UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE
 
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: May 7, 2024
UBS Group AG
(Registrant's
 
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's
 
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
 
(Address of principal executive offices)
Commission File Number: 1-15060
 
Credit Suisse AG
(Registrant's
 
Name)
Paradeplatz 8, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-33434
Indicate by check mark whether the registrants file or will file annual
 
reports under cover of Form 20-F or Form
40-
F.
Form 20-F
 
 
Form 40-F
 
 
 
This Form 6-K consists of the
 
First Quarter 2024 Report of UBS Group
 
AG, which appears immediately following
this page.
 
edgarq24ubsgroupagp3i0
 
 
 
UBS
 
Group
First quarter
 
2024 report
 
 
 
 
 
Corporate calendar UBS Group AG
Information about future publication dates is available
 
at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
Switchboards
For all general inquiries
 
ubs.com/contact
Zurich +41-44-234 1111
London +44-207-567
 
8000
New York +1-212-821 3000
Hong Kong +852-2971 8888
Singapore +65-6495 8000
Investor Relations
UBS’s Investor Relations team manages
relationships with institutional investors,
research analysts and credit rating agencies.
 
ubs.com/investors
Zurich +41-44-234 4100
New York +1-212-882 5734
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234 8500
mediarelations@ubs.com
London +44-20-7567 4714
 
ubs-media-relations@ubs.com
New York +1-212-882 5858
 
mediarelations@ubs.com
Hong Kong +852-2971 8200
sh-mediarelations-ap@ubs.com
Office of the Group Company Secretary
The Group Company Secretary handles
 
inquiries directed to the Chairman or to
other members of the Board of Directors.
UBS Group AG, Office of the Group
Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235 6652
Shareholder Services
UBS’s Shareholder Services team, a unit
of the Group Company Secretary’s office,
manages relationships with shareholders
and the registration of UBS Group AG
registered shares.
 
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235 6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
PO Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
 
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
 
© UBS 2024. The key symbol and UBS are among
 
the registered and unregistered
trademarks of UBS. All rights reserved.
1.
UBS
 
Group
4
7
2.
UBS business divisions
 
and Group Items
18
21
24
26
28
30
3.
Risk, capital, liquidity and funding,
and balance sheet
32
38
48
49
52
4.
Consolidated
financial statements
54
5.
Significant regulated subsidiary and
sub-group information
93
Appendix
96
101
103
104
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report
 
2
Terms used in this report, unless the context requires otherwise
“UBS,” “UBS Group,” “UBS Group
 
AG consolidated,” “Group,”
 
“the Group,” “we,” “us”
 
and “our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS
 
AG consolidated”
 
UBS AG and its consolidated subsidiaries
“Credit Suisse AG” and “Credit
 
Suisse AG consolidated”
Credit Suisse AG and its consolidated subsidiaries
“Credit Suisse Group“ and “Credit Suisse Group
 
AG consolidated”
Pre-acquisition Credit Suisse Group
”Credit Suisse”
Credit Suisse AG and its consolidated subsidiaries,
 
Credit Suisse
Services AG, and other small former Credit
 
Suisse Group entities
now directly held by UBS Group AG
“UBS Group AG” and “UBS
 
Group AG standalone”
 
UBS Group AG on a standalone basis
“Credit Suisse Group AG” and
 
“Credit Suisse Group AG standalone”
 
Credit Suisse Group AG on a standalone basis
“UBS AG standalone”
 
UBS AG on a standalone basis
“Credit Suisse AG standalone”
Credit Suisse AG on a standalone basis
“UBS Switzerland AG” and “UBS
 
Switzerland AG standalone”
UBS Switzerland AG on a standalone basis
“UBS Europe SE consolidated”
 
UBS Europe SE and its consolidated subsidiaries
“UBS Americas Holding LLC” and
 
“UBS Americas Holding LLC consolidated”
UBS Americas Holding LLC and its consolidated subsidiaries
“Capital Release Unit (Credit Suisse)”
The Capital Release Unit division of Credit Suisse
 
AG and its
consolidated subsidiaries
 
“Corporate Center (Credit Suisse)”
The Corporate Center division of Credit Suisse AG
 
and its
consolidated subsidiaries
 
“Investment Bank (Credit Suisse)”
The Investment Bank division of Credit Suisse AG and
 
its
consolidated subsidiaries
 
“Swiss Bank (Credit Suisse)”
The Swiss Bank division of Credit Suisse AG and
 
its consolidated
subsidiaries
 
“1m”
One million, i.e., 1,000,000
“1bn”
One billion, i.e., 1,000,000,000
“1trn”
One trillion, i.e., 1,000,000,000,000
In this report, unless the context requires otherwise,
 
references to any gender shall apply to all genders.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
 
future financial performance,
financial position
 
or cash
 
flows other
 
than a
 
financial measure
 
defined or
 
specified in
 
the applicable
 
recognized
accounting standards
 
or
 
in other
 
applicable regulations.
 
We
 
report
 
a
 
number of
 
APMs
 
in
 
the discussion
 
of
 
the
financial and
 
operating performance
 
of the
 
Group, our
 
business divisions
 
and Group
 
Items. We
 
use APMs
 
to provide
a
 
more
 
complete
 
picture of
 
our
 
operating performance
 
and
 
to
 
reflect
 
management’s view
 
of
 
the
 
fundamental
drivers
 
of
 
our
 
business
 
results. A
 
definition
 
of
 
each
 
APM,
 
the
 
method
 
used
 
to
 
calculate
 
it
 
and
 
the
 
information
content are presented
 
under “Alternative performance measures”
 
in the
 
appendix to this
 
report. Our APMs
 
may
qualify
 
as
 
non-GAAP
 
measures
 
as
 
defined
 
by
 
US
 
Securities
 
and
 
Exchange
 
Commission
 
(SEC)
 
regulations.
 
Our
underlying results are APMs and are non-GAAP
 
financial measures.
Refer to the “Group performance” section of this report and to “Alternative performance measures” in the
appendix to this report for additional information about underlying results
Comparability
Comparative information in this report is presented
 
as follows.
Profit
 
and
 
loss
 
information
 
for
 
the
 
first
 
quarter
 
of
 
2024
 
and
 
the
 
fourth
 
quarter
 
of
 
2023
 
is
 
presented
 
on
 
a
consolidated basis, each
 
including Credit
 
Suisse data
 
for three
 
months. Information for
 
the first
 
quarter of
 
2023
includes pre-acquisition UBS data only.
 
Balance
 
sheet
 
information
 
as
 
at
 
31 March
 
2024
 
and
 
31 December
 
2023
 
includes
 
UBS
 
and
 
Credit
 
Suisse
consolidated information, prior balance sheet
 
dates reflect pre-acquisition UBS information
 
only.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report
 
3
Our key figures
As of or for the quarter ended
USD m, except where indicated
31.3.24
31.12.23
1
31.3.23
Group results
Total revenues
 
12,739
 
10,855
 
8,744
Credit loss expense / (release)
 
106
 
136
 
38
Operating expenses
 
10,257
 
11,470
 
7,210
Operating profit / (loss) before tax
 
2,376
 
(751)
 
1,495
Net profit / (loss) attributable to shareholders
 
1,755
 
(279)
 
1,029
Diluted earnings per share (USD)
2
 
0.52
 
(0.09)
 
0.32
Profitability and growth
3,4,5
Return on equity (%)
 
8.2
 
(1.3)
 
7.2
Return on tangible equity (%)
 
9.0
 
(1.4)
 
8.1
Underlying return on tangible equity (%)
6
 
9.6
 
4.8
 
8.7
Return on common equity tier 1 capital (%)
 
9.0
 
(1.4)
 
9.1
Underlying return on common equity tier 1 capital (%)
6
 
9.6
 
4.7
 
9.8
Return on leverage ratio denominator, gross (%)
 
3.1
 
2.6
 
3.4
Cost / income ratio (%)
 
80.5
 
105.7
 
82.5
Underlying cost / income ratio (%)
6
 
77.2
 
93.0
 
81.7
Effective tax rate (%)
 
25.8
n.m.
7
 
30.7
Net profit growth (%)
 
70.6
n.m.
 
(51.8)
Resources
3
Total assets
 
1,607,120
 
1,717,246
 
1,053,134
Equity attributable to shareholders
 
85,260
 
86,108
 
56,754
Common equity tier 1 capital
8
 
78,147
 
78,485
 
44,590
Risk-weighted assets
8
 
526,437
 
546,505
 
321,660
Common equity tier 1 capital ratio (%)
8
 
14.8
 
14.4
 
13.9
Going concern capital ratio (%)
8
 
17.8
 
16.9
 
17.9
Total loss-absorbing capacity ratio (%)
8
 
37.5
 
36.5
 
34.3
Leverage ratio denominator
8
 
1,599,646
 
1,695,403
 
1,014,446
Common equity tier 1 leverage ratio (%)
8
 
4.9
 
4.6
 
4.4
Liquidity coverage ratio (%)
9
 
220.2
 
215.7
 
161.9
Net stable funding ratio (%)
 
126.4
 
124.7
 
117.7
Other
Invested assets (USD bn)
4,10,11
 
5,848
 
5,714
 
4,184
Personnel (full-time equivalents)
 
111,549
 
112,842
 
73,814
Market capitalization
2,12
 
106,440
 
107,355
 
74,276
Total book value per share (USD)
2
 
26.59
 
26.83
 
18.59
Tangible book value per share (USD)
2
 
24.29
 
24.49
 
16.54
1 Comparative-period information has been revised.
 
Refer to “Note 2 Accounting for the
 
acquisition of the Credit Suisse Group”
 
in the “Consolidated financial statements” section
 
of the UBS Group Annual
 
Report
2023, available under “Annual reporting” at ubs.com/investors, for more information.
 
2 Refer to the “Share information and earnings per share”
 
section of this report for more information.
 
3 Refer to the “Targets,
capital guidance and ambitions” section of
 
the UBS Group Annual Report 2023, available
 
under “Annual reporting” at ubs.com/investors, for more information about our performance targets.
 
4 Refer to “Alternative
performance measures” in the appendix
 
to this report for
 
the definition and calculation method.
 
5 Profit or loss information for
 
each of the first quarter
 
of 2024 and the
 
fourth quarter of 2023
 
is presented on a
consolidated basis, including for each quarter Credit Suisse data for three months and for the purpose of the calculation of
 
return measures has been annualized multiplying such by four.
 
Profit or loss information for
the first quarter of
 
2023 includes pre-acquisition UBS data
 
for three months and for
 
the purpose of the
 
calculation of return measures has
 
been annualized multiplying such
 
by four.
 
6 Refer to the “Group
 
performance”
section of this report for more information about underlying results.
 
7 The effective tax rate for the
 
fourth quarter of 2023 is not a meaningful measure,
 
due to the distortive effect of current unbenefited tax losses
at the former Credit Suisse entities.
 
8 Based on the Swiss systemically relevant bank framework as
 
of 1 January 2020. Refer to the “Capital management” section
 
of this report for more information.
 
9 The disclosed
ratios represent quarterly averages for the quarters presented and are calculated based on an average of 61 data points in the first quarter of 2024, 63 data
 
points in the fourth quarter of 2023 and 64 data points in
the first quarter
 
of 2023. Refer
 
to the “Liquidity
 
and funding management”
 
section of this
 
report for more
 
information.
 
10 Consists of invested
 
assets for Global
 
Wealth Management,
 
Asset Management and
Personal & Corporate Banking. Refer to “Note 32 Invested assets and net new money” in the “Consolidated
 
financial statements” section of the UBS Group Annual Report 2023, available under “Annual
 
reporting”
at ubs.com/investors,
 
for more information.
 
11 Starting with the second
 
quarter of 2023,
 
invested assets include invested
 
assets from associates
 
in the Asset
 
Management business division,
 
to better reflect
 
the
business strategy. Comparative figures
 
have been restated to reflect this change.
 
12 In the second quarter of 2023, the calculation of
 
market capitalization was amended to reflect total
 
shares issued multiplied by
the share price at the end of the period. The calculation was previously based on total shares outstanding multiplied by the share price at the
 
end of the period. Market capitalization was increased by USD 10.0bn as
of 31 March 2023 as a result.
 
 
UBS Group first quarter 2024 report |
UBS Group | Recent developments
 
4
UBS Group
Management report
Recent developments
Integration of Credit Suisse
In the first quarter of 2024, we made
 
substantial progress related to the
 
integration of Credit Suisse. We expect
 
to
complete the merger of UBS AG and Credit Suisse AG on 31 May 2024, following operational testing and subject
to remaining regulatory approvals. The transition to a single US intermediate holding company is also planned for
the second quarter
 
of 2024 and
 
the merger of Credit
 
Suisse (Schweiz) AG
 
and UBS Switzerland AG
 
continues to
be planned for the third quarter of
 
2024. Completing the mergers of our significant legal
 
entities is a critical step
in enabling us
 
to unlock the
 
next phase of
 
the cost, capital,
 
funding and tax
 
benefits we expect
 
to realize in
 
the
second half of 2024 and by the end of 2025
 
and into 2026. These mergers will also facilitate
 
Credit Suisse Wealth
Management client migrations to UBS infrastructure across
 
our businesses, which we expect to
 
commence in the
second half of 2024.
 
We have achieved USD 5bn of exit rate gross cost savings, compared with the 2022 combined cost base of Credit
Suisse and UBS,
 
out of the
 
USD 13bn of exit
 
rate gross cost
 
savings that we
 
aim to achieve
 
by the end
 
of 2026.
Cost savings are likely to decrease
 
from the per quarter rate
 
of around USD 1bn and we aim
 
to achieve USD 1.5bn
of additional exit rate gross cost savings in the
 
remainder of 2024.
During the first
 
quarter of 2024,
 
Non-core and Legacy
 
continued to exit
 
positions and
 
reduced risk-weighted
 
assets
by USD 16bn
 
and the
 
leverage ratio
 
denominator by
 
USD 49bn. UBS
 
and entities
 
associated with
 
Apollo Global
Management
 
(Apollo)
 
and
 
Atlas
 
SP
 
Partners
 
(Atlas)
 
entered
 
into
 
agreements
 
to
 
conclude
 
an
 
investment
management agreement and
 
a transition
 
services agreement
 
with Atlas
 
SP. As
 
part of
 
these agreements,
 
Apollo
has also
 
purchased USD 8bn
 
of senior
 
secured financing
 
facilities. We
 
recognized a
 
net gain
 
of USD 272m
 
from
these
 
transactions.
 
Credit
 
Suisse
 
AG
 
recognized
 
a
 
net
 
loss
 
of
 
USD 0.9bn.
 
The
 
difference
 
primarily
 
reflects
adjustments that UBS Group
 
made under IFRS Accounting
 
Standards as part of
 
the purchase price allocation
 
at the
closing of the acquisition of the Credit Suisse
 
Group.
 
On 6 May
 
2024, Credit
 
Suisse (Schweiz)
 
AG repaid
 
further funding
 
drawn under
 
the Emergency
 
Liquidity Assistance
(ELA) facility, reducing
 
the amount of
 
funding outstanding under
 
the ELA
 
from CHF
 
19bn to CHF
 
9bn as of
 
that
date. The remaining CHF 9bn are expected
 
to be repaid in the coming months.
Regulatory and legal developments
Swiss Federal Council releases its report on systemically
 
important banks
In April
 
2024, the
 
Swiss Federal
 
Council released
 
its report
 
on banking
 
stability that
 
evaluates the
 
regulation of
systemically important banks.
 
The report
 
includes a
 
comprehensive review
 
of the
 
acquisition of the
 
Credit Suisse
Group
 
and
 
concludes
 
that
 
the
 
existing
 
Swiss
 
too-big-to-fail
 
(TBTF)
 
regime
 
must
 
be
 
further
 
developed
 
and
strengthened. The
 
Swiss Federal
 
Council proposes
 
to introduce
 
a broad
 
package of
 
measures, focused
 
on three
areas: strengthening prevention, strengthening liquidity and expanding the crisis
 
toolkit.
 
Preventive measures include
 
proposals to strengthen
 
the capital base,
 
to improve resolvability
 
and tighten capital
requirements
 
for
 
global
 
systemically
 
important
 
banks
 
(G-SIBs),
 
including
 
the
 
introduction
 
of
 
forward-looking
elements for institution-specific Pillar 2 capital surcharges
 
and increased capital adequacy requirements for foreign
participations.
 
