UBS Group AG (NYSE:UBS) Q1 2024 Results Conference Call May 7, 2024 3:00 AM ET Company Participants Sarah Mackey - Head, Investor Relations Sergio Ermotti - Group Chief Executive Officer Todd Tuckner - Group Chief Financial Officer Conference Call Participants Alastair Ryan - Bank of America Chris Hallam - Goldman Sachs Kian Abouhossein - JPMorgan Giulia Miotto - Morgan Stanley Jeremy Sigee - BNP Paribas Exane Andy Coombs - Citigroup Anke Reingen - RBC Ben Goy - Deutsche Bank Piers Brown - HSBC Tom Hallett ...

UBS Group AG, the Swiss multinational investment bank and financial services firm, released its quarterly earnings report for Q1 of FY24 on 7 May 2024.Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.The company reported a net profit of $1.8 billion and an underlying PBT of $2.6 billion, with 15% growth Q1 in underlying revenues, and a 5% quarter-on-quarter reduction in underlying operating expenses, resulting in significant positive operating leverage ...

UBS Group AG (UBS) , following its acquisition of Credit Suisse, plans to cut jobs in five separate waves, starting this June. In August 2023, UBS announced its plan to lay off around one in 12 employees in Switzerland to reduce costs by more than $10 billion by 2026. In total, 50-60% of former Credit Suisse employees are likely to be made redundant. The news was reported by Reuters, which cited the SonntagsZeitung newspaper.UBS' plan to reduce costs will mainly result from cutting its workforce. According ...

UBS Group AG (UBS) is considering attaining the complete ownership of its operations in China. In order to do so, UBS will swap its holding in Credit Suisse’s (“CS”) onshore securities business with a Beijing government investment fund. This news was reported by Bloomberg, citing people familiar with the matter.Particularly, UBS Group will acquire 33% stake held in its joint venture with Beijing State-Owned Assets Management Co., UBS Securities Co. In return, UBS is willing to sell part of or its entire 51% ...

UBS logo is seen at the office building in Krakow, Poland on February 22, 2024. (Photo by Jakub ... [+] Porzycki/NurPhoto via Getty Images)NurPhoto via Getty ImagesUBS’ stock (NYSE: UBS) has gained 1% YTD, whereas S&P500 has increased 9% over the same period. Further, at the current price of $31 per share, it is trading at par with its fair value – Trefis’ estimate for UBS’s valuation. Amid the current financial backdrop, UBS stock has seen extremely strong gains of 100% from levels of $15 in early January ...

UBS Group AG (UBS) has announced that its joint venture (JV) with SuMi TRUST Wealth Management Co, (“SuMi”) is set to acquire Credit Suisse's (“CS”) wealth management business in Japan, per Reuters.Per the deal, after the addition of CS’ client assets, UBS Group and SuMi will realign their investments to continue the initial ownership arrangement with UBS retaining 51% and SuMi maintaining 49% ownership in the venture. This JV between UBS and SuMi was launched in August 2021.CS’ advisors and the wealth mana ...

UBS Group AG (UBS) has announced a new share repurchase program. Under the plan, starting from Apr 3, the company is authorized to buy back up to $2 billion worth of common stock. The program will expire on Apr 2, 2026. This year, UBS is expected to buy back up to $1 billion worth of shares under the new plan. This will start following the completion of the merger between UBS AG and Credit Suisse AG, which is expected to take place in the second quarter of 2024. The merger deal was announced on Mar 19, 2023 ...

Key TakeawaysUBS Group announced Tuesday that it would be repurchasing up to $2 billion of its shares over the next two years.The Swiss financial firm said the first billion of the buybacks would occur following the completion of its merger with rival Credit Suisse, which it expects by the end of this quarter.UBS said its goal is for share repurchases to exceed their pre-acquisition level by 2026. UBS Group AG (UBS) said Tuesday it is launching a new $2 billion stock buyback program over the next two years. ...

