
|
|
|
|
c) Swiss pension plan
|
|
|
|
|
|
|
|
|
USD million
|
|
CHF million
|
|
|
As of or for the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Pension plan surplus1
|
|
441
|
637
|
|
427
|
626
|
Economic benefit / (obligation) of UBS AG
|
|
0
|
0
|
|
0
|
0
|
Change in economic benefit / obligation recognized in the income
statement
|
|
0
|
0
|
|
0
|
0
|
Employer contributions in the period recognized in the income
statement
|
|
35
|
48
|
|
34
|
47
|
Performance awards-related employer contributions accrued
|
|
7
|
10
|
|
6
|
10
|
Total pension expense
recognized in the income statement within Personnel expenses
|
|
42
|
58
|
|
41
|
57
|
1 The pension plan surplus is determined in accordance with
FER 26 and consists of the reserve for the fluctuation in asset value.
The surplus did not represent an economic benefit for UBS AG in accordance
with FER 16 both as of 31 December 2019 and 31 December 2018.
|
UBS AG
has elected to apply FER 16 for its Swiss pension plan and IFRS (IAS 19) for
its UK and other non-Swiss defined benefit plans. However, remeasurements of
the defined benefit obligations for UK and other non-Swiss defined benefit
plans are recognized in the income statement rather than directly in equity.
® Refer to Note 2 for more information
® Refer to Note 29 of the UBS AG consolidated
financial statements in the UBS Group AG and UBS AG Annual Report 2019 for more
information on non-Swiss defined benefit plans in accordance with IFRS
The Swiss pension plan had no employer
contribution reserve as of both 31 December 2019 and 31 December
2018.
Transactions with related parties are
conducted at internally agreed transfer prices, at arm’s length or, with
respect to loans, fixed advances and mortgages to non-independent members of
the governing bodies in the ordinary course of business, on substantially the
same terms and conditions that are available to other employees, including
interest rates and collateral, and neither involve more than the normal risk of
collectability nor contain any other unfavorable features for the firm.
Independent members of the governing bodies are granted loans and mortgages in
the ordinary course of business at general market conditions.
|
|
31.12.19
|
|
31.12.18
|
USD million
|
|
Amounts due from
|
|
Amounts due to
|
|
Amounts due from
|
|
Amounts due to
|
Qualified shareholders1
|
|
973
|
|
50,576
|
|
639
|
|
2,087
|
of which: due from/to
customers
|
|
931
|
|
1,996
|
|
627
|
|
1,819
|
of which: funding received
from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level
|
|
|
|
47,553
|
|
|
|
|
Subsidiaries
|
|
79,939
|
|
79,702
|
|
97,219
|
|
74,413
|
of which: due from/to banks
|
|
22,516
|
|
57,167
|
|
22,849
|
|
35,114
|
of which: due from/to
customers
|
|
17,036
|
|
2,148
|
|
21,110
|
|
1,544
|
of which: receivables /
payables from securities financing transactions
|
|
12,229
|
|
17,556
|
|
26,453
|
|
32,558
|
of which: funding provided
to significant regulated subsidiaries eligible as total loss-absorbing
capacity
|
|
24,203
|
|
|
|
22,431
|
|
|
Affiliated entities2
|
|
315
|
|
240
|
|
570
|
|
42,793
|
of which: due from/to
customers
|
|
271
|
|
19
|
|
474
|
|
125
|
of which: funding received
from UBS Group Funding (Switzerland) AG eligible as total loss-absorbing
capacity at UBS AG level
|
|
|
|
|
|
|
|
41,782
|
Members of governing bodies3
|
|
33
|
|
|
|
34
|
|
|
External auditors
|
|
|
|
3
|
|
|
|
12
|
Other related parties
|
|
|
|
2
|
|
2
|
|
|
1 The qualified shareholder of UBS AG is UBS Group AG.
2 Affiliated entities of UBS AG are all direct subsidiaries of UBS
Group AG. 3 Members of governing bodies consist of members
of the Board of Directors and Group Executive Board of UBS Group AG and
members of the Board of Directors and Executive Board of UBS AG.
