
Net profit attributable to UBS shareholders CHF 792 million; diluted EPS CHF 0.21
Wealth Management net new money CHF 10.7 billion
Fully applied Basel III CET1 ratio at 13.5%
Fully applied Swiss SRB leverage ratio at 4.2%
Resolution of German cross-border tax matter with Bochum authorities
Regulatory News:
All UBS's (NYSE:UBS) (SWX:UBSN) business divisions and regions delivered strong second-quarter operating performances enabling the firm to achieve an adjusted1 profit before tax of CHF 1.2 billion despite muted client activity. On a reported basis, profit before tax was also CHF 1.2 billion. The firm continued to build its industry-leading capital position with its fully applied Basel III common equity tier 1 (CET1) ratio increasing to 13.5%. The bank's fully applied Swiss SRB leverage ratio increased to 4.2%, meeting its expected fully applied requirement four years early. Results in UBS's wealth management businesses, Retail Corporate and Global Asset Management were affected by charges for provisions for litigation, regulatory and similar matters, which totaled CHF 254 million for the Group.
Excluding the abovementioned provisions, and considering market conditions, all business divisions delivered resilient performances. Excluding these provisions, Wealth Management achieved an adjusted¹ profit of CHF 684 million on stronger recurring income driven by its strategic initiatives to grow mandate sales and lending. The business attracted very strong net new money at CHF 10.7 billion. Wealth Management Americas delivered record revenues, and invested assets passed USD 1 trillion for the first time. Excluding provisions, Retail Corporate delivered a performance on par with the strong prior quarter with solid net new business volume growth. Global Asset Management's net new money was again very strong at CHF 11.6 billion excluding money market flows. The Investment Bank delivered higher profits, with an adjusted1 return on attributed equity of 30%.
UBS overall demonstrated again that its strategy works in a variety of market conditions.
Resolution of German cross-border tax matter with Bochum authorities
UBS resolved its cross-border tax matter in Germany with the authorities in Bochum in July. The settlement, which includes a payment of approximately EUR 300 million, concludes the Bochum proceedings. UBS booked provisions of approximately CHF 120 million relating to this matter in its second-quarter results. The resolution of this matter is a significant step allowing UBS to move forward in this important market. As a result of significant efforts by the bank, over 95% of its German clients have either provided UBS with evidence of tax compliance or completed the voluntary compliance program. UBS continues to target 100% by year-end.
Group highlights
- Adjusted1 profit before tax CHF 1.2 billion
- Net profit attributable to UBS shareholders CHF 792 million; diluted earnings per share CHF 0.21
- Adjusted1 operating income CHF 7.0 billion
- Fully applied Basel III CET1 ratio at 13.5%
- Fully applied Swiss SRB Basel III leverage ratio at 4.2%, in line with expected 2019 fully applied requirement
Business division highlights
- Wealth Management's adjusted1 profit before tax CHF 393 million; net new money strong at CHF 10.7 billion; net new money growth rate at upper end of target range; gross margin on invested assets 84 basis points; adjusted1 cost income ratio above target range
- Wealth Management Americas' adjusted1 profit before tax USD 246 million; net new money outflows USD 2.5 billion mainly due to client withdrawals associated with seasonal income tax payments; adjusted1 cost income ratio and gross margin on invested assets maintained within target ranges
- Retail Corporate's adjusted1 profit before tax CHF 367 million; continued strong net new business volume growth; net interest margin within target range
- Global Asset Management's adjusted1 profit before tax CHF 107 million; very strong net new money of CHF 11.6 billion excluding money market flows; annualized net new money growth rate, excluding money markets, well ahead of target
- Investment Bank achieved an increased adjusted1 profit before tax of CHF 563 million; fully applied RWA and funded assets within limits; adjusted1 cost income ratio within target range; adjusted1 return on attributed equity 30%
External recognition of UBS's success included:
- Euromoney named UBS Best Global Bank, and Best Bank in Switzerland for the third year running
- UBS recognized as the largest wealth manager in the world for the second year running by Scorpio Partnership's influential Global Private Banking Benchmark²
- UBS's standing as a leading brokerage house and research provider again confirmed as it gained the top position in several categories in the annual pan-European Thomson Reuters Extel Survey, including Leading Pan-European Equity House for the eleventh consecutive year
- UBS won the international Contactless Mobile Customer Experience award for its mobile banking authentication systems, and its mobile banking apps placed in the top three overall of 40 leading retail banks by MyPrivateBanking Research.