The Swiss Federal
 
Council also recommended
 
preventive measures related
 
to corporate governance,
such as a senior management regime and stricter regulations
 
regarding bonuses. To strengthen liquidity, the Swiss
Federal Council intends to significantly expand the potential for the
 
Swiss National Bank to provide more liquidity
in a
 
crisis. Furthermore,
 
the Swiss
 
Federal Council
 
reiterated its
 
support for
 
the introduction
 
of a
 
public liquidity
backstop. To expand
 
the crisis toolkit,
 
the Swiss Federal
 
Council proposed measures
 
that aim to minimize
 
legal risks
associated with the execution of resolution
 
measures.
 
 
 
UBS Group first quarter 2024 report |
UBS Group | Recent developments
 
5
In the first half
 
of 2025, the Swiss
 
Federal Council is expected
 
to present two packages
 
to implement the
 
proposed
measures:
 
one
 
with
 
changes
 
at
 
the
 
ordinance
 
level,
 
which
 
can
 
be
 
adopted
 
by
 
the
 
Swiss
 
Federal
 
Council,
 
and
another,
 
which
 
will
 
be
 
submitted
 
to
 
the
 
Parliament,
 
with
 
proposed
 
legislative
 
amendments.
 
The
 
Swiss
 
Federal
Council has
 
stated that
 
when drafting
 
these two
 
packages it
 
will take
 
into account
 
the findings
 
of the
 
Parliamentary
Investigation Committee concerning
 
the role of the Swiss authorities
 
in the rescue of the Credit Suisse
 
Group. Due
to the broad range of possible outcomes, the impact of the proposals on UBS can be fully assessed only when the
implementation details become clearer.
 
FINMA publishes ordinances with implementing
 
provisions for the revised Swiss Capital Adequacy
 
Ordinance
In
 
March
 
2024,
 
the
 
Swiss
 
Financial
 
Market
 
Supervisory
 
Authority
 
(FINMA)
 
published
 
five
 
new
 
ordinances
 
to
implement
 
the
 
final
 
Basel III
 
standards
 
in
 
Switzerland,
 
replacing
 
various
 
existing
 
FINMA
 
circulars,
 
including
ordinances on operational
 
risks and market
 
risks. The ordinances
 
contain the implementing
 
provisions for the
 
Swiss
Federal
 
Council’s
 
revised
 
Capital
 
Adequacy
 
Ordinance
 
for
 
banks
 
(the
 
CAO)
 
and
 
they
 
will
 
enter
 
into
 
force
 
on
1 January 2025.
Shortening the securities settlement cycle to
 
T+1
In the US,
 
a shortened
 
T+1 settlement cycle
 
will apply to
 
securities transactions
 
beginning on
 
28 May 2024. In
 
April
2024, the UK
 
Accelerated Settlement Taskforce
 
issued a report
 
proposing a phased
 
approach to the
 
adoption of
T+1 settlement
 
and the
 
establishing of a
 
technical working
 
group to review
 
the operational
 
and behavioral
 
changes
required for a T+1 settlement cycle.
 
Recommendations for changes
 
are planned to be made by
 
the end of 2025 to
enable
 
the
 
market
 
to
 
prepare,
 
with
 
the
 
move
 
to
 
T+1
 
expected
 
to
 
take
 
place before
 
the
 
end
 
of
 
2027.
 
The
 
UK
government has accepted the recommendations and confirmed it will work with the
 
EU and Switzerland to see if
similar timeframes will be pursued and,
 
therefore,
 
if alignment is possible.
 
New Retirement Security Rule adopted for
 
US retirement and pension accounts
In April 2024,
 
the US
 
Department of
 
Labor (the
 
DOL) adopted
 
a new Retirement
 
Security Rule,
 
related amendments
to existing
 
rules governing
 
transactions between
 
covered plans
 
and parties
 
in interest,
 
and amendments
 
to the
“qualified professional asset manager” transaction exemption. The
 
Retirement Security Rule expands the scope of
transactions
 
subject
 
to
 
requirements
 
of
 
the
 
Employment
 
Retirement
 
Income
 
Security
 
Act
 
by
 
expanding
 
the
relationships
 
and
 
advice
 
that
 
create
 
a
 
fiduciary
 
relationship
 
between
 
an
 
investment
 
professional
 
and
 
a
 
plan
 
or
beneficiary, particularly in relation to
 
individual retirement accounts
 
(IRAs). The amendments
 
to existing transaction
exemptions generally
 
limit or
 
prohibit the
 
use of
 
those exemptions
 
for transactions
 
involving IRAs,
 
with the
 
intention
of
 
requiring
 
transactions
 
involving
 
IRAs
 
to
 
rely
 
upon
 
an
 
exemption
 
(PTE
 
2020-2)
 
imposing
 
specific
 
impartiality,
conflict-of-interest and compliance requirements. Global Wealth Management US
 
treats established IRA accounts
as fiduciary
 
relationships in
 
accordance with
 
PTE 2020-2.
 
We are assessing
 
the effect
 
of the
 
changes on
 
our business
with IRA accounts.
 
In connection with the
 
adoption of the
 
Retirement Security Rule,
 
the DOL also amended
 
PTE 2020-2 to expand
 
the
scope of
 
affiliated persons
 
for which
 
a criminal
 
conviction or
 
determinations of
 
misconduct disqualify
 
an investment
professional from using the exemption and to add a
 
one-year transition period for a newly disqualified investment
professional
 
to
 
transition
 
the
 
related
 
business.
 
The
 
amendments
 
to
 
the
 
qualified
 
professional
 
asset
 
manager
exemption also expand the scope of
 
events that may trigger disqualification and add
 
a similar one-year transition
provision. In each case, the DOL retains the
 
ability to grant an individual exemption
 
from the disqualification.
The Swiss National Bank will raise the minimum
 
reserve requirement for banks
In April 2024, the Swiss National Bank
 
(the SNB) announced that it will raise
 
the minimum reserve requirement for
domestic banks from 2.5%
 
to 4%, and it
 
will therefore amend the
 
National Bank Ordinance as
 
of 1 July 2024.
 
The
SNB further announced
 
that liabilities arising
 
from cancelable customer
 
deposits (excluding
 
tied pension provisions)
will be included in
 
full in the
 
calculation of the
 
minimum reserve requirement, as
 
is the case with
 
the other relevant
liabilities.
 
This
 
revokes
 
the
 
previous
 
exception
 
under
 
which
 
only
 
20%
 
of
 
these
 
liabilities
 
counted
 
toward
 
the
calculation. Based
 
on preliminary
 
internal assessments, UBS
 
expects a
 
negative impact
 
of USD 70m
 
to USD 80m
per annum on net interest income to result from these changes.
 
 
UBS Group first quarter 2024 report |
UBS Group | Recent developments
 
6
Other developments
Capital returns
On 24 April
 
2024, the
 
shareholders approved a
 
dividend of
 
USD 0.70 per
 
share at
 
the Annual
 
General Meeting.
The dividend was paid on 3 May 2024 to shareholders
 
of record on 2 May 2024.
Our 2022
 
share repurchase program
 
was concluded on
 
28 March 2024.
 
A total
 
of 298,537,950
 
UBS Group
 
AG
shares were acquired under that program, at an aggregate
 
purchase price of CHF 5,010m, of which CHF 1,202m
were acquired in 2023
 
prior to the announcement
 
of the acquisition of
 
the Credit Suisse
 
Group.
 
On 12 April 2023,
the Swiss
 
Takeover Board
 
approved the
 
use of
 
up to
 
178,031,942 shares
 
repurchased under
 
the 2022
 
program,
and originally intended for cancellation, for
 
the acquisition of the Credit Suisse Group.
On 3 April 2024, we
 
launched a new
 
2024 share repurchase
 
program of up
 
to USD 2bn over two
 
years. We expect
to execute up
 
to USD 1bn of
 
repurchases in 2024,
 
commencing after the
 
completion of the
 
merger of UBS AG
 
and
Credit Suisse AG.
Refer to the “Share information and earnings per share” section of this report for more information
Credit Suisse’s wealth management business
 
in Japan
In April 2024, UBS and Sumitomo Mitsui Trust
 
Holdings, Inc. (SuMi TRUST Holdings) announced that their wealth
management entity, UBS SuMi
 
TRUST Wealth
 
Management Co.,
 
Ltd. (UBS
 
SuMi), will
 
acquire Credit Suisse’s
 
wealth
management business in
 
Japan, including all
 
of Credit Suisse’s client
 
advisors and the
 
assets they manage
 
in Japan.
Following completion, UBS
 
and SuMi TRUST Holdings
 
will rebalance their investments
 
in UBS SuMi to maintain
 
the
current ownership structure (UBS
 
51% / SuMi TRUST Holdings 49%).
 
UBS will continue to consolidate the
 
entity.
The transaction is expected to close in the fourth quarter
 
of 2024 and is not expected to have a material effect on
the common equity tier 1 capital of the Group.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
7
Group performance
 
Income statement
For the quarter ended
% change from
USD m
31.3.24
31.12.23
31.3.23
4Q23
1Q23
Net interest income
 
1,940
 
2,095
 
1,388
 
(7)
 
40
Other net income from financial instruments measured
 
at fair value through profit or loss
 
4,182
 
3,158
 
2,681
 
32
 
56
Net fee and commission income
 
6,492
 
5,780
 
4,606
 
12
 
41
Other income
 
124
 
(179)
 
69
 
79
Total revenues
 
12,739
 
10,855
 
8,744
 
17
 
46
Credit loss expense / (release)
 
106
 
136
 
38
 
(22)
 
177
Personnel expenses
 
6,949
 
7,061
 
4,620
 
(2)
 
50
General and administrative expenses
 
2,413
 
2,999
 
2,065
 
(20)
 
17
Depreciation, amortization and impairment of non-financial
 
assets
 
895
 
1,409
 
525
 
(37)
 
70
Operating expenses
 
10,257
 
11,470
 
7,210
 
(11)
 
42
Operating profit / (loss) before tax
 
2,376
 
(751)
 
1,495
 
59
Tax expense / (benefit)
 
 
612
 
(473)
 
459
 
33
Net profit / (loss)
 
1,764
 
(278)
 
1,037
 
70
Net profit / (loss) attributable to non-controlling interests
 
9
 
1
 
8
 
7
Net profit / (loss) attributable to shareholders
 
1,755
 
(279)
 
1,029
 
71
Comprehensive income
Total comprehensive income
 
(245)
 
2,695
 
1,833
Total comprehensive income attributable to non-controlling interests
 
(5)
 
18
 
13
Total comprehensive income attributable to shareholders
 
(240)
 
2,677
 
1,820
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
8
Selected financial information of our business divisions and Group Items
For the quarter ended 31.3.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
 
6,143
 
2,423
 
776
 
2,751
 
1,001
 
(355)
 
12,739
of which: PPA effects and other integration items
1
 
234
 
256
 
293
 
(4)
 
779
Total revenues (underlying)
 
5,909
 
2,166
 
776
 
2,458
 
1,001
 
(351)
 
11,960
Credit loss expense / (release)
 
(3)
 
44
 
0
 
32
 
36
 
(2)
 
106
Operating expenses as reported
 
5,044
 
1,404
 
665
 
2,164
 
1,011
 
(33)
 
10,257
of which: integration-related expenses and PPA effects
2
 
404
 
160
 
71
 
143
 
242
 
1
 
1,021
Operating expenses (underlying)
 
4,640
 
1,245
 
594
 
2,022
 
769
 
(34)
 
9,236
Operating profit / (loss) before tax as reported
 
1,102
 
975
 
111
 
555
 
(46)
 
(320)
 
2,376
Operating profit / (loss) before tax (underlying)
 
1,272
 
878
 
182
 
404
 
197
 
(315)
 
2,617
For the quarter ended 31.12.23
3
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
 
5,554
 
2,083
 
825
 
2,141
 
145
 
107
 
10,855
of which: PPA effects and other integration items
1
 
349
 
306
 
277
 
12
 
944
of which: losses related to investment in SIX Group
 
(190)
 
(317)
 
(508)
Total revenues (underlying)
 
5,395
 
2,094
 
825
 
1,864
 
145
 
95
 
10,419
Credit loss expense / (release)
 
(8)
 
85
 
(1)
 
48
 
15
 
(2)
 
136
Operating expenses as reported
 
5,282
 
1,398
 
704
 
2,283
 
1,787
 
16
 
11,470
of which: integration-related expenses and PPA effects
2
 
502
 
187
 
64
 
167
 
750
 
109
 
1,780
of which: acquisition-related costs
 
(1)
 
(1)
Operating expenses (underlying)
 
4,780
 
1,210
 
639
 
2,116
 
1,037
 
(92)
 
9,690
Operating profit / (loss) before tax as reported
 
280
 
601
 
122
 
(190)
 
(1,657)
 
93
 
(751)
Operating profit / (loss) before tax (underlying)
 
624
 
800
 
186
 
(300)
 
(907)
 
189
 
592
For the quarter ended 31.3.23
4
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
 
4,788
 
1,277
 
503
 
2,365
 
23
 
(211)
 
8,744
Total revenues (underlying)
 
4,788
 
1,277
 
503
 
2,365
 
23
 
(211)
 
8,744
Credit loss expense / (release)
 
15
 
16
 
0
 
7
 
0
 
0
 
38
Operating expenses as reported
 
3,561
 
663
 
408
 
1,866
 
699
 
14
 
7,210
of which: acquisition-related costs
 
70
 
70
Operating expenses (underlying)
 
3,561
 
663
 
408
 
1,866
 
699
 
(57)
 
7,140
Operating profit / (loss) before tax as reported
 
1,212
 
598
 
95
 
492
 
(676)
 
(225)
 
1,495
Operating profit / (loss) before tax (underlying)
 
1,212
 
598
 
95
 
492
 
(676)
 
(155)
 
1,566
1 Includes accretion of PPA
 
adjustments on financial instruments and other
 
PPA effects, as well
 
as temporary and incremental items
 
directly related to the integration.
 
2 Includes temporary, incremental
 
operating
expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group.
 
3 Comparative-period information has been restated for
changes in business
 
division perimeters,
 
Group Treasury
 
allocations and Non-core
 
and Legacy cost
 
allocations. Refer
 
to “Changes to
 
segment reporting in
 
2024” in the
 
“UBS business divisions
 
and Group Items”
section below and “Note
 
3 Segment reporting” in
 
the “Consolidated financial statements”
 
section of this report
 
for more information.
 
4 Comparative-period information has
 
been restated for changes
 
in Group
Treasury allocations.
 
Refer to “Changes to segment
 
reporting in 2024” in the
 
“UBS business divisions and Group
 
Items” section below and “Note
 
3 Segment reporting” in the “Consolidated
 
financial statements”
section of this report for more information.
Integration-related expenses, by business division and Group Items
For the quarter ended
USD m
31.3.24
31.12.23
Global Wealth Management
 
432
 
500
Personal & Corporate Banking
 
140
 
161
Asset Management
 
71
 
64
Investment Bank
 
143
 
167
Non-core and Legacy
 
242
 
750
Group Items
 
1
 
109
Total integration-related expenses
 
1,029
 
1,751
of which: total revenues
 
37
 
0
of which: operating expenses
 
992
 
1,751
of which: personnel expenses
 
555
 
794
of which: general and administrative expenses
 
355
 
455
of which: depreciation, amortization and impairment of non-financial
 
assets
 
82
 
503
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
9
Introduction to underlying results
In addition to
 
reporting our
 
results in accordance
 
with IFRS
 
Accounting Standards,
 
we report underlying
 
results that
exclude items of profit or loss that management believes
 
are not representative of the underlying performance.
In
 
the
 
first
 
quarter
 
of
 
2024,
 
underlying
 
revenues
 
exclude
 
purchase
 
price
 
allocation
 
(PPA)
 
effects
 
and
 
other
integration items. PPA
 
effects mainly consist
 
of PPA
 
adjustments on financial
 
instruments measured at
 
amortized
cost, including
 
off-balance sheet
 
positions, arising
 
from the
 
acquisition of
 
the Credit
 
Suisse Group.
 
Accretion of
 
PPA
adjustments on financial
 
instruments is accelerated
 
when the related
 
financial instrument is
 
derecognized before
its contractual maturity.
 
