UBS Group AG - UBS Global topics · FORM 6-K REPORT OF FOREIGN ... UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date: May 5, 2015 UBS Group AG ... i urements fo r bail -in …

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 5, 2015

UBS Group AG Commission File Number: 1-36764

UBS AG Commission File Number: 1-15060

(Registrants’ Names)

Bahnhofstrasse 45, Zurich, Switzerland (Address of principal executive office)

Indicate by check mark whether the registrant files 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 presentation materials related to the First Quarter 2015 Results of UBS Group AG and UBS AG, including speaker notes, which appear immediately following this page.

First q

uarte

r 2015 re

sults

May 5

, 2015

Cautio

nary

state

ment re

gard

ing fo

rward

-lookin

g sta

tem

ents

1

This p

rese

nta

tion co

nta

ins sta

tem

ents th

at co

nstitu

te “fo

rward

-lookin

g sta

tem

ents,” in

cludin

g b

ut n

ot lim

ited to

managem

ent’s o

utlo

ok fo

r UBS’s fin

ancia

l perfo

rmance

and sta

tem

ents re

latin

g to

the a

nticip

ate

d e

ffect o

f

transa

ctions a

nd stra

tegic in

itiativ

es o

n U

BS’s b

usin

ess a

nd fu

ture

develo

pm

ent. W

hile

these

forw

ard

-lookin

g sta

tem

ents re

pre

sent U

BS’s ju

dgm

ents a

nd e

xpecta

tions co

nce

rnin

g th

e m

atte

rs describ

ed, a

num

ber o

f risks,

unce

rtain

ties a

nd o

ther im

porta

nt fa

ctors co

uld

cause

actu

al d

evelo

pm

ents a

nd re

sults to

diffe

r mate

rially

from

UBS’s e

xpecta

tions. T

hese

facto

rs inclu

de, b

ut a

re n

ot lim

ited to

: (i) the d

egre

e to

which

UBS is su

ccessfu

l in

execu

ting its a

nnounce

d stra

tegic p

lans, in

cludin

g its co

st reductio

n a

nd e

fficiency

initia

tives a

nd its p

lanned fu

rther re

ductio

n in

its Base

l III risk-w

eig

hte

d a

ssets (R

WA) a

nd le

vera

ge ra

tio d

enom

inato

r (LRD

), and to

main

tain

its state

d ca

pita

l retu

rn o

bje

ctive; (ii) d

evelo

pm

ents in

the m

ark

ets in

which

UBS o

pera

tes o

r to w

hich

it is expose

d, in

cludin

g m

ovem

ents in

secu

rities p

rices o

r liquid

ity, cre

dit sp

reads, cu

rrency

exch

ange ra

tes

and in

tere

st rate

s and th

e e

ffect o

f eco

nom

ic conditio

ns a

nd m

ark

et d

evelo

pm

ents o

n th

e fin

ancia

l positio

n o

r creditw

orth

iness o

f UBS’s clie

nts a

nd co

unte

rpartie

s, and th

e d

egre

e to

which

UBS is su

ccessfu

l in im

ple

mentin

g

changes to

its busin

ess to

meet ch

angin

g m

ark

et, re

gula

tory

and o

ther co

nditio

ns; (iii) ch

anges in

the a

vaila

bility

of ca

pita

l and fu

ndin

g, in

cludin

g a

ny ch

anges in

UBS’s cre

dit sp

reads a

nd ra

tings, o

r arisin

g fro

m

require

ments fo

r bail-in

debt o

r loss-a

bso

rbin

g ca

pita

l; (iv) ch

anges in

or th

e im

ple

menta

tion o

f financia

l legisla

tion a

nd re

gula

tion in

Sw

itzerla

nd, th

e U

S, th

e U

K a

nd o

ther fin

ancia

l cente

rs that m

ay im

pose

more

stringent

capita

l (inclu

din

g le

vera

ge ra

tio), liq

uid

ity a

nd fu

ndin

g re

quire

ments, in

crem

enta

l tax re

quire

ments, a

dditio

nal le

vie

s, limita

tions o

n p

erm

itted a

ctivitie

s, constra

ints o

n re

munera

tion o

r oth

er m

easu

res; (v

) unce

rtain

ty a

s to

when a

nd to

what d

egre

e th

e S

wiss F

inancia

l Mark

et S

uperv

isory

Auth

ority

(FIN

MA) w

ill appro

ve re

ductio

ns to

the in

crem

enta

l RW

A re

sultin

g fro

m th

e su

pple

menta

l opera

tional risk

capita

l analy

sis mutu

ally

agre

ed to

by

UBS a

nd F

INM

A, o

r will a

ppro

ve a

limite

d re

ductio

n o

f capita

l require

ments d

ue to

measu

res to

reduce

reso

lvability

risk; (v

i) the d

egre

e to

which

UBS is su

ccessfu

l in e

xecu

ting th

e tra

nsfe

r of b

usin

ess to

UBS S

witze

rland

AG

, a e

stablish

ing a

US in

term

edia

te h

old

ing co

mpany a

nd im

ple

mentin

g th

e U

S e

nhance

d p

rudentia

l standard

s, com

ple

ting th

e sq

ueeze

-out o

f min

ority

share

hold

ers o

f UBS A

G, ch

angin

g th

e o

pera

ting m

odel o

f UBS

Lim

ited a

nd o

ther ch

anges w

hich

UBS m

ay m

ake in

its legal e

ntity

structu

re a

nd o

pera

ting m

odel, in

cludin

g th

e p

ossib

le co

nse

quence

s of su

ch ch

anges, a

nd th

e p

ote

ntia

l need to

make o

ther ch

anges to

the le

gal stru

cture

or b

ookin

g m

odel o

f UBS G

roup in

resp

onse

to le

gal a

nd re

gula

tory

require

ments, in

cludin

g ca

pita

l require

ments, re

solv

ability

require

ments a

nd p

roposa

ls in S

witze

rland a

nd o

ther co

untrie

s for m

andato

ry stru

ctura

l refo

rm

of b

anks; (v

ii) changes in

UBS’s co