Merger and Integration of UBS and Credit Suisse - UBS Group AG acquired Credit Suisse Group AG on 12 June 2023, integrating its assets and liabilities into UBS Group AG consolidated[9] - The merger of UBS AG and Credit Suisse AG is expected to be completed by the end of Q2 2024, pending regulatory approvals[10] - UBS Group AG expects to complete the transition to a single US intermediate holding company in Q2 2024 and the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG in Q3 2024[10] - The legal entity mergers are critical for unlocking cost, capital, and funding synergies expected in 2025 and 2026[10] - The acquisition of Credit Suisse Group impacts Basel III Pillar 3 disclosures, including specialized lending and securitization exposures[9] - UBS Group AG applied IFRS 3 measurement period adjustments for the acquisition of Credit Suisse Group in Q3 and Q4 2023[10] - The acquisition of Credit Suisse Group contributed to an increase in defaulted loans, debt securities, and off-balance sheet exposures by USD 3,298 million in the first half of 2023[52] - The acquisition of Credit Suisse Group contributed $92,486 million to RWA in Q2 2023[89] Regulatory Compliance and Basel III Framework - UBS Group AG is required to comply with Basel III framework regulations as a systemically relevant bank under Swiss banking law[8] - The Pillar 3 Report includes disclosures for UBS Group AG, UBS AG, Credit Suisse AG, and other significant regulated subsidiaries and sub-groups[8] - The Pillar 3 Report is prepared in accordance with FINMA and BCBS guidelines, including revised Pillar 3 disclosure requirements[8] - Revised Basel III framework expected to increase RWA by approximately USD 25bn, with USD 10bn in Non-core and Legacy[11] - UBS moved to Bucket 2 in FSB's G-SIB list, increasing CET1 capital surcharge requirement to 1.5% from 1.0% effective January 2025[11] - Swiss Federal Council adopts amendments to Capital Adequacy Ordinance, effective 1 January 2025[11] - Introduction of public liquidity backstop for SIBs in Switzerland, expected to come into force by January 2025[11] - FINMA communicated revised liquidity requirements effective 1 January 2024, with UBS Group entities compliant[13] - BCBS proposes adjustments to interest rate risk in banking book (IRRBB) standard, addressing issues with near-zero rates[14] - BCBS issues consultation on Pillar 3 disclosure framework for climate-related financial risks[14] Capital and Liquidity Management - UBS plans to repurchase up to USD 1bn of shares in 2024, aiming to exceed pre-acquisition repurchase levels by 2026[15] - UBS proposes a dividend of USD 0.70 per share for 2023, subject to approval at the Annual General Meeting on 24 April 2024[15] - UBS bought back USD 1.3bn of shares in 2023 before announcing Credit Suisse acquisition[15] - CET1 capital increased by USD 1.1 billion to USD 78.5 billion, driven by foreign currency translation and deferred tax assets[30] - Tier 1 capital increased by USD 2.0 billion to USD 92.4 billion, including a USD 0.9 billion increase in AT1 capital[30] - Available TLAC increased by USD 5.8 billion to USD 199.5 billion, supported by a USD 3.8 billion rise in TLAC-eligible senior unsecured debt[30] - RWA remained unchanged at USD 546.5 billion, with market risk RWA decreasing by USD 2.7 billion[30] - Leverage ratio denominator (LRD) increased by USD 79.6 billion to USD 1,695.4 billion, primarily due to currency effects[30] - Total high-quality liquid assets (HQLA) increased to USD 415,594 million, with a liquidity coverage ratio (LCR) of 215.66%[32] - Total loss-absorbing capacity (TLAC) available increased to USD 199,484 million, with TLAC as a percentage of RWA at 36.50%[32] - Net stable funding ratio (NSFR) improved to 124.66%, reflecting strong available stable funding[32] Credit Risk and Exposures - Credit risk exposures under the IRB approach are detailed by portfolio and PD range, with specific data provided on pages 29-38[19] - Counterparty credit risk (CCR) exposures are analyzed by approach, with qualitative statements on materiality and composition of collateral on pages 55-59[19] - Credit risk exposure is measured using Exposure at Default (EAD), which generally equals the IFRS Accounting Standards carrying amount as of the reporting date[27] - UBS applies two approaches to measure credit risk RWA: Advanced