No adjustment is
 
made for accretion
 
of PPA
 
adjustments on financial
 
instruments within
the Non-core and Legacy business division,
 
due to the nature of
 
its business model. In 2023, underlying revenues
also exclude losses relating to our investment
 
in SIX Group.
Underlying expenses exclude
 
integration-related expenses that
 
are temporary, incremental
 
and directly
 
related to
the integration of
 
Credit Suisse into UBS,
 
including costs of
 
internal staff and contractors
 
substantially dedicated to
integration activities, retention
 
awards, redundancy costs,
 
incremental expenses from
 
the shortening of useful
 
lives
of property,
 
equipment and
 
software, and
 
impairment charges
 
relating to these
 
assets. Classification
 
as integration-
related expenses does
 
not affect the
 
timing of recognition
 
and measurement
 
of those expenses
 
or the presentation
thereof
 
in
 
the
 
income
 
statement. Integration-related
 
expenses
 
incurred
 
by
 
Credit
 
Suisse
 
also
 
included
 
expenses
associated with restructuring
 
programs that existed prior to the acquisition.
Results: 1Q24 vs 1Q23
Reported operating
 
profit before
 
tax increased
 
by USD 881m,
 
or 59%,
 
to USD 2,376m, reflecting
 
an increase
 
in
total revenues, partly offset
 
by higher operating expenses
 
and net credit loss expenses.
 
Total revenues increased by
USD 3,995m, or
 
46%, to
 
USD 12,739m, largely
 
due to
 
the consolidation
 
of Credit
 
Suisse revenues
 
of USD 3,829m,
and included accretion
 
impacts resulting from
 
PPA adjustments on financial
 
instruments and other PPA
 
effects of
USD 815m. This increase was mainly driven
 
by a USD 2,054m increase in total
 
combined net interest income and
other
 
net
 
income
 
from
 
financial
 
instruments
 
measured
 
at
 
fair
 
value
 
through
 
profit
 
or
 
loss
 
and
 
a
 
USD 1,886m
increase
 
in
 
net
 
fee
 
and
 
commission
 
income.
 
Other
 
income
 
also
 
increased
 
by
 
USD 55m.
 
Operating
 
expenses
increased by USD 3,047m, or
 
42%, to USD 10,257m, largely due
 
to the consolidation of Credit
 
Suisse expenses of
USD 2,903m,
 
and
 
included
 
integration-related
 
expenses
 
of
 
USD 992m.
 
This
 
increase
 
was
 
mainly
 
driven
 
by
 
a
USD 2,329m increase
 
in
 
personnel expenses.
 
Depreciation, amortization
 
and impairment
 
of non-financial
 
assets
also increased
 
by USD 370m,
 
and general
 
and administrative
 
expenses increased
 
by USD 348m,
 
with those
 
increases
partly
 
offset by
 
the prior-year
 
quarter including
 
a
 
USD 665m increase
 
in provisions
 
related to
 
the US
 
residential
mortgage-backed securities (RMBS) litigation matter.
 
Underlying results 1Q24 vs 1Q23
For the purpose of determining underlying results for the
 
first quarter of 2024, we excluded PPA effects and other
integration
 
items
 
of
 
USD 779m
 
from
 
total
 
revenues
 
and
 
integration-related
 
expenses
 
and
 
PPA
 
effects
 
of
USD 1,021m from operating expenses.
 
On
 
an
 
underlying
 
basis,
 
profit
 
before
 
tax
 
increased
 
by
 
USD 1,051m,
 
or
 
67%,
 
to
 
USD 2,617m,
 
reflecting
 
a
USD 3,216m increase in underlying total revenues,
 
partly offset by a USD 2,096m increase in
 
underlying operating
expenses and
 
net credit loss
 
expenses
 
of USD 106m, compared
 
with net
 
credit loss
 
expenses
 
of USD 38m in
 
the
first quarter of 2023.
Total revenues: 1Q24 vs 1Q23
Net interest income and other net income
 
from financial instruments measured at
 
fair value through profit or loss
Total combined net
 
interest income
 
and other
 
net income
 
from financial
 
instruments
 
measured at
 
fair value
 
through
profit or
 
loss increased
 
by USD 2,054m
 
to USD 6,123m,
 
mainly driven
 
by the
 
consolidation
 
of USD 2,965m
 
of Credit
Suisse
 
revenues,
 
and
 
included
 
USD 517m
 
of
 
accretion
 
impacts
 
resulting
 
from
 
PPA
 
adjustments
 
on
 
financial
instruments and other PPA effects.
 
Personal & Corporate Banking increased
 
by USD 871m to USD 1,704m,
 
largely attributable to the consolidation
 
of
USD 814m
 
of
 
Credit
 
Suisse
 
revenues,
 
and
 
included
 
USD 240m
 
of
 
accretion
 
of
 
PPA
 
adjustments
 
on
 
financial
instruments and other PPA effects. The remaining increase was mainly
 
driven by higher deposit margins, resulting
from higher interest rates, partly
 
offset by shifts to lower-margin
 
deposit products.
 
Excluding the aforementioned
accretion effects, underlying net interest
 
income was USD 1,268m.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
10
Global Wealth Management increased
 
by USD 555m to
 
USD 2,354m, largely attributable to
 
the consolidation of
USD 798m
 
of
 
Credit
 
Suisse
 
revenues,
 
and
 
included
 
USD 257m
 
of
 
accretion
 
of
 
PPA
 
adjustments
 
on
 
financial
instruments and other
 
PPA effects. The
 
remaining variance
 
was attributable
 
to lower deposit
 
margins, including
 
the
effects
 
of
 
shifts
 
to
 
lower-margin
 
products,
 
partly
 
offset
 
by
 
higher
 
rates
 
and
 
deposit
 
volumes.
 
Excluding
 
the
aforementioned accretion effects, underlying net
 
interest income was USD 1,615m.
Non-core and Legacy
 
increased by USD 890m
 
to USD 908m, which
 
included net gains from
 
position exits, along with
net interest income
 
from securitized products
 
and credit products.
 
Revenues also included
 
a net gain
 
of USD 272m
from the conclusion of agreements with
 
Apollo relating to the former Credit
 
Suisse securitized products group.
Group Items was negative USD 406m, compared with negative USD 252m in the
 
prior-year quarter, including the
consolidation of USD 124m
 
losses from Credit Suisse.
 
The remaining variance was
 
attributable to the net
 
effects of
Group hedging and own debt,
 
including hedge accounting ineffectiveness, within Group
 
Treasury and an increase
in funding costs
 
related to deferred
 
tax. The results
 
across the
 
periods were driven
 
by mark-to-market effects
 
on
portfolio-level economic hedges due to higher
 
interest rates and cross-currency-basis widening.
 
The Investment Bank decreased by USD 114m to USD 1,562m. This result included the consolidation of USD 22m
of Credit
 
Suisse revenues
 
and USD 17m
 
of accretion of
 
PPA adjustments
 
on financial
 
instruments and
 
other PPA
effects. The decrease was mainly attributable to lower revenues in Derivatives & Solutions, mostly driven by Rates,
due to
 
lower levels
 
of both
 
volatility and
 
client activity.
 
This was
 
partly offset
 
by
 
an increase
 
in Global
 
Banking,
mainly from higher revenues in Leveraged
 
Capital Markets.
Refer to the relevant business division commentary in the “UBS business divisions and Group Items” section of this
report for more information about business-division-specific revenues
Refer to “Integration of Credit Suisse” in the “Recent developments” section and “Note 2 Accounting for the
acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of this report for more
information about the conclusion of agreements with Apollo
Refer to “Note 4 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
USD m
31.3.24
31.12.23
1
31.3.23
1
4Q23
1Q23
Net interest income from financial instruments measured
 
at amortized cost and fair value through other
comprehensive income
 
355
 
597
 
962
 
(41)
 
(63)
Net interest income from financial instruments measured
 
at fair value through profit or loss and other
 
1,585
 
1,498
 
425
 
6
 
273
Other net income from financial instruments measured
 
at fair value through profit or loss
 
4,182
 
3,158
 
2,681
 
32
 
56
Total
 
6,123
 
5,253
 
4,069
 
17
 
50
Global Wealth Management
 
2,354
 
2,268
 
1,799
 
4
 
31
of which: net interest income
 
1,873
 
1,871
 
1,487
 
0
 
26
of which: transaction-based income from foreign exchange and other
 
intermediary activity
2
 
482
 
397
 
312
 
21
 
54
Personal & Corporate Banking
 
 
1,704
 
1,704
 
833
 
0
 
105
of which: net interest income
 
 
1,508
 
1,510
 
704
 
0
 
114
of which: transaction-based income from foreign exchange and other
 
intermediary activity
2
 
196
 
194
 
129
 
1
 
52
Asset Management
 
(1)
 
10
 
(5)
 
(84)
Investment Bank
 
1,562
 
982
 
1,676
 
59
 
(7)
Non-core and Legacy
 
908
 
(25)
 
18
Group Items
 
(406)
 
315
 
(252)
 
61
1 Comparative-period information
 
has been restated
 
for changes in
 
business division perimeters,
 
Group Treasury
 
allocations and Non-core
 
and Legacy cost
 
allocations. Refer
 
to “Changes to
 
segment reporting in
2024” in the “UBS
 
business divisions and Group
 
Items” section below and
 
“Note 3 Segment reporting”
 
in the “Consolidated financial
 
statements” section of this
 
report for more information.
 
2 Mainly includes
spread-related income in
 
connection with client-driven
 
transactions, foreign
 
currency translation effects
 
and income and
 
expenses from precious
 
metals, which
 
are included in
 
the income statement
 
line Other net
income from financial instruments measured at fair value
 
through profit or loss. The
 
amounts reported on this line are one component
 
of Transaction-based income in
 
the management discussion and analysis in the
“Global Wealth Management” and “Personal & Corporate Banking” sections
 
of this report.
Net fee and commission income
Net fee and commission income
 
increased by USD 1,886m to USD 6,492m, and included
 
USD 306m of accretion
of PPA adjustments
 
on financial
 
instruments and
 
other PPA effects,
 
which was
 
included in
 
other fee
 
and commission
income, mainly in the Investment Bank.
Fees for portfolio management
 
and related services
 
increased by USD 841m
 
to USD 3,051m, largely
 
attributable to
the consolidation of USD 596m
 
of Credit Suisse revenues, as well as positive
 
market performance.
Excluding the consolidation of
 
USD 108m of Credit
 
Suisse revenues, net brokerage
 
fees increased by
 
USD 125m,
reflecting an increase in Cash Equities across all regions in Execution Services in the Investment Bank, as well as in
Global
 
Wealth Management,
 
due
 
to higher
 
levels
 
of client
 
activity, particularly
 
in
 
the Americas
 
and
 
Asia Pacific
regions.
 
Refer to “Note 5 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
11
Other income
Other income was USD 124m, compared with USD 69m in the prior-year quarter.
 
The increase was largely due to
a
 
USD 48m increase
 
in share
 
of net
 
profits
 
of associates
 
and joint
 
ventures,
 
mainly due
 
to the
 
consolidation of
USD 42m of Credit Suisse revenues.
Refer to “Note 6 Other income” in the “Consolidated financial statements” section of this report for more
information
Credit loss expense / release: 1Q24 vs
 
1Q23
Total net credit loss expenses in the first quarter of 2024 were USD 106m, compared with net credit loss expenses
of USD 38m in
 
the prior-year quarter, reflecting net
 
releases of USD 45m related
 
to performing positions and
 
net
expenses of USD 151m on credit-impaired positions.
Refer to “Note 9 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
 
Total
For the quarter ended 31.3.24
Global Wealth Management
 
(12)
 
7
 
2
 
(3)
Personal & Corporate Banking
 
(13)
 
64
 
(7)
 
44
Asset Management
 
0
 
0
 
0
 
0
Investment Bank
 
7
 
26
 
(1)
 
32
Non-core and Legacy
 
(26)
 
37
 
25
 
36
Group Items
 
(2)
 
0
 
0
 
(2)
Total
 
(45)
 
133
 
18
 
106
For the quarter ended 31.12.23
1
Global Wealth Management
 
(12)
 
3
 
0
 
(8)
Personal & Corporate Banking
 
(14)
 
95
 
4
 
85
Asset Management
 
0
 
0
 
0
 
(1)
Investment Bank
 
(13)
 
60
 
1
 
48
Non-core and Legacy
 
(1)
 
25
 
(9)
 
15
Group Items
 
(2)
 
0
 
0
 
(2)
Total
 
(43)
 
183
 
(4)
 
136
For the quarter ended 31.3.23
Global Wealth Management
 
15
 
0
 
15
Personal & Corporate Banking
 
15
 
0
 
16
Asset Management
 
0
 
0
 
0
Investment Bank
 
(5)
 
12
 
7
Non-core and Legacy
 
0
 
0
 
0
Group Items
 
0
 
0
 
0
Total
 
26
 
12
 
38
1
 
Comparative-period information has been restated for changes in business division perimeters. Refer to “Changes to segment reporting in 2024” in
 
the “UBS business divisions and Group Items” section and “Note
3 Segment reporting” in the “Consolidated financial statements” section of this report for more information.
Operating expenses: 1Q24 vs 1Q23
Operating expenses
For the quarter ended
% change from
USD m
31.3.24
31.12.23
31.3.23
4Q23
1Q23
Personnel expenses
 
 
6,949
 
7,061
 
4,620
 
(2)
 
50
of which: salaries and variable compensation
 
5,863
 
5,728
 
3,885
 
2
 
51
of which: variable compensation – financial advisors
1
 
1,267
 
1,176
 
1,111
 
8
 
14
General and administrative expenses
 
 
2,413
 
2,999
 
2,065
 
(20)
 
17
of which: net expenses for litigation, regulatory and similar
 
matters
 
(5)
 
8
 
721
of which: other general and administrative expenses
 
2,418
 
2,992
 
1,345
 
(19)
 
80
Depreciation, amortization and impairment of non-financial
 
assets
 
895
 
1,409
 
525
 
(37)
 
70
Total operating expenses
 
10,257
 
11,470
 
7,210
 
(11)
 
42
1 Consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. Also includes expenses related to compensation commitments with financial
advisors entered into at the time of recruitment that are subject to vesting requirements.
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
12
Personnel expenses
Personnel expenses
 
increased by
 
USD 2,329m to
 
USD 6,949m, mainly
 
due to
 
the consolidation
 
of Credit
 
Suisse
expenses of
 
USD 2,015m, and
 
included
 
integration-related expenses
 
of
 
USD 555m covering
 
awards
 
granted to
employees
 
to
 
support
 
retention
 
and
 
operational
 
stability
 
and
 
severance
 
expenses.
 
Salaries
 
and
 
variable
compensation
 
increased
 
by
 
USD 1,978m,
 
due
 
to
 
the
 
aforementioned
 
effects
 
and
 
also
 
due
 
to
 
higher
 
variable
compensation, including
 
an increase in financial
 
advisor compensation,
 
reflecting higher compensable
 
revenues, as
well as salary adjustments,
 
and foreign currency effects.
Refer to “Note 7 Personnel expenses” in the “Consolidated financial statements” section of this report for more
information
General and administrative expenses
General and administrative expenses increased
 
by USD 348m to USD 2,413m, largely
 
due to the consolidation of
Credit Suisse expenses of USD 587m, and
 
included total integration-related expenses
 
of USD 355m, mainly due to
USD 278m of consulting and outsourcing costs. Excluding the aforementioned effects, general and administrative
expenses decreased, largely due
 
to the prior-year quarter including an expense
 
for provisions
 
of USD 665m related
to
 
the
 
US
 
RMBS
 
litigation
 
matter
 
and
 
USD 43m
 
bank
 
levy
 
expenses,
 
partly
 
offset
 
by
 
a
 
USD 64m
 
increase
 
in
technology costs in the first quarter of 2024.
 
We believe that the industry continues to operate in an environment in which expenses
 
associated with litigation,
regulatory and similar matters will remain elevated
 
for the foreseeable future, and we continue
 
to be exposed to a
number
 
of
 
significant
 
claims
 
and
 
regulatory
 
matters.
 