|
|
|
31.12.19
|
|
31.12.18
|
CHF million
|
|
Amounts due from
|
|
Amounts due to
|
|
Amounts due from
|
|
Amounts due to
|
Qualified shareholders1
|
|
942
|
|
48,964
|
|
628
|
|
2,052
|
of which: due from/to
customers
|
|
901
|
|
1,932
|
|
616
|
|
1,788
|
of which: funding received
from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level
|
|
|
|
46,037
|
|
|
|
|
Subsidiaries
|
|
77,391
|
|
77,162
|
|
95,588
|
|
73,166
|
of which: due from/to banks
|
|
21,799
|
|
55,345
|
|
22,466
|
|
34,525
|
of which: due from/to
customers
|
|
16,493
|
|
2,079
|
|
20,756
|
|
1,518
|
of which: receivables /
payables from securities financing transactions
|
|
11,839
|
|
16,996
|
|
26,010
|
|
32,012
|
of which: funding provided
to significant regulated subsidiaries eligible as total loss-absorbing
capacity
|
|
23,432
|
|
|
|
22,055
|
|
|
Affiliated entities2
|
|
305
|
|
233
|
|
560
|
|
42,076
|
of which: due from/to
customers
|
|
262
|
|
18
|
|
466
|
|
123
|
of which: funding received
from UBS Group Funding (Switzerland) AG eligible as total loss-absorbing
capacity at UBS AG level
|
|
|
|
|
|
|
|
41,081
|
Members of governing bodies3
|
|
32
|
|
|
|
34
|
|
|
External auditors
|
|
|
|
3
|
|
|
|
12
|
Other related parties
|
|
|
|
2
|
|
2
|
|
|
1 The qualified shareholder of UBS AG is UBS Group AG.
2 Affiliated entities of UBS AG are all direct subsidiaries of UBS
Group AG. 3 Members of governing bodies consist of members
of the Board of Directors and Group Executive Board of UBS Group AG and
members of the Board of Directors and Executive Board of UBS AG.
|
As of 31 December 2019, off-balance
sheet positions related to subsidiaries amounted to USD 10.9 billion
(CHF 10.6 billion) (31 December 2018: USD 13.3 billion
(CHF 13.0 billion)), of which USD 5.9 billion (CHF 5.7 billion)
were guarantees to third parties (31 December 2018: USD 7.5 billion
(CHF 7.4 billion)) and USD 3.9 billion (CHF 3.7 billion) were
loan commitments (31 December 2018: USD 3.3 billion (CHF 3.2
billion)).
UBS AG standalone
financial statements (audited)
Note 23 Fiduciary transactions
|
|
USD million
|
|
CHF million
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Fiduciary deposits
|
|
212
|
145
|
|
205
|
143
|
of which: placed with
third-party banks
|
|
212
|
145
|
|
205
|
143
|
of which: placed with
subsidiaries and affiliated entities
|
|
0
|
0
|
|
0
|
0
|
Total fiduciary transactions
|
|
212
|
145
|
|
205
|
143
|
Fiduciary transactions encompass
transactions entered into or granted by UBS AG that result in holding or
placing assets on behalf of individuals, trusts, defined benefit plans and
other institutions. Unless the recognition criteria for the assets are
satisfied, these assets and the related income are excluded from UBS AG’s
balance sheet and income statement but disclosed in this Note as off-balance
sheet fiduciary transactions. Client deposits that are initially placed as
fiduciary transactions with UBS AG may be recognized on UBS AG’s balance sheet
in situations in which the deposit is subsequently placed within UBS AG. In
such cases, these deposits are not reported in the table above.
Note 24a Invested assets and net new money
|
|
USD billion
|
|
CHF billion
|
|
|
As of or for the year ended
|
|
As of or for the year ended
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Fund assets managed1
|
|
|
25
|
|
|
25
|
Discretionary assets1
|
|
57
|
184
|
|
55
|
180
|
Other invested assets
|
|
443
|
379
|
|
429
|
373
|
Total invested assets
|
|
500
|
588
|
|
484
|
578
|
of which: double counts
|
|
0
|
6
|
|
0
|
6
|
Net new money
|
|
19
|
9
|
|
19
|
9
|
1 Decrease mainly driven by the transfer of Asset Management
business from UBS AG to UBS Asset Management Switzerland AG. Refer to Note 25
for more information.
|
Note 24b Development of invested assets
|
|
USD billion
|
|
CHF billion
|
|
|
31.12.19
|
31.12.18
|
|
31.12.19
|
31.12.18
|
Total invested assets at the beginning of the year1
|
|
588
|
646
|
|
578
|
630
|
Net new money
|
|
19
|
9
|
|
19
|
9
|
Market movements2
|
|
78
|
(51)
|
|
76
|
(50)
|
Foreign currency translation
|
|
6
|
(7)
|
|
(3)
|
(1)
|
Transfer to UBS Asset Management Switzerland AG3
|
|
(189)
|
|
|
(183)
|
|
Other effects
|
|
(2)
|
(10)
|
|
(3)
|
(10)
|
Total invested assets at the
end of the year
|
|
500
|
588
|
|
484
|
578
|
1 Includes double counts. 2 Includes interest and
dividend income. 3 Refer to Note 25 for more information.