mpetitiv

e p

ositio

n, in

cludin

g w

heth

er d

iffere

nce

s in re

gula

tory

capita

l and o

ther re

quire

ments a

mong th

e m

ajo

r financia

l cente

rs will a

dverse

ly a

ffect U

BS’s a

bility

to co

mpete

in ce

rtain

lines o

f busin

ess; (v

iii) changes in

the sta

ndard

s of co

nduct a

pplica

ble

to o

ur b

usin

esse

s that m

ay re

sult fro

m n

ew

regula

tion o

r new

enfo

rcem

ent o

f existin

g sta

ndard

s, inclu

din

g m

easu

res to

impose

new

or e

nhance

d

dutie

s when in

tera

cting w

ith cu

stom

ers o

r in th

e e

xecu

tion a

nd h

andlin

g o

f custo

mer tra

nsa

ctions; (ix

) the lia

bility

to w

hich

UBS m

ay b

e e

xpose

d, o

r possib

le co

nstra

ints o

r sanctio

ns th

at re

gula

tory

auth

oritie

s mig

ht im

pose

on U

BS, d

ue to

litigatio

n, co

ntra

ctual cla

ims a

nd re

gula

tory

investig

atio

ns; (x

) the e

ffects o

n U

BS’s cro

ss-bord

er b

ankin

g b

usin

ess o

f tax o

r regula

tory

develo

pm

ents a

nd o

f possib

le ch

anges in

UBS’s p

olicie

s and p

ractice

s

rela

ting to

this b

usin

ess; (x

i) UBS’s a

bility

to re

tain

and a

ttract th

e e

mplo

yees n

ece

ssary

to g

enera

te re

venues a

nd to

manage, su

pport a

nd co

ntro

l its busin

esse

s, which

may b

e a

ffecte

d b

y co

mpetitiv

e fa

ctors in

cludin

g

diffe

rence

s in co

mpensa

tion p

ractice

s; (xii) ch

anges in

acco

untin

g o

r tax sta

ndard

s or p

olicie

s, and d

ete

rmin

atio

ns o

r inte

rpre

tatio

ns a

ffectin

g th

e re

cognitio

n o

f gain

or lo

ss, the v

alu

atio

n o

f goodw

ill, the re

cognitio

n o

f

defe

rred ta

x a

ssets a

nd o

ther m

atte

rs; (xiii) lim

itatio

ns o

n th

e e

ffectiv

eness o

f UBS’s in

tern

al p

roce

sses fo

r risk m

anagem

ent, risk

contro

l, measu

rem

ent a

nd m

odelin

g, a

nd o

f financia

l models g

enera

lly; (x

iv) w

heth

er U

BS

will b

e su

ccessfu

l in k

eepin

g p

ace

with

com

petito

rs in u

pdatin

g its te

chnolo

gy, p

articu

larly

in tra

din

g b

usin

esse

s; (xv) th

e o

ccurre

nce

of o

pera

tional fa

ilure

s, such

as fra

ud, m

isconduct, u

nauth

orize

d tra

din

g a

nd sy

stem

s

failu

res; (x

vi) re

strictions to

the a

bility

of su

bsid

iarie

s of th

e G

roup to

make lo

ans o

r distrib

utio

ns o

f any k

ind, d

irectly

or in

dire

ctly, to

UBS G

roup A

G; a

nd (x

vii) th

e e

ffect th

at th

ese

or o

ther fa

ctors o

r unanticip

ate

d e

vents

may h

ave o

n o

ur re

puta

tion a

nd th

e a

dditio

nal co

nse

quence

s that th

is may h

ave o

n o

ur b

usin

ess a

nd p

erfo

rmance

. The se

quence

in w

hich

the fa

ctors a

bove a

re p

rese

nte

d is n

ot in

dica

tive o

f their lik

elih

ood o

f occu

rrence

or th

e p

ote

ntia

l magnitu

de o

f their co

nse

quence

s. Our b

usin

ess a

nd fin

ancia

l perfo

rmance

could

be a

ffecte

d b

y o

ther fa

ctors id

entifie

d in

our p

ast a

nd fu

ture

filings a

nd re

ports, in

cludin

g th

ose

filed w

ith th

e S

EC. M

ore

deta

iled in

form

atio

n a

bout th

ose

facto

rs is set fo

rth in

docu

ments fu

rnish

ed b

y U

BS a

nd filin

gs m

ade b

y U

BS w

ith th

e S

EC, in

cludin

g U

BS’s A

nnual R

eport o

n F

orm

20-F

for th

e y

ear e

nded 3

1 D

ece

mber 2

014. U

BS is n

ot

under a

ny o

blig

atio

n to

(and e

xpre

ssly d

isclaim

s any o

blig

atio

n to

) update

or a

lter its fo

rward

-lookin

g sta

tem

ents, w

heth

er a

s a re

sult o

f new

info

rmatio

n, fu

ture

events, o

r oth

erw

ise.

This p

rese

nta

tion a

nd th

e in

form

atio

n co

nta

ined h

ere

in a

re p

rovid

ed so

lely

for in

form

atio

n p

urp

ose

s, and a

re n

ot to

be co

nstru

ed a

s a so

licitatio

n o

f an o

ffer to

buy o

r sell a

ny se

curitie

s or o

ther fin

ancia

l

instru

ments in

Sw

itzerla

nd, th

e U

nite

d S

tate

s or a

ny o

ther ju

risdictio

n. N

o in

vestm

ent d

ecisio

n re

latin

g to

secu

rities o

f or re

latin

g to

UBS G

roup A

G, U

BS A

G o

r their a

ffiliate

s should

be m

ade o

n th

e b

asis o

f this d

ocu

ment.

Refe

r to U

BS's first q

uarte

r 2015 re

port a

nd its A

nnual re

port o

n F

orm

20-F

for th

e y

ear e

nded 3

1 D

ece

mber 2

014. N

o re

pre

senta

tion o

r warra

nty

is made o

r implie

d co

nce

rnin

g, a

nd U

BS a

ssum

es n

o re

sponsib

ility fo

r, the

accu

racy

, com

ple

teness, re

liability

or co

mpara

bility

of th

e in

form

atio

n co

nta

ined h

ere

in re

latin

g to

third

partie

s, which

is base

d so

lely

on p

ublicly

availa

ble

info

rmatio

n. U

BS u

nderta

kes n

o o

blig

atio

n to

update

the

info

rmatio

n co

nta

ined h

ere

in.