internal ratings-based (A-IRB) approach and Standardized approach (SA)[27] - Counterparty credit risk (CCR) exposure is primarily measured using internal models approved by FINMA, with EEPE and SEPE applied for OTC derivatives and ETDs[28] - Settlement risk exposure is measured based on the IFRS Accounting Standards carrying amount, with RWA calculated by applying prescribed regulatory risk weights[28] - Securitization exposures in the banking book are measured using the IFRS Accounting Standards carrying amount after eligible regulatory credit risk mitigation[28] - UBS applies a hierarchy of approaches for banking book securitizations to measure RWA, including SEC-IRBA, SEC-ERBA, and SEC-SA[28] - Non-counterparty-related risk (NCPA) exposure is measured using the IFRS Accounting Standards carrying amount, with RWA calculated by applying prescribed regulatory risk weights[27] - Equity positions in the banking book are measured using the IFRS Accounting Standards carrying amount, reflecting a net position, with RWA calculated by applying prescribed regulatory risk weights[27] - UBS applies an additional credit valuation adjustment (CVA) capital charge to hold capital against the risk of mark-to-market losses associated with counterparty credit quality deterioration[28] - Total credit risk exposures increased to USD 1,192,487 million in 2023, up from USD 725,107 million in 2022, driven by higher loan and off-balance sheet exposures[53] - Loan exposures in Switzerland grew to USD 513,171 million in 2023, compared to USD 292,134 million in 2022, representing a significant increase in the region[53] - Off-balance sheet exposures rose to USD 117,722 million in 2023, up from USD 59,413 million in 2022, reflecting expanded credit facilities and guarantees[53] - Past due exposures increased to USD 3,360 million in 2023, compared to USD 1,698 million in 2022, largely due to the acquisition of Credit Suisse Group[59] - Credit-impaired exposures, net of allowances, stood at USD 5,323 million in 2023, up from USD 1,892 million in 2022, with significant increases in financial services and private households[57] - Restructured exposures surged to USD 2,933 million in 2023, compared to USD 989 million in 2022, driven by the integration of Credit Suisse Group[62] - Unsecured loans increased by USD 42.2 billion to USD 398.3 billion in 2023, primarily due to higher balances at central banks and customer deposit inflows[64] - Partially or fully secured loans grew by USD 5.1 billion to USD 588.6 billion in 2023, influenced by currency effects in Personal & Corporate Banking[64] - Debt securities due within 1 year decreased to USD 26,862 million in 2023, down from USD 32,783 million in 2022, reflecting changes in high-quality liquid assets[56] - Credit risk exposures in the Americas totaled USD 331,712 million in 2023, up from USD 241,427 million in 2022, indicating significant regional growth[53] - Total credit risk exposure increased to USD 1,074,765 million as of 31 December 2023, up from USD 1,029,728 million in 30 June 2023 and USD 665,695 million in 31 December 2022[67] - Exposures in the Central governments and central banks asset class increased by USD 19.8 billion to USD 88.5 billion as of 31 December 2023[69] - Exposures in the Corporates asset class increased by USD 1.4 billion to USD 68.6 billion as of 31 December 2023[69] - Risk-weighted assets (RWA) in the Banks and securities dealers asset class decreased by USD 0.6 billion to USD 4.1 billion as of 31 December 2023[69] - Defaulted exposures increased to USD 4,832 million as of 31 December 2023, up from USD 4,757 million in 30 June 2023 and USD 1,686 million in 31 December 2022[67] - The secured portion of exposures increased to USD 533,337 million as of 31 December 2023, up from USD 524,879 million in 30 June 2023 and USD 358,946 million in 31 December 2022[67] - Exposures secured by financial guarantees increased to USD 10,766 million as of 31 December 2023, up from USD 7,181 million in 30 June 2023 and USD 3,047 million in 31 December 2022[67] - The company uses three FINMA-recognized external credit assessment institutions (ECAIs): S&P, Moody's, and Fitch Ratings for determining risk weights[66] - RWA density for the Corporates asset class was 73.9% as of 31 December 2023, up from 70.5% in 30 June 2023[70] - Exposures in the Public-sector entities and