|
® Refer to Note 36 of the UBS AG consolidated
financial statements in the UBS Group AG and UBS AG Annual Report 2019 for more
information
Note 25 Changes in organization and other events affecting
comparability
Transfer of Global Wealth Management international
from UBS Switzerland AG to UBS AG
In the second quarter of 2019, the
beneficial ownership of a portion of Global Wealth Management international
business booked in Switzerland was transferred from UBS Switzerland AG to UBS
AG to further optimize Group legal and operational structures. The transfer was
made in the form of a dividend in kind in the amount of USD 2.1 billion
(CHF 2.1 billion). UBS AG expects full legal transfer to take place before
the end of 2022. UBS AG’s share of the profits for the full year of USD 0.4
billion (CHF 0.4 billion) is reflected in Fee and commission income
from securities and investment business and other fee and commission income.
Invested assets are reported in UBS Switzerland AG until the full legal transfer
is completed; no double counting is applied.
Transfer of Asset Management business
from UBS AG to UBS Asset Management Switzerland AG
As part of UBS’s efforts to improve
the resolvability of the Group, the portion of the Asset Management business in
Switzerland conducted by UBS AG was transferred from UBS AG to its indirect
subsidiary, UBS Asset Management Switzerland AG. The business transfer, which
was effective 1 April 2019, included a contribution at book value of net
assets of USD 0.1 billion (CHF 0.1 billion) into the equity of UBS
Asset Management AG. The transfer resulted in a net decrease in Net fee and
commission income of approximately USD 0.3 billion (CHF 0.3
billion) and offsetting decreases in Personnel expenses and General
and administrative expenses that together totaled approximately
USD 0.3 billion (CHF 0.3 billion) in 2019. Invested assets decreased
by USD 189 billion (CHF 183 billion) as a result of the transfer.
Merger of UBS
Limited into UBS Europe SE
On 1 March 2019, the previously announced
combined UK business transfer and cross-border merger of UBS Limited into UBS
Europe SE was formally concluded. As a result of this transaction the
impairment loss of the investment in UBS Limited for the year 2018 was reduced
by USD 0.2 billion (CHF 0.2 billion). As the transaction was
substantially completed in 2018, the effect of the transaction was recognized
in the UBS AG standalone financial statements for the year ended 31 December
2018.
Asset transfer
from UBS Limited to UBS AG
In the fourth quarter of 2018, the
business transfer in connection with the UK withdrawal from the EU was largely
completed. Clients and other counterparties of UBS Limited who can be serviced
by UBS AG, London Branch were generally migrated in 2018. The asset transfer
resulted in an increase in Net fee and commission income and an
offsetting decrease in Sundry ordinary income in 2019 compared with 2018.
® Refer to Note 4 for more information
Contribution of real estate assets into
UBS Americas Holding LLC
In the second quarter of 2019, UBS AG
has contributed certain real estate assets into UBS Americas Holding LLC totaling
USD 0.2 billion (CHF 0.2 billion). The carrying amount of UBS AG’s
investment in UBS Americas Holding LLC was increased by the book value of the
derecognized real estate assets. The contribution resulted in a decrease in Income
from real estate holdings of approximately USD 0.1 billion (CHF 0.1
billion) and an offsetting decrease in General and administrative expenses
in 2019 compared with 2018.
® Refer to Note 15 for more information
Provisions for litigation, regulatory
and similar matters
2018 included an
adjusting event after the balance sheet date of USD 340 million (CHF 334
million) for provisions for litigation, regulatory and similar matters.
UBS AG
standalone financial statements (audited)
UBS AG
standalone financial statements (audited)
UBS AG standalone regulatory information
UBS AG standalone
regulatory information
UBS AG standalone regulatory information
Key metrics
The table below is based on the Basel
Committee on Banking Supervision (BCBS) Basel III rules. During the fourth
quarter of 2019, common equity tier 1 (CET1) capital decreased by USD 0.9
billion to USD 49.5 billion, mainly due to accruals for capital returns,
partly offset by operating profit. Tier 1 capital decreased by USD 0.7
billion to USD 63.9 billion as the aforementioned decrease in CET1 was partly
offset by an additional USD 0.3 billion of high-trigger loss-absorbing AT1
capital instruments. Risk-weighted assets (RWA) decreased by
USD 9.2 billion to USD 288.0 during the fourth quarter of 2019, primarily driven
by decreases in credit and counterparty credit risk RWA related to third
parties and Group entities. Leverage ratio exposure decreased by USD 21
billion, mainly due to a decrease in on-balance sheet exposures from securities
financing transactions and derivatives. Average high-quality liquid assets
decreased by USD 2.5 billion driven by lower average cash balances reflecting
higher funding consumption by the business divisions and decreases in issued
debt. Average total net cash outflows decreased by USD 1.6 billion,
reflecting lower average outflows from intercompany transactions.