Disclaim

er:

©UBS

2015.

The

key

sym

boland

UBS

are

am

ong

the

registe

red

and

unre

giste

red

tradem

ark

sof

UBS.

All

rights

rese

rved.

Net p

rofit a

ttributa

ble

to U

BS G

roup A

G sh

are

hold

ers o

f CH

F 1

,977 m

illion

Gro

up

Ne

t pro

fit attrib

uta

ble

to U

BS

Gro

up

AG

sh

are

ho

lde

rs C

HF 1

,97

7 m

illion

, dilu

ted

EP

S C

HF 0

.53

Re

po

rted

pro

fitb

efo

reta

x(P

BT

)C

HF

2,7

08

millio

n,a

dju

ste

dP

BT

CH

F2

,26

8m

illion

Ba

se

l III

fully

ap

plie

d C

ET

1 ra

tio 1

3.7

%, S

wis

s S

RB

fully

ap

plie

d le

ve

rag

e ra

tio 4

.6%

Bu

sin

ess d

ivis

ion

s1

We

alth

Ma

na

ge

me

nt:

PBT C

HF 8

56 m

illion a

nd N

NM

CH

F 1

4.4

billio

n

–H

ighest P

BT sin

ce 3

Q08, n

et m

arg

in u

p 7

bps to

35 b

ps

We

alth

Ma

na

ge

me

nt A

me

rica

s:

PBT U

SD

293 m

illion a

nd N

NM

USD

4.8

billio

n

–Reco

rd P

BT a

nd re

cord

USD

investe

d a

ssets

Re

tail &

Co

rpo

rate

:PBT C

HF 4

43 m

illion

–H

ighest first q

uarte

r PBT sin

ce 1

Q10 a

nd a

ll KPIs w

ithin

targ

et ra

nges

Glo

ba

l Asse

t Ma

na

gem

en

t:PBT C

HF 1

86 m

illion a

nd N

NM

CH

F 7

.5 b

illion e

xclu

din

g m

oney m

ark

et flo

ws

–PBT u

p 5

0%

, hig

hest sin

ce 4

Q09

In

ve

stm

en

t Ba

nk

:

–Stro

ng p

erfo

rmance

s in b

oth

ICS a

nd C

CS

Co

rpo

rate

Ce

nte

r:PBT o

f negativ

e C

HF 3

40 m

illion

–Sig

nifica

nt P

BT im

pro

vem

ent a

cross a

ll thre

e C

orp

ora

te C

ente

r units

1Q

15 h

ighlig

hts

1Adjuste

dnumbers

unless

otherw

iseindica

ted,referto

slide30fordetails

aboutadjuste

dnumbers,

Base

lIII

numbers

andFX

ratesin

this

presentatio

n2

PBT C

HF 8

44 m

illion

UBS G

roup A

G re

sults (co

nso

lidate

d)

Refe

r to slid

e 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion; 1

Inclu

des n

on-co

ntro

lling in

tere

sts in U

BS A

G re

flectin

g th

e n

on-e

xch

anged

UBS A

G sh

are

s as w

ell a

s non-co

ntro

lling in

tere

sts rela

ted to

the p

refe

rred n

ote

s issued b

y U

BS A

G; 2

In a

dditio

n to

net p

rofit a

ttributa

ble

to n

on-co

ntro

lling in

tere

sts in U

BS A

G

refle

cting th

e n

on-e

xch

anged U

BS A

G sh

are

s, we e

xpect to

attrib

ute

net p

rofit o

f ~CH

F 8

0 m

illion to

non-co

ntro

lling in

tere

sts rela

ted to

the p

refe

rred n

ote

s issued b

y U

BS A

G in

both

2015, a

ll of w

hich

in th

e se

cond q

uarte

r, and 2

016 a

nd o

f ~CH

F 7

0 m

illion in

2017

3

CH

F m

illion

FY13

FY14

1Q

14

4Q

14

1Q

15

Tota

l opera

ting in

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e27,7

32

28,0

27

7,2

58

6,7

46

8,8

41

Tota

l opera

ting e

xpense

s24,4

61

25,5

67

5,8

65

6,3

42

6,1

34

Pro

fit be

fore

tax

as re

po

rted

3,2

72

2,4

61

1,3

93

40

42

,70

8

ofw

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:ow

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83)

292

88

70

226

of w

hich

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288

44

23

20

378

of w

hich

: gain

on d

isposa

ls65

43

00

141

of w

hich

: net re

structu

ring ch

arg

es

(772)

(677)

(204)

(208)

(305)

of w

hich

: net lo

sses re

late

d to

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uyback

of d

ebt in

public te

nder o

ffers

(167)

00

00

of w

hich

: impairm

ent o

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l investm

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vaila

ble

-for-sa

le0

(48)

00

0

of w

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: credit re

late

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changes to

retire

e b

enefit p

lans in

the U

S0

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08

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Ad

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rofit b

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x4

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12

,76

61

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2,2

68

of w

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r litigatio

n, re

gula

tory

and sim

ilar m

atte

rs(1

,701)

(2,5

94)

(193)

(310)

(58)

Tax (e

xpense

)/benefit

110

1,1

80

(339)

515

(670)

Net p

rofit a

ttributa

ble

to p

refe

rred n

ote

hold

ers

204

142

031

0

Net

pro

fitattrib

uta

ble

non-co

ntro

lling

inte

rests

1,2

532

029

61

Ne

t pro

fit attrib

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ble

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BS

Gro

up

AG

sh

are

ho

lde

rs3

,17

23

,46

61

,05

48

58

1,9

77

Dilu

ted E

PS (C

HF)

0.8

30.9

10.2

7

0.2

30.5

3

Retu

rn o

n ta

ngib

le e

quity

, adju

sted (%

)9.8

8.6

10.7

8.6

14.4

Tota

l book v

alu

e p

er sh

are

(CH

F)

12.7

4

13.9

4

13.0

7

13.9

414.3

3

Tangib

le b

ook v

alu

e p

er sh

are

(CH

F)