The
 
outcome
 
of
 
many
 
of
 
these
 
matters,
 
the
 
timing
 
of
 
a
resolution, and the
 
potential effects
 
of resolutions on
 
our future business,
 
financial results
 
or financial condition
 
are
extremely difficult to predict.
Refer to “Note 8 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
Refer to “Note 15 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information about litigation, regulatory and similar matters
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS Group Annual Report
2023, available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory
and similar matters
 
Depreciation, amortization and impairment of
 
non-financial assets
Depreciation, amortization and impairment
 
of non-financial assets
 
increased by USD 370m
 
to USD 895m, largely
due to the consolidation of
 
Credit Suisse expenses of
 
USD 301m, and included total integration-related
 
expenses
of USD 82m,
 
mainly attributable
 
to accelerated
 
depreciation of
 
right-of-use assets
 
associated with
 
real estate
 
leases.
 
Tax: 1Q24 vs 1Q23
The Group had a net income tax expense of USD 612m in
 
the first quarter of 2024, compared with USD 459m in
the prior-year quarter.
 
The net current
 
tax expense
 
was USD 468m, compared
 
with USD 487m, and
 
primarily related to
 
the taxable profits
of UBS Switzerland AG and other entities.
 
There was a
 
net deferred tax
 
expense of USD 144m,
 
compared with
 
a benefit of
 
USD 28m in the
 
prior-year quarter,
with
 
such
 
expense
 
primarily
 
relating
 
to
 
the
 
amortization
 
of
 
deferred
 
tax
 
assets
 
(DTAs)
 
previously
 
recognized
 
in
relation to tax losses carried forward and
 
deductible temporary differences.
 
The Group’s effective tax rate for the quarter was
 
25.8%, which is higher than its structural rate of 23%, because
its net profit includes operating losses
 
of certain entities, reflecting integration-related expenses and restructuring
costs, that
 
did not
 
result in
 
any tax
 
benefits because
 
they cannot
 
be offset
 
with profits
 
of other
 
entities in
 
the Group,
and did not result
 
in any DTA recognition.
 
The Group’s tax
 
expense for the remaining
 
nine months of 2024
 
may be
impacted if further such operating
 
losses are incurred in these entities, and
 
the amount of that impact will
 
depend
on the amount of those losses. The Group’s effective tax rate is expected to decrease toward the structural rate
 
in
subsequent years.
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
13
Total comprehensive income attributable
 
to shareholders
In
 
the
 
first
 
quarter of
 
2024,
 
total
 
comprehensive income
 
attributable to
 
shareholders
 
was
 
negative USD 240m,
reflecting a net profit of
 
USD 1,755m and other
 
comprehensive income (OCI),
 
net of tax, of
 
negative USD 1,994m.
Foreign currency translation OCI was negative USD 1,277m, mainly resulting from a weakening of the Swiss franc
and the euro against the US dollar.
OCI
 
related
 
to
 
cash
 
flow
 
hedges
 
was
 
negative
 
USD 583m,
 
mainly
 
reflecting
 
net
 
unrealized
 
losses
 
on
 
US
 
dollar
hedging derivatives resulting from
 
increases in the relevant
 
US dollar long-term interest
 
rates, partly offset by
 
net
losses on hedging instruments that were reclassified
 
from OCI to the income statement.
OCI related to own credit on financial liabilities designated at fair value was negative USD 68m, primarily due to a
tightening of our own credit spreads.
Defined benefit plan OCI
 
was negative USD 56m,
 
mainly reflecting negative
 
pre-tax OCI in our
 
Swiss pension plans
of USD 92m, partly offset by
 
positive pre-tax OCI in our
 
non-Swiss plans of USD 30m, mainly
 
driven by US pension
plans.
Refer to “Statement of comprehensive income” in the “Consolidated financial statements” section of this report for
more information
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
Refer to “Note 21 Fair value measurement” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2023, available under “Annual reporting” at
ubs.com/investors
, for more information about own
credit on financial liabilities designated at fair value
Refer to “Note 27 Post-employment benefit plans” in the “Consolidated financial statements” section of the UBS
Group Annual Report 2023, available under “Annual reporting” at
ubs.com/investors
, for more information about
OCI related to defined benefit plans
 
Sensitivity to interest rate movements
As
 
of
 
31 March
 
2024,
 
it
 
is
 
estimated
 
that
 
a
 
parallel
 
shift
 
in
 
yield
 
curves
 
by
 
+100
 
basis
 
points
 
could
 
lead
 
to
 
a
combined increase in
 
annual net interest
 
income from our
 
banking book of
 
approximately USD 1.5bn in
 
the first
year after
 
such a
 
shift. Of
 
this increase,
 
approximately USD 0.9bn, USD 0.4bn
 
and USD 0.1bn
 
would result
 
from
changes in Swiss franc, US dollar and
 
euro interest rates, respectively. A parallel shift in yield
 
curves by –100 basis
points could
 
lead to
 
a combined
 
decrease in
 
annual net
 
interest income
 
of approximately
 
USD 1.5bn in
 
the first
year after such a shift, showing similar currency
 
contributions as for the aforementioned increase
 
in rates.
These estimates
 
are based
 
on a
 
hypothetical scenario
 
of an
 
immediate change
 
in interest
 
rates, equal
 
across all
currencies and relative
 
to implied forward
 
rates as of 31 March
 
2024 applied to
 
our banking book.
 
These estimates
further assume no
 
change to balance
 
sheet size
 
and product
 
mix, stable
 
foreign exchange rates,
 
and no
 
specific
management action. These estimates do not
 
represent a forecast of net interest income
 
variability.
 
Refer to the “Risk management and control” section of this report for information about interest rate risk in the
banking book
Key figures and personnel
Below is
 
an overview
 
of selected
 
key figures
 
of the
 
Group. For
 
further information
 
about key
 
figures related
 
to
capital management, refer to the “Capital management”
 
section of this report.
 
Cost / income ratio: 1Q24 vs 1Q23
The cost / income
 
ratio was 80.5%, compared with
 
82.5%, mainly reflecting an increase
 
in total revenues, partly
offset by an increase in operating expenses.
 
On an underlying basis, the
 
cost / income ratio was
 
77.2%, compared
with 81.7%, mainly reflecting an increase in total revenues, partly
 
offset by an increase in operating expenses.
Personnel: 1Q24 vs 4Q23
The number of internal and external personnel employed was 136,622 (workforce count) as of 31 March 2024, a
net
 
decrease
 
of
 
1,840
 
compared
 
with
 
31 December
 
2023.
 
The
 
number
 
of
 
internal
 
personnel
 
employed
 
as
 
of
31 March 2024 was 111,549
 
(full-time equivalents), a net decrease
 
of 1,293 compared with
 
31 December 2023.
The number of external
 
staff was approximately 25,073 (workforce count)
 
as of 31 March 2024, a net
 
decrease of
approximately 546 compared with 31 December 2023.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
14
Equity, CET1 capital and returns
As of or for the quarter ended
USD m, except where indicated
31.3.24
31.12.23
1
31.3.23
Net profit
Net profit / (loss) attributable to shareholders
 
1,755
 
(279)
 
1,029
Equity
 
Equity attributable to shareholders
 
85,260
 
86,108
 
56,754
Less: goodwill and intangible assets
 
7,384
 
7,515
 
6,272
Tangible equity attributable to shareholders
 
77,877
 
78,593
 
50,481
Less: other CET1 adjustments
 
(270)
 
107
 
5,891
CET1 capital
 
78,147
 
78,485
 
44,590
Returns
Return on equity (%)
 
8.2
 
(1.3)
 
7.2
Return on tangible equity (%)
 
9.0
 
(1.4)
 
8.1
Underlying return on tangible equity (%)
 
9.6
 
4.8
 
8.7
Return on CET1 capital (%)
 
9.0
 
(1.4)
 
9.1
Underlying return on CET1 capital (%)
 
9.6
 
4.7
 
9.8
1 Comparative-period information has been revised.
 
Refer to “Note 2 Accounting for the acquisition
 
of the Credit Suisse Group” in the
 
“Consolidated financial statements” section of
 
the UBS Group Annual Report
2023, available under “Annual reporting” at ubs.com/investors,
 
for more information.
Common equity tier 1 capital: 1Q24 vs 4Q23
During the first quarter of 2024,
 
our common equity tier 1 (CET1)
 
capital decreased by USD 0.3bn to
 
USD 78.1bn,
mainly reflecting an
 
operating profit
 
before tax
 
of USD 2.4bn, more
 
than offset
 
by negative effects
 
from foreign
currency
 
translation
 
of
 
USD 1.3bn,
 
dividend
 
accruals
 
of
 
USD 0.6bn,
 
current
 
tax
 
expenses
 
of
 
USD 0.5bn
 
and
amortization of transitional CET1 PPA adjustments (interest rate and own credit) of USD 0.4bn
 
(net of tax).
Return on common equity tier 1 capital: 1Q24
 
vs 1Q23
The annualized
 
return on
 
CET1 capital
 
was 9.0%,
 
compared with
 
9.1%, driven
 
by the
 
impact of
 
an increase
 
in
average CET1
 
capital, partly
 
offset by
 
higher net
 
profit attributable
 
to shareholders.
 
On an
 
underlying basis,
 
the
return on CET1 capital was 9.6%, compared with 9.8%.
Risk-weighted assets: 1Q24 vs 4Q23
During the first quarter of 2024, RWA decreased by USD
 
20.1bn to USD 526.4bn, primarily driven
 
by decreases of
USD 13.1bn resulting from asset size and
 
other movements as well as USD 11.2bn
 
resulting from currency effects,
partly offset by USD 4.2bn resulting from model updates and methodology
 
changes.
Common equity tier 1 capital ratio: 1Q24 vs 4Q23
Our CET1 capital ratio increased to 14.8% from 14.4%,
 
mainly reflecting the aforementioned decrease in RWA.
Leverage ratio denominator: 1Q24 vs 4Q23
The leverage ratio denominator (the LRD) decreased by USD 95.8bn to USD 1,599.6bn, driven by currency effects
of USD 56.3bn and asset size and other movements
 
of USD 39.4bn.
Common equity tier 1 leverage ratio: 1Q24
 
vs 4Q23
Our CET1 leverage ratio increased to 4.9% from 4.6%, mainly
 
due to the aforementioned decrease in the LRD.
 
 
UBS Group first quarter 2024 report |
UBS Group | Group performance
 
15
Outlook
Although monetary easing is expected
 
in the Eurozone,
 
the US and Switzerland,
 
the timing and magnitude of rate
cuts by
 
central banks
 
are unclear, as inflation
 
remains above
 
their target
 
range.
 
In addition,
 
the ongoing
 
geopolitical
tensions,
 
combined
 
with
 
consequential
 
elections
 
in
 
several
 
major
 
economies,
 
continue
 
to
 
create
 
uncertainty
regarding the macroeconomic and geopolitical outlooks.
In the second quarter of 2024, we
 
expect a low-to-mid single-digit decline
 
in net interest income in Global Wealth
Management,
 
due to moderately
 
lower lending and deposit
 
volumes and lower
 
interest rates in Switzerland,
 
partly
offset by additional
 
revenues,
 
primarily from higher
 
US dollar rates,
 
combined with our
 
repricing efforts. We
 
expect
a mid-to-high single-digit decrease
 
in net interest
 
income in Personal
 
& Corporate Banking in
 
US dollar terms,
 
as
the Swiss central bank’s interest rate
 
cut in March 2024 takes
 
effect for a full quarter.
 
In line with our strategy
 
to
actively reduce assets and costs in Non-core and Legacy, we continue to expect revenues in the closing out of any
positions to
 
approximately reflect
 
their current
 
book values.
 
We also
 
expect our
 
reported revenues
 
to include
 
around
USD 0.6bn of pull-to-par and other PPA accretion effects,
 
while we incur around USD 1.3bn of integration-related
expenses. The tax rate for
 
the second quarter is expected
 
to return to more elevated
 
levels, with our effective tax
rate still expected to be around 40% by the
 
end of 2024.
In addition to executing on our integration
 
plans, we will remain focused on serving
 
our clients, following through
on our strategy, investing in our people and remaining a pillar of economic support in the communities where we
live and work.
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items
 
16
UBS business divisions and
Group Items
Management report
Our businesses
We report five business divisions in
 
line with IFRS Accounting Standards: Global Wealth
 
Management, Personal &
Corporate Banking,
 
Asset
 
Management, the
 
Investment Bank,
 
and
 
Non-core
 
and
 
Legacy.
 
Non-core and
 
Legacy
includes positions
 
and businesses
 
not aligned
 
with our
 
strategy and
 
policies. Those
 
consist of
 
the assets
 
and liabilities
reported as part
 
of the
 
former Capital
 
Release Unit (Credit
 
Suisse) and certain
 
assets and liabilities
 
of the
 
former
Investment Bank
 
(Credit Suisse),
 
the former
 
Corporate Center
 
(Credit Suisse)
 
and other
 
former Credit
 
Suisse business
divisions.
 
Non-core
 
and
 
Legacy
 
also
 
includes
 
the
 
remaining
 
assets
 
and
 
liabilities
 
of
 
UBS’s
 
Non-core
 
and
 
Legacy
Portfolio, previously
 
reported in
 
Group Functions
 
(now renamed
 
to Group
 
Items), and
 
smaller amounts
 
of assets
and liabilities
 
of UBS’s
 
business divisions
 
that we
 
have assessed
 
as not
 
strategic in
 
light of
 
the acquisition
 
of the
Credit Suisse Group.
Our Group functions
 
are support and
 
control functions that
 
provide services to
 
the Group. Virtually
 
all costs and
revenues incurred
 
by the
 
support and
 
control functions
 
are allocated
 
to the
 
business divisions,
 
leaving a
 
residual
amount, mainly
 
related to
 
certain Group
 
funding and
 
hedging items,
 
that we
 
refer to
 
as Group
 
Items in
 
our segment
reporting.
Changes to segment reporting in 2024
Following
 
the
 
acquisition
 
of
 
the
 
Credit
 
Suisse
 
Group,
 
we
 
continue
 
to
 
refine
 
our
 
reporting
 
structure
 
and
organizational setup to align
 
with interests of stakeholders
 
and further incentivize
 
our business divisions to
 
achieve
Group-wide goals.
 
As previously
 
announced, in
 
the first
 
quarter of
 
2024 certain
 
changes
 
were made,
 
with an
 
impact
on reporting for
 
our business divisions and
 
Group Items (but with
 
no impact for the
 
UBS Group as
 
a whole). The
changes, summarized below,
 
improve the consistency
 
of our reporting
 
across the UBS
 
Group and align
 
our funding
and
 
cost allocation
 
methodologies with
 
the business
 
divisions
 
that
 
control and
 
manage
 
the
 
costs. The
 
changes
outlined
 
below
 
were
 
effective
 
as
 
of
 
1 January
 
2024
 
and
 
prior-period
 
information
 
has
 
been
 
adjusted
 
for
comparability.
Change in business division perimeters
We have transferred
 
certain businesses
 
from Swiss
 
Bank (Credit Suisse),
 
previously included
 
in Personal
 
& Corporate
Banking, to Global Wealth Management. The change predominantly related to the high net worth client segment
and represents approximately
 
USD 72bn in invested assets and
 
approximately USD 0.6bn in annualized
 
revenues.
A number of other smaller business shifts were also executed
 
between the business divisions in the first quarter
 
of
2024.
Changes to Group Treasury allocations
Starting with the first quarter of 2024, nearly all Group Treasury
 
costs that historically were retained and reported
in Group Items
 
have been
 
allocated
 
to the
 
business divisions.
 
Costs continued
 
to be
 
retained in Group
 
Items include
costs related to hedging and own debt, and deferred tax
 
asset (DTA)
 
funding costs.
We have also aligned internal
 
funds transfer pricing methodologies
 
applied by Credit Suisse
 
entities to UBS’s funds
transfer pricing methodology.
 
These changes resulted in
 
funding costs of approximately USD 0.3bn,
 
for 2023, moving from
 
Group Items to the
business divisions, predominantly related to
 
the second half of 2023.
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items
 
17
Going forward,
 
we expect
 
Group Items’
 
underlying loss
 
before tax,
 
excluding litigation
 
and income
 
from Group
hedging and own debt, to average approximately
 
USD 100m per quarter.
In
 
parallel
 
with
 
the
 
changes
 
noted
 
above,
 
we
 
increased
 
the
 
allocation
 
of
 
balance
 
sheet
 
resources
 
from
 
Group
Treasury to the business divisions, resulting in a shift of approximately USD 168bn of total assets, USD 9bn of risk-
weighted
 
assets
 
(RWA) and
 
USD 173bn
 
of
 
leverage
 
ratio
 
denominator (LRD)
 
from
 
Group
 
Items
 
to
 
the
 
business
divisions as of 31 December 2023.
 