Commenting on UBS's second-quarter results, Group Chief Executive Officer Sergio P. Ermotti said, "We delivered strong underlying results in a market environment that remained challenging for our clients and the industry. We also continued to actively address litigation matters, reduce our non-core and legacy assets and execute on our strategic initiatives."
Group overview
For the second quarter of 2014, we reported a net profit attributable to shareholders of CHF 792 million and diluted earnings per share of CHF 0.21. We recorded an adjusted Group profit before tax of CHF 1.2 billion. The result included net charges of CHF 254 million related to provisions for litigation, regulatory and similar matters which affected the results of several businesses as well as Corporate Center. Despite this, and the muted client activity levels experienced in the quarter, we delivered a strong underlying performance that again demonstrated our discipline, client focus and the strength of our franchise.
We continued to build on our industry-leading capital position as we increased our fully applied Basel III common equity tier 1 (CET1) ratio to 13.5%. Our fully applied total capital ratio was 18.1% at quarter-end, surpassing our expected 2019 regulatory requirement of around 17.5%. In May, we issued USD 2.5 billion of low-trigger, loss-absorbing, Basel III-compliant subordinated notes, bringing our total low-trigger tier 2 capital above the 2019 expected progressive buffer requirement of around CHF 9 billion. As a result, our fully applied Swiss SRB leverage ratio improved to 4.2%, in line with our expected fully applied requirement.
Wealth Management reported an adjusted1 profit before tax of CHF 393 million. The result included charges for provisions for litigation, regulatory and similar matters. Excluding these charges, and considering market conditions, Wealth Management's performance was resilient at CHF 684 million. Lombard lending, mandate sales and invested assets all rose, but were offset by lower transaction-based income on low volatility and volumes. The gross margin on invested assets was down 3 basis points to 84 basis points. The adjusted¹ cost income ratio was above our current target range. Net new money remained very strong at CHF 10.7 billion and we achieved an annualized net new money growth rate at the upper end of our target range.
Wealth Management Americas reported an adjusted1 profit before tax of USD 246 million while delivering record revenues, and invested assets that exceeded USD 1 trillion for the first time. Operating income increased reflecting continued growth in managed account fees and higher net interest income. Operating expenses included charges of USD 44 million related to provisions for litigation, regulatory and similar matters. Net new money outflows of USD 2.5 billion were mainly due to client withdrawals associated with seasonal income tax payments. The business maintained both its adjusted1 cost income ratio and its gross margin on invested assets within target ranges.
Retail Corporate achieved an adjusted1 profit before tax of CHF 367 million. Excluding charges for provisions for litigation, regulatory and similar matters of CHF 48 million, the business delivered a performance on par with the strong prior quarter. Operating income increased mainly on higher net interest and transaction-based income, partly offset by net credit loss expenses. Net new business volume growth remained solid and was comfortably within the target range. The business's net interest margin was within the target range. Our investment in e-banking, mobile banking innovation and security continued to receive critical acclaim, as we won the international Contactless Mobile Customer Experience award for our mobile banking authentication systems, and our mobile banking apps placed in the top three leading retail banks by MyPrivateBanking Research.
Global Asset Management's adjusted1 profit before tax was CHF 107 million. Operating income rose on higher net management fees, mainly in traditional investments and global real estate. This was more than offset by a CHF 33 million charge related to provisions for litigation, regulatory and similar matters, resulting in an adjusted1 cost income ratio above the target range. The gross margin on invested assets was in line with the prior quarter and was slightly below the target range. Net new money, excluding money market flows, remained very strong at CHF 11.6 billion and included significant net inflows from both third parties and UBS's wealth management clients. The annualized net new money growth rate, excluding money markets, was well ahead of target.