11.0

7

12.1

4

11.4

1

12.1

412.5

9

Wealth

Managem

ent

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1 C

HF 4

22 m

illion e

xclu

din

g C

HF 2

91 m

illion ch

arg

es fo

r pro

visio

ns fo

r litigatio

n, re

gula

tory

and sim

ilar m

atte

rs; 2 P

rofit b

efo

re ta

x CH

F 6

84 m

illion e

xclu

din

g

CH

F 2

91 m

illion ch

arg

es fo

r pro

visio

ns fo

r litigatio

n, re

gula

tory

and sim

ilar m

atte

rs

4

Op

era

ting

in

co

me

Op

era

ting

exp

en

ses

Pro

fit

befo

re

tax

2,106

2,004

2,031

1,921

1,943

1,859

1,837

1,953

1,913

1,250

1,311

1,264

1,528

713

11,285

1,348

1,220

1,346

1,224

69%

66%

73%

66%

62%

C/I ra

tio

Perso

nnel

Oth

er

Op

era

ting

inco

me

CH

F 2

,10

6 m

illion

Op

era

ting

ex

pe

nse

s C

HF 1

,25

0 m

illion

PB

T C

HF 8

56

millio

n

64%

80%

59%

65%

3Q13

1Q14

3Q144Q14

1Q15

1Q132Q13

4Q13

2Q14

PBT C

HF 8

56 m

illion, h

ighest sin

ce 3

Q08

Tra

nsa

ctio

n-b

ase

d

Net in

tere

st

Recu

rring n

et fe

e

Oth

er

Cre

dit lo

ss (expense

)/reco

very

73%

77%

77%

72%

76%

Recu

rring

inco

me

71%

75%

72%

78%

856909

891911

897922

978986

949

508523

517513

496518

569583

560

554505

406423

542472

479436

589Tra

nsa

ction-b

ase

d in

com

e in

crease

d a

cross a

ll regio

ns, m

ost

nota

bly

in A

PAC

Net in

tere

st inco

me d

ecre

ase

d, m

ain

ly d

ue to

low

er in

com

e fro

m

loans a

nd d

eposits o

n a

stronger S

wiss F

ranc

Recu

rring n

et fe

e in

com

e d

ecre

ase

d, m

ain

ly d

ue to

low

er

investe

d a

ssets o

n a

stronger S

wiss F

ranc

G&

A e

xpense

s decre

ase

d, m

ain

ly d

ue to

low

er m

ark

etin

g a

nd

Corp

ora

te C

ente

r costs

Perso

nnel e

xpense

s incre

ase

d, m

ain

ly d

ue to

incre

ase

d v

aria

ble

com

pensa

tion a

nd u

nta

ken v

aca

tion a

ccruals

59%

cost/in

com

e ra

tio

836825

778862

822815

828834

859

521442

486463

436477

391388

3932

856694

767659

512617

607690

Wealth M

anagement

5

Strong grow

th in mandate penetration, net m

argin up 7 bps to 35 bps

10.15.0

5.810.9

9.815.0

10.714.4

3.0

Gro

ss marg

in1

Net m

arg

in2

3Q13

1Q14

3Q14

4Q14

1Q15

1Q13

2Q13

4Q13

2Q14

95.1

94.9

96.8

102.2

111.7

93.2

105.3

110.8

112.7

5.8%

1.2%

4.2%4.8%

4.9%

2.7%2.3%

4.6%

7.3%

970987

966928

89 9886

871862

870

Annualize

d

gro

wth

rate

In

veste

d

assets

CH

F b

illion

Marg

ins

bps

CH

F b

illion

Net n

ew

mon

ey

Loans

CH

F b

illion

NN

M C

HF 1

4.4

billio

n, 5

.8%

gro

wth

rate

on stro

ng in

flow

s from

APAC a

s well a

s Euro

pe

Dom

estic a

nd In

tern

atio

nal

In

ve

ste

d a

ssets

CH

F 9

70

billio

npositiv

e m

ark

et p

erfo

rmance

, more

than o

ffset b

ynegativ

e F

X tra

nsla

tion e

ffects

Ma

nd

ate

pe

ne

tratio

n 2

5.5

%w

ith stro

ng n

et m

andate

sale

s of C

HF 1

5.0

billio

n

Ne

t ma

rgin

35

bp

s

Gro

ss lo

an

s C

HF

11

0.8

billio

ntra

nsla

tion e

ffects, u

nderly

ing tre

nd re

main

s positiv

e

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1Annualize

d o

pera

ting in

com

e b

efo

re cre

dit lo

ss (expense

) or re

covery

in b

ps o

f avera

ge in

veste

d a

ssets; 2

Annualize

d P

BT in

bps o

f avera

ge in

veste

d a

ssets

, dow

n o

n F

X

, up fro

m 2

4.4

%,

, strong N

NM

and

86

82

86

84

87

85

85

90

91

28

28

23

30

32

33

17

35

28

, up 7

bps

Wealth M

anagement

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

Base

d o

n th

e W

ealth

Managem

ent b

usin

ess a

rea stru

cture

; refe

r topage 3

1 o

f the 1

Q15 fin

ancia

l report fo

r more

info

rmatio

n

In

ve

ste

d a

sse

tsCH

F b

illion

1,4

96

77

67

61

Clie

nt a

dvis

ors

FTE

31.3

.15

1,2

01

77

3

50

33

49

27

61

78

16

5

Eu

rop

eS

witz

erla

nd

Asia

Pa

cific

Em

erg

ing

ma

rke

tsof w

hic

h: U

HN

W

6

CH

F b

illion

Ne

t ne

wm

on

ey

Annualize

d

gro

wth

rate

Gro

ss

ma

rgin

bps

3.3%1.1%

(1.7

%)

(0.7

%)

(2.5

%)

1Q14

3Q144Q141Q15

2Q14

1Q14

3Q144Q141Q15

2Q14

1Q14

3Q144Q141Q15

2Q14

1Q14

3Q144Q141Q15

2Q14

1Q14

3Q144Q141Q15

2Q14

7.8%9.2%

12.2

%13.1

%

16.0

%

3.6%

0.2%0.9%

5.3%

11.0

%

3.6%1.8%

0.8%

8.7%

(0.5

%)