multi-lateral development banks asset class decreased by USD 1.9 billion to USD 17.2 billion as of 31 December 2023[69] - EAD increased by USD 22.6 billion to USD 1,057.8 billion, while RWA decreased by USD 5.4 billion to USD 206.9 billion across various asset classes[74] - Central governments and central banks asset class saw EAD increase by USD 28.1 billion to USD 281.4 billion, with RWA rising by USD 0.3 billion to USD 4.7 billion[74] - Banks and securities dealers asset class experienced a decrease in EAD by USD 3.3 billion to USD 16.5 billion, and RWA decreased by USD 1 billion to USD 6.9 billion[74] - Corporates: specialized lending asset class EAD increased by USD 1.7 billion to USD 63.0 billion, with RWA rising by USD 0.1 billion to USD 27.4 billion[74] - Retail: residential mortgages asset class EAD increased by USD 14.5 billion to USD 311.6 billion, and RWA increased by USD 4.5 billion to USD 64.6 billion[76] - Retail: qualifying revolving retail exposures (QRRE) asset class EAD increased by USD 1.8 billion to USD 7.5 billion, with RWA rising by USD 0.1 billion to USD 1.4 billion[76] - Retail: other retail asset class EAD decreased by USD 9.1 billion to USD 240.4 billion, and RWA decreased by USD 0.8 billion to USD 25.2 billion[76] - Central governments and central banks' total exposures as of 31.12.23 were $281,262 million, with an average CCF of 47.9% and average PD of 0.1%[77] - The average LGD for central governments and central banks as of 31.12.23 was 30.0%[77] - The RWA density for central governments and central banks as of 31.12.23 was 1.7%[77] - Central governments and central banks' total exposures as of 30.6.23 were $259,560 million, with an average CCF of 47.4% and average PD of 0.1%[77] - The average LGD for central governments and central banks as of 30.6.23 was 30.1%[77] - The RWA density for central governments and central banks as of 30.6.23 was 1.8%[77] - Central governments and central banks' total exposures as of 31.12.22 were $216,093 million, with an average CCF of 36.4% and average PD of 0.0%[77] - The average LGD for central governments and central banks as of 31.12.22 was 32.4%[77] - The RWA density for central governments and central banks as of 31.12.22 was 1.6%[77] - Total credit risk exposure for banks and securities dealers as of 31.12.23 was $17.148 billion, with a subtotal of $13.384 billion on-balance sheet and $3.764 billion off-balance sheet[78] - The average probability of default (PD) for the 0.00 to <0.15 PD range was 0.1%, with a total exposure of $11.841 billion[78] - For the 0.15 to <0.25 PD range, the average PD was 0.2%, with a total exposure of $1.247 billion[78] - The 0.25 to <0.50 PD range had an average PD of 0.4%, with a total exposure of $1.018 billion[78] - In the 0.50 to <0.75 PD range, the average PD was 0.6%, with a total exposure of $301 million[78] - The 0.75 to <2.50 PD range had an average PD of 1.6%, with a total exposure of $1.112 billion[78] - For the 2.50 to <10.00 PD range, the average PD was 6.3%, with a total exposure of $1.413 billion[78] - The 10.00 to <100.00 PD range had an average PD of 23.8%, with a total exposure of $120 million[78] - The default category (100.00 PD) had a total exposure of $95 million[78] - The subtotal RWA (Risk-Weighted Assets) for banks and securities dealers as of 31.12.23 was $6.921 billion[78] - Total exposures pre-CCF for public sector entities and multilateral developmental banks increased to $11,608 million as of 31.12.23, up from $9,800 million as of 31.12.22[79] - Average CCF for public sector entities and multilateral developmental banks was 19.3% for the 0.15 to <0.25 PD range as of 31.12.23[79] - EAD post-CCF and post-CRM for public sector entities and multilateral developmental banks was $8,476 million as of 31.12.23, compared to $8,646 million as of 31.12.22[79] - Average PD for public sector entities and multilateral developmental banks in the 0.50 to <0.75 range was 0.7% as of 31.12.23[79] - RWA density for public sector entities and multilateral developmental banks was 9.7% as of 31.12.23, slightly down from 9.0% as of 31.12.22[79] - Number of obligors for public sector entities and multilateral developmental banks in the 0.00 to <0.15 PD range was 0.2 thousand as of 31.12.23[79] - Average LGD for public sector entities and multilateral developmental banks in the 0.75 to <2.50 