Updated
 
cost allocations
We have reallocated USD 0.3bn of annualized costs from
 
Non-core and Legacy to the business divisions, with the
aim of avoiding stranded costs in Non-core and Legacy
 
at the end of the integration process.
 
Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of this report for more
information about segment results and the effects of changes in segment reporting
Changes in equity attribution
We have updated our equity attribution framework to align the capital ratios
 
for RWA and LRD more closely
 
with
our current Group capital targets,
 
increasing the equity attributed to the
 
business divisions. We have also reflected
the increased allocation of balance sheet resources previously retained in Group Items in
 
the attribution of equity,
resulting in
 
the attribution
 
of around
 
USD 14bn of
 
additional equity
 
to the
 
business divisions.
 
Going forward,
 
equity
retained in
 
Group Items
 
relates to DTAs,
 
accruals for shareholder
 
returns and unrealized
 
gains / losses
 
from cash
flow hedges.
 
Refer to the “Equity attribution” section of this report for more information about the equity attribution
framework
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Global Wealth Management
 
18
Global Wealth Management
Global Wealth Management
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Results
Net interest income
 
1,873
 
1,871
 
1,487
 
0
 
26
Recurring net fee income
3
 
3,024
 
2,900
 
2,454
 
4
 
23
Transaction-based income
3
 
1,212
 
955
 
843
 
27
 
44
Other income
 
33
 
(172)
 
4
 
805
Total revenues
 
6,143
 
5,554
 
4,788
 
11
 
28
Credit loss expense / (release)
 
(3)
 
(8)
 
15
 
(64)
Operating expenses
 
5,044
 
5,282
 
3,561
 
(5)
 
42
Business division operating profit / (loss) before tax
 
1,102
 
280
 
1,212
 
294
 
(9)
Underlying results
Total revenues as reported
 
6,143
 
5,554
 
4,788
 
11
 
28
of which: PPA effects and other integration items
4
 
234
 
349
 
(33)
of which: PPA effects recognized in net interest income
 
257
 
321
 
(20)
of which: PPA effects and other integration items recognized in transaction-based income
 
(24)
 
28
of which: losses related to investment in SIX Group
 
(190)
Total revenues (underlying)
3
 
5,909
 
5,395
 
4,788
 
10
 
23
Credit loss expense / (release)
 
(3)
 
(8)
 
15
 
(64)
Operating expenses as reported
 
5,044
 
5,282
 
3,561
 
(5)
 
42
of which: integration-related expenses and PPA effects
3,5
 
404
 
502
 
(20)
Operating expenses (underlying)
3
 
4,640
 
4,780
 
3,561
 
(3)
 
30
of which: expenses for litigation, regulatory and similar matters
 
12
 
49
 
11
 
(76)
 
11
Business division operating profit / (loss) before tax as reported
 
1,102
 
280
 
1,212
 
294
 
(9)
Business division operating profit / (loss) before tax (underlying)
3
 
1,272
 
624
 
1,212
 
104
 
5
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
 
(9.1)
 
(73.5)
 
(7.5)
Cost / income ratio (%)
3
 
82.1
 
95.1
 
74.4
Average attributed equity (USD bn)
6
 
33.1
 
33.3
 
24.7
 
(1)
 
34
Return on attributed equity (%)
3,6
 
13.3
 
3.4
 
19.7
Financial advisor compensation
7
 
1,267
 
1,176
 
1,111
 
8
 
14
Net new fee-generating assets (USD bn)
3
 
17.6
 
(3.4)
 
19.7
Fee-generating assets (USD bn)
3
 
1,731
 
1,661
 
1,335
 
4
 
30
Net new assets (USD bn)
3
 
27.4
 
20.1
 
39.8
Invested assets (USD bn)
3
 
4,023
 
3,922
 
2,962
 
3
 
36
Loans, gross (USD bn)
8
 
306.3
 
322.1
 
223.8
 
(5)
 
37
Customer deposits (USD bn)
8
 
482.4
 
485.0
 
330.3
 
(1)
 
46
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
3,9
 
0.3
 
0.5
 
0.3
Advisors (full-time equivalents)
 
10,338
 
10,469
 
9,117
 
(1)
 
13
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
 
5.0
 
(41.1)
 
(7.5)
Cost / income ratio (%)
3
 
78.5
 
88.6
 
74.4
1 Comparative figures have
 
been restated for changes
 
in business division perimeters,
 
Group Treasury
 
allocations and Non-core and
 
Legacy cost allocations,
 
as well as changes in
 
the equity attribution framework.
Refer to “Changes to segment
 
reporting in 2024” in the “UBS
 
business divisions and Group Items” section, the
 
“Equity attribution” section and “Note 3
 
Segment reporting” in the “Consolidated financial statements”
section of this report for more information. Comparatives may additionally differ due to
 
adjustments following organizational changes, restatements due to the retrospective
 
adoption of new accounting standards or
changes in accounting policies, and events after
 
the reporting period.
 
2 Comparative figures have been restated for changes in
 
Group Treasury allocations.
 
Refer to “Changes to segment reporting in 2024” in
 
the
“UBS business divisions and Group Items” section and “Note 3 Segment reporting” in the “Consolidated financial statements” section of this report for more information. Comparatives may additionally differ due to
adjustments following organizational
 
changes, restatements
 
due to the
 
retrospective adoption
 
of new
 
accounting standards or
 
changes in
 
accounting
 
policies, and
 
events after the
 
reporting period.
 
3 Refer to
“Alternative performance
 
measures” in the appendix
 
to this report for the
 
definition and calculation method.
 
We started to report
 
fee-generating assets and net
 
new fee-generating assets on
 
a consolidated basis,
including Credit Suisse data, from the
 
fourth quarter of 2023 onward.
 
4 Includes accretion of PPA
 
adjustments on financial instruments
 
and other PPA
 
effects, as well as temporary
 
and incremental items directly
related to the integration.
 
5 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit
Suisse Group.
 
6 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
 
7 Relates to licensed professionals with the ability to provide investment advice
to clients in the Americas.
 
Consists of cash and
 
deferred compensation awards
 
and is based on
 
compensable revenues and firm
 
tenure using a formulaic
 
approach. Also includes expenses
 
related to compensation
commitments with financial advisors entered
 
into at the time of recruitment
 
that are subject to vesting
 
requirements. Recruitment loans
 
to financial advisors were USD
 
1,726m as of 31 March 2024.
 
8 Loans and
Customer deposits in
 
this table include
 
customer brokerage
 
receivables and payables,
 
respectively, which
 
are presented in
 
a separate reporting
 
line on the
 
balance sheet.
 
9 Refer to the
 
“Risk management and
control” section of this report for more information about (credit-)impaired exposures. Excludes loans to financial advisors.
Results: 1Q24 vs 1Q23
Profit before tax decreased by
 
USD 110m, or 9%, to
 
USD 1,102m, mainly
 
due to higher operating
 
expenses, partly
offset by higher
 
total revenues. Underlying profit
 
before tax was USD
 
1,272m, after excluding USD 234m related
to purchase price allocation (PPA)
 
effects and other integration items,
 
as well as integration-related expenses and
PPA effects of USD 404m.
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Global Wealth Management
 
19
Total revenues
Total
 
revenues increased
 
by USD 1,355m, or
 
28%, to
 
USD 6,143m, largely driven
 
by the
 
consolidation of Credit
Suisse revenues, and
 
included the
 
aforementioned USD 234m
 
of PPA effects and
 
other integration
 
items. Excluding
these effects, underlying total revenues were USD 5,909m.
Net interest income
 
increased by USD 386m,
 
or 26%, to USD 1,873m,
 
largely driven by
 
the consolidation of
 
Credit
Suisse net interest income, and included USD 257m
 
of accretion of PPA adjustments on financial instruments and
other PPA effects.
 
The remaining variance was attributable to lower
 
deposit margins,
 
including the effects of shifts
to
 
lower-margin
 
products,
 
partly
 
offset
 
by
 
higher
 
rates
 
and
 
deposit
 
volumes.
 
Excluding
 
the
 
aforementioned
accretion effects, underlying net interest income
 
was USD 1,615m.
Recurring net fee income increased by USD 570m, or 23%, to USD 3,024m,
 
mainly driven by the consolidation of
Credit Suisse recurring net fee income and positive
 
market performance.
Transaction-based income increased
 
by USD 369m, or 44%,
 
to USD 1,212m, mainly driven
 
by the consolidation of
Credit
 
Suisse
 
transaction-based
 
income,
 
and
 
included
 
USD 6m
 
of
 
accretion
 
of
 
PPA
 
adjustments
 
on
 
financial
instruments and other
 
PPA effects, as
 
well as
 
higher levels
 
of client
 
activity, particularly in
 
the Americas and
 
Asia
Pacific
 
regions. Transaction-based
 
income
 
also
 
included negative
 
USD 30m of
 
temporary
 
and
 
incremental items
directly related
 
to the
 
integration. Excluding
 
negative USD 24m
 
resulting
 
from the
 
aforementioned accretion
 
effects
and temporary and incremental items,
 
underlying transaction-based income was
 
USD 1,236m.
Other income increased by USD 29m to USD
 
33m, mainly due to the consolidation
 
of Credit Suisse other income.
 
Credit loss expense / release
Net credit loss releases were USD 3m,
 
compared with net expenses of USD 15m in
 
the first quarter of 2023.
Operating expenses
Operating expenses increased by USD
 
1,483m, or 42%, to USD 5,044m,
 
largely due to the consolidation
 
of Credit
Suisse
 
expenses,
 
and
 
included
 
integration-related
 
expenses
 
of
 
USD 402m
 
and
 
higher
 
financial
 
advisor
compensation.
 
Excluding
 
integration-related
 
expenses
 
and
 
PPA
 
effects
 
of
 
USD 404m,
 
underlying
 
operating
expenses were USD 4,640m.
Invested assets: 1Q24 vs 4Q23
Invested assets increased
 
by USD 101bn, or
 
3%, to USD 4,023bn,
 
mainly driven by
 
positive market performance
 
of
USD 127.5bn
 
and
 
net
 
new
 
asset
 
inflows
 
of
 
USD 27.4bn,
 
partly
 
offset
 
by
 
negative
 
foreign
 
currency
 
effects
 
of
USD 47.3bn.
Loans: 1Q24 vs 4Q23
Loans decreased by USD 15.8bn to USD 306.3bn,
 
mainly driven by negative foreign currency effects and net new
loan outflows of USD 6.6bn.
 
Customer deposits: 1Q24 vs 4Q23
Customer deposits decreased
 
by USD 2.6bn to
 
USD 482.4bn, mainly driven
 
by negative foreign
 
currency effects,
partly offset by net new deposit inflows, mainly into
 
fixed-term deposit products.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Global Wealth Management
 
20
Regional breakdown of performance measures
As of or for the quarter ended 31.3.24
USD bn, except where indicated
Americas
1
Switzerland
2
EMEA
2
Asia Pacific
2
Global
3
Global Wealth
Management
Total revenues (USD m)
 
2,727
 
1,033
 
1,198
 
948
 
236
 
6,143
Operating profit / (loss) before tax (USD m)
 
252
 
377
 
331
 
315
 
(174)
 
1,102
Operating profit / (loss) before tax (underlying) (USD m)
4
 
252
 
377
 
331
 
315
 
(4)
 
1,272
Cost / income ratio (%)
4
 
90.5
 
63.7
 
72.8
 
67.1
 
82.1
Cost / income ratio (underlying) (%)
4
 
90.5
 
63.7
 
72.8
 
67.1
 
78.5
Loans, gross
 
95.7
5
 
107.2
 
59.1
 
43.5
 
0.8
 
306.3
Net new loans
 
(1.8)
 
(1.1)
 
(2.2)
 
(1.4)
 
(0.1)
 
(6.6)
Net new fee-generating assets
4
 
12.9
 
0.5
 
2.0
 
2.3
 
(0.1)
 
17.6
Fee-generating assets
4
 
990
 
213
 
371
 
155
 
1
 
1,731
Net new assets
4
 
13.7
 
7.7
 
(0.2)
 
6.4
 
(0.2)
 
27.4
Net new assets growth rate (%)
4
 
2.9
 
4.2
 
(0.1)
 
3.9
 
2.8
Invested assets
4
 
1,979
 
736
 
662
 
641
 
5
 
4,023
Advisors (full-time equivalents)
 
6,079
 
1,402
 
1,704
 
1,064
 
89
 
10,338
1 Including the following business units: United
 
States and Canada; and Latin
 
America.
 
2 In the third quarter of
 
2023, the invested assets of
 
Global Financial Intermediaries were transferred
 
from EMEA and Asia
Pacific to the Switzerland region, to better align it to
 
the management structure. These changes were applied prospectively and had no impact on previous
 
quarters.
 
3 Includes minor functions, which are not included
in the four regions individually presented
 
in this table, and also includes impacts
 
from accretion of purchase price allocation adjustments
 
on financial instruments and other PPA effects and
 
integration-related expenses.
 
4 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method.
 
5 Loans include customer brokerage receivables, which are presented in a separate
 
reporting
line on the balance sheet.
Regional comments 1Q24 vs 1Q23, except where
 
indicated
 
Americas
Profit
 
before
 
tax
 
decreased
 
by
 
USD 114m
 
to
 
USD 252m.
 
Total
 
revenues
 
increased
 
by
 
USD 117m,
 
or
 
4%,
 
to
USD 2,727m, driven by higher recurring fees
 
and transaction-based income as well as the
 
consolidation of Credit
Suisse revenues,
 
partly offset
 
by lower
 
net interest
 
income. The
 
cost /
 
income ratio
 
increased to
 
90.5% from
 
85.4%.
Loans decreased 1% compared with the fourth quarter 2023, to USD 95.7bn, mainly reflecting USD
 
1.8bn of net
new loan outflows. Net new asset inflows were USD
 
13.7bn.
Switzerland
Profit
 
before
 
tax
 
increased
 
by
 
USD 127m
 
to
 
USD 377m.
 
Total
 
revenues
 
increased
 
by
 
USD 511m,
 
or
 
98%,
 
to
USD 1,033m, driven by the
 
consolidation of Credit
 
Suisse revenues as
 
well as the
 
transfer of the
 
Global Financial
Intermediaries business to the Switzerland region. The cost / income ratio increased to 63.7% from 52.4%. Loans
decreased 7%
 
compared with
 
the fourth
 
quarter 2023,
 
to USD 107.2bn,
 
driven by
 
negative foreign
 
currency effects
and USD 1.1bn of net new loan outflows. Net
 
new asset inflows were USD 7.7bn.
EMEA
Profit
 
before
 
tax
 
decreased
 
by
 
USD 21m
 
to
 
USD 331m.
 
Total
 
revenues
 
increased
 
by
 
USD 214m,
 
or
 
22%,
 
to
USD 1,198m, largely
 
driven by
 
the consolidation
 
of Credit
 
Suisse revenues,
 
partly offset
 
by the
 
transfer of
 
the Global
Financial
 
Intermediaries
 
business
 
to
 
the
 
Switzerland
 
region.
 
The
 
cost / income
 
ratio
 
increased
 
to
 
72.8%
 
from
64.2%. Loans decreased 5% compared with the fourth
 
quarter 2023, to USD 59.1bn, driven by
 
USD 2.2bn of net
new loan outflows.
 
Net new asset outflows were USD 0.2bn.
Asia Pacific
Profit
 
before
 
tax
 
increased
 
by
 
USD 64m
 
to
 
USD 315m.
 