8.1%5.9%

5.1%

9.1%7.1%

(2.2

)1.0

(1.5

)3.0

(0.6

)5.0

7.8

5.0

8.2

8.9

4.4

0.4

0.1

1.6

2.2

3.3

0.7

(0.2

)1.5

0.3

7.4

5.7

7.1

10.1

9.6

8082

8383

8583

7383

7885

9690

9189

9096

9597

9293

5457

5255

56

Stro

ng N

NM

gro

wth

, positiv

e in

all re

gio

ns, w

ith A

PAC a

nd E

uro

pe

as m

ain

co

ntrib

uto

rs

1,924

1,919

1,901

1,898

1,865

1,851

1,748

1,780

1,696

Wealth M

anagement A

mericas

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

7

Op

era

ting

in

co

me

Op

era

ting

exp

en

ses

Pro

fit

befo

re

tax

1,652

1,582

1,567

1,517

1,523

1,608

1,691

1,651

1,476

C/I ra

tio

Perso

nnel

Oth

er

3Q13

1Q14

3Q14

4Q141Q15

1Q132Q13

4Q13

2Q14

Record

PBT U

SD

293 m

illion

Tra

nsa

ctio

n-b

ase

d

Net in

tere

st

Recu

rring n

et fe

e

Oth

er

Cre

dit lo

ss (expense

)/reco

very

71%

75%

73%

74%

77%

Recu

rring

inco

me

69%

75%

77%

76%

86%

86%

84%

86%

86%

87%

87%

85%

88%

Op

era

ting

inco

me

US

D 1

,90

1 m

illion

Op

era

ting

ex

pe

nse

s U

SD

1,6

08

millio

n

PB

T U

SD

29

3 m

illion

9481,030

1,0431,088

1,1191,163

1,1971,187

1,186

217235

286276

250261

276280

277530

507433

476472

464441

448432

1,2021,241

1,2341,256

1,2571,303

1,3071,336

1,292

274282

283311

325349

344355

316

293233

267246

284283

232256

220

G&

A e

xpense

s decre

ase

d, m

ain

ly d

ue to

low

er ch

arg

es fo

r

pro

visio

ns fo

r litigatio

n, re

gula

tory

and sim

ilar m

atte

rs and

low

er C

orp

ora

te C

ente

r costs

Perso

nnel e

xpense

s decre

ase

d, m

ain

ly d

ue to

low

er F

A

com

pensa

tion, p

rimarily

refle

cting lo

wer p

erfo

rmance

-base

d

com

pensa

tion a

nd slig

htly

low

er co

mpensa

ble

revenues

Opera

ting in

com

e d

ecre

ase

d, m

ain

ly d

ue to

low

er tra

nsa

ction-

base

d in

com

e

85%

cost/in

com

e ra

tio

Wealth M

anagement A

mericas

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1Annualize

d o

pera

ting in

com

e b

efo

re cre

dit lo

ss (expense

) or re

covery

in b

ps o

f avera

ge in

veste

d a

ssets; 2

Annualize

d P

BT in

bps o

f avera

ge in

veste

d a

ssets

8

Annualize

d

gro

wth

rate

78

78

73

75

76

80

76

79

76

NN

M U

SD

4.8

billio

n, 1

.9%

gro

wth

rate

refle

cting n

et n

ew

money in

flow

s from

financia

l adviso

rs em

plo

yed m

ore

than o

ne y

ear

In

ve

ste

d a

ssets

US

D 1

,05

0 b

illion

positiv

e m

ark

et p

erfo

rmance

and N

NM

Ne

t ma

rgin

11

bp

s

Record

USD

investe

d a

ssets

and lo

an b

ala

nces

2.8

2.1

4.9

2.1

4.9

USD

billio

n9.2

(2.5

)4.8

5.5

Gro

ss marg

in1

Net m

arg

in2

Net n

ew

mon

ey

3Q13

1Q14

3Q144Q141Q15

1Q132Q13

4Q13

2Q14

11

10

12

12

11

10

10

11

9

In

veste

d

assets

USD

billio

n

36.8

37.6

39.1

39.6

43.3

Loans

USD

billio

n34.5

41.7

45.5

44.6

Marg

ins

bps

Gro

ss lo

an

s U

SD

45

.5 b

illion

credit lin

es a

nd m

ortg

ages

1.9%2.2%

1.9%

(1.0%)

0.9%

2.1%

0.9%1.3%

4.4%

1,0501,032

1,0161,017

987970

91 9892

891new

reco

rdon

main

ly o

n in

crease

d

up

2bps

,

,

Wealth M

anagement A

mericas

9

Reco

rd U

SD

investe

d a

ssets a

nd in

dustry

-leadin

g F

A p

roductiv

ity

In

veste

d a

ssets

an

d F

A p

rod

uctiv

ityN

et in

tere

st in

co

me a

nd

len

din

g

Investe

d a

ssets p

er F

A (U

SD

millio

n)

Annualize

d re

venue p

er F

A (U

SD

k)

Cre

dit

loss

(expense

)/recovery

(USD

millio

n)

Investe

d a

ssets

3Q13

1Q14

3Q14

4Q14

1Q15

1Q13

2Q13

4Q13

2Q14

Loans, g

ross

3Q13

1Q14

3Q14

4Q14

1Q15

1Q13

2Q13

4Q13

2Q14

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

9611,005

9941,042

1,0371,068

1,0791,091

1,088

1,0501,032

1,0161,017

987970

919892

891

126126

129136

139143

143147

150217

235

286276

250261

276280

277

0(2

1)

(9)

19

(1)

0(2

)0

0

45.544.6

43.341.7

39.639.1

37.636.8

34.5

Net in

tere

st inco

me (U

SD

millio

n)