PD range was 33.7% as of 31.12.23[79] - Average maturity for public sector entities and multilateral developmental banks in the 2.50 to <10.00 PD range was 3.9 years as of 31.12.23[79] - EL Provisions for public sector entities and multilateral developmental banks in the 0.00 to <0.15 PD range were $1 million as of 31.12.23[79] - Total RWA for public sector entities and multilateral developmental banks was $819 million as of 31.12.23, up from $779 million as of 31.12.22[79] - Total pre-CCF exposure for Corporates: specialized lending as of 31.12.23 was $76,172 million, with an average CCF EAD of 38.0%[80] - The RWA density for the 0.75 to <2.50 PD range was 63.5%, with RWA amounting to $11,856 million[80] - The number of obligors in the 0.00 to <0.15 PD range was 0.1 thousand, with an average LGD of 18.9%[80] - The 2.50 to <10.00 PD range had an RWA density of 113.5%, with RWA totaling $2,956 million[80] - The 100.00 (default) PD range had a post-CCF exposure of $215 million, with RWA at $228 million[80] - Subtotal pre-CCF exposure for Corporates: specialized lending as of 30.6.23 was $74,197 million, with an average CCF EAD of 37.5%[80] - The 0.50 to <0.75 PD range as of 30.6.23 had an RWA density of 48.9%, with RWA amounting to $4,692 million[80] - The 10.00 to <100.00 PD range as of 31.12.22 had an RWA density of 169.2%, with RWA totaling $1 million[80] - The 0.75 to <2.50 PD range as of 31.12.22 had an RWA density of 62.8%, with RWA amounting to $5,875 million[80] - Subtotal pre-CCF exposure for Corporates: specialized lending as of 31.12.22 was $35,602 million, with an average CCF EAD of 38.3%[80] - Total corporate lending exposures as of 31.12.23 amounted to $226.092 billion,

Revenue and Financial Performance - UBS AG's total revenues for 2023 were $33.7 billion, with Americas contributing $13.3 billion, Asia Pacific $5.2 billion, EMEA $6.1 billion, Switzerland $9.2 billion, and Global $(0.1) billion[20] - Credit Suisse AG's net revenues for 2023 were CHF 19,890 million, with Wealth Management contributing CHF 3,058 million, Swiss Bank CHF 3,515 million, Asset Management CHF 659 million, and Non-core and Legacy (including Investment Bank) CHF (1,185) million[22][23] - Credit Suisse AG's net revenues by geographic location for 2023 were Switzerland CHF 17,210 million, EMEA CHF (1,488) million, Americas CHF 4,270 million, and Asia Pacific CHF (102) million[24] - UBS AG's Americas revenues decreased from $10.6 billion in 2022 to $10.2 billion in 2023, while Switzerland revenues increased from $7.7 billion in 2022 to $9.2 billion in 2023[20] - Credit Suisse AG's Wealth Management revenues declined from CHF 5,549 million in 2021 to CHF 3,058 million in 2023[22] - UBS AG's Asia Pacific revenues decreased from $2.6 billion in 2022 to $2.5 billion in 2023[20] - Credit Suisse AG's Asset Management revenues dropped from CHF 1,352 million in 2021 to CHF 659 million in 2023[22] - UBS AG's EMEA revenues decreased from $3.9 billion in 2022 to $3.6 billion in 2023[20] - Credit Suisse AG's Swiss Bank revenues declined from CHF 4,457 million in 2021 to CHF 3,515 million in 2023[22] - UBS AG's Global revenues were $(0.1) billion in 2023, compared to $0.8 billion in 2022[20] - UBS's total revenues for 2023 were USD 40,834 million, compared to USD 34,563 million in 2022[106] - UBS's net profit attributable to shareholders for 2023 was USD 27,849 million, a 265.0% increase from 2022[106] - UBS's total assets for 2023 were USD 1,717,246 million, compared to USD 1,104,364 million in 2022[106] - UBS's common equity tier 1 capital ratio for 2023 was 14.4%, compared to 14.2% in 2022[106] - UBS's negative goodwill from the Credit Suisse acquisition was adjusted to USD 27.7 billion, decreasing from USD 28.9 billion[107] - UBS's full-year profit before tax in 2023 stood at USD 28.7 billion, including USD 27.7 billion of negative goodwill[91] - UBS's common equity tier 1 (CET1) capital ratio increased to 14.4% at year-end 2023, comfortably above the guidance of around 14%[91] Corporate Governance and Shareholder Rights - Shareholders' meetings require approval of at least two-thirds of the votes for significant corporate changes such as delisting, share capital increase, and change of domicile[36] - The company must retain at least 5% of annual net profits as statutory retained earnings until they reach 50% of the