ubs ag · regual to ry develo pments an od f pos sible ch anges in ub s s po ciesli an prd actices...
TRANSCRIPT
-
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: October 28, 2014
UBS AG Commission File Number: 1-15060
UBS Group AG (Registrants’ Names)
Bahnhofstrasse 45, Zurich, Switzerland (Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ⌧ Form 40-F �
This Form 6-K consists of the presentation materials related to the Third Quarter 2014 Results of UBS AG, which appear immediately following this page.
-
Octo
ber 2
8, 2
014
Third
quarte
r 2014 re
sults
-
Cautio
nary
state
ment re
gard
ing fo
rward
-lookin
g sta
tem
ents
1
This p
rese
nta
tion co
nta
ins sta
tem
ents th
at co
nstitu
te “fo
rward
-lookin
g sta
tem
ents,” in
cludin
g b
ut n
ot lim
ited to
managem
ent’s o
utlo
ok fo
r UBS’s fin
ancia
l perfo
rmance
and
state
ments re
latin
g to
the a
nticip
ate
d e
ffect o
f transa
ctions a
nd stra
tegic in
itiativ
es o
n U
BS’s b
usin
ess a
nd fu
ture
develo
pm
ent. W
hile
these
forw
ard
-lookin
g sta
tem
ents
repre
sent U
BS’s ju
dgm
ents a
nd e
xpecta
tions co
nce
rnin
g th
e m
atte
rs describ
ed, a
num
ber o
f risks, u
nce
rtain
ties a
nd o
ther im
porta
nt fa
ctors co
uld
cause
actu
al
develo
pm
ents a
nd re
sults to
diffe
r mate
rially
from
UBS’s e
xpecta
tions. T
hese
facto
rs inclu
de, b
ut a
re n
ot lim
ited to
: (i) the d
egre
e to
which
UBS is su
ccessfu
l in e
xecu
ting
its announce
d stra
tegic p
lans, in
cludin
g its e
fficiency
initia
tives a
nd its p
lanned fu
rther re
ductio
n in
its Base
l III risk-w
eig
hte
d a
ssets (R
WA) a
nd le
vera
ge ra
tio d
enom
inato
r
(LRD
); (ii) develo
pm
ents in
the m
ark
ets in
which
UBS o
pera
tes o
r to w
hich
it is expose
d, in
cludin
g m
ovem
ents in
secu
rities p
rices o
r liquid
ity, cre
dit sp
reads, cu
rrency
exch
ange ra
tes a
nd in
tere
st rate
s and th
e e
ffect o
f eco
nom
ic conditio
ns a
nd m
ark
et d
evelo
pm
ents o
n th
e fin
ancia
l positio
n o
r creditw
orth
iness o
f UBS’s clie
nts a
nd
counte
rpartie
s; (iii) changes in
the a
vaila
bility
of ca
pita
l and fu
ndin
g, in
cludin
g a
ny ch
anges in
UBS’s cre
dit sp
reads a
nd ra
tings, o
r arisin
g fro
m re
quire
ments fo
r bail-in
debt
or lo
ss- abso
rbin
g ca
pita
l; (iv) ch
anges in
or th
e im
ple
menta
tion o
f financia
l legisla
tion a
nd re
gula
tion in
Sw
itzerla
nd, th
e U
S, th
e U
K a
nd o
ther fin
ancia
l cente
rs that m
ay
impose
more
stringent ca
pita
l (inclu
din
g le
vera
ge ra
tio), liq
uid
ity a
nd fu
ndin
g re
quire
ments, in
crem
enta
l tax re
quire
ments, a
dditio
nal le
vie
s, limita
tions o
n p
erm
itted
activ
ities, co
nstra
ints o
n re
munera
tion o
r oth
er m
easu
res; (v
) unce
rtain
ty a
s to w
hen a
nd to
what d
egre
e th
e S
wiss F
inancia
l Mark
et S
uperv
isory
Auth
ority
(FIN
MA) w
ill
appro
ve re
ductio
ns to
the in
crem
enta
l RW
A re
sultin
g fro
m th
e su
pple
menta
l opera
tional risk
capita
l analy
sis mutu
ally
agre
ed to
by U
BS a
nd F
INM
A, o
r will a
ppro
ve a
limite
d
reductio
n o
f capita
l require
ments d
ue to
measu
res to
reduce
reso
lvability
risk; (v
i) the d
egre
e to
which
UBS is su
ccessfu
l in e
xecu
ting th
e a
nnounce
d cre
atio
n o
f a n
ew
Sw
iss bankin
g su
bsid
iary
, a h
old
ing co
mpany fo
r the U
BS G
roup (in
cludin
g th
e p
endin
g o
ffer to
exch
ange sh
are
s of U
BS A
G fo
r share
s of su
ch h
old
ing co
mpany), a
US
inte
rmedia
te h
old
ing co
mpany, ch
anges in
the o
pera
ting m
odel o
f UBS L
imite
d a
nd o
ther ch
anges w
hich
UBS m
ay m
ake in
its legal e
ntity
structu
re a
nd o
pera
ting m
odel,
inclu
din
g th
e p
ossib
le co
nse
quence
s of su
ch ch
anges, a
nd th
e p
ote
ntia
l need to
make o
ther ch
anges to
the le
gal stru
cture
or b
ookin
g m
odel o
f UBS G
roup in
resp
onse
to
legal a
nd re
gula
tory
require
ments, in
cludin
g ca
pita
l require
ments, re
solv
ability
require
ments a
nd p
roposa
ls in S
witze
rland a
nd o
ther co
untrie
s for m
andato
ry stru
ctura
l
refo
rm o
f banks; (v
ii) changes in
UBS’s co
mpetitiv
e p
ositio
n, in
cludin
g w
heth
er d
iffere
nce
s in re
gula
tory
capita
l and o
ther re
quire
ments a
mong th
e m
ajo
r financia
l cente
rs
will a
dverse
ly a
ffect U
BS’s a
bility
to co
mpete
in ce
rtain
lines o
f busin
ess; (v
iii) the lia
bility
to w
hich
UBS m
ay b
e e
xpose
d, o
r possib
le co
nstra
ints o
r sanctio
ns th
at re
gula
tory
auth
oritie
s mig
ht im
pose
on U
BS, d
ue to
litigatio
n, co
ntra
ctual cla
ims a
nd re
gula
tory
investig
atio
ns; (ix
) the e
ffects o
n U
BS’s cro
ss-bord
er b
ankin
g b
usin
ess o
f tax o
r
regula
tory
develo
pm
ents a
nd o
f possib
le ch
anges in
UBS’s p
olicie
s and p
ractice
s rela
ting to
this b
usin
ess; (x
) UBS’s a
bility
to re
tain
and a
ttract th
e e
mplo
yees n
ece
ssary
to
genera
te re
venues a
nd to
manage, su
pport a
nd co
ntro
l its busin
esse
s, which
may b
e a
ffecte
d b
y co
mpetitiv
e fa
ctors in
cludin
g d
iffere
nce
s in co
mpensa
tion p
ractice
s; (xi)
changes in
acco
untin
g o
r tax sta
ndard
s or p
olicie
s, and d
ete
rmin
atio
ns o
r inte
rpre
tatio
ns a
ffectin
g th
e re
cognitio
n o
f gain
or lo
ss, the v
alu
atio
n o
f goodw
ill, the re
cognitio
n
of d
efe
rred ta
x a
ssets a
nd o
ther m
atte
rs; (xii) lim
itatio
ns o
n th
e e
ffectiv
eness o
f UBS’s in
tern
al p
roce
sses fo
r risk m
anagem