KM1: Key metrics
|
|
|
|
|
|
|
|
|
|
USD million, except where
indicated
|
|
|
|
31.12.19
|
30.9.19
|
|
30.6.19
|
|
31.3.19
|
|
31.12.18
|
Available capital (amounts)
|
|
|
|
|
|
|
|
|
|
1
|
Common equity tier 1 (CET1)
|
|
49,521
|
50,458
|
|
51,261
|
|
49,024
|
|
49,411
|
1a
|
Fully loaded ECL accounting model CET11
|
|
49,518
|
50,456
|
|
51,258
|
|
49,021
|
|
49,411
|
2
|
Tier 1
|
|
63,893
|
64,545
|
|
64,315
|
|
61,839
|
|
59,595
|
2a
|
Fully loaded ECL accounting model tier 11
|
|
63,891
|
64,543
|
|
64,312
|
|
61,836
|
|
59,595
|
3
|
Total capital
|
|
69,576
|
70,194
|
|
70,612
|
|
68,542
|
|
66,295
|
3a
|
Fully loaded ECL accounting model total capital1
|
|
69,574
|
70,191
|
|
70,609
|
|
68,539
|
|
66,295
|
Risk-weighted assets
(amounts)
|
|
|
|
|
|
|
|
|
|
4
|
Total risk-weighted assets (RWA)
|
|
287,999
|
297,200
|
|
294,348
|
|
300,734
|
|
292,888
|
4a
|
Minimum capital requirement2
|
|
23,040
|
23,776
|
|
23,548
|
|
24,059
|
|
23,431
|
4b
|
Total risk-weighted assets (pre-floor)
|
|
287,999
|
297,200
|
|
294,348
|
|
300,734
|
|
292,888
|
Risk-based capital ratios as
a percentage of RWA
|
|
|
|
|
|
|
|
|
|
5
|
Common equity tier 1 ratio (%)
|
|
17.19
|
16.98
|
|
17.41
|
|
16.30
|
|
16.87
|
5a
|
Fully loaded ECL accounting model CET1 ratio (%)1
|
|
17.19
|
16.98
|
|
17.41
|
|
16.30
|
|
16.87
|
6
|
Tier 1 ratio (%)
|
|
22.19
|
21.72
|
|
21.85
|
|
20.56
|
|
20.35
|
6a
|
Fully loaded ECL accounting model tier 1 ratio (%)1
|
|
22.18
|
21.72
|
|
21.85
|
|
20.56
|
|
20.35
|
7
|
Total capital ratio (%)
|
|
24.16
|
23.62
|
|
23.99
|
|
22.79
|
|
22.63
|
7a
|
Fully loaded ECL accounting model total capital ratio (%)1
|
|
24.16
|
23.62
|
|
23.99
|
|
22.79
|
|
22.63
|
Additional CET1 buffer
requirements as a percentage of RWA
|
|
|
|
|
|
|
|
|
|
8
|
Capital conservation buffer requirement (2.5% from 2019) (%)
|
|
2.50
|
2.50
|
|
2.50
|
|
2.50
|
|
1.88
|
9
|
Countercyclical buffer requirement (%)
|
|
0.07
|
0.08
|
|
0.08
|
|
0.09
|
|
0.07
|
9a
|
Additional countercyclical buffer for Swiss mortgage loans (%)
|
|
0.00
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
10
|
Bank G-SIB and/or D-SIB additional requirements (%)3
|
|
|
|
|
|
|
|
|
|
11
|
Total of bank CET1-specific buffer requirements (%)
|
|
2.57
|
2.58
|
|
2.58
|
|
2.59
|
|
1.95
|
12
|
CET1 available after meeting the bank’s minimum capital
requirements (%)
|
|
12.69
|
12.48
|
|
12.91
|
|
11.80
|
|
12.37
|
Basel III leverage ratio
|
|
|
|
|
|
|
|
|
|
13
|
Total Basel III leverage ratio exposure measure
|
|
589,127
|
609,656
|
|
618,704
|
|
617,329
|
|
601,013
|
14
|
Basel III leverage ratio (%)
|
|
10.85
|
10.59
|
|
10.40
|
|
10.02
|
|
9.92
|
14a
|
Fully loaded ECL accounting model Basel III leverage ratio (%)1
|
|
10.84
|
10.59
|
|
10.39
|
|
10.02
|
|
9.92
|
Liquidity coverage ratio4
|
|
|
|
|
|
|
|
|
|
15
|
Total HQLA
|
|
73,805
|
76,330
|
|
82,201
|
|
86,690
|
|
76,456
|
16
|
Total net cash outflow
|
|
53,960
|
55,607
|
|
56,626
|
|
51,434
|
|
55,032
|
17
|
LCR (%)
|
|
137
|
137
|
|
145
|
|
169
|
|
139
|
1 The fully loaded ECL accounting model excludes the
transitional relief of recognizing ECL allowances and provisions in CET1
capital in accordance with FINMA Circular 2013/1 “Eligible capital –
banks.” 2 Calculated as 8% of total RWA, based on total capital minimum
requirements, excluding CET1 buffer requirements. 3 Swiss SRB going
concern requirements and information for UBS AG standalone is provided on the
following pages in this section. 4 Calculated based on quarterly average.