The Investment Bank delivered on all its targets and recorded an increased adjusted1 profit before tax of CHF 563 million reflecting a strong performance from debt and equity capital markets. This was partly offset by lower revenues both in equities, and FX, rates and credit, mainly on lower client activity levels. Our expertise and focus on sustaining long-term client relationships and developing successful financing solutions is evident in the key roles we played in landmark deals in each region this quarter. At the same time as growing profits, the Investment Bank continued to operate within its limits for fully applied risk-weighted assets and funded assets. Cost control continued to be robust and the business's adjusted1 cost income ratio decreased and remained within the target range. Adjusted1 return on attributed equity was 30%. Our standing as a leading brokerage house and research provider was again confirmed as we gained the top position in several categories in the annual pan-European Thomson Reuters Extel Survey, including Leading Pan-European Equity House for the eleventh consecutive year.
Corporate Center Core Functions recorded a profit before tax of CHF 25 million, which included a release of provisions for litigation, regulatory and similar matters. The loss before tax in Corporate Center Non-core and Legacy Portfolio was CHF 412 million. Operating income declined mainly due to a loss as we exited the majority of our correlation trading portfolio. Fully applied RWA decreased by CHF 8 billion to CHF 52 billion at the end of the quarter and balance sheet assets were CHF 6 billion lower. We expect to make further progress in exiting our Non-core and Legacy positions during the remainder of 2014.
Results by business division and Corporate Center | ||||||||||||||||||||||||||
CHF million | Total operating income | Total operating expenses | Operating profit (loss) before tax | |||||||||||||||||||||||
For the quarter ended | 30.6.14 | 31.3.14 | % change | 30.6.14 | 31.3.14 | % change | 30.6.14 | 31.3.14 | % change | |||||||||||||||||
Wealth Management | 1,921 | 1,943 | (1 | 1,566 | 1,325 | 18 | 355 | 619 | (43 | |||||||||||||||||
Wealth Management Americas | 1,684 | 1,661 | 1 | 1,473 | 1,419 | 4 | 211 | 242 | (13 | |||||||||||||||||
Retail Corporate | 938 | 932 | 1 | 584 | 547 | 7 | 354 | 386 | (8 | |||||||||||||||||
Global Asset Management | 465 | 451 | 3 | 359 | 329 | 9 | 105 | 122 | (14 | |||||||||||||||||
Investment Bank | 2,284 | 2,190 | 4 | 1,704 | 1,765 | (3 | 579 | 425 | 36 | |||||||||||||||||
Corporate Center | (145 | 80 | 242 | 481 | (50 | (387 | (401 | (3 | ||||||||||||||||||
of which: Core Functions | 23 | 51 | (55 | (2 | 227 | 25 | (176 | |||||||||||||||||||
of which: Non-core and Legacy Portfolio | (167 | 29 | 245 | 254 | (4 | (412 | (225 | 83 | ||||||||||||||||||
UBS | 7,147 | 7,258 | (2 | 5,929 | 5,865 | 1 | 1,218 | 1,393 | (13 | |||||||||||||||||
Outlook At the start of the third quarter of 2014, many of the underlying challenges and geopolitical issues that we have previously highlighted remain. The mixed outlook for global growth, the absence of sustained and credible improvements to unresolved issues in Europe, continuing US fiscal and monetary policy issues, increasing geopolitical instability and the seasonal decline in activity levels traditionally associated with the summer holiday season would make improvements in prevailing market conditions unlikely. Despite these ongoing challenges, we will continue to execute on our strategy in order to ensure the firm's long-term success and to deliver sustainable returns for our shareholders.
1 Unless otherwise indicated, second-quarter 2014 "adjusted" figures exclude each of the following items, to the extent applicable, on a Group and business division level: own credit gain of CHF 72 million, gains of CHF 1 million on sales of real estate, a gain of CHF 43 million from the partial sale of our investment, held as a financial investment available-for-sale, in the financial information services company Markit following its initial public offering and net restructuring charges of CHF 89 million. For the first quarter of 2014, the items we excluded were an own credit gain of CHF 88 million, gains of CHF 23 million on sales of real estate and net restructuring charges of CHF 204 million. 2The Scorpio Partnership Private Banking Benchmark 2014 banks with assets under management of over USD 1 trillion.