ent, risk
contro
l, measu
rem
ent a
nd m
odelin
g,
and o
f financia
l models g
enera
lly; (x
iii) wheth
er U
BS w
ill be su
ccessfu
l in k
eepin
g p
ace
with
com
petito
rs in u
pdatin
g its te
chnolo
gy, p
articu
larly
in tra
din
g b
usin
esse
s; (xiv
)
the o
ccurre
nce
of o
pera
tional fa
ilure
s, such
as fra
ud, u
nauth
orize
d tra
din
g a
nd sy
stem
s failu
res; a
nd (x
v) th
e e
ffect th
at th
ese
or o
ther fa
ctors o
r unanticip
ate
d e
vents m
ay
have o
n o
ur re
puta
tion a
nd th
e a
dditio
nal co
nse
quence
s that th
is may h
ave o
n o
ur b
usin
ess a
nd p
erfo
rmance
. The se
quence
in w
hich
the fa
ctors a
bove a
re p
rese
nte
d is
not in
dica
tive o
f their lik
elih
ood o
f occu
rrence
or th
e p
ote
ntia
l magnitu
de o
f their co
nse
quence
s. Our b
usin
ess a
nd fin
ancia
l perfo
rmance
could
be a
ffecte
d b
y o
ther fa
ctors
identifie
d in
our p
ast a
nd fu
ture
filings a
nd re
ports, in
cludin
g th
ose
filed w
ith th
e S
EC. M
ore
deta
iled in
form
atio
n a
bout th
ose
facto
rs is set fo
rth in
docu
ments fu
rnish
ed b
y
UBS a
nd filin
gs m
ade b
y U
BS w
ith th
e S
EC, in
cludin
g U
BS’s A
nnual R
eport o
n F
orm
20-F
for th
e y
ear e
nded 3
1 D
ece
mber 2
013. U
BS is n
ot u
nder a
ny o
blig
atio
n to
(and
This p
rese
nta
tion a
nd th
e in
form
atio
n co
nta
ined h
ere
in a
re p
rovid
ed so
lely
for in
form
atio
n p
urp
ose
s, and a
re n
ot to
be co
nstru
ed a
s a so
licitatio
n o
f an o
ffer
to b
uy o
r sell a
ny se
curitie
s or o
ther fin
ancia
l instru
ments in
Sw
itzerla
nd, th
e U
nite
d S
tate
s or a
ny o
ther ju
risdictio
n. N
o in
vestm
ent d
ecisio
n re
latin
g to
secu
rities o
f or
rela
ting to
UBS A
G o
r its affilia
tes sh
ould
be m
ade o
n th
e b
asis o
f this d
ocu
ment. R
efe
r to U
BS's th
ird q
uarte
r 2014 re
port a
nd its A
nnual re
port o
n F
orm
20-F
for th
e y
ear
ended 3
1 D
ece
mber 2
013. N
o re
pre
senta
tion o
r warra
nty
is made o
r implie
d co
nce
rnin
g, a
nd U
BS a
ssum
es n
o re
sponsib
ility fo
r, the a
ccura
cy, co
mple
teness, re
liability
or
com
para
bility
of th
e in
form
atio
n co
nta
ined h
ere
in re
latin
g to
third
partie
s, which
is base
d so
lely
on p
ublicly
availa
ble
info
rmatio
n. U
BS u
nderta
kes n
o o
blig
atio
n to
update
the in
form
atio
n co
nta
ined h
ere
in.
© U
BS 2
014. T
he k
ey sy
mbol a
nd U
BS a
re a
mong th
e re
giste
red a
nd u
nre
giste
red tra
dem
ark
s of U
BS. A
ll rights re
serv
ed.
Disclaim
er:
expre
ssly d
isclaim
s any o
blig
atio
n to
) update
or a
lter its fo
rward
-lookin
g sta
tem
ents, w
heth
er a
s a re
sult o
f new
info
rmatio
n, fu
ture
events, o
r oth
erw
ise.
-
2
3Q
14 h
ighlig
hts—
Gro
up
Stro
ng
un
de
rlyin
g re
su
lts; s
ign
ifica
nt D
TA
write
-up
an
d litig
atio
n
pro
vis
ion
s
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
Underly
ing
pro
fit befo
re ta
x (P
BT) C
HF 1
.7 b
illion
Net p
rofit a
ttributa
ble
to U
BS sh
are
hold
ers C
HF 7
62 m
illion, d
ilute
d E
PS C
HF 0
.20
Pro
visio
ns fo
r litigatio
n, re
gula
tory
and sim
ilar m
atte
rs CH
F 1
,836 m
illion
Net u
pw
ard
revalu
atio
n o
f defe
rred ta
x a
ssets C
HF 1
,420 m
illion
PBT n
egativ
e C
HF 5
54 m
illion, a
dju
sted P
BT n
egativ
e C
HF 4
24 m
illion
WM
, WM
A, R
&C
and G
lobal A
M a
ll reporte
d h
igher P
BT Q
oQ
and Y
oY
Stro
ng n
et n
ew
money C
HF 1
4.4
billio
n fro
m o
ur w
ealth
managem
ent
busin
esse
s
Base
l III fully
applie
d C
ET1 ra
tio 1
3.7
%, p
ost-stre
ss ratio
rem
ain
ed a
bove 1
0%
,
fully
applie
d S
wiss S
RB le
vera
ge ra
tio 4
.2%
, CH
F 7
billio
n re
ductio
n in
RW
A
-
Our w
ealth
managem
ent fra
nch
ise is u
nriv
ale
d
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
CH
F 1
.9 trillio
n in
ve
ste
d a
sse
ts; c
om
bin
ed
ad
juste
d P
BT
>C
HF
1 b
illion
3
Pro
fit befo
re ta
xadju
sted, C
HF m
illion
In
veste
d a
ssets
CH
F b
illion
Op
era
ting
inco
me
CH
F m
illion
Le
ad
ing
glo
ba
l fran
ch
ise
with
su
pe
rior g
row
th p
rosp
ects
an
d a
un
iqu
e g
lob
al fo
otp
rint
1,610
1,837
3,810
1,779
2,031
3,447
3Q13
WM
WMA
3Q14
3Q13
832
1,015
3Q14
+22%
3Q14
1,936
3Q13
1,702
+11%
+14%
248
215
767
617
970
871
966
831
-
4
3Q14highlights—
busin
ess
divisio
ns
1
Stro
ng
pe
rform
an
ce
with
un
de
rlyin
g P
BT
up
Yo
Y in
all b
usin
esse
s
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 F
igure
s on a
n a
dju
sted b
asis u
nle
ss oth
erw
ise sta
ted; 2
Refe
r to p
age 1
18 o
f the 3
Q14 re
port fo
r deta
ils on fu
ndin
g v
alu
atio
n a
dju
stments (F
VA)
Wealth
Man
ag
em
en
t:H
ighest P
BT sin
ce 2
Q09 C
HF 7
67 m
illion
–N
NM
CH
F 9
.8 b
illion, p
ositiv
e in
all re
gio
ns
Wealth
Man
ag
em
en
t Am
eric
as:
–Reco
rdin
com
eon
reco
rdFA
pro
ductiv
ityw
ithU
SD
1.1
millio
nin
annualize
dre
venues
per
FA
Reta
il & C
orp
ora
te:
–All K
PIs w
ithin
targ
et ra
nges fo
r 3Q
14 a
nd 9
M14
Glo
bal A
sset M
an
ag
em
en
t:
–PBT u
p 4
1%
QoQ
and 1
6%
YoY
In
vestm
en
t Ban
k:
–Pro
visio
ns fo
r litigatio
n, re
gula
tory
and sim
ilar m
atte
rs CH
F 1
,687 m
illion
Co
rpora
te C
en
ter:
imple
menta
tion
ofFVA
2
–N
on-co
re a
nd L
egacy
Portfo
lio R
WA d
ecre
ase
d 1
9%
Stro
ng p
erfo
rmance
, PBT U
SD
267 m
illion a
nd N
NM
USD
4.9
billio
n
Hig
hest P
BT sin
ce 3
Q10 C
HF 4
46 m
illion
Stro
ng p
erfo
rmance
, PBT C
HF 1
51 m
illion a
nd N
NM
CH
F 3
.8 b
illion e
x-M
M
Stro
ng u
nderly
ing P
BT C
HF 4
94 m
illion, u