Refer to “Liquidity coverage ratio” in this section for more information.
|
UBS AG standalone regulatory information
Swiss SRB going concern requirements and information
UBS AG standalone is considered a
systemically relevant bank (SRB) under Swiss banking law and is subject to
capital regulations on a standalone basis. Under Swiss SRB regulations, article
125 “Reliefs for financial groups and individual institutions” of the Capital
Adequacy Ordinance stipulates that the Swiss Financial Market Supervisory
Authority (FINMA) may grant, under certain conditions, capital relief to
individual institutions to ensure that an individual institution’s compliance
with the capital requirements does not lead to a de facto overcapitalization of
the group of which it is a part.
FINMA granted relief concerning the
regulatory capital requirements of UBS AG on a standalone basis by means of
decrees issued on 20 December 2013 and 20 October 2017, the latter
effective as of 1 July 2017 and partly replacing the former.
The FINMA decree issued in 2017 established
the measure of total going concern capital for UBS AG. Common equity tier 1
(CET1) and high-trigger additional tier 1 capital instruments are eligible
as going concern capital, and low-trigger tier 2 capital instruments
remained eligible to meet high-trigger AT1 requirements until the earlier of
(i) their maturity or the first call date or (ii) 31 December 2019.
Capital requirements based on RWA and the leverage
ratio denominator (the LRD) are the same under both the phase-in and fully
applied rules. The capital requirements based on RWA include a minimum CET1
capital requirement of 9.64% plus the effects from countercyclical buffers (CCyBs),
and a total going concern capital requirement of 13.94% plus the effects from
CCyBs. The capital requirements based on LRD include a minimum CET1 capital
requirement of 3.375% and a total going concern leverage ratio requirement of 4.875%.
For direct and indirect investments, including holding of regulatory capital
instruments of UBS AG in subsidiaries that are active in banking and finance,
the FINMA decree introduced a risk-weighting approach, with a phase-in period until
1 January 2028. Starting from 1 July 2017, these investments have
been risk weighted at 200%. From 1 January 2019, the risk weights are
being gradually raised 5 percentage points per year for Switzerland-domiciled
investments and 20 percentage points per year for foreign-domiciled investments
until the fully applied risk weights are 250% and 400%, respectively.
®
Refer to the “Introduction and basis of preparation” section of the
31 December 2019 Pillar 3 report available under
“Pillar 3 disclosures” at www.ubs.com/investors for more information about the
revised gone concern requirements
Swiss SRB going concern
requirements and information
|
|
|
Swiss SRB, including transitional arrangements
|
|
Swiss SRB as of 1.1.20, after transition arrangements
|
As of 31.12.19
|
|
RWA
|
LRD
|
|
RWA
|
LRD
|
USD million, except where
indicated
|
|
in %1
|
|
in %1
|
|
|
in %
|
|
in %
|
|
Required going concern
capital
|
|
|
|
|
|
|
|
|
|
|
Total going concern capital
|
|
14.012
|
40,353
|
4.882
|
28,720
|
|
14.012
|
52,453
|
4.882
|
28,720
|
Common equity tier 1 capital
|
|
9.71
|
27,970
|
3.38
|
19,883
|
|
9.71
|
36,356
|
3.38
|
19,883
|
of which: minimum capital
|
|
4.50
|
12,960
|
1.50
|
8,837
|
|
4.50
|
16,846
|
1.50
|
8,837
|
of which: buffer capital
|
|
5.14
|
14,803
|
1.88
|
11,046
|
|
5.14
|
19,242
|
1.88
|
11,046
|
of which: countercyclical
buffer
|
|
0.07
|
206
|
|
|
|
0.07
|
268
|
|
|
Maximum additional tier 1
capital
|
|
4.30
|
12,384
|
1.50
|
8,837
|
|
4.30
|
16,097
|
1.50
|
8,837
|
of which: additional tier 1
capital
|
|
3.50
|
10,080
|
1.50
|
8,837
|
|
3.50
|
13,102
|
1.50
|
8,837
|