Total
 
revenues
 
increased
 
by
 
USD 273m,
 
or
 
40%,
 
to
USD 948m, mainly
 
driven by
 
the consolidation
 
of Credit
 
Suisse revenues
 
and increases
 
in transaction-based
 
income.
The cost / income ratio
 
increased to 67.1%
 
from 62.8%. Loans decreased 5% compared
 
with the fourth quarter
2023, to
 
USD 43.5bn, driven by
 
USD 1.4bn of net
 
new loan
 
outflows and negative
 
foreign currency
 
effects. Net
new asset inflows were USD 6.4bn.
Global
Operating loss before tax
 
was USD 174m, mainly including USD 404m
 
of the aforementioned integration-related
expenses
 
and
 
PPA
 
effects,
 
partly
 
offset
 
by
 
the
 
aforementioned
 
USD 234m
 
related
 
to
 
PPA
 
effects
 
and
 
other
integration items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Personal & Corporate Banking
 
21
Personal & Corporate Banking
 
Personal & Corporate Banking – in Swiss francs
As of or for the quarter ended
% change from
CHF m, except where indicated
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Results
Net interest income
 
1,332
 
1,320
 
650
 
1
 
105
Recurring net fee income
3
 
348
 
332
 
210
 
5
 
66
Transaction-based income
3
 
449
 
431
 
309
 
4
 
45
Other income
 
11
 
(251)
 
10
 
17
Total revenues
 
2,139
 
1,832
 
1,179
 
17
 
81
Credit loss expense / (release)
 
39
 
74
 
14
 
(47)
 
174
Operating expenses
 
1,241
 
1,222
 
613
 
2
 
103
Business division operating profit / (loss) before tax
 
859
 
537
 
552
 
60
 
56
Underlying results
Total revenues as reported
 
2,139
 
1,832
 
1,179
 
17
 
81
of which: PPA effects and other integration items
4
 
226
 
267
 
(15)
of which: PPA effects recognized in net interest income
 
 
212
 
235
 
(10)
of which: PPA effects and other integration items recognized in transaction-based income
 
14
 
31
 
(55)
of which: losses related to investment in SIX Group
 
(267)
Total revenues (underlying)
3
 
1,913
 
1,833
 
1,179
 
4
 
62
Credit loss expense / (release)
 
39
 
74
 
14
 
(47)
 
174
Operating expenses as reported
 
1,241
 
1,222
 
613
 
2
 
103
of which: integration-related expenses and PPA effects
3,5
 
141
 
162
 
(13)
Operating expenses (underlying)
3
 
1,100
 
1,060
 
613
 
4
 
79
of which: expenses for litigation, regulatory and similar matters
 
0
 
0
 
0
Business division operating profit / (loss) before tax as reported
 
859
 
537
 
552
 
60
 
56
Business division operating profit / (loss) before tax (underlying)
3
 
774
 
699
 
552
 
11
 
40
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
 
55.7
 
6.5
 
39.7
Cost / income ratio (%)
3
 
58.0
 
66.7
 
52.0
Average attributed equity (CHF bn)
6
 
19.1
 
19.3
 
10.0
 
(1)
 
90
Return on attributed equity (%)
3,6
 
18.0
 
11.1
 
22.0
Loans, gross (CHF bn)
 
252.9
 
251.8
 
144.3
 
0
 
75
Customer deposits (CHF bn)
 
255.9
 
257.8
 
165.3
 
(1)
 
55
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
3,7
 
1.2
 
1.0
 
0.8
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
 
40.3
 
38.8
 
39.7
Cost / income ratio (%)
3
 
57.5
 
57.8
 
52.0
1 Comparative figures have been
 
restated for changes in
 
business division perimeters,
 
Group Treasury
 
allocations and Non-core and
 
Legacy cost allocations,
 
as well as changes in
 
the equity attribution framework.
Refer to “Changes to segment
 
reporting in 2024” in the “UBS
 
business divisions and Group Items” section, the
 
“Equity attribution” section and “Note 3
 
Segment reporting” in the “Consolidated financial statements”
section of this report for more information. Comparatives may additionally
 
differ due to adjustments following organizational changes, restatements
 
due to the retrospective adoption of new accounting standards or
changes in accounting policies, and events after
 
the reporting period.
 
2 Comparative figures have been restated for changes in
 
Group Treasury allocations.
 
Refer to “Changes to segment reporting in 2024” in
 
the
“UBS business divisions and Group Items” section and “Note 3 Segment reporting” in the “Consolidated financial statements” section of this report for more information. Comparatives may additionally differ due to
adjustments following organizational
 
changes, restatements
 
due to the
 
retrospective adoption
 
of new
 
accounting standards or
 
changes in
 
accounting policies,
 
and events after
 
the reporting period.
 
3 Refer to
“Alternative performance
 
measures” in the
 
appendix to this
 
report for the
 
definition and calculation
 
method.
 
4 Includes accretion of
 
PPA adjustments
 
on financial instruments
 
and other PPA
 
effects, as
 
well as
temporary and incremental items directly related to the integration.
 
5 Includes temporary, incremental operating expenses
 
directly related to the integration, as well as amortization
 
of newly recognized intangibles
resulting from the acquisition of the Credit Suisse
 
Group.
 
6 Refer to the “Equity attribution” section of
 
this report for more information about the equity
 
attribution framework.
 
7 Refer to the “Risk management
and control” section of this report for more information about (credit-)impaired exposures.
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Personal & Corporate Banking
 
22
Results
:
1Q24 vs 1Q23
Profit before tax increased by CHF 307m,
 
or 56%, to CHF 859m,
 
mainly due to the
 
acquisition of the Credit
 
Suisse
Group. Underlying profit before
 
tax was CHF 774m,
 
after excluding CHF 226m
 
related to purchase price allocation
(PPA) effects and other integration items, as well as integration-related expenses and PPA effects of CHF 141m.
Total revenues
Total
 
revenues increased by CHF 960m, or 81%, to CHF 2,139m, mainly due to the consolidation of Credit Suisse
revenues, and included the aforementioned CHF 226m of PPA
 
effects and other integration items. The remaining
increase
 
largely
 
reflected
 
increases
 
across
 
net
 
interest
 
income,
 
transaction-based
 
income
 
and
 
recurring
 
net
 
fee
income. Underlying total revenues were CHF 1,913m.
Net interest income increased by CHF 682m, or 105%, to CHF 1,332m, largely due to the
 
consolidation of Credit
Suisse net interest income, and included CHF 212m
 
of accretion of PPA adjustments on
 
financial instruments and
other
 
PPA
 
effects.
 
The
 
remaining
 
increase
 
was
 
mainly
 
driven
 
by
 
higher
 
deposit
 
margins,
 
resulting
 
from
 
higher
interest
 
rates,
 
partly
 
offset
 
by
 
shifts
 
to
 
lower-margin
 
deposit
 
products.
 
Excluding
 
the
 
aforementioned
 
accretion
effects, underlying net interest income was
 
CHF 1,120m.
 
Recurring net
 
fee income
 
increased by
 
CHF 138m, or
 
66%, to
 
CHF 348m, mainly
 
due to the
 
consolidation of
 
Credit
Suisse recurring
 
net fee income,
 
with the remaining
 
increase including
 
higher revenues
 
from custody and
 
mandate-
based fees.
 
Transaction-based
 
income increased
 
by CHF 140m,
 
or 45%,
 
to CHF 449m,
 
largely due
 
to the
 
consolidation of
 
Credit
Suisse transaction-based income, and included CHF 20m of accretion of PPA adjustments on financial instruments
and
 
other
 
PPA
 
effects,
 
partly
 
offset
 
by
 
a
 
decrease
 
mainly
 
driven
 
by
 
lower
 
credit
 
card
 
fees
 
from
 
private
 
clients.
Transaction-based income also
 
included negative
 
CHF 6m of
 
temporary and
 
incremental items
 
directly related
 
to
the integration. Excluding
 
CHF 14m of the
 
aforementioned accretion
 
effects and temporary
 
and incremental
 
items,
underlying transaction-based income was
 
CHF 435m.
Other income was stable at CHF 11m.
 
Credit loss expense / release
Net credit
 
loss expenses
 
were
 
CHF 39m, compared
 
with net
 
expenses of
 
CHF 14m in
 
the first
 
quarter of
 
2023,
largely due to the consolidation of Credit Suisse.
Operating expenses
Operating expenses increased by CHF 628m, or 103%, to CHF 1,241m, largely due to the consolidation of Credit
Suisse expenses, and
 
included integration-related expenses
 
of CHF 119m. Excluding
 
integration-related expenses
and PPA effects of CHF 141m, underlying operating expenses were CHF 1,100m.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Personal & Corporate Banking
 
23
Personal & Corporate Banking – in US dollars
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Results
Net interest income
 
1,508
 
1,510
 
704
 
0
 
114
Recurring net fee income
3
 
394
 
379
 
227
 
4
 
73
Transaction-based income
3
 
508
 
492
 
335
 
3
 
52
Other income
 
13
 
(299)
 
10
 
22
Total revenues
 
2,423
 
2,083
 
1,277
 
16
 
90
Credit loss expense / (release)
 
44
 
85
 
16
 
(48)
 
179
Operating expenses
 
1,404
 
1,398
 
663
 
0
 
112
Business division operating profit / (loss) before tax
 
975
 
601
 
598
 
62
 
63
Underlying results
Total revenues as reported
 
2,423
 
2,083
 
1,277
 
16
 
90
of which: PPA effects and other integration items
4
 
256
 
306
 
(16)
of which: PPA effects recognized in net interest income
 
240
 
270
 
(11)
of which: PPA effects and other integration items recognized in transaction-based income
 
16
 
36
 
(56)
of which: losses related to investment in SIX Group
 
(317)
Total revenues (underlying)
3
 
2,166
 
2,094
 
1,277
 
3
 
70
Credit loss expense / (release)
 
44
 
85
 
16
 
(48)
 
179
Operating expenses as reported
 
1,404
 
1,398
 
663
 
0
 
112
of which: integration-related expenses and PPA effects
3,5
 
160
 
187
 
(15)
Operating expenses (underlying)
3
 
1,245
 
1,210
 
663
 
3
 
88
of which: expenses for litigation, regulatory and similar matters
 
0
 
0
 
0
Business division operating profit / (loss) before tax as reported
 
975
 
601
 
598
 
62
 
63
Business division operating profit / (loss) before tax (underlying)
3
 
878
 
800
 
598
 
10
 
47
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
 
63.1
 
13.7
 
39.6
Cost / income ratio (%)
3
 
58.0
 
67.1
 
52.0
Average attributed equity (USD bn)
6
 
21.9
 
21.8
 
10.9
 
1
 
102
Return on attributed equity (%)
3,6
 
17.8
 
11.0
 
22.0
Loans, gross (USD bn)
 
280.3
 
299.2
 
157.6
 
(6)
 
78
Customer deposits (USD bn)
 
283.6
 
306.2
 
180.5
 
(7)
 
57
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
3,7
 
1.2
 
1.0
 
0.8
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
 
46.9
 
51.2
 
39.6
Cost / income ratio (%)
3
 
57.5
 
57.8
 
52.0
1 Comparative figures have been
 
restated for changes in
 
business division perimeters, Group
 
Treasury allocations
 
and Non-core and Legacy
 
cost allocations, as
 
well as changes in the
 
equity attribution framework.
Refer to “Changes to segment
 
reporting in 2024” in the “UBS
 
business divisions and Group Items”
 
section, the “Equity attribution” section and
 
“Note 3 Segment reporting” in
 
the “Consolidated financial statements”
section of this report for more information. Comparatives may additionally differ due to adjustments following organizational
 
changes, restatements due to the retrospective adoption of new accounting standards or
changes in accounting policies, and events after the reporting period.
 
2 Comparative figures have been restated for changes in Group
 
Treasury allocations.
 
Refer to “Changes to segment reporting in 2024” in the
“UBS business divisions and Group Items”
 
section and “Note 3 Segment reporting”
 
in the “Consolidated financial statements” section
 
of this report for more information.
 
Comparatives may additionally differ due
to adjustments following organizational
 
changes, restatements due
 
to the retrospective adoption of
 
new accounting standards or
 
changes in accounting policies,
 
and events after the
 
reporting period.
 
3 Refer to
“Alternative performance
 
measures” in the
 
appendix to this
 
report for the
 
definition and calculation
 
method.
 
4 Includes accretion of
 
PPA adjustments
 
on financial instruments
 
and other PPA
 
effects, as
 
well as
temporary and incremental items directly related to the integration.
 
5 Includes temporary, incremental operating expenses
 
directly related to the integration, as well as amortization of newly recognized intangibles
resulting from the acquisition of the Credit Suisse Group.
 
6 Refer to the “Equity attribution” section of this report
 
for more information about the equity attribution framework.
 
7 Refer to the “Risk management
and control” section of this report for more information about (credit-)impaired exposures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Asset Management
 
24
Asset Management
Asset Management
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Results
Net management fees
3
 
745
 
745
 
479
 
0
 
56
Performance fees
 
30
 
52
 
23
 
(42)
 
29
Net gain from disposals
 
27
Total revenues
 
776
 
825
 
503
 
(6)
 
54
Credit loss expense / (release)
 
0
 
(1)
 
0
Operating expenses
 
665
 
704
 
408
 
(5)
 
63
Business division operating profit / (loss) before tax
 
111
 
122
 
95
 
(9)
 
17
Underlying results
Total revenues as reported
 
776
 
825
 
503
 
(6)
 
54
Total revenues (underlying)
4
 
776
 
825
 
503
 
(6)
 
54
Credit loss expense / (release)
 
0
 
(1)
 
0
Operating expenses as reported
 
665
 
704
 
408
 
(5)
 
63
of which: integration-related expenses
4
 
71
 
64
 
10
Operating expenses (underlying)
4
 
594
 
639
 
408
 
(7)
 
46
of which: expenses for litigation, regulatory and similar matters
 
0
 
6
 
0
Business division operating profit / (loss) before tax as reported
 
111
 
122
 
95
 
(9)
 
17
Business division operating profit / (loss) before tax (underlying)
4
 
182
 
186
 
95
 
(2)
 
91
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
4
 
16.6
 
(1.9)
 
(45.6)
Cost / income ratio (%)
4
 
85.8
 
85.3
 
81.2
Average attributed equity (USD bn)
5
 
2.6
 
2.6
 
1.8
 
2
 
45
Return on attributed equity (%)
4,5
 
16.7
 
18.8
 
20.8
Gross margin on invested assets (bps)
4,6
 
19
 
21
 
18
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
4
 
91.5
 
50.2
 
(45.6)
Cost / income ratio (%)
4
 
76.6
 
77.5
 
81.2
Information by business line / asset
 
class
Net new money (USD bn)
4
Equities
 
3.3
 
(6.4)
 
(4.1)
Fixed Income
 
13.8
 
(5.6)
 
19.2
of which: money market
 
10.4
 
1.4
 
18.0
Multi-asset & Solutions
 
1.7
 
0.9
 
1.3
Hedge Fund Businesses
 
(0.2)
 
(1.6)
 
(0.9)
Real Estate & Private Markets
 
0.3
 
0.3
 
(1.2)
Total net new money excluding associates
 
18.9
 
(12.4)
 
14.4
of which: net new money excluding money market
 
8.6
 
(13.8)
 
(3.6)
Associates
7
 
2.1
 
0.1
 
(0.3)
Total net new money
6
 
21.0
 
(12.2)
 
14.1
Invested assets (USD bn)
4
Equities
 
683
 
644
 
481
 
6
 
42
Fixed Income
 
450
 
445
 
320
 
1
 
41
of which: money market
 
145
 
134
 
138
 
9
 
6
Multi-asset & Solutions
 
278
 
274
 
161
 
1
 
72
Hedge Fund Businesses
 
58
 
57
 
55
 
3
 
6
Real Estate & Private Markets
 
148
 
156
 
100
 
(6)
 
48
Total invested assets excluding associates
 
1,617
 
1,577
 
1,117
 
3
 
45
of which: passive strategies
 
750
 
715
 
468
 
5
 
60
Associates
7
 
74
 
72
 
24
 
3
 
210
Total invested assets
6
 
1,691
 
1,649
 
1,140
 
3
 
48
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Asset Management
 
25
Asset Management (continued)
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Information by region
Invested assets (USD bn)
4
Americas
 
424
 
402
 
321
 
5
 
32
Asia Pacific
6
 
214
 
211
 
177
 
2
 
21
EMEA (excluding Switzerland)
 
374
 
354
 
274
 
6
 
36
Switzerland
 
679
 
682
 
369
 
0
 
84
Total invested assets
6
 
1,691
 
1,649
 
1,140
 
3
 
48
Information by channel
Invested assets (USD bn)
4
Third-party institutional
 
960
 
939
 
626
 
2
 
53
Third-party wholesale
 
176
 
177
 
123
 
(1)
 
43
UBS’s wealth management businesses
 
482
 
461
 
368
 
4
 
31
Associates
7
 
74
 
72
 
24
 
3
 
210
Total invested assets
6
 
1,691
 
1,649
 
1,140
 
3
 
48
1 Comparative figures have been
 
restated for changes in
 
business division perimeters,
 
Group Treasury
 
allocations and Non-core and
 
Legacy cost allocations,
 
as well as changes in
 
the equity attribution framework.
Refer to “Changes to segment
 
reporting in 2024” in the “UBS
 
business divisions and Group Items” section, the
 
“Equity attribution” section and “Note 3
 
Segment reporting” in the “Consolidated financial statements”
section of this report for more information. Comparatives may additionally differ due to
 
adjustments following organizational changes, restatements due to the retrospective
 
adoption of new accounting standards or
changes in accounting policies, and events after
 
the reporting period.
 