UBS key figures | |||||||||||||||
As of or for the quarter ended | As of or year-to-date | ||||||||||||||
CHF million, except where indicated | 30.6.14 | 31.3.14 | 31.12.13 | 30.6.13 | 30.6.14 | 30.6.13 | |||||||||
Group results | |||||||||||||||
Operating income | 7,147 | 7,258 | 6,307 | 7,389 | 14,405 | 15,164 | |||||||||
Operating expenses | 5,929 | 5,865 | 5,858 | 6,369 | 11,794 | 12,697 | |||||||||
Operating profit (loss) before tax | 1,218 | 1,393 | 449 | 1,020 | 2,611 | 2,467 | |||||||||
Net profit (loss) attributable to UBS shareholders | 792 | 1,054 | 917 | 690 | 1,846 | 1,678 | |||||||||
Diluted earnings per share (CHF) 1 | 0.21 | 0.27 | 0.24 | 0.18 | 0.48 | 0.44 | |||||||||
Key performance indicators 2 | |||||||||||||||
Profitability | |||||||||||||||
Return on equity (RoE) (%) | 6.4 | 8.7 | 7.7 | 5.9 | 7.6 | 7.2 | |||||||||
Return on assets, gross (%) | 2.9 | 2.9 | 2.4 | 2.5 | 2.9 | 2.5 | |||||||||
Cost income ratio (%) | 82.8 | 81.1 | 92.7 | 86.2 | 82.0 | 83.6 | |||||||||
Growth | |||||||||||||||
Net profit growth (%) | (24.9 | 14.9 | 58.9 | (30.2 | 10.0 | 7.7 | |||||||||
Net new money growth for combined wealth management businesses (%) | 1.9 | 2.9 | 2.4 | 3.0 | 2.4 | 4.6 | |||||||||
Resources | |||||||||||||||
Common equity tier 1 capital ratio (fully applied, %) 3 | 13.5 | 13.2 | 12.8 | 11.2 | 13.5 | 11.2 | |||||||||
Swiss SRB leverage ratio (phase-in, %) | 5.3 | 5.0 | 4.7 | 3.9 | 5.3 | 3.9 | |||||||||
Additional information | |||||||||||||||
Profitability | |||||||||||||||
Return on tangible equity (%) 4 | 7.5 | 10.2 | 9.1 | 7.0 | 8.8 | 8.5 | |||||||||
Return on risk-weighted assets, gross (%) 5 | 12.5 | 12.6 | 11.2 | 11.7 | 12.5 | 11.8 | |||||||||
Resources | |||||||||||||||
Total assets | 982,605 | 982,530 | 1,018,374 | 1,129,071 | 982,605 | 1,129,071 | |||||||||
Equity attributable to UBS shareholders | 49,532 | 49,023 | 48,002 | 47,073 | 49,532 | 47,073 | |||||||||
Common equity tier 1 capital (fully applied) 3 | 30,590 | 29,937 | 28,908 | 26,817 | 30,590 | 26,817 | |||||||||
Common equity tier 1 capital (phase-in) 3 | 41,858 | 41,187 | 42,179 | 39,398 | 41,858 | 39,398 | |||||||||
Risk-weighted assets (fully applied) 3 | 226,736 | 226,805 | 225,153 | 239,182 | 226,736 | 239,182 | |||||||||
Risk-weighted assets (phase-in) 3 | 229,908 | 229,879 | 228,557 | 242,626 | 229,908 | 242,626 | |||||||||
Common equity tier 1 capital ratio (phase-in, %) 3 | 18.2 | 17.9 | 18.5 | 16.2 | 18.2 | 16.2 | |||||||||
Total capital ratio (fully applied, %) 3 | 18.1 | 16.8 | 15.4 | 13.5 | 18.1 | 13.5 | |||||||||
Total capital ratio (phase-in, %) 3 | 23.9 | 22.7 | 22.2 | 20.6 | 23.9 | 20.6 | |||||||||
Swiss SRB leverage ratio (fully applied, %) | 4.2 | 3.8 | 3.4 | 2.9 | 4.2 | 2.9 | |||||||||
Swiss SRB leverage ratio denominator (fully applied) 6 | 980,552 | 987,899 | 1,020,247 | 1,131,370 | 980,552 | 1,131,370 | |||||||||
Swiss SRB leverage ratio denominator (phase-in) 6 | 986,577 | 993,970 | 1,027,864 | 1,140,765 | 986,577 | 1,140,765 | |||||||||
Other | |||||||||||||||
Invested assets (CHF billion) 7 | 2,507 | 2,424 | 2,390 | 2,348 | 2,507 | 2,348 | |||||||||
Personnel (full-time equivalents) | 60,087 | 60,326 | 60,205 | 60,754 | 60,087 | 60,754 | |||||||||
Market capitalization 8 | 62,542 | 70,180 | 65,007 | 61,737 | 62,542 | 61,737 | |||||||||
Total book value per share (CHF) 8 | 13.20 | 13.07 | 12.74 | 12.49 | 13.20 | 12.49 | |||||||||
Tangible book value per share (CHF) 8 | 11.54 | 11.41 | 11.07 | 10.73 | 11.54 | 10.73 | |||||||||