Retail &

Corporate

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

10

Op

era

ting

inco

me

Op

era

ting

exp

en

ses

Pro

fi t

befo

re

tax

958

938

932

931

958

948

919

979

913

512

571

532

587

541

558

557

536

557

59%

57%

62%

58%

52%

C/I ra

tio

Perso

nnel

Oth

er

61%

60%

54%

57%

Hig

hest first q

uarte

r PBT sin

ce 1

Q10 a

nd a

ll KPIs w

ithin

targ

et ra

nges

Tra

nsa

ctio

n-b

ase

d

Net in

tere

st

Recu

rring n

et fe

e

Oth

er

Cre

dit lo

ss (expense

)/reco

very

3Q13

1Q14

3Q144Q141Q15

1Q132Q13

4Q13

2Q14

Op

era

ting

inco

me

CH

F 9

79

millio

n

Op

era

ting

ex

pe

nse

s C

HF 5

36

millio

n

PB

T C

HF 4

43

millio

n

531542

531540

523541

563557

568

243272

262256

234247

267273

284

134133

140138

144127

127126

130

376361

350336

343336

331322

343

181197

191251

189235

181235

193

443356

446367

401344

417390

362

Tra

nsa

ction-b

ase

d in

com

e in

crease

d, m

ain

ly d

ue to

FX-tra

din

g a

nd h

edgin

g-re

late

d in

com

e

Net in

tere

st inco

me in

crease

d, m

ain

ly d

ue to

pricin

g m

easu

res,

partly

offse

t by lo

wer a

lloca

ted re

venues fro

m G

roup A

LM

Cre

dit lo

ss expense

s decre

ase

d

G&

A e

xpense

s decre

ase

d, m

ain

ly a

s 4Q

14 in

cluded sig

nifica

nt

investm

ents in

our m

ultich

annel o

fferin

g; m

ark

etin

g e

xpense

s

and p

rofe

ssional fe

es a

lso d

eclin

ed

Perso

nnel e

xpense

s incre

ase

d, m

ain

ly d

ue to

hig

her v

aria

ble

com

pensa

tion a

ccruals

54%

cost/in

com

e ra

tio

Net in

tere

st marg

in 1

65 b

ps v

s. 162 b

ps in

4Q

14,

main

ly re

flectin

g h

igher n

et in

tere

st inco

me

Annualize

d n

et n

ew

reta

il busin

ess v

olu

me g

row

th 3

.1%

vs.

0.6

% in

4Q

14, fo

llow

ing th

e ty

pica

l seaso

nal p

atte

rn

Glo

bal A

sset M

anagem

ent

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

11

Op

era

ting

in

co

me

Op

era

ting

exp

en

ses

Pro

fi t

befo

re

tax

429449

418410

404427

462463

443

6872

51

14

97

34

48

9

27

46

5

38

45

1

47

48

24

47

29

48

9

41

48

3

53

213230

206215

205208

222223

218

110108

111124

120149

116150

107

32

53

73

33

83

57

32

53

39

31

73

38

32

3

186151

107126

143130

152160

124

69%

71%

70%

72%

69%

C/I ra

tio

Perso

nnel

Oth

er

67%

77%

64%

75%

3Q

13

1Q

14

3Q

14

4Q

14

1Q

15

1Q

13

2Q

13

4Q

13

2Q

14

PBT C

HF 1

86 m

illion, u

p 5

0%

and h

ighest sin

ce 4

Q09

Perfo

rmance

fees

Net m

anagem

ent fe

es

(1.3

)(3

.9)

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nd p

rofita

bly

gro

win

g o

ur b

usin

esse

s

2

Appendix

52,359

50,608

IFRS e

quity

attrib

uta

ble

to U

BS G

roup A

G sh

are

hold

ers

31.1

2.1

4Fore

ign

curre

ncy

transla

tion

(OCI)

31.3

.15

Em

plo

yee

share

and

share

optio

ns

pla

ns (sh

are

pre

miu

m)

Cash

flow

hedges

(OCI)

Net p

rofit

Tre

asu

ry

share

sFin

ancia

l in

vestm

ents

availa

ble

-

for-sa

le

(OCI)

Defin

ed

benefit

pla

ns (O

CI)

Oth

er

Qo

Q m

ovem

en

tCH

F m

illion, e

xce

pt fo

r per sh

are

figure

s in C

HF

Incre

ase

inU

BS G

roup A

G's

ow

nersh

ip

inte

rest in

UBS A

G

To

tal b

oo

k v

alu

e p

er s

ha

re:

Ta

ng

ible

bo

ok

va

lue p

er s

ha

re:

12.14

13.94

31

.12

.14

12.59

14.33

31

.3.1

5

77

14

539

(272)

(126)

376

(799)

1,977

(36)

Equity

attrib

uta

ble

to U

BS G

roup A

G sh

are

hold

ers C

HF 5

2 b

illion a

s of 3

1.3

.15

20

+2.8%

+3.7%

1Q

14

Sw

iss SRB B

ase

l III capita

l and ra

tios

Refe

r to slid

e 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1 P

hase

-out ca

pita

l; 2 H

ybrid

capita

l subje

ct to p

hase

-out; 3

Goodw

ill, net o

f tax, o

ffset a

gain

st hybrid

capita

l and lo

ss-abso

rbin

g ca

pita

l21

Ra

tio

T2

Lo

w-trig

ger

T2

Hig

h-trig

ger

AT

1 H

igh

-trigg

er

CE

T1

13

.7%

0.8

%

0.4

%

4.6

%

CH

F b

illion

Fu

lly a

pp

lied

Ph

ase

-in

22

.7%

25

.9%

25

.5%

1Q

15 fu

lly a

pplie

d B

ase

l III CET1 ca

pita

l ratio

13.7

%

18

.6%

1.4

%

5.9

%T

2

CE

T1

AT

1

T2

AT

1

Low-trig

ger

7.1

10.5

10.0

7.1

10.5

10.0

CE

T1

29

.92

8.9

29

.64

1.2

42

.94

0.8

To

tal c

ap

ital

38

.04

0.8

44

.55

2.2

56

.35

6.8

RW

A2

26

.82

16

.52

16

.42

29

.92

20

.92

19

.4

3.0

2.1

2.0

Other¹

High-trig

ger

1.0

0.9

0.9

1.0

0.9

0.9

To

tal T

28

.11

1.4

11

.01

1.0

13

.41

3.0

Other²

3.1

3.2

2.9

Deductio

ns³

(3.1)

(3.7)

(3.9)

