UBS Reports Q3 Net profit CHF577M v CHF601Me, Op Pretax profit adj CHF484M (incl CHF586M litigation charge) v CHF937Me, Rev CHF6.26B v CHF6.7Be Group metrics: - Net interest income: CHF1.55B v CHF1.53B y/y - ROE: 4.9% v -17.3% y/y - BIS Basel III common equity tier 1 capital ratio (fully applied): 11.9% v 11.2% y/y - Net new money growth: -0.2% v +2.5% y/y - Net fee and commission income: -2% y/y - Net trading income: -33% y/y - Provisions for litigation, regulatory and similar matters: CHF586M v 239M y/y
- Wealth management net new money growth: 2.3% v 3.9% y/y - Wealth management Americas net new money growth: 0.9% v 2.4% y/y
Investment banking: - Pretax Op profit CHF251M v CHF92M y/y - Op income CHF1.71M v CHF1.83M y/y (Advisory -26%, Equity Capital Markets -6%, Debt Capital Markets -25%, Investor Client Services +5% (equities +23%, FICC -25%)) - Average VaR: CHF10M v CHF26M y/y - Compensation ratio: 51.4% v 59.9% y/y
Global asset managment: - Net management fees -2% y/y - Net new money growth: -5.1% v +1.2% y/y
Comments: - FINMA to impose temporary 50% add-on to advanced measurement approach-based operational risk-related RWA in relation to litigation, compliance and operational risk matters - To result in ROE goal of 15% by 2015 to be delayed at least one year and an additional operational risk-related RWA of approx. CHF28B - To effect fully applied Basel III CET1 ratio by 130bps with a net effect of 30bps after 100bps contribution from Stab-Fund