2 Comparative figures have been restated for changes
 
in Group Treasury allocations.
 
Refer to “Changes to segment reporting in 2024” in
 
the
“UBS business divisions and Group Items” section and “Note 3 Segment reporting” in the “Consolidated financial statements” section of this report for more information. Comparatives may additionally differ due to
adjustments following organizational changes, restatements due
 
to the retrospective adoption
 
of new accounting standards
 
or changes in accounting policies,
 
and events after the
 
reporting period.
 
3 Net management
fees include transaction
 
fees, fund
 
administration revenues
 
(including net interest
 
and trading income
 
from lending activities
 
and foreign-exchange hedging
 
as part of
 
the fund services
 
offering), distribution fees,
incremental fund-related
 
expenses,
 
gains or
 
losses from
 
seed money
 
and co-investments,
 
funding costs,
 
the negative
 
pass-through impact
 
of third-party
 
performance fees,
 
and other
 
items that
 
are not
 
Asset
Management’s performance fees.
 
4 Refer to “Alternative performance measures”
 
in the appendix to this report for the definition and calculation method.
 
5 Refer to the “Equity attribution” section of this report
for more information about the equity attribution framework.
 
6 Starting with the second quarter of 2023, net new money
 
and invested assets include net new money and invested assets
 
from associates, to better
reflect the business strategy.
 
Comparative figures have been
 
restated to reflect this change.
 
7 The invested assets and
 
net new money amounts reported
 
for associates are prepared in
 
accordance with their local
regulatory requirements and practices.
 
Results: 1Q24 vs 1Q23
 
Profit before tax increased by USD 16m, or 17%, to USD 111m, mainly due to the acquisition of the Credit Suisse
Group. Underlying profit before tax was USD 182m,
 
after excluding integration-related expenses
 
of USD 71m.
Total revenues
Total
 
revenues
 
increased
 
by
 
USD 273m,
 
or
 
54%,
 
to
 
USD 776m,
 
reflecting
 
the
 
consolidation
 
of
 
Credit
 
Suisse
revenues.
Net management fees increased by USD 266m, or
 
56%, to USD 745m, largely due to
 
the consolidation of Credit
Suisse net management fees and also
 
due to the first quarter
 
of 2023 including negative pass-through fees, with
the
 
corresponding
 
offset
 
in
 
performance
 
fees.
 
The
 
increase
 
was
 
also
 
due
 
to
 
positive
 
market
 
performance
 
and
foreign currency effects, partly offset by continued
 
margin compression.
Performance fees
 
increased by
 
USD 7m, or
 
29%, to
 
USD 30m, mainly
 
due to
 
the consolidation
 
of Credit
 
Suisse
performance fees and increases in Hedge Fund Businesses,
 
Fixed Income and Real Estate & Private Markets, partly
offset by a decrease due to the first quarter
 
of 2023 including the aforementioned
 
pass-through fees.
Operating expenses
Operating expenses increased by USD 257m, or 63%, to USD 665m, mainly reflecting the
 
consolidation of Credit
Suisse
 
expenses,
 
and
 
included
 
integration-related
 
expenses of
 
USD 71m. The
 
increase
 
was
 
also
 
due
 
to
 
adverse
foreign currency effects and increases in technology expenses and general and administrative expenses. Excluding
the aforementioned integration-related expenses, underlying
 
operating expenses were USD 594m.
Invested assets: 1Q24 vs 4Q23
 
Invested assets
 
increased by
 
USD 42bn
 
to USD 1,691bn,
 
mainly reflecting
 
positive market
 
performance
 
of USD 72bn
and positive net
 
new money of
 
USD 21bn, partly offset
 
by adverse foreign currency
 
effects of USD 48bn.
 
Excluding
money market flows and associates, net new
 
money was positive USD 9bn.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Investment Bank
 
26
Investment Bank
Investment Bank
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Results
Advisory
 
189
 
191
 
171
 
(1)
 
11
Capital Markets
 
683
 
649
 
213
 
5
 
220
Global Banking
 
872
 
840
 
384
 
4
 
127
Execution Services
 
463
 
412
 
419
 
12
 
11
Derivatives & Solutions
 
873
 
447
 
1,022
 
95
 
(15)
Financing
 
542
 
442
 
539
 
23
 
1
Global Markets
 
1,878
 
1,301
 
1,980
 
44
 
(5)
of which: Equities
 
1,353
 
1,006
 
1,313
 
35
 
3
of which: Foreign Exchange, Rates and Credit
 
525
 
295
 
667
 
78
 
(21)
Total revenues
 
2,751
 
2,141
 
2,365
 
28
 
16
Credit loss expense / (release)
 
32
 
48
 
7
 
(33)
 
355
Operating expenses
 
2,164
 
2,283
 
1,866
 
(5)
 
16
Business division operating profit / (loss) before tax
 
555
 
(190)
 
492
 
13
Underlying results
Total revenues as reported
 
2,751
 
2,141
 
2,365
 
28
 
16
of which: PPA effects
3
 
293
 
277
 
6
of which: PPA effects recognized in Global Banking revenue line
 
288
 
275
 
5
Total revenues (underlying)
4
 
2,458
 
1,864
 
2,365
 
32
 
4
Credit loss expense / (release)
 
32
 
48
 
7
 
(33)
 
355
Operating expenses as reported
 
2,164
 
2,283
 
1,866
 
(5)
 
16
of which: integration-related expenses
4
 
143
 
167
 
(15)
Operating expenses (underlying)
4
 
2,022
 
2,116
 
1,866
 
(4)
 
8
of which: expenses for litigation, regulatory and similar matters
 
(1)
 
13
 
45
Business division operating profit / (loss) before tax as reported
 
555
 
(190)
 
492
 
13
Business division operating profit / (loss) before tax (underlying)
4
 
404
 
(300)
 
492
 
(18)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
4
 
12.7
 
(270.2)
 
(47.0)
Cost / income ratio (%)
4
 
78.7
 
106.6
 
78.9
Average attributed equity (USD bn)
5
 
17.0
 
16.8
 
14.7
 
1
 
15
Return on attributed equity (%)
4,5
 
13.1
 
(4.5)
 
13.4
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
4
 
(17.8)
 
(368.8)
 
(51.8)
Cost / income ratio (%)
4
 
82.3
 
113.5
 
78.9
Return on attributed equity (%)
4,5
 
9.5
 
(7.1)
 
13.4
1 Comparative figures have
 
been restated for changes in
 
business division perimeters, Group
 
Treasury allocations
 
and Non-core and Legacy
 
cost allocations, as
 
well as changes in the
 
equity attribution framework.
Refer to “Changes to segment
 
reporting in 2024” in the “UBS
 
business divisions and Group Items”
 
section, the “Equity attribution” section and
 
“Note 3 Segment reporting” in
 
the “Consolidated financial statements”
section of this report for more information. Comparatives may additionally differ due to adjustments following organizational changes,
 
restatements due to the retrospective adoption of new accounting standards or
changes in accounting policies, and events after the reporting period.
 
2 Comparative figures have been restated for changes
 
in Group Treasury allocations.
 
Refer to “Changes to segment reporting in 2024” in the
“UBS business divisions and Group Items”
 
section and “Note 3 Segment reporting”
 
in the “Consolidated financial statements” section
 
of this report for more information.
 
Comparatives may additionally differ due
to adjustments following organizational changes,
 
restatements due to the
 
retrospective adoption of new accounting
 
standards or changes in
 
accounting policies, and events
 
after the reporting period.
 
3 Includes
accretion of PPA adjustments on financial instruments and other PPA effects.
 
4 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method.
 
5 Refer to the
“Equity attribution” section of this report for more information about the equity attribution framework.
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Investment Bank
 
27
Results: 1Q24 vs 1Q23
Profit before
 
tax increased
 
by USD 63m,
 
or 13%,
 
to USD 555m,
 
mainly driven
 
by higher
 
total revenues,
 
partly offset
by higher operating expenses.
 
Underlying profit before tax
 
was USD 404m, after excluding
 
USD 293m of purchase
price allocation (PPA) effects and integration-related
 
expenses of USD 143m.
Total revenues
Total
 
revenues increased by
 
USD 386m, or 16%,
 
to USD 2,751m, due to
 
higher Global Banking revenues,
 
which
increased by USD 488m,
 
or 127%,
 
partly offset by
 
lower Global
 
Markets revenues,
 
which decreased by
 
USD 102m,
or 5%.
 
The consolidation
 
of Credit
 
Suisse revenues
 
included USD 293m
 
of PPA
 
effects. Excluding
 
these effects,
underlying total revenues were USD 2,458m.
Global Banking
Global Banking
 
revenues increased
 
by USD 488m,
 
or 127%,
 
to USD 872m,
 
mainly due
 
to USD 288m
 
of PPA effects.
Excluding these effects,
 
underlying Global Banking revenues
 
increased by USD 200m,
 
or 52%. The
 
overall global
fee pool
1,2
increased 18%.
Advisory revenues
 
increased by
 
USD 18m, or
 
11%, to
 
USD 189m, mainly
 
due to
 
higher merger
 
and acquisition
transaction revenues. The relevant global
 
fee pool
2
decreased 10%.
Capital
 
Markets
 
revenues
 
increased
 
by
 
USD 470m,
 
or
 
220%,
 
to
 
USD 683m,
 
mainly
 
due
 
to
 
USD 288m
 
of
 
the
aforementioned PPA effects.
 
Excluding these effects,
 
underlying Capital Markets
 
revenues increased by
 
USD 182m,
or 85%, with increases across all products. Leveraged Capital Markets revenues increased by USD 99m, or 245%,
Debt Capital Markets revenues increased by USD 39m, or 58%, and Equity Capital Markets revenues increased
 
by
USD 32m, or 58%. The relevant global fee
 
pools
1,2
 
increased by 58%, 26% and 58%, respectively.
Global Markets
Global Markets revenues decreased by USD 102m, or 5%, to
 
USD 1,878m, primarily driven by lower Derivatives
 
&
Solutions revenues, partly offset by higher Execution Services revenues.
Execution Services
 
revenues increased
 
by USD 44m, or
 
11%, to USD 463m,
 
due to increases
 
in Cash Equities
 
across
all regions.
Derivatives & Solutions revenues decreased by
 
USD 149m, or 15%, to
 
USD 873m, mostly driven by
 
Rates, due to
lower levels of both volatility and client activity.
Financing revenues increased by USD 3m, or
 
1%, to USD 542m.
Equities
Global Markets Equities revenues increased by USD 40m, or
 
3%, to USD 1,353m.
Foreign Exchange, Rates and Credit
Global Markets
 
Foreign
 
Exchange, Rates
 
and
 
Credit
 
revenues
 
decreased by
 
USD 142m, or
 
21%,
 
to USD 525m,
primarily driven by lower Rates revenues.
Credit loss expense / release
Net credit loss expenses were USD 32m, compared with net expenses
 
of USD 7m in the first quarter of 2023.
Operating expenses
Operating expenses increased by
 
USD 298m, or 16%, to
 
USD 2,164m, largely due to
 
the consolidation of Credit
Suisse expenses,
 
and included integration-related expenses of USD 143m. Excluding integration-related expenses,
underlying operating expenses were USD 2,022m.
1
 
UBS fee-pool-comparable revenues consist of revenues
 
from: merger-and-acquisition-related transactions; Equity Capital
 
Markets, excluding derivatives;
 
Leveraged Capital Markets,
 
excluding the impact of mark-to-
market movements on loan portfolios; and Debt Capital Markets,
 
excluding revenues related to debt underwriting of UBS instruments.
2
 
Source: Dealogic, as of 29 March 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Non-core and Legacy
 
28
Non-core and Legacy
Non-core and Legacy
As of or for the quarter ended
% change from
USD m
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Results
Total revenues
 
1,001
 
145
 
23
 
588
Credit loss expense / (release)
 
36
 
15
 
0
 
139
Operating expenses
 
1,011
 
1,787
 
699
 
(43)
 
45
Operating profit / (loss) before tax
 
(46)
 
(1,657)
 
(676)
 
(97)
 
(93)
Underlying results
Total revenues as reported
 
1,001
 
145
 
23
 
588
Total revenues (underlying)
3
 
1,001
 
145
 
23
 
588
Credit loss expense / (release)
 
36
 
15
 
0
 
139
Operating expenses as reported
 
1,011
 
1,787
 
699
 
(43)
 
45
of which: integration-related expenses
3
 
242
 
750
Operating expenses (underlying)
3
 
769
 
1,037
 
699
 
(26)
 
10
of which: expenses for litigation, regulatory and similar matters
 
(16)
 
(33)
 
665
Operating profit / (loss) before tax as reported
 
(46)
 
(1,657)
 
(676)
 
(97)
 
(93)
Operating profit / (loss) before tax (underlying)
3
 
197
 
(907)
 
(676)
Performance measures and other information
Average attributed equity
4
 
10.6
 
9.5
 
1.1
 
12
 
889
Risk-weighted assets (USD bn)
 
57.9
 
74.0
 
13.1
 
(22)
 
342
Leverage ratio denominator (USD bn)
 
119.9
 
168.5
 
6.1
 
(29)
1 Comparative figures have
 
been restated for changes
 
in business division perimeters,
 
Group Treasury
 
allocations and Non-core and
 
Legacy cost allocations,
 
as well as changes in
 
the equity attribution framework.
Refer to “Changes to segment
 
reporting in 2024” in the “UBS
 
business divisions and Group Items” section, the
 
“Equity attribution” section and “Note 3
 
Segment reporting” in the “Consolidated financial statements”
section of this report for more information. Comparatives may additionally differ due to
 
adjustments following organizational changes, restatements due to
 
the retrospective adoption of new accounting standards or
changes in accounting policies, and events after the reporting period.
 
2 Comparatives may additionally differ due to adjustments following organizational changes, restatements due to the retrospective adoption of
new accounting standards or changes
 
in accounting policies, and
 
events after the reporting period.
 
3 Refer to “Alternative
 
performance measures” in the appendix
 
to this report for the
 
definition and calculation
method.
 
4 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
 
Composition of Non-core and Legacy
USD bn
RWA
Total assets
LRD
31.3.24
31.12.23
31.3.24
31.12.23
31.3.24
31.12.23
Exposure category
Equities
 
2.3
 
3.4
 
15.1
 
20.5
 
10.3
 
14.3
Macro
 
6.5
 
9.9
 
47.0
 
56.7
 
20.0
 
26.2
Loans
 
8.9
 
11.6
 
10.1
 
14.0
 
12.8
 
16.4
Securitized products
 
10.2
 
14.1
 
17.9
 
27.5
 
20.2
 
29.7
Credit
 
1.1
 
3.1
 
3.3
 
5.4
 
3.5
 
5.5
High-quality liquid assets
 
50.3
 
74.4
 
50.3
 
74.4
Operational risk
 
27.1
 
30.0
Other
 
1.8
 
1.9
 
2.1
 
3.0
 
2.9
 
1.9
Total
 
57.9
 
74.0
 
145.9
 
201.4
 
119.9
 
168.5
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Non-core and Legacy
 
29
Results: 1Q24 vs 1Q23
Loss before
 
tax was
 
USD 46m,
 
compared
 
with a
 
loss
 
before
 
tax of
 
USD 676m. Underlying
 
gain before
 
tax was
USD 197m, after excluding integration-related expenses
 
of USD 242m.
Total revenues
Total revenues increased by USD 978m
 
to USD 1,001m,
 
mainly due to
 
the transfer
 
of assets and
 
liabilities into
 
Non-
core and
 
Legacy following the acquisition
 
of the Credit
 
Suisse Group. Revenues
 
included net gains
 
from position
exits, along with net
 
interest income from securitized
 
products and credit
 
products. Revenues also included a
 
net
gain of USD 272m
 
from the conclusion of agreements with Apollo relating to the former Credit Suisse securitized
products group.
Refer to “Integration of Credit Suisse” in the “Recent developments” section and “Note 2 Accounting for the
acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of this report for more
information about the concluding of agreements with Apollo
Credit loss expense / release
Net
 
credit
 
loss
 
expenses
 
were
 
USD 36m,
 
compared
 
with
 
net
 
expenses
 
of
 
USD 0m.
 