p 4
7%
YoY
Reporte
d p
re-ta
x lo
ss CH
F 7
93 m
illion; C
HF 2
52 m
illion n
et lo
ss resu
lting fro
m th
e
-
Key m
essa
ges
Th
e fu
nd
am
en
tal e
arn
ing
s p
ow
er o
f ou
r un
riva
led
fran
ch
ise
is e
vid
en
t
–W
M/W
MA co
mbin
ed a
dju
sted P
BT >
CH
F 1
billio
n
–Stro
ng p
erfo
rmance
in R
eta
il & C
orp
ora
te w
ith a
ll KPIs w
ithin
targ
et ra
nges
–Solid
Investm
ent B
ank a
nd G
lobal A
M p
erfo
rmance
desp
ite ch
alle
ngin
g m
ark
et co
nditio
ns
Re
su
lts in
clu
de
pro
vis
ion
s fo
r litiga
tion
, reg
ula
tory
an
d s
imila
r ma
tters
–W
e co
ntin
ue to
seek re
solu
tion o
f open issu
es
–Tim
ing o
f full re
solu
tion o
f com
ple
x in
dustry
-wid
e issu
es is d
ifficult to
pre
dict
We
will c
on
tinu
e e
xe
cu
ting
ou
r stra
teg
y a
nd
are
we
ll po
sitio
ne
d fo
r gro
wth
–Seizin
g cu
rrent re
venue o
pportu
nitie
s and p
ositio
ned fo
r futu
re e
conom
ic reco
very
–Im
pro
vin
g e
fficiency
will re
lease
reso
urce
s to in
vest fo
r gro
wth
–C
ontin
ued re
ductio
n in
the N
on-co
re a
nd L
egacy
Portfo
lio
Ou
r ca
pita
l po
sitio
n is
stro
ng
an
d o
ur b
usin
esse
s a
re h
igh
ly c
ap
ital a
ccre
tive
–C
ontin
ued ca
pita
l strength
in a
n e
volv
ing re
gula
tory
enviro
nm
ent
–Share
-for-sh
are
exch
ange o
ffer in
pro
gre
ss creatin
g e
ligib
ility fo
r capita
l rebate
–C
om
mitte
dto
payout
ratio
of
at
least
50%
subje
ctto
main
tain
ing
our
capita
lta
rgets
1
51Payoutratio
ofatleast
50%
conditio
nalonboth
fully
appliedCET1
ratio
ofminim
um
13%
andfully
appliedCET1
ratio
ofminim
um
10%
post-stre
ss
-
6
Gro
up re
sults
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 R
efe
r to p
age 1
18 o
f the 3
Q14 re
port fo
r deta
ils on fu
ndin
g v
alu
atio
n a
dju
stments (F
VA)
CH
F m
illion
3Q
13
2Q
14
3Q
14
Tota
l opera
ting in
com
e6,2
61
7,1
47
6,8
76
Tota
l opera
ting e
xpense
s5,9
06
5,9
29
7,4
30
Pro
fit be
fore
tax
as re
po
rted
35
61
,21
8(5
54
)
of
whic
h:
ow
ncre
dit
on
financia
lliabilitie
sdesig
nate
datfa
irvalu
e(1
47)
72
61
of w
hic
h: g
ain
s on sa
les o
f real e
state
207
10
of w
hic
h: g
ain
on d
isposa
ls0
43
0
of w
hic
h: im
pairm
ent o
f a fin
ancia
l investm
ent a
vaila
ble
-for-sa
le0
0(4
8)
of w
hic
h: n
et re
structu
ring ch
arg
es
(188)
(89)
(176)
of
whic
h:
credit
rela
ted
toch
anges
toa
retire
ebenefit
pla
nin
the
US
00
33
Ad
juste
d p
rofit b
efo
re ta
x4
84
1,1
91
(42
4)
of w
hic
h: p
rovisio
ns fo
r litigatio
n, re
gula
tory
and sim
ilar m
atte
rs(5
86)
(254)
(1,8
36)
of w
hic
h: im
pairm
ent o
f certa
in d
ispute
d re
ceiv
able
s and o
ther ite
ms
0(5
3)
26
of w
hic
h: n
et lo
ss asso
ciate
d w
ith im
ple
menta
tion o
f FVA
--
(267)
Un
de
rlyin
g p
rofit b
efo
re ta
x1
,07
01
,49
81
,65
3
Pro
fit be
fore
tax
as re
po
rted
35
61
,21
8(5
54
)
Tax (e
xpense
)/benefit
222
(314)
1,3
17
Net p
rofit a
ttributa
ble
to p
refe
rred n
ote
hold
ers/n
on-co
ntro
lling in
tere
sts(1
)(1
12)
(1)
Ne
t pro
fit attrib
uta
ble
to U
BS
sh
are
ho
lders
57
77
92
76
2
Dilu
ted E
PS (C
HF)
0.1
5
0.2
1
0.2
0
Retu
rn o
n E
quity
(RoE) (%
)4.9
6.4
6.1
Tota
l book v
alu
e p
er sh
are
(CH
F)
12.5
8
13.2
0
13.5
4
Tangib
le b
ook v
alu
e p
er sh
are
(CH
F)
10.8
9
11.5
4
11.7
8
1
-
6.69.0
5.0
10.79.8
FY
12F
Y13
3Q13
2Q14
3Q14
Op
era
ting
inco
me a
nd
pro
fit befo
re ta
x
CH
F m
illion
Net n
ew
mo
ney
CH
F b
illion
7
Wealth
Managem
ent
Hig
he
st a
dju
ste
d P
BT
sin
ce
2Q
09
; NN
M C
HF
9.8
billio
n, p
ositiv
e in
all re
gio
ns
Op
era
ting
inco
me u
p 6
%
Recu
rring in
com
e u
p 8
% to
CH
F 1
,548 m
illion o
n h
igher
recu
rring n
et fe
e in
com
e a
nd h
igher n
et in
tere
st inco
me
Tra
nsa
ction-b
ase
d in
com
e u
p 1
% to
CH
F 4
79 m
illion
Stro
ng
net n
ew
mon
ey a
t CH
F 9
.8 b
illion
Positiv
e N
NM
in a
ll regio
ns, C
HF 7
.8 b
illion fro
m A
PAC
Bala
nce
d N
NM
inflo
ws, U
HN
W sh
are
of N
NM
at 5
8%
Annualize
d N
NM
gro
wth
rate
of 4
.2%
Ad
juste
d c
ost/
inco
me ra
tio 6
2%
Adju
sted e
xpense
s CH
F 1
,264 m
illion, d
ow
n 1
7%
fo
llow
ing lo
wer ch
arg
es fo
r litigatio
n, re
gula
tory
and
simila
r matte
rs of C
HF 1
4 m
illion in
3Q
14, d
ow
n fro
m
CH
F 2
91 m
illion in
2Q
14
Exclu
din
g ch
arg
es fo
r litigatio
n, re
gula
tory
and sim
ilar
matte
rs, the b
usin
ess e
xercise
d g
ood e
xpense
contro
l in
the q
uarte
r
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
Opera
ting in
com
e (a
s reporte
d)
Pro
fit befo
re ta
x (a
s reporte
d)
Pro
fit befo
re ta
x (a
dju
sted)
Quarte
rly
avera
ge
Pro
fit befo
re ta
x (a
dju
sted),
furth
er e
xclu
din
g p
rovisio
ns fo
r
litigatio
n, re
gula
tory
and
simila
r matte
rs
Man
date
pen
etra
tion
CH
F 7
.3 b
illion in
net m
andate
sale
s, penetra
tion u
p
from
24.2
% to
24.5
%
1,8
37
1,9
21
2,0
31
555
355
707
617
393
767
3Q13
2Q14
3Q14
684
684
781
-
8
Wealth
Managem
ent—
revenue b
y so
urce
In
cre
ase
d g
ross m
arg
in o
n h
igh
est q
ua
rterly
op
era
ting
inco
me
sin
ce
3Q
08
3Q
14
3Q
13
1Q
14
2Q
14
4Q
13
Inco
me (C
HF m
illion)
Gro
ss marg
in (b
ps)
Recu
rring in
com
e a
s a %
of in
com
e
Ne
t
inte
rest
inco
me
Re
cu
rring
ne
t fe
e in
co
me
Tra
nsa
ctio
n-
ba
se
d a
nd
oth
er
inco
me
Incre
ase
main
ly d
ue to
hig
her re
venues
allo
cate
d fro
m G
roup T
reasu
ry a
nd h
igher n
et
inte
rest in
com
e fro
m L
om
bard
lendin
g
Positiv
e e
ffect fro
m in
veste
d a
sset g
row
th,
pricin
g m
easu
res a
nd m
andate
sale
s more