of which: additional tier 1
buffer capital
|
|
0.80
|
2,304
|
|
|
|
0.80
|
2,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eligible going concern
capital
|
|
|
|
|
|
|
|
|
|
|
Total going concern capital
|
|
23.14
|
66,632
|
11.31
|
66,632
|
|
16.42
|
61,479
|
10.44
|
61,479
|
Common equity tier 1 capital
|
|
17.19
|
49,521
|
8.41
|
49,521
|
|
13.23
|
49,521
|
8.41
|
49,521
|
Total loss-absorbing
additional tier 1 capital3
|
|
5.94
|
17,111
|
2.90
|
17,111
|
|
3.19
|
11,958
|
2.03
|
11,958
|
of which: high-trigger
loss-absorbing additional tier 1 capital
|
|
4.15
|
11,958
|
2.03
|
11,958
|
|
3.19
|
11,958
|
2.03
|
11,958
|
of which: low-trigger
loss-absorbing tier 2 capital
|
|
1.79
|
5,153
|
0.87
|
5,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loss-absorbing
capacity
|
Required total loss-absorbing capacity
|
|
14.01
|
40,353
|
4.88
|
28,720
|
|
14.01
|
40,353
|
4.88
|
28,720
|
Eligible total loss-absorbing capacity
|
|
23.14
|
66,632
|
11.31
|
66,632
|
|
16.42
|
61,479
|
10.44
|
61,479
|
1 Requirements as stipulated by FINMA decree. These exceed the
requirements according to the transitional arrangements of the Swiss Capital
Adequacy Ordinance (the CAO), which require a minimum total going concern
capital ratio of 13.4% plus the effect of the countercyclical buffer (CCyB)
of 0.07%, of which 9.5% plus the effect of CCyB of 0.07% must be satisfied
with CET1 capital, as well as a minimum total going concern leverage ratio of
4.5%, of which 3.2% must be satisfied with CET1 capital. As of 1 January
2020, the capital requirements as per the revised CAO will apply. 2
Includes applicable add-ons of 1.08% for RWA and 0.375% for LRD. 3 Includes
outstanding low-trigger loss-absorbing tier 2 capital instruments, which
are available under the transitional rules of the Swiss SRB framework to meet
the going concern requirements until the earlier of (i) their maturity or
first call date or (ii) 31 December 2019. Outstanding
low-trigger loss-absorbing tier 2 capital instruments are subject to
amortization starting five years prior to their maturity.
|
Swiss SRB going concern
information
|
|
|
|
Swiss SRB, including transitional arrangements
|
|
Swiss SRB as of 1.1.20, after transition arrangements
|
USD million, except where
indicated
|
|
31.12.19
|
|
30.9.19
|
31.12.18
|
|
31.12.19
|
|
30.9.19
|
31.12.18
|
|
|
|
|
|
|
|
|
|
|
|
Eligible going concern
capital
|
|
|
|
|
|
|
|
|
|
|
Total going concern capital
|
|
66,632
|
|
67,267
|
63,225
|
|
61,479
|
|
62,142
|
57,217
|
Total tier 1 capital
|
|
61,479
|
|
62,142
|
57,217
|
|
61,479
|
|
62,142
|
57,217
|
Common equity tier 1 capital
|
|
49,521
|
|
50,458
|
49,411
|
|
49,521
|
|
50,458
|
49,411
|
Total loss-absorbing
additional tier 1 capital
|
|
11,958
|
|
11,684
|
7,805
|
|
11,958
|
|
11,684
|
7,805
|
of which: high-trigger
loss-absorbing additional tier 1 capital
|
|
11,958
|
|
11,684
|
7,805
|
|
11,958
|
|
11,684
|
7,805
|
Total tier 2 capital
|
|
5,153
|
|
5,125
|
6,008
|
|
|
|
|
|
of which: low-trigger
loss-absorbing tier 2 capital1
|
|
5,153
|
|
5,125
|
6,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets /
leverage ratio denominator
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets
|
|
287,999
|
|
297,200
|
292,888
|
|
374,351
|
|
382,770
|
383,578
|
of which: direct and
indirect investments in Swiss-domiciled subsidiaries2
|
|
34,418
|
|
32,803
|
31,711
|
|
41,973
|
|
40,004
|
39,639
|
of which: direct and
indirect investments in foreign-domiciled subsidiaries2
|
|
96,307
|
|
95,784
|
82,762
|
|
175,104
|
|
174,153
|
165,525
|
Leverage ratio denominator
|
|
589,127
|
|
609,656
|
601,013
|
|
589,127
|
|
609,656
|
601,013
|
|
|
|
|
|
|
|
|
|
|
|
Capital and loss-absorbing
capacity ratios (%)
|
|
|
|
|
|
|
|
|
|
|
Going concern capital ratio
|
|
23.1
|
|
22.6
|
21.6
|
|