To

tal A

T1

-0

.53

.9-

-3

.0

Low-trig

ger

2.3

2.3

High-trig

ger

0.5

1.7

0.5

1.7

1.0

%A

T1

Lo

w-trig

ger

4Q

14

1Q

15

1Q

14

4Q

14

1Q

15

18

.9%

16

.8%

20

.6%

13.2%

13.4%

13.7%

17.9%

19.4%

18.6%

Refe

r to slid

e 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1 H

ybrid

capita

l subje

ct to p

hase

-out; 2

Goodw

ill, net o

f tax, o

ffset a

gain

st hybrid

capita

l and lo

ss-abso

rbin

g ca

pita

l; 3 R

efe

r to th

e "B

IS B

ase

l III levera

ge ra

tio" se

ction o

f the 1

Q15

financia

l report fo

r furth

er d

eta

il

Ra

tio

Fu

lly a

pp

lied

Ph

ase-in

T2

CE

T1

AT

1T

2 L

ow

-trigg

er

T2

Hig

h-trig

ge

r

AT

1 H

igh

-trigg

er

CE

T1

AT

1 L

ow

-trigg

er

1Q

15 fu

lly a

pplie

d S

wiss S

RB le

vera

ge ra

tio 4

.6%

To

tal c

ap

ital

38

.04

0.8

44

.54

9.3

54

.35

4.8

Sw

iss S

RB

LR

D9

87

.99

97

.89

76

.99

94

.01

,00

4.9

98

2.2

4.1

%

4.6

%

3.8

%

Sw

iss SRB le

vera

ge ra

tio

22

CH

F billion

billio

n

(31.3

.15)

CH

F 1

4.0

BIS

Base

l III levera

ge ra

tio 3

.4%

on a

fully

applie

d b

asis a

nd 4

.4%

on a

phase

-in b

asis

BIS

Base

l III LRD

CH

F 9

91 b

illion o

n a

fully

applie

d b

asis a

nd C

HF 9

96

billio

n o

n a

phase

-in b

asis

3

3

LRD

: Sw

iss S

RB v

s. B

IS B

asel III ru

les

23

We e

xpect th

e n

et d

iffere

nce

to d

ecre

ase

by y

ear-e

nd 2

015, a

s we a

dju

st our e

xposu

res to

new

regula

tion

LR

D(C

HF

billio

n)

De

scrip

tion

of c

ha

ng

es

97

399

1

De

riva

tive

ex

po

su

res

Secu

rities fin

an

cin

g

tran

sa

ctio

ns

Off-b

ala

nce

sh

ee

t co

mm

itme

nts

Sco

pe

of

co

nso

lida

tion

BIS

LR

D

Fully

applie

d

Spot, 3

1.3

.15R

efe

r to slid

e 3

0 fo

r deta

ils about a

dju

sted a

nd u

nderly

ing n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1 C

hart b

ase

d o

n 3

1.3

.15 sp

ot b

ala

nce

s, 1Q

15 a

vera

ge fu

lly a

pplie

d S

wiss S

RB L

RD

was C

HF 9

77 b

illion

~17

~42

(~24)

(~18)

Sw

iss S

RB

LR

DFully

applie

d

Spot, 3

1.3

.15

Inclu

sion o

f net n

otio

nals fo

r pro

tectio

n so

ld th

rough

credit d

eriv

ativ

es

Curre

nt e

xposu

re m

eth

od (C

EM

) add-o

ns n

o lo

nger

exem

pt fo

r ETD

and e

xposu

res to

qualify

ing ce

ntra

lco

unte

rpartie

s

Partly

offse

t by n

ettin

g w

ith ca

sh co

llate

ral

Additio

n o

f charg

e fo

r counte

rparty

credit risk

Stricte

r nettin

g crite

ria

Applica

tion o

f credit co

nversio

n fa

ctors in

line w

ith th

eBase

l III fram

ew

ork

and in

clusio

n o

f forw

ard

-startin

g

repurch

ase

agre

em

ents

Exclu

sion o

f asse

ts of e

ntitie

s conso

lidate

d u

nder IF

RS

but n

ot in

regula

tory

scope o

f conso

lidatio

n

Bre

akdow

n o

f changes in

RW

A

24

31.12.14

By ty

pe

CH

F b

illion

31.12.14

By b

usin

ess d

ivis

ion

CH

F b

illion

216

216

(5)

+1

216

216

(3)

+3

31.3.15

Me

tho

do

log

y/

mo

de

l-driv

en

Bo

ok

siz

e a

nd

oth

er

Cu

rren

cy e

ffects

In

ve

stm

en

t Ba

nk

31.3.15

+4

All

oth

er

bu

sin

esse

s2

(0)

CH

F 2

.0 b

illion in

crease

in o

pera

tional risk

RW

A d

ue to

AM

A m

odel p

ara

mete

r changes

CH

F 2

.3 b

illion in

crease

in c

redit risk

RW

A d

ue to

incre

ase

d m

ultip

liers o

n S

wiss m

ortg

ages

CH

F 0

.7 b

illion in

crease

in c

redit risk

RW

A p

rimarily

due to

hig

her d

eriv

ativ

e e

xposu

res p

artly

offse

t by re

paym

ent o

f

loans a

nd te

rmin

atio

n o

f loan fa

cilitie

s

HF 0

.8 b

illion in

crease

in o

pera

tional risk

RW

A re

late

d to

AM

A m

odel p

ara

mete

r changes

CH

F 0

.9 b

illion d

ecre

ase

in R

WA d

ue to

curre

ncy

effe

cts

No

n-c

ore

an

dLe

ga

cy

Po

rtfolio

1

CH

F 1

.0 b

illion d

ecre

ase

in c

redit risk

RW

A p

rimarily

due cu

rrency

effe

cts a

nd re

paym

ent o

f loans, te

rmin

atio

n o

f loan fa

cilitie

s partly

offse

t by

to h

igher d

eriv

ativ

e e

xposu

res

CH

F 2

.3 b

illion in

crease

in c

redit risk

RW

A d

ue to

incre

ase

d

multip

liers o

n S

wiss m

ortg

ages

CH

F 0

.8 b

illion in

crease

in o

pera

tional risk

RW

A d

ue to

AM

A m

odel

para

mete

r changes

CH

F 2

.0 b

illion d

ecre

ase

in m

ark

et risk

RW

A p

rimarily

due to

low

er

regula

tory

VaR, S

tresse

d V

aR a

nd risk

s not in

VaR a

nd cu

rrency

effe

cts

CH

F 0

.4 b

illion in

crease

in o

pera

tional risk

RW

A d

ue to

AM

A m

odel

para

mete

r changes

Refe

r to slid

e 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1 R

efe

r to p

ages 5

5-5

7 o

f the 1

Q15 fin

ancia

l report fo

r more

info

rmatio

n o

n N

on-c

ore

and L

egacy P

ortfo

lio; 2

Corp

ora

te C

entre

– G

roup A

LM

, Corp

ora

te C

entre

– S

erv

ices,

Wealth

Managem

ent, W

ealth

Managem

ent A

meric

as, R

eta

il & C

orp

ora

te a

nd G

lobal A

sset M

anagem

ent

Stro

ng b

ala

nce

sheet, fu

ndin

g a

nd liq

uid

ity p

ositio

n

Refe

r to slid

e 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

1 R

efe

rto

the

"Liq

uid

ityand

fundin

gm

anagem

ent"