than
offse
t impact o
f cross-b
ord
er a
sset o
utflo
ws
Hig
her F
X re
late
d tra
din
g in
com
e p
artia
lly o
ffset
by first-tim
e fe
es p
aid
to R
&C fo
r net clie
nt
shifts a
nd re
ferra
l fees
Gro
ss marg
in co
mponents (b
ps)
87
18
86
89
99
28
96
6In
ve
ste
d a
sse
tsCH
F b
illion
We
alth
Ma
na
gem
en
t1G
ross m
arg
in co
mponents o
n th
e slid
e d
o n
ot a
dd u
p to
tota
l due to
roundin
g
77%
77%
72%
75%
76%
85
85
87
84
1,8
37
1,8
59
1,9
43
1,9
19
2,0
31
2423
2223
24
517513
496518
569
4141
4040
41
891911
897922
978
20 20
25 21
20
429434
551479
484
861
-
5.2 8.4
7.1 9.1
5.1
2.4
7.0 5.0
8.9 7.8
0.1
(1.4)(2.2)(0.6)
1.0
0.1
(1.6)(2.5)
(0.7)
1.1 4.6
13.3 9.2
16.0 13.1 5.5
0.8
11.0 5.3
0.9 1.8
0.3
8.7 0.8
1.8
2.1 0.3
4.4 2.2
0.4 0.6
0.1
3.3
0.3 0.7
5.1
8.5 7.4
9.6
5.7
86 86
8583
83
3Q13
4Q13
1Q14
2Q14
3Q14
74 74
85 78
83
3Q13
4Q13
1Q14
2Q14
3Q14
92 91
90 89
91
3Q13
4Q13
1Q14
2Q14
3Q14
90 92
93 92
97
3Q13
4Q13
1Q14
2Q14
3Q14
5251
5552
57
3Q13
4Q13
1Q14
2Q14
3Q14
1Base
d o
n th
e W
ealth
Managem
ent b
usin
ess a
rea stru
cture
; refe
r to p
age 2
5 o
f the 3
Q14 fin
ancia
l report fo
r more
info
rmatio
n
Gro
ss
ma
rgin
bps
9
Ne
t ne
w
mo
ne
y
CH
F b
illion
In
ve
ste
d a
sse
tsCH
F b
illion
1,4
63
80
87
45
Clie
nt a
dvis
ors
FTE
30.9
.14
Euro
pe
Em
erg
ing M
ark
ets
of w
hich
: UH
NW
Wealth
Managem
ent—
by re
gio
n1
Sw
itzerla
nd
Asia
Pacific
1,1
89
76
5
47
83
58
25
81
74
16
5
Ne
t ne
w
mo
ne
y
gro
wth
rate
%
-
5.54.8
2.1(2.5)
4.9
5.76.3
5.45.7
5.6
FY
12F
Y13
3Q13
2Q14
3Q14
10
Wealth
Managem
ent A
merica
s
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
US
D 4
.9 b
illion
net n
ew
mon
ey
Stro
ng sa
me sto
re N
NM
and im
pro
ved
net re
cruitin
g
Annualize
d N
NM
gro
wth
rate
of 1
.9%
Ad
juste
d c
ost/
inco
me ra
tio 8
6%
Adju
sted e
xpense
s decre
ase
d slig
htly
to U
SD
1,6
51
millio
n
Charg
es fo
r litigatio
n, re
gula
tory
and sim
ilar m
atte
rs
rem
ain
ed e
levate
d a
t USD
50 m
illion
Op
era
ting
inco
me u
p 1
%
Reco
rd re
currin
g in
com
e a
s net in
tere
st inco
me ro
se 6
%to
USD
276 m
illion o
n co
ntin
ued g
row
th in
lendin
g
bala
nce
s, recu
rring n
et fe
e in
com
e in
crease
d 3
% to
USD
1,1
97 m
illion o
n h
igher m
anaged a
ccount a
ssets
Tra
nsa
ction-b
ase
d in
com
e d
ecre
ase
d 5
% o
n se
aso
nally
low
er clie
nt a
ctivity
NN
M e
xcl. d
ivid
ends &
inte
rest
Div
idends &
inte
rest
Opera
ting in
com
e (a
s reporte
d)
Quarte
rly
avera
ge
Pro
fit befo
re ta
x (a
s reporte
d)
Pro
fit befo
re ta
x (a
dju
sted)
11.2
11.1
7.5
3.2
Co
ntin
ued
stro
ng
FA
pro
du
ctiv
ity
Reco
rd a
nnualize
d re
venue p
er F
A o
f USD
1.1
millio
n
Investe
d a
ssets p
er F
A o
f USD
143 m
illion
Ad
juste
d P
BT
US
D 2
67
millio
n o
n re
co
rd in
co
me
an
d re
co
rd F
A p
rod
uctiv
ity
Op
era
ting
inco
me a
nd
pro
fit befo
re ta
x
USD
millio
n
Net n
ew
mo
ney
USD
billio
n
10.5
1,7481,898
1,919
218238
254232
246267
3Q13
2Q14
3Q14
-
11
Wealth
Managem
ent A
merica
s—FA p
roductiv
ity a
nd le
ndin
g
Re
co
rd in
ve
ste
d a
sse
ts a
nd
reve
nu
e p
er F
A
In
veste
d a
ssets
an
d F
A p
rod
uctiv
ity (U
SD
)N
II1
an
d le
nd
ing
bala
nce
2(U
SD
)
Investe
d a
ssets p
er F
A
Annualize
d re
venue p
er F
A
Mortg
ages
Oth
er5
Cre
dit lin
es4
Cre
dit lo
ss (expense
)/reco
very
Net in
tere
st inco
me
3
(5)
(16)
(2)
19
(9)
1 N
et in
tere
st inco
me 2
Perio
d-e
nd b
ala
nce
s; 3 T
ota
l WM
A n
et in
tere
st inco
me e
xclu
din
g th
e fo
llow
ing e
ffectiv
e in
tere
st rate
adju
stments fro
m m
ortg
age-b
ack
ed
secu
rities
inth
eavaila
ble
-for-sa
leportfo
lio(U
SD
):4Q
11
(3)m
illion,
4Q
12
2m
illion,
4Q
13
7m
illion,
1Q
14
(9)m
illion,
2Q
14
(3)m
illion
and
3Q
14
4m
illion;
4M
ostly
colla
tera
lized; 5
Main
ly m
arg
in lo
ans
Investe
d a
ssets (U
SD
billio
n)
(1)
109119
136139
143143
859
9671,042
1,0371,068
1,079
221228
269259
264272
756843
970987
1,0171,016
4Q11
4Q12
4Q13
1Q14
2Q14
3Q14
22.826.1
29.229.4
30.932.1
2.03.8
6.46.7
7.07.4
29.734.1
39.139.6
41.743.3
4Q11
4Q12
4Q13
1Q14
2Q14
3Q14
-
12
Op
era
ting
inco
me u
p 2
%
Net in
tere
st inco
me in
crease
d o
n h
igher re
venues fro
m
Gro
up T
reasu
ry a
nd im
pro
ved lo
an m
arg
in
Tra
nsa
ction-b
ase
d in
com
e in
crease
d, d
riven b
y th
e
imple
menta
tion o
f client sh
ift and re
ferra
l fees fro
m
Wealth
Managem
ent
CH
F 3
3 m
illion n
et cre
dit lo
ss expense
, up fro
m
CH
F 8
millio
n, p
artly
due to
seaso
nal e
ffects m
ain
ly in
co
rpora
tes
Ad
juste
d c
ost/
inco
me ra
tio 5
2%
Decre
ase
d la
rgely
due to
CH
F 4
8 m
illion lo
wer ch
arg
es
for p
rovisio
ns fo
r litigatio
n, re
gula
tory
and sim
ilar
matte
rs and re
duce
d p
rofe
ssional fe
es
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 N
et n
ew
busin
ess v
olu
me
Op
era
ting
inco
me a
nd
pro
fit befo
re ta
x
CH
F m
illion
Opera
ting in
com
e (a
s reporte
d)
Pro
fit befo
re ta
x (a
s reporte
d)
Pro
fit befo
re ta
x (a
dju
sted)
Net in
tere
st inco
me, C
HF m
illion
Net in
tere
st marg
in, b
ps
Net in
tere
st m
arg
in
Hig
he
st a
dju
ste
d P
BT
sin
ce
third
qu
arte
r 20
10
NN
BV1
gro
wth
rate
(reta
il bu
sin
ess)
%, a
nnualize
d
Reta
il & C
orp
ora
te
958938
958
402354
426
417367
446
3Q13
2Q14
3Q14
547 545
556531
542 531
540523
541 563
161 159
162154
157 154
157153
158 164
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
3.5
(0.3)
4.9 1.7
1.1
(0.3)
4.3 2.5
1.7