16.4
|
|
16.2
|
14.9
|
of which: common equity tier
1 capital ratio
|
|
17.2
|
|
17.0
|
16.9
|
|
13.2
|
|
13.2
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratios (%)
|
|
|
|
|
|
|
|
|
|
|
Going concern leverage ratio
|
|
11.3
|
|
11.0
|
10.5
|
|
10.4
|
|
10.2
|
9.5
|
of which: common equity tier
1 leverage ratio
|
|
8.4
|
|
8.3
|
8.2
|
|
8.4
|
|
8.3
|
8.2
|
1 Outstanding low-trigger loss-absorbing tier 2 capital
instruments qualify as going concern capital until the earlier of (i) their
maturity or first call date or (ii) 31 December 2019, and are subject to
amortization starting five years prior to their maturity. 2 Carrying
amount for direct and indirect investments including holding of regulatory
capital instruments in Swiss-domiciled subsidiaries
(31 December 2019: USD 16,789 million; 31 December 2018: USD 15,856
million), and for direct and indirect investments including holding of
regulatory capital instruments in foreign-domiciled subsidiaries
(31 December 2019: USD 43,776 million; 31 December 2018:
USD 41,381 million), is risk weighted at 205% and 220%, respectively,
for the current year (31 December 2018: the applicable risk weight was 200%
for both Swiss-domiciled and foreign-domiciled investments). Risk weights
will gradually increase by 5 percentage points per year for Swiss-domiciled
investments and 20 percentage points per year for foreign-domiciled investments
until the fully applied risk weights of 250% and 400%, respectively, are
applied.
|
Reconciliation of Swiss banking
law equity to Swiss SRB common equity tier 1 capital
|
USD billion
|
31.12.19
|
31.12.18
|
Equity – Swiss banking law1
|
51.7
|
51.1
|
Deferred tax assets
|
0.2
|
0.5
|
Valuation differences for investments in subsidiaries
|
1.7
|
1.6
|
Accruals for proposed dividends to UBS Group AG
|
(3.9)
|
(3.3)
|
Other
|
(0.2)
|
(0.5)
|
Common equity tier 1 capital
|
49.5
|
49.4
|
1 Equity under Swiss banking law is adjusted to derive equity in
accordance with IFRS and then further adjusted to derive common equity tier 1
(CET1) capital in accordance with Swiss SRB requirements.
|
UBS AG standalone regulatory information
Leverage ratio
information
Swiss SRB leverage ratio
denominator
|
|
|
|
|
USD billion
|
|
31.12.19
|
31.12.18
|
|
|
|
|
Leverage ratio denominator
|
|
|
|
Swiss GAAP total assets
|
|
478.9
|
480.0
|
Difference between Swiss GAAP and IFRS total assets
|
|
122.3
|
118.6
|
Less: derivative exposures and SFTs1
|
|
(220.4)
|
(236.7)
|
On-balance sheet exposures
(excluding derivative exposures and SFTs)
|
|
380.8
|
361.9
|
Derivative exposures
|
|
94.8
|
99.3
|
Securities financing transactions
|
|
92.6
|
114.2
|
Off-balance sheet items
|
|
21.7
|
26.1
|
Items deducted from Swiss SRB tier 1 capital
|
|
(0.8)
|
(0.5)
|
Total exposures (leverage
ratio denominator)
|
|
589.1
|
601.0
|
1 Consists of derivative financial instruments, cash collateral
receivables on derivative instruments, receivables from securities financing
transactions, and margin loans, as well as prime brokerage receivables and
financial assets at fair value not held for trading, both related to
securities financing transactions, in accordance with the regulatory scope of
consolidation, which are presented separately under Derivative exposures and
Securities financing transactions in this table.
|
BCBS Basel III leverage ratio
|
USD million, except where
indicated
|
|
31.12.19
|
30.9.19
|
30.6.19
|
31.3.19
|
31.12.18
|
Total tier 1 capital
|
|
63,893
|
64,545
|
64,315
|
61,839
|
59,595
|
Total exposures (leverage ratio denominator)
|
|
589,127
|
609,656
|
618,704
|
617,329
|
601,013
|
BCBS Basel III leverage
ratio (%)
|
|
10.8
|
10.6
|
10.4
|
10.0
|
9.9
|
Liquidity coverage ratio
UBS AG is required to
maintain a minimum liquidity coverage ratio of 105% as communicated by FINMA.