1 Refer to "Note 9 Earnings per share (EPS) and shares outstanding" in the "Financial information" section of the second quarter 2014 report for more information. 2 Refer to the "Measurement of performance" section of our Annual Report 2013 for the definitions of our key performance indicators. In the first quarter of 2014, the definitions of certain Group key performance indicators were amended. Refer to the "Regulatory and legal developments and financial reporting changes" section of the first quarter 2014 report for more information. 3 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRB). Refer to the "Capital management" section of the second quarter 2014 report for more information. 4 Net profit loss attributable to UBS shareholders before amortization and impairment of goodwill and intangible assets (annualized as applicable) average equity attributable to UBS shareholders less average goodwill and intangible assets. 5 Based on phase-in Basel III risk-weighted assets. 6 The leverage ratio denominator is also referred to as "total adjusted exposure" and is calculated in accordance with Swiss SRB leverage ratio requirements. Data represent the average of the total adjusted exposure at the end of the three months preceding the end of the reporting period. Refer to the "Capital management" section of the second quarter 2014 report for more information. 7 Group invested assets includes invested assets for Retail Corporate. 8 Refer to the "UBS shares" section of the second quarter 2014 report for more information.
Income statement | ||||||||||||||||||||||
For the quarter ended | % change from | Year-to-date | ||||||||||||||||||||
CHF million, except per share data | 30.6.14 | 31.3.14 | 30.6.13 | 1Q14 | 2Q13 | 30.6.14 | 30.6.13 | |||||||||||||||
Interest income | 3,337 | 3,191 | 3,541 | 5 | (6 | 6,528 | 7,025 | |||||||||||||||
Interest expense | (2,095 | (1,620 | (2,333 | 29 | (10 | (3,714 | (4,336 | |||||||||||||||
Net interest income | 1,242 | 1,572 | 1,208 | (21 | 3 | 2,814 | 2,689 | |||||||||||||||
Credit loss (expense) recovery | (14 | 28 | (3 | 367 | 14 | (18 | ||||||||||||||||
Net interest income after credit loss expense | 1,229 | 1,600 | 1,205 | (23 | 2 | 2,829 | 2,671 | |||||||||||||||
Net fee and commission income | 4,296 | 4,112 | 4,236 | 4 | 1 | 8,408 | 8,360 | |||||||||||||||
Net trading income | 1,347 | 1,357 | 1,760 | (1 | (23 | 2,704 | 3,982 | |||||||||||||||
Other income | 276 | 189 | 188 | 46 | 47 | 465 | 152 | |||||||||||||||
Total operating income | 7,147 | 7,258 | 7,389 | (2 | (3 | 14,405 | 15,164 | |||||||||||||||
Personnel expenses | 3,842 | 3,967 | 3,855 | (3 | 0 | 7,809 | 7,955 | |||||||||||||||
General and administrative expenses | 1,871 | 1,679 | 2,299 | 11 | (19 | 3,550 | 4,298 | |||||||||||||||
Depreciation and impairment of property and equipment | 197 | 199 | 196 | (1 | 1 | 396 | 404 | |||||||||||||||
Amortization and impairment of intangible assets | 19 | 20 | 20 | (5 | (5 | 39 | 40 | |||||||||||||||
Total operating expenses | 5,929 | 5,865 | 6,369 | 1 | (7 | 11,794 | 12,697 | |||||||||||||||
Operating profit (loss) before tax | 1,218 | 1,393 | 1,020 | (13 | 19 | 2,611 | 2,467 | |||||||||||||||
Tax expense (benefit) | 314 | 339 | 125 | (7 | 151 | 652 | 583 | |||||||||||||||
Net profit (loss) | 904 | 1,054 | 895 | (14 | 1 | 1,958 | 1,884 | |||||||||||||||
Net profit (loss) attributable to preferred noteholders | 111 | 0 | 204 | (46 | 111 | 204 | ||||||||||||||||
Net profit (loss) attributable to non-controlling interests | 1 | 0 | 1 | 0 | 2 | 2 | ||||||||||||||||
Net profit (loss) attributable to UBS shareholders | 792 | 1,054 | 690 | (25 | 15 | 1,846 | 1,678 | |||||||||||||||
Earnings per share (CHF) | ||||||||||||||||||||||
Basic | 0.21 | 0.28 | 0.18 | (25 | 17 | 0.49 | 0.45 | |||||||||||||||
Diluted | 0.21 | 0.27 | 0.18 | (22 | 17 | 0.48 | 0.44 | |||||||||||||||
UBS's Second Quarter 2014 Report, letter to shareholders and slide presentation will be available from 06:45 CEST on Tuesday 29 July 2014 at www.ubs.com/investors.