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
-
13
In
ve
stm
en
ts in
mo
bile
an
d e
-ba
nk
ing
su
pp
ort b
usin
ess g
row
th
Reta
il & C
orp
ora
te
Sig
nific
an
t bu
sin
ess g
row
th ra
te
Fin
ancia
l metrics a
ll substa
ntia
lly h
igher a
cross a
ge g
roups a
nd
segm
ents fo
r e-b
ankin
g a
nd m
obile
bankin
g cu
stom
ers
Hig
her c
lien
t loyalty
Low
er a
ttrition ra
te fo
r e-b
ankin
g clie
nts, e
specia
lly in
hig
her
wealth
segm
ents
Driv
en
by s
trate
gic
investm
en
ts
~40%
of cu
rrent R
&C stra
tegic IT
investm
ents fo
cuse
d o
n clie
nt-
facin
g d
igita
l and m
ulti-ch
annel ca
pabilitie
s
Investm
ents in
R&
C p
latfo
rm a
lso b
enefit o
ur W
M fra
nch
ise:
dire
ct use
by W
M clie
nts b
ooked in
Sw
itzerla
nd; S
wiss p
latfo
rm
levera
ged b
y clie
nts in
oth
er b
ookin
g ce
nte
rs
1 9
M14, fo
r Sw
iss priv
ate
clients (re
tail a
nd W
M S
witze
rland's h
igh n
et w
orth
clients) a
ctive in
both
Dece
mber 2
013 a
nd S
epte
mber 2
014, e
xclu
din
g re
nta
l deposits a
nd sin
gle
-purp
ose
acco
unts
(e.g
.m
ono-sa
ver
or
mortg
ages
only
);2
Retu
rnon
busin
ess
volu
me;
3N
et
new
busin
ess
volu
me
Fin
an
cia
ls b
y c
lien
t typ
e1
With
out e
-bankin
gW
ith e
-bankin
g o
nly
With
e-
and m
obile
bankin
g
In
co
me
pe
r
clie
nt a
cco
un
t
Ro
BV
2
NN
BV
3g
row
th
rate
pe
r clie
nt
acco
un
t
Hig
her c
lien
t satis
factio
n
Exce
llent clie
nt fe
edback
: contin
ued 5
-star A
pple
App sto
re
ratin
gs, a
ward
reco
gnitio
n, p
ositiv
e p
ress co
vera
ge
E-b
ankin
g a
nd m
obile
bankin
g clie
nts h
ave h
igher sa
tisfactio
n,
show
n b
y a
strong u
plift o
f the n
et p
rom
ote
r score
, driv
ing U
BS
reco
mm
endatio
n a
nd n
ew
busin
ess
1.2
x
2.9
x
1.3
x
-
447465
489
118105
154
130107
151
3Q13
2Q14
3Q14
14
Glo
bal A
sset M
anagem
ent
PB
T u
p 4
1%
Qo
Q a
nd
16
% Y
oY
; CH
F 3
.8 b
illion
NN
M e
xclu
din
g m
on
ey
ma
rke
ts
WM
busin
esse
sThird
party
Op
era
ting
inco
me u
p 5
%
Net m
anagem
ent fe
es u
p b
y C
HF 3
5 m
illion, d
riven b
y
the sa
le o
f a co
-investm
ent in
glo
bal re
al e
state
and
incre
ase
d fe
es o
n h
igher in
veste
d a
ssets
Perfo
rmance
fees o
f CH
F 2
7 m
illion, d
eclin
ed b
y
CH
F 1
1 m
illion a
s a d
ecre
ase
in th
e O
'Connor a
nd A
&Q
busin
ess lin
e w
ere
partly
offse
t by in
crease
s in
traditio
nal in
vestm
ents a
nd g
lobal re
al e
state
Ad
juste
d c
ost/
inco
me ra
tio 6
9%
Adju
sted o
pera
ting e
xpense
s dow
n 5
%, a
s the p
rior
quarte
r inclu
ded C
HF 3
3 m
illion in
charg
es fo
r litigatio
n,
regula
tory
and sim
ilar m
atte
rs
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 In
div
idual N
NM
channel to
tals m
ay n
ot a
dd u
p to
tota
l NN
M d
ue to
roundin
g
In
vestm
en
t perfo
rman
ce:
Gro
ss m
arg
in 3
1 b
ps
Unch
anged a
s hig
her re
venues w
ere
offse
t by th
e e
ffect
of a
hig
her in
veste
d a
sset b
ase
Quarte
rly
avera
ge
Opera
ting in
com
e (a
s reporte
d)
Pro
fit befo
re ta
x (a
s reporte
d)
Pro
fit befo
re ta
x (a
dju
sted)
CH
F 3
.8 b
illion
NN
M e
x-m
on
ey m
ark
et
NN
M b
y c
han
nel –
exclu
din
g m
on
ey m
ark
et1
CH
F b
illion
Op
era
ting
inco
me a
nd
pro
fit befo
re ta
x
CH
F m
illion
(1.3)(1.4)
(0.3)
2.93.9
(0.2)
0.2
(3.7)
8.7
0.0
FY
12F
Y13
3Q13
2Q14
3Q14
Stro
ng co
llectiv
e fu
nd p
erfo
rmance
vs. p
eers w
ith m
ark
ed
impro
vem
ent in
equity
fund ra
nkin
gs
Incre
ase
d N
NM
from
WM
busin
esse
s more
than o
ffset b
y lo
wer
contrib
utio
n fro
m th
ird p
artie
s
-
Un
de
rlyin
g P
BT
CH
F 4
94
millio
n, u
p 4
7%
Yo
Y
15
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 B
ase
d o
n p
hase
-in B
ase
l III RW
A; 2
Refe
r to p
age 1
18 o
f the 3
Q14 re
port fo
r deta
ils on fu
ndin
g v
alu
atio
n a
dju
stments (F
VA)
Ad
juste
d o
pera
ting
incom
e u
p 1
6%
Yo
Y
Stro
ng d
eliv
ery
in a
seaso
nally
slow
quarte
r; up Y
oY o
n
strong C
CS a
nd e
quitie
s perfo
rmance
; FX, R
ate
s and
Cre
dit im
pacte
d b
y ch
alle
ngin
g cre
dit tra
din
g co
nditio
ns
Op
era
ting
inco
me a
nd
pro
fit befo
re ta
x1
CH
F m
illion
Investm
ent B
ank
Ad
juste
d c
ost/
inco
me ra
tio 1
61
%
Adju
sted o
pera
ting e
xpense
s up C
HF 1
,818 m
illion Y
oY,
driv
en b
y C
HF 1
,687 m
illion in
charg
es fo
r litigatio
n,
regula
tory
and sim
ilar m
atte
rs
Underly
ing o
pera
ting e
xpense
s up 9
% Y
oY o
n h
igher
perso
nnel e
xpense
sO
pera
ting in
com
e (a
dju
sted)
Pro
fit befo
re ta
x (a
s reporte
d)
Pro
fit befo
re ta
x (a
dju
sted)
Pro
fit befo
re ta
x (u
nderly
ing)
Fo
cu
se
d re
so
urc
e u
tiliza
tion
1,7072,241
1,985
251 579
(1,284)
335 563
(1,205)
3Q13
2Q14
3Q14
494
CH
F m
illion
3Q
13
2Q
14
3Q
14
Pro
fit be
fore
tax
as re
po
rted
251
579
(1,2
84
)
Ad
juste
d p
rofit b
efo
re ta
x335
563
(1,2
05
)
of w
hic
h: p
rovisio
ns fo
r litigatio
n, re
gula
tory
and sim
ilar m
atte
rs(2
)(1
1)
(1,6
87)
of w
hic
h: n
et lo
ss asso
ciate
d w
ith
imple
menta
tion o
f FVA
2-
-(1
2)
Un
de
rlyin
g p
rofit b
efo
re ta
x337
574
49
4
3Q
13
2Q
14
3Q
14
Underly
ing
cost/in
com
e ra
tio (%
)80
74
75
Underly
ing
RoAE (%
)17
31
27
RW
A (C
HF b
illion)
59
68
62
RW
A e
x-o
pera
tional risk
(CH
F b
illion)
46
47
46
RoRW
A1
(%, g
ross)
11
14
12
Funded a
ssets (C
HF b
illion)
172
182
17
3
Sw
iss SR
B L
RD
(CH
F b
illion)
-278
27
9
Fro
nt o
ffice sta
ff (FTE)
5,3
18
5,1
67
5,2
85
-
16
Hig
he
st 3
Q re
ve
nu
es in
eq
uitie
s s
ince
20
10
; CC
S u
p Y
oY
in a
ll reg
ion
s
Co
rpora
te C
lien
t So
