Strong momentum with our clients in challenging markets: In 2022, the combined impact of persistent inflation, rapid central bank tightening, the Russia–Ukraine war, and other geopolitical tensions affected asset pricing levels and investor sentiment. Our unwavering commitment to our clients enabled us to maintain positive momentum across the firm. Against this backdrop, we attracted USD 60bn in net new fee-generating assets1 in GWM for the full year, USD 25bn of net new money in AM (of which USD 26bn in Money Market), and CHF 2bn of net new investment products for Personal Banking, an 8% growth rate. As clients repositioned their investments in response to interest rate increases, we captured demand for higher yield through our savings products, certificates of deposit and money market funds. And we delivered a 17% YoY increase in net interest income across GWM and P&C in 2022. While private clients generally remained on the sidelines throughout the year due to high uncertainty and unfavorable market trends, institutional clients were very active, driven by sustained equity market volatility in 1H22, and by strong FX and rates markets in 2H22.
In Americas, for the full year, GWM attracted net new fee-generating assets1 of USD 17bn, and we closed the year with another strong quarter in advisor recruiting. We continued to see positive momentum in Private Markets, which attracted USD 10bn net new commitments, and in our SMA2 offering, which contributed USD 21bn of net new money in AM.
In Switzerland, we retained our position as #1 bank3. In 2022, we saw USD 7bn net new loans and USD 9bn net new deposits in GWM and P&C combined, contributing to record loan and deposit volumes, and we attracted USD 9bn net new fee-generating assets1.
In EMEA, we generated USD 20bn of net new fee-generating assets1 and we completed the sale of our domestic wealth management business in Spain, which further optimizes our footprint. In the IB, our Global Markets business had its best year on record, and we outperformed the fee pool in Global Banking.
In APAC, we attracted USD 14bn of net new fee-generating assets1 for the year, and we were #1 in equity capital markets4 for non-domestic banks. We also delivered the best M&A year on record5, and were recently named the best Investment Bank6 in Asia and Australia by Finance Asia.
We continued to improve the way we manage, change and develop technology, and we have been fostering our engineering culture. For instance, 65% of our applications are currently on the Cloud, and engineers make up 68% of the technology teams that have transitioned to Agile. We achieved this while remaining disciplined on costs, progressing our cost-saving program as planned and investing in our growth initiatives.
Executing on our strategy and achieved our Group targets in 2022: In 2022, we remained focused on executing our strategy, and delivered a return on CET1 capital of 17.0% and a cost/income ratio of 72.1%, in line with our Group targets. PBT was USD 9,604m (up 1% YoY). Total revenues decreased 2% YoY, with operating expenses down 4%. Net profit attributable to shareholders was USD 7,630m (up 2% YoY), with diluted earnings per share of USD 2.25.
4Q22 PBT was USD 1,937m (up 12% YoY). Total revenues were down 8% YoY, while operating expenses decreased 13%. The cost/income ratio was 75.8%. Net profit attributable to shareholders was USD 1,653m (up 23% YoY), with diluted earnings per share of USD 0.50. The return on CET1 capital was 14.7%. We repurchased USD 1.3bn of shares in 4Q22.
Positioned to fund growth and deliver strong capital returns in 2023: We maintained a strong capital position, ending the year with a CET1 capital ratio of 14.2% and a CET1 leverage ratio of 4.42%, both significantly in excess of our guidance of ~13% and >3.7%, respectively. Our balance sheet remains strong, with a high-quality loan book where 95% of our loans7 are collateralized, and with an average LTV of less than 55%.
For the financial year 2022, we intend to propose an ordinary dividend of USD 0.55 per share8. We repurchased USD 5.6bn of shares in 2022, and we expect to repurchase more than USD 5bn of shares during 2023. Our highly accretive, capital-light business model, with a balance sheet for all seasons and disciplined cost management, position us well to continue executing our growth strategy and deliver strong capital returns, while weathering the challenges of the current macroeconomic environment.
1 In GWM; net new fee-generating assets exclude the effects on fee-generating assets of strategic decisions by UBS to exit markets or services.
2 Separately managed accounts.
3 Euromoney, 2022.
4 Dealogic.
5 2017–2022.
6 Finance Asia, December 2022.
7 Loans and advances to customers.
8 Shareholders whose shares are held through SIX (ISIN CH0244767585) will receive dividends in Swiss francs, based on a published exchange rate calculated to five decimal places immediately before the ex-dividend date. Shareholders holding shares through DTC (ISIN: CH0244767585; CUSIP: H42097107) will be paid dividends in US dollars. Subject to approval by shareholders at the Annual General Meeting scheduled for 5 April 2023, the dividend will be paid on 14 April 2023 to shareholders of record on 13 April 2023. The ex-dividend date will be 12 April 2023. In accordance with Swiss tax law, 50% of the dividend will be paid out of retained earnings and the balance will be paid out of capital contribution reserves. Dividends paid out of capital contribution reserves are not subject to Swiss withholding tax. The portion of the dividend paid out of retained earnings will be subject to a 35% Swiss withholding tax. For US federal income tax purposes, we expect that the dividend will be paid out of current or accumulated earnings and profits.