registered share capital[38] - Dividends can only be paid if the company has sufficient distributable profits or reserves, and must be approved by shareholders[39] - Existing shareholders have preemptive rights in share issues, which can be limited or excluded by a two-thirds majority vote[40] - A mandatory takeover bid is required if an entity acquires more than 33 1/3% of the voting rights of the company[42] - The company can repurchase shares only if freely distributable reserves cover the purchase price and the total nominal value of repurchased shares does not exceed 10% of nominal share capital[47] Taxation and Dividends - Dividends paid by the company are subject to a 35% Swiss federal withholding tax, with potential refunds for US holders under the Treaty[58] - The company distributes dividends equally from capital contribution reserves and taxable dividends, with the latter subject to 35% withholding tax[59] - Swiss securities transfer stamp duty of up to 0.15% applies to UBS ordinary shares transactions through banks or securities dealers in Switzerland or Liechtenstein[62] - Dividends paid by UBS Group AG to US holders are generally treated as qualified dividend income if shares are held for more than 60 days during a 121-day period around the ex-dividend date[66] - UBS Group AG expects dividends to be qualified dividend income as its ordinary shares are listed on the New York Stock Exchange[66] - US holders may recognize capital gain or loss on the sale of UBS ordinary shares, with preferential tax rates for non-corporate holders if shares are held for more than one year[71] - UBS Group AG believes it should not currently be classified as a Passive Foreign Investment Company (PFIC) for US federal income tax purposes[72] - If classified as a PFIC, US holders may face ordinary income tax rates on gains or excess distributions from UBS ordinary shares, with interest charges on deferred taxes[72] - Dividends paid by UBS Group AG are generally considered foreign-source income for US foreign tax credit purposes, unless specific ownership and earnings conditions are met[68] - US holders must include dividends in gross income at the US dollar value of Swiss franc payments, based on the spot exchange rate on the dividend inclusion date[69] - Swiss withholding tax on dividends may be creditable or deductible against US federal income tax liability, subject to US foreign tax credit limitations[70] - UBS Group AG’s PFIC status depends on whether at least 75% of its gross income is passive or 50% of its assets produce passive income[72] Debt Issuance - UBS Group AG issued USD 1.75 billion 9.250% Tier 1 Subordinated Notes on 13 November 2023 with a first call date of 13 November 2028[75] - UBS Group AG issued USD 1.75 billion 9.250% Tier 1 Subordinated Notes on 13 November 2023 with a first call date of 13 November 2033[75] - UBS Group AG issued USD 1 billion 7.750% Tier 1 Subordinated Notes on 12 February 2024 with a first call date of 12 April 2031[75] - UBS Group AG issued SGD 650 million 5.750% Tier 1 Subordinated Notes on 21 February 2024 with a first call date of 21 August 2029[75] - UBS Group AG issued USD 1.5 billion 4.875% Tier 1 Subordinated Notes on 12 January 2022[76] - UBS Group AG issued CHF 265 million 3.375% Tier 1 Subordinated Notes on 16 February 2022[76] - UBS Group AG issued USD 750 million 3.875% Tier 1 Subordinated Notes on 02 June 2021[73] - UBS Group AG issued USD 1.5 billion 4.375% Tier 1 Subordinated Notes on 10 February 2021[73] - UBS Group AG issued USD 750 million 5.125% Tier 1 Subordinated Notes on 29 July 2020[73] - UBS Group AG issued AUD 700 million 4.375% Tier 1 Subordinated Notes on 27 August 2019[73] Wealth Management and Asset Growth - UBS achieved net new assets of USD 77 billion in Global Wealth Management and USD 77 billion of net new deposits across Global Wealth Management and Personal & Corporate Banking since the acquisition of Credit Suisse[90] - UBS's Global Wealth Management business generated 60% of the company's revenues in 2023, with over a third of risk-weighted assets dedicated to this segment[92] - UBS expects Global Wealth Management margins in Asia Pacific to eventually exceed 40% as the company captures the benefits of its leadership positions and integration-related synergies[92] - UBS aims to capture around USD 100 billion of net new assets