lutio
ns (C
CS
)
Ad
vis
ory
up
31
%w
ith b
ala
nce
d m
ix o
f M&
A a
nd
adviso
ry re
venues, stro
ng p
erfo
rmance
from
EM
EA a
nd
APAC
Eq
uity
ca
pita
l ma
rke
ts u
p 2
0%
with
a stro
ng
particip
atio
n in
rights issu
es a
nd IP
Os
Deb
tca
pita
lm
ark
ets
up
15
%as
DCM
impro
ved
acro
ss all re
gio
ns a
nd L
CM
contin
ued o
n its m
om
entu
m
from
1H
14
Fin
an
cin
gso
lutio
ns
up
25
%on
an
impro
ved
perfo
rmance
in th
e stru
cture
d fin
ancin
g b
usin
esse
s
In
vesto
r Clie
nt S
erv
ices
2 (I
CS
)
Eq
uitie
su
p7
%driv
en
by
financin
gse
rvice
s;nam
ed
"Stru
cture
d P
roducts H
ouse
of th
e Y
ear" a
nd "C
orp
ora
te
FX
Ra
tes
an
dC
red
itd
ow
n7
%w
ithslig
ht
impro
vem
ent in
FX, b
ut w
as m
ore
than o
ffset b
y w
eaker
credit re
venues
Adviso
ry
Debt ca
pita
l mark
ets
Fin
ancin
g so
lutio
ns
Risk
managem
ent
Equitie
s
FX, R
ate
s and C
redit
Ad
juste
d in
co
me
1
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 3
Q14 E
quitie
s resu
lts adju
sted fo
r a lo
ss of C
HF 4
8 m
illion (U
SD
50 m
illion) fro
m a
n im
pairm
ent o
f a fin
ancia
l investm
ent a
vaila
ble
-for-sa
le; 2
Refe
r to th
e
"Regula
tory
and
legaldevelo
pm
ents
and
financia
lre
portin
gch
anges"
sectio
nof
the
3Q
14
report
for
more
info
rmatio
non
the
shift
of
our
exch
ange
traded
fixed
inco
me
deriv
ativ
es
execu
tion
busin
ess
from
equitie
sin
tofo
reig
nexch
ange,
rate
sand
credit;
3Septe
mber
2014
Co
rpora
te
In
vesto
r
Investm
ent B
ankCH
F m
illion
USD
millio
n
CH
F m
illion
USD
millio
n
YoY co
mpariso
n in
USD
term
s
Serv
ices
Clie
nt
Solu
tion
sC
lien
t
(70)
33113
149 164
197 185
216 112
143 505
738
3Q13
3Q14
(76)
35123
161178
214202
233122
153548
796
3Q13
3Q14
9391,003
368341
1,3071,344
3Q13
3Q14
864932
338315
1,2021,247
3Q13
3Q14
Equity
capita
l mark
ets
Deriv
ativ
es
House
of
the
Year"
by
Glo
balC
apita
l3
-
17
Corp
ora
te C
ente
r—Core
Functio
ns
Re
po
rted
pro
fit be
fore
tax
of n
eg
ativ
e C
HF
19
0 m
illion
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
Op
era
ting
inco
me a
nd
pro
fit befo
re ta
x
CH
F m
illion
Op
era
ting
inco
me C
HF 5
millio
n
Op
era
ting
exp
en
ses C
HF 1
94
millio
n
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
Tre
asu
ry in
com
e re
main
ing in
CC-C
F(2
19)
(343)
(46)
(55)
(65)
Ow
n cre
dit g
ain
/(loss)
(147)
(94)
88
72
61
Oth
er
169
72
96
9
Op
era
ting
inco
me
(as re
po
rted
)(1
97
)(3
65
)5
12
35
Ow
n cre
dit g
ain
/(loss)
(147)
(94)
88
72
61
Gain
s on sa
les o
f real e
state
207
61
23
10
Early
redem
ptio
n/b
uyback
of U
BS d
ebt
0(7
5)
00
0
Ad
juste
d o
pe
ratin
g in
co
me
(25
7)
(25
7)
(60
)(5
0)
(56
)
Op
era
ting
ex
pe
nse
s (a
s re
po
rted
)2
82
20
02
27
(2)
19
4
Net re
structu
ring ch
arg
es
(1)
(7)
24
16
Ad
juste
d o
pe
ratin
g e
xp
en
se
s
28
32
07
22
5(6
)1
78
Pro
fit be
fore
tax
(as re
po
rted
)(4
79
)(5
65
)(1
76
)2
5(1
90
)
Pro
fit be
fore
tax
(ad
juste
d)
(54
0)
(46
4)
(28
5)
(44
)(2
35
)
Perso
nnel (a
fter a
lloca
tion)
1,1
39
1,0
55
951
881
916
Net tre
asu
ry in
com
e re
main
ing in
Corp
ora
te
Cente
r –Core
Functio
ns in
cluded C
HF 2
07
millio
n o
f reta
ined fu
ndin
g co
sts
Reta
ined fu
ndin
g co
sts partly
offse
t by
CH
F 6
5 m
illion in
gain
s on cro
ss-curre
ncy
basis sw
aps, in
tere
st inco
me C
HF 2
9 m
illion
rela
ted to
pre
ferre
d se
curitie
s and n
et g
ain
s CH
F 2
5 m
illion re
late
d to
hig
h-q
uality
liquid
asse
t portfo
lios
Incre
ase
larg
ely
due to
net re
lease
of
CH
F 1
41 m
illion fo
r pro
visio
ns, fo
r litig
atio
n, re
gula
tory
and sim
ilar m
atte
rs in
2Q
14 a
nd C
HF 6
9 m
illion in
crease
from
the d
iffere
nce
betw
een a
ctual
costs in
curre
d a
nd th
e co
st allo
catio
ns
charg
ed
-
18
Corp
ora
te C
ente
r—N
on-co
re a
nd L
egacy
Portfo
lio
Op
era
ting
inco
me a
nd
pro
fit befo
re ta
x
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 R
efe
r to p
age 1
18 o
f the 3
Q14 re
port fo
r deta
ils on fu
ndin
g v
alu
atio
n a
dju
stments (F
VA)
CH
F m
illion
Re
po
rted
pro
fit be
fore
tax
of n
eg
ativ
e C
HF
60
3 m
illion
Op
era
ting
inco
me
neg
ativ
e C
HF 3
22
millio
n
Op
era
ting
exp
en
ses
CH
F 2
80
millio
n
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
Non-co
re(1
20)
(104)
17
(151)
(233)
of w
hich
: DVA
(47)
(68)
(19)
(44)
-
of w
hich
: FVA/D
VA
--
--
(188)
Legacy
Portfo
lio21
(36)
13
(15)
(92)
of w
hich
: SN
B S
tabFund o
ptio
n74
(28)
(1)
00
Cre
dit lo
ss (expense
)/reco
very
(1)
11
0(2
)2
To
tal o
pe
ratin
g in
co
me
(10
0)
(13
0)
29
(16
7)
(32
2)
Ad
juste
d o
pe
ratin
g in
co
me
(10
0)
(13
0)
29
(16
7)
(32
2)
Op
era
ting
ex
pe
nse
s (a
s re
po
rted
)5
93
31
72
54
24
52
80
Net re
structu
ring ch
arg
es
524
9(2
)10
Cre
dit re
late
d to
changes to
a re
tiree b
enefit p
lan in
the U
S0
00
0(3
)
Ad
juste
d o
pe
ratin
g e
xp
en
se
s
58
82
93
24
52
47
27
3
Pro
fit be
fore
tax
(as re
po
rted
)(6
93
)(4
46
)(2
25
)(4
12
)(6
03
)
Pro
fit be
fore
tax
(ad
juste
d)
(68
8)
(42
2)
(21
6)
(41
4)
(59
6)
Perso
nnel (fro
nt o
ffice)
245
222
195
160
150
Negativ
e in
com
e in
both
Non-co
re a
nd
Legacy
Portfo
lio la
rgely
driv
en b
yCH
F 2
52 m
illion n
et lo
ss resu
lting fro
mth
e im
ple
menta
tion o
f FVA
No
n-c
ore
:CH
F 1
88 m
illion n
et lo
ss rela
ted
to F
VA/D
VA, o
f which
CH
F 1
75 m
illion w
as
the n
et lo
ss upon im
ple
menta
tion o
f FVA
Le
ga
cy P
ortfo
lio:N
egativ
e in
com
e d
riven
by C
HF 7
7 m
illion n