UBS will hold a presentation of its second quarter 2014 results on Tuesday 29 July 2014. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Tom Naratil, Group Chief Financial Officer and Group Chief Operating Officer, Caroline Stewart, Global Head of Investor Relations, and Hubertus Kuelps, Group Head of Communications Branding.
Time
09:00 (CEST)
08:00 (BST)
03:00 (US EDT)
Audio webcast
The presentation can be followed live on www.ubs.com/quarterlyreporting with a simultaneous slide show.
An audio playback of the results presentation will be available from 12:00 CEST on 29 July 2014 at www.ubs.com/investors.
Cautionary Statement Regarding Forward-Looking Statements This media release contains statements that constitute "forward-looking statements", including but not limited to management's outlook for UBS's financial performance and statements relating to the anticipated effect of transactions and strategic initiatives on UBS's business and future development. While these forward-looking statements represent UBS's judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS's expectations. These factors include, but are not limited to: (i) the degree to which UBS is successful in executing its announced strategic plans, including its efficiency initiatives and its planned further reduction in its Basel III risk-weighted assets (RWA) and leverage ratio denominator (LRD); (ii) developments in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, currency exchange rates and interest rates and the effect of economic conditions and market developments on the financial position or creditworthiness of UBS's clients and counterparties; (iii) changes in the availability of capital and funding, including any changes in UBS's credit spreads and ratings, or arising from requirements for bail-in debt or loss-absorbing capital; (iv) changes in or the implementation of financial legislation and regulation in Switzerland, the US, the UK and other financial centers that may impose more stringent capital (including leverage ratio), liquidity and funding requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration or other measures; (v) uncertainty as to when and to what degree the Swiss Financial Market Supervisory Authority (FINMA) will approve reductions to the incremental RWA resulting from the supplemental operational risk-capital analysis mutually agreed to by UBS and FINMA, or will approve a limited reduction of capital requirements due to measures to reduce resolvability risk; (vi) the degree to which UBS is successful in executing the announced creation of a new Swiss banking subsidiary, a holding company for the UBS Group (including the announced offer to exchange shares of UBS AG for shares of such holding company), a US intermediate holding company, changes in the operating model of UBS Limited and other changes which UBS may make in its legal entity structure and operating model, including the possible consequences of such changes, and the potential need to make other changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements, including capital requirements, resolvability requirements and the pending Swiss parliamentary proposals and proposals in other countries for mandatory structural reform of banks; (vii) changes in UBS's competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS's ability to compete in certain lines of business; (viii) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations; (ix) the effects on UBS's cross-border banking business of tax or regulatory developments and of possible changes in UBS's policies and practices relating to this business; (x) UBS's ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors including differences in compensation practices; (xi) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xii) limitations on the effectiveness of UBS's internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xiii) whether UBS will be successful in keeping pace with competitors in updating its technology, particularly in trading businesses; (xiv) the occurrence of operational failures, such as fraud, unauthorized trading and systems failures; and (xv) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including UBS's Annual Report on Form 20-F for the year ended 31 December 2013. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
Rounding | Numbers presented throughout this release may not add up precisely to the totals provided in the tables and text. Percentages, percent changes and absolute variances are calculated based on rounded figures displayed in the tables and text and may not precisely reflect the percentages, percent changes and absolute variances that would be derived based on figures that are not rounded.
Tables | Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.
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