Quarterly reporting

UBS financial information

Fourth quarter 2020

2020 net profit of USD 6.6bn, 17.6% return on CET1 capital

Group performance highlights

  • Clients continued to place their trust in UBS during a challenging year, as they sought stability, and we helped them navigate uncertainty through advice and solutions. UBS’s strength and resilience allowed us to continue to responsibly deploy resources for the benefit of clients, employees and society throughout the pandemic. Lending and commitments1 to clients globally increased by over USD 65bn YoY, including CHF 3bn to Swiss SMEs under the government-backed program and USD 656m under the US Paycheck Protection Program.
  • 4Q20 financials: PBT was USD 2,057m (up 122% YoY), including net credit loss expenses of USD 66m. The cost/income ratio was 74.1%, a 12.7 percentage point improvement YoY, as income (before credit loss expense) increased by 16% and total operating expenses decreased by 1%. Net profit attributable to shareholders was USD 1,708m (up 137% YoY), with diluted earnings per share of USD 0.46. Return on CET1 capital2 was 17.5%.
  • FY20 financials: PBT was USD 8,226m (up 47% YoY), including net credit loss expenses of USD 694m. The cost/income ratio was 73.0%, a 7.4 percentage point improvement YoY, as income (before credit loss expense) increased by 14% and total operating expenses increased by 4%. Net profit attributable to shareholders was USD 6,629m (up 54% YoY), with diluted earnings per share of USD 1.79. Return on CET1 capital2 was 17.6%.
  • All financial targets were met or exceeded in 2020: Return on CET1 capital2 was 17.6% (target: 12–15%) and return on tangible equity was 12.9%, with the lowest cost/income ratio since 2006 (73.0% vs. target 75–78%). Every region and business division contributed over USD 1bn in profits, as we benefited from our business and geographical diversification.
  • Our strong capital position supports growth, future dividends and restarting buybacks: The year-end CET1 capital ratio was 13.8% (guidance: ~13%) and the CET1 leverage ratio was 3.85% (guidance: >3.7%). We intend to propose a 2020 ordinary dividend of USD 0.37 per share3,4; we repurchased USD 0.4bn of shares in 2020 and reserved USD 2.0bn of capital for potential future share repurchases. UBS intends to repurchase up to USD 1.1bn of shares in 1Q21.

Third quarter 2020

3Q20 net profit USD 2.1bn, 21.9% return on CET1 capital

  • PBT USD 2.6bn, +92% YoY; adjusted1 PBT USD 2.1bn, +41% YoY
  • Best third quarter PBT in a decade
  • Net profit USD 2.1bn, +99% YoY; return on CET1 capital2 21.9%; cost/income ratio 70.4%; diluted EPS USD 0.56
  • CET1 capital ratio 13.5% and CET1 leverage ratio3 3.8% after establishing a USD 1.5bn reserve for potential share repurchases beginning in 2021
  • UBS’s Board of Directors proposes the second tranche of 2019 dividend of USD 0.365 per share to be paid in November 2020
  • UBS makes sustainable investments its preferred solution for clients of its USD 2.8trn Global Wealth Management business

Second quarter 2020

2Q20 net profit USD 1.2bn, 13.2% RoCET1

  • 2Q20 PBT USD 1.6bn, (10%) YoY or +5% excluding CLE
  • 2Q20 net profit (11%) YoY; return on CET1 capital1 13.2%; cost/income ratio 75.8%; diluted EPS USD 0.33
  • 1H20 PBT USD 3.6bn, +9% YoY or +24% excluding CLE
  • 1H20 net profit USD 2.8bn, +12% YoY; return on CET1 capital1 15.4%; cost/income ratio 74.0%; diluted EPS USD 0.76
  • Strong capital position with CET1 capital ratio 13.3%; CET1 leverage ratio2 3.9%; tier 1 leverage ratio2,3 5.5%, all excluding any temporary regulatory relief

First quarter 2020

1Q20 net profit USD 1.6bn, 17.7% RoCET1

  • PBT USD 2.0bn, +30% YoY and net profit +40% YoY; return on CET1 capital1 17.7%; cost/income ratio 72.3%; diluted EPS USD 0.43
  • Strong capital position with CET1 capital ratio 12.8%; CET1 leverage ratio2 3.8%; tier 1 leverage ratio2,3 5.4%, all excluding any regulatory relief
  • In highly volatile and uncertain markets, UBS remained a reliable partner to its clients, extending credit well beyond government-sponsored programs
  • UBS demonstrated strong front-to-back operational resilience, facilitating uninterrupted connectivity with a substantial increase in volumes and client interactions
  • UBS is fully committed to playing its part in mitigating the effects of the COVID-19 crisis; supporting employees, clients and communities