UBS publishes Annual Report 2011
UBS publishes its Annual Report for 2011, available at www.ubs.com/annualreporting
Zurich/Basel, 15 March 2012 – UBS's Annual Report for 2011 provides comprehensive information on the firm, its strategy, business, governance and financial performance. It contains both audited and unaudited information.
The Annual Report 2011 consists of five sections:
Operating environment and strategy: This section provides a description of UBS's strategy and business divisions, and the factors affecting UBS and its business model, including market climate, industry drivers, regulatory developments and risk factors. It also includes information about the regulatory structures applicable to UBS.
Financial and operating performance: This section outlines the performance of UBS Group and of each business division for the past two calendar years, as well as the performance of Corporate Center, which includes UBS's Group-wide shared services and control functions.
Risk, treasury and capital management: In addition to outlining the principles by which UBS manages and controls risk, this section covers developments during 2011 in the areas of credit risk, market risk, operational risk and treasury management including capital, liquidity and funding management. It also contains comprehensive quantitative and qualitative Basel 2.5 Pillar 3 annual disclosures, as well as information on UBS shares.
Corporate governance, responsibility and compensation: This section provides information about UBS's governance structure and sets out the guiding principles that govern compensation plans, as well as details of the compensation of senior management and the Board of Directors. It also discusses UBS's standards for corporate behavior and responsibility, outlines demographic trends in the firm's workforce and describes how personnel is managed and developed.
Financial information: This section comprises the audited consolidated financial statements of UBS Group for 2011 including comparative data for 2010 and 2009, prepared according to International Financial Reporting Standards (IFRS). It also contains the audited financial statements of UBS AG (the parent bank) for 2011 including comparative data for 2010, prepared according to Swiss Federal banking law. Additional disclosures required by Swiss and US regulations are included as appropriate.
Post-balance sheet events
After the publication of UBS's fourth quarter 2011 financial report on 7 February 2012, management adjusted the 2011 results to account for subsequent events. The net, after-tax effect of these adjustments was to reduce net profit attributable to UBS shareholders by CHF 74 million, which decreased basic and diluted earnings per share by CHF 0.02. The principal change relates to an agreement in principle that UBS entered into with a monoline insurer in March 2012, under which UBS agreed to the commutation of certain credit default swap contracts in exchange for a net cash payment. This had the effect of reducing the Investment Bank's 2011 net trading income by CHF 167 million. The settlement, if consummated, would also include the resolution of litigation and the mutual release of claims, as well as the removal of certain existing impediments to the restructuring or sale by UBS of legacy assets which account for aggregate Basel III risk-weighted assets of almost CHF 15 billion. The transaction is in keeping with UBS's strategy to reduce its Basel III risk-weighted assets in anticipation of future capital requirements. UBS cannot predict when or at what prices the underlying assets may be restructured or sold.
UBS will also file its Annual Report for 2011 on Form 20-F today with the US Securities and Exchange Commission. The Form 20-F filing contains UBS's complete audited financial statements, in addition to other information, and will be available for viewing and downloading at www.ubs.com/sec-filings.
UBS's Annual Report 2011 and the compensation report are available online from today at www.ubs.com/annualreporting. While UBS encourages stakeholders to view these publications electronically, hard copies can be requested from the following address:
Tel: +41 44 238 50 15
Switzerland: +41-44-234-85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 57
APAC: +852-297-1 82 00
Cautionary Statement Regarding Forward-Looking Statements
This release contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for reducing its Basel III risk-weighted assets and the anticipated effect of potential transactions. While these forward-looking statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors, including the risk that the settlement described herein might not be consummated, could cause actual developments and results to differ materially from UBS’s expectations. Additional information about those factors is set forth in documents furnished and filings made by UBS with the US Securities and Exchange Commission, including UBS’s Annual Report on Form 20-F for the year ended 31 December 2011. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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