et lo
ss upon
imple
menta
tion o
f FVA
Incre
ase
larg
ely
due to
charg
es o
f CH
F 8
9
millio
n fo
r pro
visio
ns fo
r litigatio
n,
regula
tory
and sim
ilar m
atte
rs vs. a
net
rele
ase
of 2
7 m
illion in
2Q
14
2Q
14 in
cluded a
n im
pairm
ent ch
arg
e o
f CH
F 7
8 m
illion re
late
d to
certa
in d
ispute
d
rece
ivable
s
1
1
1
-
Corporate
Center—
Non-co
reandLegacy
Portfo
lio1
19
No
n-c
ore
an
d L
eg
acy P
ortfo
lio R
WA
CH
F b
illion
Op
era
tion
al
risk3
No
n-c
ore
cre
dit
No
n-c
ore
rate
s
No
n-c
ore
oth
er
Le
ga
cy
Po
rtfolio
4
Ma
rke
t an
d c
red
it risk
RW
A d
ow
n 1
7%
, LR
D d
ow
n 1
2%
in th
e q
ua
rter
No
n-c
ore
OT
C p
ositio
ns n
atu
ral d
eca
y o
f RW
ACH
F b
illion
Orig
inale
stimate
at
30.9
.12
5
Actu
al a
t 30.9
.14 a
nd u
pdate
d
pro
jectio
nfo
rfu
ture
date
s6
1 R
efe
r to p
ages 6
8-7
0 o
f the 3
Q14 re
port fo
r more
info
rmatio
n; 2
Pro
-form
a e
stimate
for 3
1.1
2.1
2 b
ase
d o
n p
erio
d e
ndin
g b
ala
nce
; 3 N
on-co
re a
nd L
egacy
Portfo
lio
opera
tional risk
; 4 E
xclu
din
g o
pera
tional risk
; 5 E
stimate
s disclo
sed in
the 3
Q12 p
rese
nta
tion; 6
Estim
ate
s base
d o
n 3
0.9
.14 d
ata
Non-co
re
Legacy
Portfo
lio
No
n-c
ore
an
d L
eg
acy P
ortfo
lio S
wis
s S
RB
LR
D2
CH
F b
illion
33
30.9.14
44%
95%
of N
on-co
re R
WA
ex-o
pera
tional risk
are
OTC p
ositio
ns w
hich
will
natu
rally
deca
y o
ver tim
e
12
2722
17
109
8
31.12.1531.12.16
31.12.17
20.3
3.71.8
29.3
9.69.2
4.5
1.31.3
34.2
14.111.3
14.2
23.1
18.4
102.5
51.9
42.1
31.12.1230.6.14
30.9.14
~255
9987
~38
2219
~293
121106
31.12.1230.6.14
30.9.14
-
Corp
ora
te C
ente
r cost re
ductio
ns
20
Co
re F
un
ctio
ns:
CH
F1
.0b
illion
ne
tco
st
red
uctio
nta
rge
tb
y2
01
51
Adju
sted o
pera
ting e
xpense
s befo
re a
lloca
tions to
busin
ess d
ivisio
ns
CH
F b
illion
No
n-c
ore
an
d L
eg
acy P
ortfo
lio:
CH
F0
.4b
illion
ne
tco
st
red
uctio
nta
rge
tb
y2
01
51
Adju
sted o
pera
ting e
xpense
s
CH
F b
illion
Refe
r to slid
e 3
4 in
the a
ppendix
for d
eta
ils about a
dju
sted n
um
bers; ch
arts illu
strativ
e o
nly
and b
ars n
ot to
scale
1 R
efe
r to p
age 1
1 o
f the 2
Q14 re
port fo
r deta
ils on o
ur co
st reductio
n ta
rgets
Ach
ieved n
et co
st reductio
n o
f ~CH
F 0
.1 b
illion v
s. 9M
13
Annualize
d 9
M14 co
sts low
er th
an p
revio
us y
ear p
rimarily
due to
decre
ase
in litig
atio
n p
rovisio
ns
Ach
ieved n
et co
st reductio
n o
f ~CH
F 0
.2 b
illion v
s. 9M
13
Sig
nifica
ntly
low
er p
rovisio
ns fo
r litigatio
n a
nd re
gula
tory
m
atte
rs
~C
HF 0
.3 b
illion
of n
et c
ost re
du
ctio
ns a
ch
ieve
d y
ea
r-to-d
ate
Ne
t co
st
re
du
ctio
n
9M13
annualized
adjusted
operatin
g
expenses
9M14
annualized
adjusted
operatin
g
expenses
2.8
Changes in
pro
visio
ns
for litig
atio
n,
regula
tory
and sim
ilar
matte
rs
Ne
t co
st
re
du
ctio
nFX
move
ments
Changes in
re
gula
tory
dem
and o
f te
mpora
ry natu
re
9M13
annualized
adjusted
operatin
g
expenses
9M14
annualized
adjusted
operatin
g
expenses
7.8
7.6
1.0
Changes in
pro
visio
ns
for litig
atio
n,
regula
tory
and sim
ilar
matte
rs
(0.4)
0.3
(0.1)
(0.1)
(0.2)
(1.6)
-
~0.9
~0.9
~0.4
~0.5
~1.0
~0.8
~1.5
~1.4
~0.7
~1.5
~2.2
Gu
idan
ceA
ctual
Update
d re
structu
ring co
st guid
ance
21
1 In
itially
announce
d 3
0.1
0.1
2; 2
Additio
nal te
mpora
ry co
sts that a
re n
ece
ssary
to e
ffect o
ur co
st reductio
n p
rogra
m b
ut n
ot cla
ssified a
s restru
cturin
g ch
arg
es;
3 R
efe
r to p
age 1
54 o
f our 3
Q14 re
port fo
r the d
efin
ition o
f restru
cturin
g ch
arg
es; 4
Cum
ula
tive to
tal in
itial g
uid
ance
for 2
011-2
013 a
s announce
d 2
3.8
.11 a
nd 3
0.1
0.1
2; 5
Refe
r to
page 1
1 o
f our 2
Q14 re
port fo
r deta
ils about o
ur co
st reductio
n ta
rgets
2011-2013
CH
F b
illion
2014-2015
CH
F b
illion
2016-2017
CH
F b
illion
Actu
al re
structu
ring e
xpense
s have
been lo
wer th
an g
uid
ance
4
2011-2
013 re
structu
ring co
sts
~CH
F 0
.6 b
illion b
elo
w g
uid
ance
Com
mitte
d to
our C
HF 1
.4 b
illion n
et co
st
reductio
nta
rget
for
2015
year-e
nd
run-ra
te5
Revise
d re
structu
ring g
uid
ance
for 2
014-2
015
IT in
frastru
cture
and sim
plifica
tion in
vestm
ent w
ill
acco
unt fo
r ~50%
of to
tal re
structu
ring co
sts and
additio
nal C
tA in
2015-2
017
2014
2015
Pre
vio
us
guid
ance
1
Additio
nalco
st-to-a
chie
ve
2
(CtA
)
Restru
cturin
gco
sts3
(exclu
ded
from
adju
sted
resu
lts)
2016
2017
Com
mitte
d to
our C
HF 0
.7 b
illion n
et
cost re
ductio
n ta
rget
5as w
e fu
lly e
xit
the N
on-co
re a
nd L
egacy
Portfo
lio
Guid
ance
perio
d e
xte
nded to
2017 a
s we in
vest to
offse
t ongoin
g
incre
menta
l regula
tory
costs
-
Net ta
x b
enefit a
nd d
efe
rred ta
x a
ssets
1D
TA
figure
sare
state
dnet
of
DTL;
2As
of
30.9
.14,
the
net
DTA
reco
gnize
don
UBS's
bala
nce
sheet
(CH
F10,0
74
millio
n)
inclu
des
ata
xlo
ssD
TA
(CH
F 6
,860 m
illion) a
nd a
DTA fo
r tem
pora
ry d
iffere
nce
s (CH
F 3
,214 m
illion); 3
DTA a
nnual re
valu
atio
ns p
erfo
rmed in
3Q
14 b
ut sm
alle
r revalu
atio
ns ca
n ta
ke p
lace
at d
iffere
nt
times fo
r specific e
ntitie
s base
d o
n sp
ecific circu
msta
nce
s; 4 A
s disclo
sed o
n p
age 6
9 in
our 2
013 A
nnual R
eport, U
BS m
ay, d
ependin
g o
n o
ur fin
ancia
l perfo
rmance
, incre
ase
the
futu
re p
rofit re
cognitio
n p
erio
d. W
here
appro
pria
te, su
ch a
n e
xte
nded D
TA p
rofit re
cognitio
n p
erio
d w
as a
pplie
d in
3Q
14.
