Our performance in 2014 demonstrated both the strength of our business model, which is designed to deliver attractive returns with an efficient capital and risk profile, and the disciplined manner in which we continue to implement our strategy. Overall, the performance award pool for 2014 was CHF 3.1 billion, 5% lower than in 2013, balancing our strong performance with the effects of charges for provisions for litigation, regulatory and similar matters.
In 2014, UBS employees remained focused on delivering improved performance despite challenging market conditions. Net profit attributable to UBS shareholders was CHF 3.5 billion, up 9% compared with 2013. The firm also continued to strengthen its fully applied Basel III common equity tier 1 capital ratio to be the best in our peer group of large global banks, which supports the firm’s commitment to return at least 50% of net profit attributable to UBS Group AG shareholders.
As a result, the UBS Board of Directors (BoD) intends to propose a dividend of CHF 0.50 for 2014. This is an increase of 100% on 2013 and represents 55% of the Group’s reported net profit for 2014. In addition, the firm is on track with the implementation of the new Group holding company structure. As part of this process, the firm intends to propose a one-time supplementary capital return of CHF 0.25 per share.
While the 2014 performance award pool takes into account the firm’s strong performance over the year, it also recognizes the effects of charges for provisions for litigation, regulatory and similar matters.
The protection of the firm’s reputation and the interests of shareholders and clients remain paramount. In consideration of the matters related to our foreign exchange business, the 2014 performance award pool has been reduced significantly, mainly in the Investment Bank, from what it would otherwise have been in the absence of these events. As a result, the firm’s total performance award pool for 2014, which includes the Group Executive Board (GEB) is CHF 3.1 billion, down 5% compared with the prior year. This is aligned with a 6% reduction in the IFRS performance award-related expenses.
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