per annum through 2025, building to around USD 200 billion per annum by 2028[95] - UBS's total invested assets reached USD 1.6 trillion following the acquisition of Credit Suisse Group[146] - UBS's combined market share in the Swiss franc-denominated market is nearly 50%[153] - UBS's Investment Bank Research covers more than 3,400 stocks in 49 different countries[153] - UBS's ESG Company Radar reports assess the impact of ESG factors at the company level and received a positive client response[153] - UBS's Global Markets business aims to capture market share in global equity derivatives, focusing on flow derivatives and quantitative investment strategies[152] - UBS's total invested assets (UBS Group) reached USD 5,714.1bn as of 31 December 2023[210] Cost Savings and Efficiency - UBS expects to realize around USD 13 billion in gross cost savings by the end of 2026, with around 45% of the cumulative gross cost reductions expected by the end of 2024[95] - UBS achieved around USD 4bn in exit rate gross cost savings as of the end of 2023 compared with the full year 2022 for UBS and Credit Suisse combined[120] - UBS reduced funding costs by around USD 550m per quarter by terminating the loss protection agreement guaranteed by the Swiss government[120] - UBS reduced risk-weighted assets by USD 12bn, nearly 80% of which came from unwinds[120] - The company aims to deliver exit rate gross cost savings of approximately USD 13bn by the end of 2026 compared to 2022[133] - The company expects up to USD 1bn of funding cost savings by 2026 compared to 2023 levels[133] Sustainability and ESG - UBS aims to reduce its absolute financed emissions in the fossil fuel sector by 70% from the 2021 baseline to 2030[96] - UBS facilitated USD 53.7bn in green, social, sustainability, and sustainability-linked bond deals in 2023[209] - UBS AG's sustainable investments rose to USD 292.3bn as of 31 December 2023, a 10% year-on-year increase[210] - Sustainable investments accounted for 6.5% of UBS's total invested assets at year-end 2023[210] - UBS reduced its own energy consumption by 15% from 2019 levels by 2025[204] - UBS aims for 100% renewable electricity coverage[204] - UBS plans to neutralize residual emissions down to zero by 2025 through credible carbon removal credits[204] - UBS engaged with GHG key vendors, targeting 100% to declare emissions and set net-zero-aligned goals by 2026[204] - UBS's sustainability and impact strategy focuses on three key areas: planet, people, and partnerships[203] - UBS aims to align 20% of UBS AG Asset Management's total assets under management with net zero by 2030[204] - UBS targets USD 400bn in sustainable investments by 2025[204] - UBS's Corporate Culture and Responsibility Committee oversees the Group-wide sustainability and impact strategy, including climate, nature, and human rights[201] - UBS is committed to the 17 United Nations Sustainable Development Goals and the transition to a low-carbon economy[199] - UBS's direct cash contributions and affiliated foundations amounted to USD 63m in 2023[198] - 38% of UBS's global workforce engaged in volunteering in 2023, contributing 199,633 volunteer hours, with 45% being skills-based[198] - UBS launched donor-advised funds in Hong Kong SAR in 2023, raising USD 318m in donations[194] - The UBS Optimus network of foundations raised USD 328m in donations and committed USD 306m in grants in 2023[195] - UBS secured major investor commitments for a USD 100m SDG Outcomes blended finance initiative in 2023[196] - The UBS Optimus network of foundations raised and distributed over USD 25m for emergency relief in 2023, including for the Turkey and Syria earthquake and Hawaiian wildfires[197] - UBS aims to mobilize USD 1bn in philanthropic capital and positively impact more than 26.5 million people by 2025 (cumulative total since 2021)[194] - UBS's DE&I strategy aims for 30% of Director level and above roles globally to be held by women by 2025[191] - Women accounted for 40.9% of UBS's workforce and 29.5% of Director level and above roles at the end of 2023, up from 27.8% in 2022[191] - UBS's internal pay equity audits show a gender pay differential of less than 1% across major locations[191] - UBS's employee engagement survey in November 2023 found 87% of respondents experienced a professional and respectful work environment[192] - UBS's workforce