5 y
ea
rs
Year: 1
23
45
68
7…
Tax lo
ss D
TA
1
CH
F b
illion
22
DT
A re
valu
atio
n3
Illustra
tive e
xam
ple
Ne
t tax
be
ne
fit of C
HF
1,3
17
millio
n; D
TA
po
ten
tial re
ma
ins s
ign
ifica
nt
9
6 y
ea
rs
2013
2014
Net
upw
ard
revalu
atio
nof
DTA
for
the
Gro
up
of
CH
F1,4
20
millio
nre
cognize
din
3Q
14,additio
nal~
CH
F0.4
billio
nexpecte
dto
be
reco
gnize
d in
4Q
14
The fu
ture
pro
fit reco
gnitio
n p
erio
d u
sed fo
r DTA re
valu
atio
n w
as e
xte
nded fro
m 5
years to
6 y
ears
Avera
ge u
nre
cognize
d ta
x lo
ss DTA h
ave a
rem
ain
ing life
of ~
16 y
ears in
the U
S a
nd ~
2 y
ears in
Sw
itzerla
nd; u
nre
cognize
d ta
xlo
sses h
ave in
defin
ite life
in th
e U
K
Tota
l2
US
RoW
CH
UK
3
6.93.6
3.10.1
0.1
23.1
16.4
2.82.9
1.0
CH
F m
illion
Netdefe
rred
tax
benefit
with
resp
ect
tore
cognitio
nofD
TA
1,4
20
Oth
er n
et ta
x e
xpense
in re
spect o
f 3Q
14 ta
xable
pro
fits(1
03)
Net ta
x b
en
efit
1,3
17
Exte
nded p
rofit re
cognitio
n p
erio
d4
Unre
cognize
d
Reco
gnize
d
-
99107
115129
~105
~105
6268
6214
7070
6452
4276
~40
~25
~400
225227
219219
<215
<200
30.9.1131.12.13
30.6.1430.9.14
30.9.14by risktype
31.12.15target
31.12.17target
Sw
iss SR
B ca
pita
l and le
vera
ge ra
tios
Fu
lly a
pp
lied
CE
T1
ca
pita
l ratio
of 1
3.7
% a
nd
leve
rag
e ra
tio o
f 4.2
%
Sw
iss S
RB
RW
A a
nd
cap
ital ra
tios
CH
F b
illion
Sw
iss S
RB
LR
D a
nd
levera
ge ra
tioCH
F b
illion
Non-co
re a
nd L
egacy P
ortfo
lio
Levera
ge ra
tio (fu
lly a
pplie
d)
Levera
ge ra
tio (p
hase
-in)
Sw
iss SR
B to
tal e
xposu
re
Refe
r to slid
e 3
6 fo
r deta
ils about a
dju
sted a
nd u
nderly
ing n
um
bers, B
ase
l III num
bers a
nd F
X ra
tes in
this p
rese
nta
tion
1 A
t the e
nd o
f the th
ird q
uarte
r, our p
ost-stre
ss CET1 ca
pita
l ratio
exce
eded o
ur o
bje
ctive o
f ach
ievin
g a
nd m
ain
tain
ing a
post-stre
ss CET1 ca
pita
l ratio
of a
t least 1
0%
on a
fully
applie
dbasis.
Refe
rto
the
"Capita
lm
anagem
ent"
sectio
nof
the
3Q
14
financia
lre
port
for
more
deta
il;2
Inclu
des
CH
F15
billio
nfo
r
non-co
unte
rparty
-rela
ted risk
; 3 F
ull e
xit of N
on-co
re a
nd L
egacy
Portfo
lio e
quiv
ale
nt to
~45-5
5 b
ps in
crease
in fu
lly a
pplie
d S
wiss S
RB le
vera
ge ra
tio b
ase
d o
n cu
rrent fu
lly a
pplie
d
Sw
iss SRB le
vera
ge ra
tio n
um
era
tor a
nd d
enom
inato
r; 4 B
ase
d o
n th
e ru
les a
pplica
ble
as o
f the a
nnounce
ment o
f the ta
rget (6
.5.1
4)
Investm
ent B
ank
Oth
er b
usin
ess d
ivisio
ns a
nd
Corp
ora
te C
ente
r –Core
Functio
ns
Non-co
re a
nd L
egacy P
ortfo
lio
CET1
capita
lratio
(fully
applie
d)1
Tota
l capita
l ratio
(fully
applie
d)
23
Opera
tional35%
Mark
et 6
%
Cre
dit
259%
4.7
%
5.3
%5.4
%
3.4
%
4.2
%4.2
%
15.4
%
18.1
%18.7
%
6.2
%
12.8
%13.5
%13.7
%
160
121
106
3
1,0
20
981
985
900
31.1
2.1
330.6
.14
30.9
.14
2016
targ
et4
-
~22%
~21% ~
35%
24
Curre
ncy
sensitiv
ites
Group
CC –
Core
Functio
ns
Investm
ent
Bank
CH
FU
SD
EU
RO
ther
RWA
Fully
applie
d
LRD
Fully
applie
d
~13%
A 1
0%
dep
recia
tion
of th
e S
wis
s
fran
c a
gain
st o
ther c
urre
ncie
s
wo
uld
:
Cu
rren
cy d
istrib
utio
n o
f RW
A a
nd
LR
D%
of to
tal
Perce
nta
ges o
n ch
arts m
ay n
ot a
dd u
p to
100%
due to
roundin
g
1 B
ase
d o
n p
erio
d e
ndin
g b
ala
nce
as o
f 30.9
.14
US
D a
pp
recia
tion
/C
HF
de
pre
cia
tion
infla
tes R
WA
, ba
lan
ce
sh
ee
t an
d L
RD
Base
l III CET1
(fully
applie
d)
Equity
attrib
uta
ble
to
share
hold
ers
~15%
~24%
~33% ~2
5%
~17%
~14%
~46% ~
23%
~19%
~12%
~63%
27%
Cu
rren
cy d
istrib
utio
n o
f eq
uity
% o
f tota
l
~10%
~6%
~35%
~56%
~24%
~67%
~3%~
6%
~3%
~6%
Opera
tional risk
RW
A (C
HF)
~2%
~22%
~55%
~2%
~1%
~8%
~43% ~6
%
~42%
Incre
ase
fully
applie
d R
WA b
y ~
5%
Incre
ase
fully
applie
d L
RD1
by ~
8%
Incre
ase
IFRS e
quity
by ~
5%
Incre
ase
Base
l III fully
applie
d C
ET1 ca
pita
l by
~3%
1
-
Inte
rest ra
te s
ensitiv
ities1
Ou
r rev
en
ue
s a
re p
ositiv
ely
ge
are
d to
risin
g in
tere
st ra
tes
1 F
or
all
scenario
s,in
tere
stra
tein
crease
sare
assu
med
tobe
equalacro
ssall
curre
ncie
sand
rela
tive
toim
plie
dfo
rward
rate
sbase
don
static
bala
nce
sheet
and
consta
nt
FX ra
tes; 2
The e
stimate
d im