A definition of each alternative performance measure, the method used to calculate it and the information content are presented under “Alternative performance measures” in the appendix to our 4Q22 report.
In case of any differences between the digital and the .pdf version of our quarterly reports, the .pdf version shall prevail.
Third quarter 2022
3Q22 net profit of USD 1.7bn, 15.5% return on CET1 capital and 14.4% CET1 capital ratio
UBS Group CEO Ralph Hamers comments on our results for the third quarter of 2022.
We have strong momentum with our clients in challenging markets: Our proactive engagement with our clients led to positive momentum with USD 17bn net new fee-generating assets1 (NNFGA) in GWM, USD 18bn of net new money in AM (of which USD 2bn excluding money market flows), and CHF 0.4bn net new investment products in Personal Banking, an 8% annualized growth, amidst challenging market conditions. As clients repositioned their investments in response to fast and steep interest rate increases, we continued to actively manage our deposit base which resulted in a 14% YoY increase in net interest income across GWM and P&C. Client activity was differentiated across segments as institutional clients remained very active on the back of high volatility in foreign exchange and rates, whereas private investors remained generally on the sidelines.
In Americas, we attracted net new fee-generating assets of USD 4bn, we continued to see positive momentum in our SMA offering, which contributed USD 5bn net new money in AM, and we had a strong quarter in advisor recruiting.
In Switzerland, we saw CHF 2bn net new loans in GWM and P&C combined, primarily driven by mortgages.
In EMEA, our Global Markets business had its best 3Q on record, we generated USD 6bn net new fee-generating assets, and we completed the sale of our domestic wealth management business in Spain which further optimizes our footprint.
In APAC we saw USD 7bn net new fee-generating assets and we were #1 in ECM for non-domestic banks.
We delivered a good performance and are executing our strategy: 3Q22 PBT was USD 2,323m (down 19% YoY) compared to a particularly strong quarter in the previous year. The cost/income ratio was 71.8%. Total revenues were down 10% YoY, while operating expenses decreased by 6%. Net profit attributable to shareholders was USD 1,733m (down 24% YoY), with diluted earnings per share of USD 0.52. Return on CET1 capital was 15.5%. We repurchased USD 1.0bn of shares in 3Q22 and USD 4.3bn in the first 9 months of the year, and we expect to repurchase approximately USD 5.5bn of shares during 2022. Our exposure to rising interest rates across the globe and expense controls contributed to the quarter’s solid performance.
We maintained a strong balance sheet and disciplined risk management: In the quarter, we maintained a strong capital position with a CET1 capital ratio of 14.4% and a CET1 leverage ratio of 4.51%, both significantly in excess of our guidance of ~13% and >3.7%, respectively. Our balance sheet remains strong, with a high-quality loan book where 95% of our loans2 are collateralized, and with an average LTV of less than 55%. Our highly accretive, capital-light business model with a balance sheet for all seasons and disciplined risk management position us well to face the challenges of the current macroeconomic environment.
1 Net new fee-generating assets exclude the effects on fee-generating assets of strategic decisions by UBS to exit markets or services.
2 Loans and advances to customers.
A definition of each alternative performance measure, the method used to calculate it and the information content are presented under “Alternative performance measures” in the appendix to our 3Q22 report.
In case of any differences between the digital and the .pdf version of our quarterly reports, the .pdf version shall prevail.
Second quarter 2022
2Q22 net profit of USD 2.1bn, 18.9% return on CET1 capital
UBS Group CEO Ralph Hamers comments on our results for the second quarter of 2022.
We are helping our clients navigate challenging markets: Amidst an acceleration in market declines across equity and fixed income, we focused on being close to our clients and supporting them with advice, liquidity and execution across our USD 3.9trn ecosystem. Against this backdrop, Global Wealth Management net new fee-generating assets flows were muted at USD 0.4bn globally, but they were over USD 3bn positive in APAC. We saw USD 12bn of outflows in Asset Management, primarily from equities. With loans of close to USD 400bn and deposits over USD 500bn we saw combined net interest income up 15% year-on-year for GWM and P&C. Client activity was robust but differentiated across segments as institutional clients remained very active, with 10% growth in Global Markets revenues, on the back of high volatility, whereas private investors remained generally on the sidelines. Nonetheless, our clients committed USD 3.9bn in private markets and invested USD 4.0bn in separately managed accounts. Momentum also stayed positive in our modular digital mandate offering, My Way, as well as in investment products in Switzerland, each contributing USD 0.5bn of inflows. Finally, with USD 239bn Sustainable Finance invested assets we are more than halfway towards our USD 400bn aspiration by 2025.