Net
 
credit
 
loss
 
expenses
 
of
USD 62m related
 
to credit-impaired
 
(stage 3 and
 
purchased credit-impaired)
 
positions, mainly
 
across our Credit
 
and
Equities businesses,
 
were partly offset by net credit loss releases of USD 26m related to stage 1 and 2 positions.
Operating expenses
Operating
 
expenses
 
increased
 
by
 
USD 312m
 
to
 
USD 1,011m, mainly
 
due
 
to
 
the
 
consolidation
 
of
 
Credit
 
Suisse
expenses, and included integration-related
 
expenses of USD 242m, driven
 
by corporate services. The
 
first quarter
of
 
2023
 
included
 
a
 
USD 665m
 
increase
 
in
 
provisions
 
related
 
to
 
the
 
US
 
residential
 
mortgage-backed
 
securities
litigation matter, which was
 
settled in the
 
third quarter of
 
2023. Excluding integration-related
 
expenses, underlying
operating expenses were USD 769m.
Risk-weighted assets and leverage ratio denominator:
 
1Q24 vs 4Q23
Risk-weighted assets
 
were reduced by
 
USD 16.1bn to
 
USD 57.9bn, while
 
the leverage
 
ratio denominator
 
decreased
by
 
USD 48.6bn to
 
USD 119.9bn. These
 
changes were
 
mainly driven
 
by active
 
unwinds of
 
Non-core
 
and Legacy
assets,
 
most
 
notably
 
reflecting
 
the
 
sale
 
of
 
USD 8bn
 
of
 
senior
 
secured
 
financing
 
facilities
 
provided
 
to
 
Apollo,
reductions in the loan inventory in the credit portfolio,
 
and exit of the life finance business in the
 
US.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
UBS business divisions and Group Items |
 
Group Items
 
30
Group Items
Group Items
As of or for the quarter ended
% change from
USD m
31.3.24
31.12.23
1
31.3.23
2
4Q23
1Q23
Results
Total revenues
 
(355)
 
107
 
(211)
 
68
Credit loss expense / (release)
 
(2)
 
(2)
 
0
Operating expenses
 
(33)
 
16
 
14
Operating profit / (loss) before tax
 
(320)
 
93
 
(225)
 
42
Underlying results
Total revenues as reported
 
(355)
 
107
 
(211)
 
68
of which: PPA effects
3
 
(4)
 
12
Total revenues (underlying)
4
 
(351)
 
95
 
(211)
 
66
Credit loss expense / (release)
 
(2)
 
(2)
 
0
Operating expenses as reported
 
(33)
 
16
 
14
of which: integration-related expenses
4
 
1
 
109
of which: acquisition-related costs
 
(1)
 
70
Operating expenses (underlying)
4
 
(34)
 
(92)
 
(57)
 
(63)
 
(41)
of which: expenses for litigation, regulatory and similar matters
 
0
 
(28)
 
1
Operating profit / (loss) before tax as reported
 
(320)
 
93
 
(225)
 
42
Operating profit / (loss) before tax (underlying)
4
 
(315)
 
189
 
(155)
 
104
1 Comparative figures have
 
been restated for changes
 
in business division perimeters,
 
Group Treasury
 
allocations and Non-core and
 
Legacy cost allocations,
 
as well as changes in
 
the equity attribution framework.
Refer to “Changes to segment
 
reporting in 2024” in the “UBS
 
business divisions and Group Items” section, the
 
“Equity attribution” section and “Note 3
 
Segment reporting” in the “Consolidated financial statements”
section of this report for more information. Comparatives may additionally differ due to
 
adjustments following organizational changes, restatements due to
 
the retrospective adoption of new accounting standards or
changes in accounting policies, and events after
 
the reporting period.
 
2 Comparative figures have been restated for changes in
 
Group Treasury allocations.
 
Refer to “Changes to segment reporting in 2024” in
 
the
“UBS business divisions and Group Items” section and “Note 3 Segment reporting” in the “Consolidated financial statements” section of this report for more information. Comparatives may additionally differ due to
adjustments following organizational
 
changes, restatements
 
due to the
 
retrospective adoption
 
of new accounting
 
standards or changes
 
in accounting
 
policies, and
 
events after the
 
reporting period.
 
3 Includes
accretion of PPA adjustments on financial instruments and other PPA
 
effects.
 
4 Refer to “Alternative performance measures” in the appendix to
 
this report for the definition and calculation method.
Results: 1Q24 vs 1Q23
Loss before tax
 
was USD 320m,
 
mainly driven
 
by mark-to-market
 
losses in
 
Group hedging
 
and own
 
debt,
 
compared
with a
 
loss of
 
USD 225m. Underlying
 
loss before
 
tax was
 
USD 315m, after
 
excluding USD 5m
 
of purchase
 
price
allocation effects
 
and integration-related
 
expenses, compared
 
with an
 
underlying loss
 
of USD 155m,
 
after excluding
acquisition-related costs of USD 70m.
Income
 
from
 
Group
 
hedging
 
and
 
own
 
debt,
 
including
 
hedge
 
accounting
 
ineffectiveness,
 
was
 
net
 
negative
USD 191m, compared with net negative income of USD 68m. The results across the periods were driven by mark-
to-market effects
 
on portfolio-level
 
economic hedges
 
due to
 
higher interest
 
rates and
 
cross-currency-basis
 
widening.
In addition, the first quarter of 2024 included a USD 25m donation expense and an
 
USD 11m increase in funding
costs related to deferred tax assets.
 
 
UBS Group first quarter 2024 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
32
Risk management and control
This
 
section
 
provides
 
information
 
about
 
key
 
developments
 
during
 
the
 
reporting
 
period
 
and
 
should
 
be
 
read
 
in
conjunction with
 
the “Risk
 
management and
 
control” section
 
of the
 
UBS Group
 
Annual Report
 
2023, available
under “Annual
 
reporting” at
ubs.com/investors
, and
 
the “Recent
 
developments” section of
 
this report
 
for more
information about the integration of Credit
 
Suisse.
Credit risk
 
Overall banking products exposure
Overall banking products
 
exposure decreased by
 
USD 88bn to USD 1,092bn as
 
of 31 March
 
2024, mainly driven
by a
 
decrease in
 
balances at
 
central banks,
 
as well
 
as a
 
decrease in
 
loans and
 
advances to
 
customers due
 
to negative
currency effects.
Total net
 
credit loss
 
expenses
 
in the
 
first quarter
 
of 2024
 
were USD 106m,
 
reflecting net
 
releases of
 
USD 45m related
to performing positions and net expenses
 
of USD 151m on credit-impaired positions.
 
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
Refer to the “Group performance” section and “Note 9 Expected credit loss measurement” in the “Consolidated
financial statements” section of this report for more information about credit loss expense / release
Loan underwriting
In the Investment Bank,
 
mandated loan underwriting
 
commitments on a
 
notional basis decreased by
 
USD 0.1bn to
USD 1.9bn
 
as
 
of
 
31 March
 
2024.
 
In
 
Non-core
 
and
 
Legacy,
 
exposure
 
decreased
 
by
 
USD 0.5bn
 
to
 
USD 0.5bn
following the cancellation of the largest mandated exposure. As of 31 March 2024, USD 0.1bn
 
and USD 0.5bn of
commitments
 
in
 
the
 
Investment
 
Bank
 
and
 
in
 
Non-core
 
and
 
Legacy,
 
respectively,
 
have
 
not
 
been
 
distributed
 
as
originally planned.
 
Loan underwriting exposures are classified as
 
held for trading, with fair
 
values reflecting the market conditions at
the end of the quarter. Credit hedges are
 
in place to help protect against fair value movements
 
in the portfolio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
33
Banking and traded products exposure in our business divisions and Group Items
31.3.24
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
 
Bank
Non-core
 
and Legacy
Group
 
Items
Total
Banking products
1,2
Gross exposure
 
471,001
 
448,792
 
1,694
 
106,280
 
47,997
 
15,889
 
1,091,653
of which: loans and advances to customers (on-balance sheet)
 
301,544
 
280,328
 
17
 
17,988
 
6,623
 
483
 
606,983
of which: guarantees and loan commitments (off-balance sheet)
 
20,727
 
53,044
 
60
 
34,778
 
3,427
 
17,001
 
129,036
Traded products
2,3,4
Gross exposure
 
13,933
 
4,969
 
0
 
44,191
 
63,093
of which: over-the-counter derivatives
 
9,817
 
4,511
 
0
 
12,556
 
26,885
of which: securities financing transactions
 
342
 
0
 
0
 
21,418
 
21,760
of which: exchange-traded derivatives
 
3,774
 
458
 
0
 
10,216
 
14,448
Other credit lines, gross
5
 
80,663
 
67,597
 
0
 
2,568
 
3
 
86
 
150,918
Total credit-impaired exposure, gross
 
1,095
 
3,425
 
0
 
642
 
1,875
 
0
 
7,038
of which: stage 3
 
919
 
3,051
 
0
 
591
 
753
 
0
 
5,315
of which: PCI
 
176
 
375
 
0
 
51
 
1,122
 
0
 
1,724
Total allowances and provisions for expected credit losses
 
326
 
1,211
 
0
 
375
 
324
 
7
 
2,243
of which: stage 1
 
146
 
334
 
0
 
124
 
10
 
6
 
620
of which: stage 2
 
70
 
239
 
0
 
93
 
4
 
0
 
406
of which: stage 3
 
97
 
627
 
0
 
158
 
154
 
0
 
1,035
of which: PCI
 
13
 
12
 
0
 
1
 
156
 
0
 
182
31.12.23
6
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
 
Management
Investment
 
Bank
Non-core
 
and Legacy
Group
Items
Total
Banking products
1,2
Gross exposure
 
495,846
 
482,822
 
1,699
 
115,203
 
73,092
 
10,555
 
1,179,217
of which: loans and advances to customers (on-balance sheet)
 
317,137
 
299,150
 
13
 
16,993
 
8,117
 
131
 
641,542
of which: guarantees and loan commitments (off-balance sheet)
 
22,706
 
57,494
 
59
 
36,230
 
3,235
 
18,109
 
137,834
Traded products
2,3,4
Gross exposure
 
11,812
 
4,748
 
0
 
47,630
 
64,191
of which: over-the-counter derivatives
 
8,397
 
4,116
 
0
 
12,400
 
24,913
of which: securities financing transactions
 
371
 
19
 
0
 
23,044
 
23,434
of which: exchange-traded derivatives
 
3,045
 
613
 
0
 
12,186
 
15,844
Other credit lines, gross
5
 
83,077
 
75,334
 
0
 
4,714
 
5
 
126
 
163,256
Total credit-impaired exposure, gross
 
1,662
 
3,066
 
0
 
469
 
1,169
 
1
 
6,367
of which: stage 3
 
1,022
 
2,632
 
0
 
408
 
290
 
1
 
4,352
of which: PCI
 
640
 
434
 
0
 
61
 
879
 
0
 
2,014
Total allowances and provisions for expected credit losses
 
392
 
1,231
 
1
 
358
 
271
 
8
 
2,261
of which: stage 1
 
176
 
364
 
1
 
133
 
20
 
7
 
700
of which: stage 2
 
63
 
259
 
0
 
78
 
16
 
0
 
416
of which: stage 3
 
98
 
590
 
0
 
146
 
158
 
0
 
993
of which: PCI
 
55
 
19
 
0
 
1
 
77
 
0
 
153
1 IFRS 9 gross exposure
 
for banking products includes
 
the following financial instruments
 
in scope of expected
 
credit loss requirements: balances
 
at central banks,
 
amounts due from banks,
 
loans and advances to
customers, other financial assets at amortized cost, guarantees and irrevocable loan commitments.
 
2 Internal management view of credit risk, which differs in certain respects from
 
IFRS Accounting Standards.
 
3 As
counterparty risk for traded products is managed at counterparty level, no further split between exposures in
 
the Investment Bank, Non-core and Legacy, and Group Items is provided.
 
4 Credit Suisse traded products
are presented
 
before reflection
 
of the
 
impact of
 
the purchase
 
price allocation
 
performed under
 
IFRS 3,
 
Business Combinations,
 
following the
 
acquisition of
 
the Credit
 
Suisse Group
 
by UBS.
 
The acquisition
 
date
adjustment is less than USD 1bn and, if applied, would lead to a reduction in
 
our reported traded products exposure.
 
5 Unconditionally revocable committed credit lines.
 
6 Comparative figures in this table have
been restated for changes
 
in business division
 
perimeters and Group
 
Treasury allocations.
 
Refer to “Changes to
 
segment reporting in 2024”
 
in the “UBS business
 
divisions and Group Items”
 
section and “Note
 
3
Segment reporting” in the
 
“Consolidated financial statements”
 
section of this report
 
for more information. Comparatives
 
may additionally differ due
 
to adjustments following organizational
 
changes, restatements
due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the reporting
 
period.
 
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
31.3.24
31.12.23
2
31.3.24
31.12.23
2
Secured by collateral
 
293,109
 
308,120
 
240,880
 
259,734
Residential real estate
 
107,299
 
111,755
 
189,360
 
204,184
Commercial / industrial real estate
 
10,033
 
10,860
 
39,677
 
42,560
Cash
 
31,095
 
36,813
 
2,926
 
3,269
Equity and debt instruments
 
119,722
 
122,079
 
3,399
 
3,666
Other collateral
3
 
24,960
 
26,613
 
5,518
 
6,055
Subject to guarantees
 
837
 
1,048
 
7,708
 
8,132
Uncollateralized and not subject to guarantees
 
7,598
 
7,969
 
31,739
 
31,284
Total loans and advances to customers, gross
 
301,544
 
317,137
 
280,328
 
299,150
Allowances
 
(226)
 
(181)
 
(966)
 
(987)
Total loans and advances to customers, net of allowances
 
301,319
 
316,957
 
279,362
 
298,163
Collateralized loans and advances to customers in % of total loans
 
and advances to customers, gross (%)
 
97.2
 
97.2
 
85.9
 
86.8
1 Collateral arrangements generally
 
incorporate a range of
 
collateral, including cash, securities,
 
real estate and other collateral.
 
UBS applies a risk-based approach that
 
generally prioritizes collateral according
 
to its
liquidity profile. In the case of loan facilities with funded and unfunded elements,
 
the collateral is first allocated to the funded element. Credit Suisse applies
 
a risk-based approach that generally prioritizes real estate
collateral and prioritizes other collateral according to its liquidity profile. In the case of loan facilities with funded
 
and unfunded elements, the collateral is proportionately allocated.
 
2 Comparative figures in this table
have been restated for
 
changes in business division
 
perimeters. Refer to
 
“Changes to segment reporting
 
in 2024” in the
 
“UBS business divisions
 
and Group Items” section
 
and Note 3 “Segment
 
reporting” in the
“Consolidated financial
 
statements” section
 
of this
 
report for
 
more information.
 
Comparatives may
 
additionally differ
 
due to
 
adjustments following
 
organizational changes,
 
restatements due
 
to the
 
retrospective
adoption of new accounting
 
standards or changes
 
in accounting policies,
 
and events after
 
the reporting period.
 
3 Includes but is
 
not limited to life
 
insurance contracts,
 
rights in respect
 
of subscription or
 
capital
commitments from fund partners, inventory, gold and other commodities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Group first quarter 2024 report |
Risk, capital, liquidity and funding,
 
and balance sheet | Risk management and
 
control
 
34
Market risk
The UBS
 
Group excluding
 
Credit Suisse
 
continued to
 
maintain generally
 
low levels
 
of management
 
value-at-risk
(VaR). Average management VaR
 
(1-day,
 
95% confidence level) increased marginally to USD 17m from USD 16