UBS's third-quarter 2022 results

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.

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.

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.