Liquidity coverage ratio
|
|
|
Weighted value1
|
USD billion, except where
indicated
|
|
Average 4Q192
|
Average 4Q182
|
High-quality liquid assets
|
|
74
|
76
|
Total net cash outflows
|
|
54
|
55
|
of which: cash outflows
|
|
160
|
169
|
of which: cash inflows
|
|
106
|
114
|
Liquidity coverage ratio (%)
|
|
137
|
139
|
1 Calculated after the application of haircuts and inflow and
outflow rates. 2 Calculated based on an average of 64 data points in the
fourth quarter of 2019 and 64 data points in the fourth quarter of 2018.
|
Notice
to investors | This
report and the information contained herein are provided solely for information
purposes, and are not to be construed as solicitation of an offer to buy or
sell any securities or other financial instruments in Switzerland, the United
States or any other jurisdiction. No investment decision relating to securities
of or relating to UBS Group AG, UBS AG or their affiliates should be made on
the basis of this report. Refer to UBS’s Annual Report 2019, available at www.ubs.com/investors,
for additional information.
Rounding | Numbers
presented throughout this report may not add up precisely to the totals
provided in the tables and text. Percentages, percent changes, and adjusted
results are calculated on the basis of unrounded figures. Information about absolute
changes between reporting periods, which is provided in text and which can be
derived from figures displayed in the tables, is calculated on a rounded basis.
Tables | Within tables, blank fields
generally indicate that the field is not applicable or not 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. Percentage changes are presented as a mathematical
calculation of the change between periods.
UBS Group AG
P.O. Box
CH-8098 Zurich
www.ubs.com
Zurich, 28 February 2020
Consent
of Independent Registered Public Accounting Firm
We
consent to the incorporation by reference in each of the following registration
statements of UBS Group AG, UBS AG and their affiliates:
(1)
on Form F-3 (Registration Number 333-225551), and each related
prospectus currently outstanding under such registration statement,
(2) on Form F-4 (Registration Number 333-234705), and each related
prospectus currently outstanding under such registration statement,
(3)
on Form S-8 (Registration Numbers 333-200634; 333-200635;
333-200641; 333-200665; 333-215254; 333-215255; and 333-228653), and each
related prospectus currently outstanding under any of the aforementioned
registration statements,
(4)
the base prospectus of Corporate Asset Backed Corporation (CABCO)
dated 23 June 2004 (Registration Number 333-111572),
(5)
the Form 8-K of CABCO dated 23 June 2004 (SEC File Number
001-13444), and
(6)
the Prospectus Supplements relating to the CABCO Series 2004-101
Trust dated 10 May 2004 (Registration Number 033-91744) and 17 May 2004
(Registration Number 033-91744-05),
of our
report dated 27 February 2020, with respect to the standalone financial
statements of UBS AG for the year ended 31 December 2019 included in this
Report of Foreign Private Issuer (Form 6-K) dated 28 February 2020, filed with
the Securities and Exchange Commission.
Ernst
& Young Ltd
/s/
Marie-Laure Delarue
Marie-Laure
Delarue
Licensed
Audit Expert
|
/s/ Ira
S. Fitlin
Ira S.
Fitlin
Certified
Public Accountant (U.S.)
|
This Form 6-K is hereby incorporated by
reference into (1) each of the registration statements of UBS AG on
Form F-3 (Registration Number 333-225551) and on Form F-4
(Registration Number 333-234705), and of UBS Group AG on
Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641;
333-200665; 333-215254; 333-215255; and 333-228653), and into each prospectus
outstanding under any of the foregoing registration statements, (2) any
outstanding offering circular or similar document issued or authorized by
UBS AG that incorporates by reference any Form 6-K’s of UBS AG
that are incorporated into its registration statements filed with the SEC, and
(3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”)
dated June 23, 2004 (Registration Number 333-111572), the
Form 8-K of CABCO filed and dated June 23, 2004 (SEC File
Number 001-13444), and the Prospectus Supplements relating to the CABCO
Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration
Number 033-91744 and 033-91744-05).
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/ Todd Tuckner___________
Name: Todd Tuckner
Title: Group Controller and
Chief Accounting Officer
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
UBS AG
By: _/s/ Todd Tuckner___________
Name: Todd Tuckner
Title: Group Controller and
Chief Accounting Officer
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
Date: February 28, 2020
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