as of 31 December 2023 includes 115,038 internal employees and 25,619 external staff[187] - UBS hired 11,435 external candidates and developed over 3,700 graduates, trainees, apprentices, and interns globally in 2023[189] - UBS's full-time equivalents in the Americas increased by 27% to 27,638, with the USA seeing a 24% increase to 26,024[190] - UBS employees completed over 2.3 million learning activities in 2023, averaging 1.91 training days per employee, with a total investment of over USD 100m in training[191] - Increased worldwide roles at Director level and above held by women to 29.5% in 2023, up from 27.8% in 2022[214] - Increased US roles at Director level and above held by employees from ethnic minority backgrounds to 25.1% in 2023, up from 20.5% in 2022[214] - Achieved a UBS Optimus network of foundations donation volume of USD 328.0m in 2023, totaling USD 763.9m since 2021[215] - Reached 7 million beneficiaries in 2023 and 18.5 million beneficiaries across social impact activities since 2021[215] - UBS Group will publish sustainability and climate risk metrics for UBS Group and Credit Suisse AG in a supplement to the UBS Group Annual Report and Sustainability Report in Q3 2024[216] - UBS Group Sustainability Report 2023 follows GRI standards, EU Directive 2014/95/EU, and Swiss Code of Obligations (Art. 964a et. seq.)[216] - UBS Group Climate and Nature Report 2023 aligns with TCFD and TNFD frameworks[216] - UBS Group's sustainability reporting has been reviewed on a limited assurance basis by Ernst & Young Ltd against GRI Standards[216] - UBS Group is subject to consolidated supervision by FINMA as a financial services provider based in Switzerland[217] - UBS Group entities are regulated and supervised by authorities in each country where they conduct business[217] - UBS Group is designated as a global systemically important bank (G-SIB) by the Financial Stability Board[217] - UBS Group is classified as a systemically relevant bank (SRB) in Switzerland, subject to stricter regulatory requirements[217] Acquisition and Integration of Credit Suisse - UBS Group AG acquired Credit Suisse Group AG for a purchase price of USD 3.7bn, with Credit Suisse shareholders receiving 5.1% of UBS Group AG shares[119] - The acquisition of Credit Suisse strengthened UBS's position as a leading global wealth manager and the leading bank in Switzerland[116] - The acquisition of Credit Suisse was supported by government guarantees and measures to restore confidence in the Swiss economy and banking system[119] - The acquisition of Credit Suisse was accounted for as a business combination under IFRS 3, applying the acquisition method of accounting[119] - The acquisition of Credit Suisse followed a request from Swiss authorities to restore stability in the Swiss banking system[119] - UBS has been entrusted with USD 77bn of net new assets since the acquisition of Credit Suisse[120] - UBS expects to complete the merger of UBS AG and Credit Suisse AG by the end of the second quarter of 2024[120] - UBS aims to substantially complete the integration of Credit Suisse by the end of 2026[120] - The legal merger of Credit Suisse (Schweiz) AG with UBS Switzerland AG is expected to be completed in the third quarter of 2024[141] - UBS has excluded Credit Suisse entities from its assessment of internal control over financial reporting as of 31 December 2023[123] - UBS plans to complete remediation of internal control risk identification and severity assessment weaknesses by integrating Credit Suisse into the UBS internal control framework in 2024[122] - The acquisition of Credit Suisse contributed approximately USD 680bn in invested assets and more than 1,500 client advisors globally[135] Market and Economic Outlook - Global economic growth slowed to 3.2% in 2023, down from 3.4% in 2022, with US GDP growth increasing to 2.5% from 1.9% in 2022[163] - US consumer price inflation slowed to 3.4% in December 2023 from 6.4% in January 2023, while Eurozone inflation decelerated to 2.9% year over year in December 2023 from 8.5% in January 2023[163] - The MSCI All Country World Index returned a 22.2% gain in 2023, with the S&P 500 rising by 26.3% and the FANG+ index increasing 96% over the year[163] - UBS expects US GDP growth to remain positive at around 1.1% in 2024, with Eurozone growth at 0.6% and UK GDP growth at 0.6%[164]