We are executing our strategy to drive sustainable growth and efficiency: We are using technology to improve how clients interact with us and how we work. Our mobile-only retail clients in Switzerland now represent around a third of our client base, a 30% growth versus last year. To support them, we expanded our offering and capabilities with UBS key4. In APAC, we launched Circle One, a platform that will bring the best of UBS's global ecosystem directly to our clients. We are improving how we manage, change and develop technology, and we are fostering our engineering culture. For instance, 60% of our applications are currently on the cloud – half in the public and half in the private cloud. Engineers make up 65% of the technology teams that have transitioned to agile, 10 percentage points more than pre-agile. We deployed new AI technology in over 500 applications, and we decommissioned around 300 applications year to date to simplify our tech estate. We achieved this while remaining disciplined on costs, progressing our cost-saving program as planned and investing in our growth initiatives.
We delivered strong reported results and good underlying performance: 2Q22 PBT was USD 2,615m (up 1% YoY). This included the sale of our stake in a joint venture as announced in 1Q22. Our capital-light business model, proactive risk management and exposure to rising interest rates contributed to the quarter’s good performance. The cost/income ratio was 70.6%, an improvement of 1.2 percentage points YoY. Total revenues were broadly flat YoY, while operating expenses decreased by 1%. Net profit attributable to shareholders was USD 2,108m (up 5% YoY), with diluted earnings per share of USD 0.61. Return on CET1 capital was 18.9%. The quarter-end CET1 capital ratio was 14.2% (guidance: ~13%) and the CET1 leverage ratio was 4.37% (guidance: >3.7%). We repurchased USD 1.6bn of shares in 2Q22 and USD 3.3bn in the first half of the year, and we expect to repurchase a total of around USD 5bn of shares during 2022, as planned.
A definition of each alternative performance measure, the method used to calculate it and the information content are presented under “Alternative performance measures” in the appendix to our 2Q22 report.
In case of any differences between the digital and the .pdf version of our quarterly reports, the .pdf version shall prevail.
First quarter 2022
1Q22 net profit of USD 2.1bn, 19.0% return on CET1 capital
UBS Group CEO Ralph Hamers comments on our results for the first quarter of 2022.
Weare executing our strategy to drive growth and efficiency: During 1Q22, we remained focused on executing our strategy. Sustainability remains an important topic for our clients and for us, and this quarter, we launched a new climate transition fund in collaboration with Aon. We saw USD 8bn commitments into private markets from our wealth management clients, who benefit from our scale to receive institutional-like access and pricing. We also continued to improve our mobile applications, helping our clients connect with us easily. In the quarter, more than half of our personal banking clients in Switzerland were active on mobile banking.
We are helping our clients navigate challenging markets: Macroeconomic, geopolitical and market factors created a high level of uncertainty in the first quarter, with Russia’s invasion of Ukraine, COVID-related restrictions and lockdowns, higher volatility, the lower economic growth outlook, and concerns about higher inflation and the monetary policy response. Our clients continued to put their trust in us to navigate this environment. This led to USD 19bn in net new fee-generating asset flows1 in GWM, USD 14bn net new money excluding money market flows in AM, and CHF 1bn net new investment products for Personal Banking.
We delivered strong firm-wide results while managing risk: 1Q22 PBT was USD 2,729m (up 19% YoY), including net credit loss expenses of USD 18m. The cost/income ratio was 70.7%, 3.1 percentage points lower YoY. Operating income increased by 8% YoY, while operating expenses increased by 4%. Net profit attributable to shareholders was USD 2,136m (up 17% YoY), with diluted earnings per share of USD 0.61. Return on CET1 capital was 19.0%. The quarter-end CET1 capital ratio was 14.3% (guidance: ~13%) and the CET1 leverage ratio was 4.16% (guidance: >3.7%). We repurchased USD 1.7bn of shares in 1Q22, and we intend to repurchase a total of around USD 5bn of shares during 2022.
A definition of each alternative performance measure, the method used to calculate it and the information content are presented under “Alternative performance measures” in the appendix to our 1Q22 report.
In case of any differences between the digital and the .pdf version of our quarterly reports, the .pdf version shall prevail.
1 Net new fee-generating assets exclude the effects on fee-generating assets of strategic decisions by UBS to exit markets or services.
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