sectio

nofth

e1Q

15

financia

lreport

forfu

rtherdeta

il;2

Estim

ate

dpro

-form

ara

tio

Oth

er (in

cludin

g n

et re

pla

cem

ent

valu

es)

Loans

Cash

colla

tera

l on se

curitie

s borro

wed

and re

verse

repo a

gre

em

ents

Tra

din

g p

ortfo

lio a

ssets

Fin

ancia

l investm

ents a

vaila

ble

-

for-sa

le

Cash

, bala

nce

s with

centra

l

banks a

nd d

ue fro

m b

anks

Due to

banks (1

0)

Short-te

rm d

ebt issu

ed (2

3)

Tra

din

g p

ortfo

lio lia

bilitie

s (30)

Cash

colla

tera

l on se

curitie

s lent

and re

po a

gre

em

ents (2

4)

Long-te

rm d

ebt issu

ed

Due to

custo

mers

Tota

l equity

Oth

er lia

bilitie

s

Stro

ng

fun

din

g a

nd

liqu

idity

Asse

t fun

din

g31.3

.15, C

HF b

illion

25

314

71

133

91

107

82

56

399

Lia

bilitie

s

an

d e

qu

ity

135

121

Asse

ts

12

7%

co

ve

rag

e

•W

ell d

iversifie

d b

y m

ark

et, te

nor a

nd cu

rrency

•Lim

ited u

se o

f short-te

rm w

hole

sale

fundin

g

•Base

l III LCR 1

22%

and B

ase

l III NSFR

2

106%

1

0.3

Corp

ora

te C

ente

r cost re

ductio

ns

26

(<0.1

)(0.1)

7.9

7.5

0.2

0.2

(0.1

)

(0.2)

7.9

7.5

0.5

(0.1

)

7.2

<0.1

(<0.1)

7. 8

7.2

0.6

0.5

Tem

pora

ry

regula

tory

dem

and²

Litig

atio

n

pro

visio

ns¹

Serv

ices &

Gro

up

ALM

CH

F 1

.0 b

illion

net co

st reductio

n

targ

et b

y 2

015

year-e

nd e

xit ra

te

vs. F

Y13

3

~CH

F 0

.8 b

illion n

et co

st reductio

n a

s per M

arch

2015 e

xit ra

te

No

n-c

ore

an

d L

eg

acy

Po

rtfolio

CH

F 0

.4 b

illion

net co

st reductio

n

targ

et b

y 2

015

year-e

nd e

xit ra

te

vs. F

Y13

3

Resid

ual

opera

ting e

xpense

s

Net co

stre

ductio

nFX

Net co

stre

ductio

nFX

Net co

stre

ductio

nFX

FY

13

FY

14

1Q

15

a

nn

ua

lize

dM

arc

h 2

01

5a

nn

ua

lize

de

xit ra

te

Se

rvic

es a

nd

G

rou

p A

LM

March

2015 e

xit ra

tenet co

st reductio

nAvera

ge m

onth

ly

run ra

te (re

sidual

opera

ting e

xpense

s)

~CH

F 6

30

millio

n

~CH

F 6

20

millio

n

~CH

F 6

00

millio

n

~CH

F 6

00

millio

n

0.2

(0.2)

2. 4

1.1

1.3

0.7

+0.1

0.6

(0.3)

1.1

0.9

~CH

F 9

0

millio

n

~CH

F 8

0

millio

n

~CH

F 5

0

millio

n

~CH

F 5

0

millio

n

FY

13

FY

14

1Q

15

a

nn

ua

lize

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arc

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01

5a

nn

ua

lize

de

xit ra

te

No

n-c

ore

an

dLe

ga

cy

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rtfolio

March

2015 e

xit ra

tenet co

st reductio

n

Net co

stre

ductio

nN

et co

stre

ductio

nN

et co

st(re

ductio

n)/

incre

ase

0.6

Litig

atio

n

pro

visio

ns

Resid

ual

opera

ting e

xpense

s

Avera

ge m

onth

ly

run ra

te (re

sidual

opera

ting e

xpense

s)

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HF

0.8

billio

n

an

nu

aliz

ed

ne

t c

ost

re

du

ctio

n

Lo

we

r a

lloc

atio

ns

from

Corp

ora

teCente

r –Servic

es

Lo

we

r d

ire

ct c

osts

in N

on-co

re a

nd

Legacy

Portfo

lio

Norm

aliza

tion,

incl. se

aso

nality

Adju

sted o

pera

ting e

xpense

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re a

lloca

tions (n

et o

f allo

catio

ns to

the N

on-co

re a

nd L

egacy

Portfo

lio), C

HF b

illion

Adju

sted o

pera

ting e

xpense

s, CH

F b

illion

Adju

sted n

um

bers u

nle

ss oth

erw

ise in

dica

ted, re

fer to

slide 3

0 fo

r deta

ils about a

dju

sted n

um

bers, B

ase

l III num

bers a

nd F

X ra

tes in

this p

rese

nta

tion

Charts illu

strativ

e o

nl y

and b

ars n

ot to

scale

; Num

bers m

ay n

ot su

m u

p to

tota

ls due to

roundin

g; 1

Pro

visio

ns fo

r litigatio

n, re

gula

tory

and sim

ilar m

atte

rs;

2 R

egula

tory

dem

and o

f tem

pora

ry n

atu

re; 3

Refe

r to p

age 4

1 o

f the 2

014 a

nnual re

port fo

r deta

ils on o

ur co

st reductio

n ta

rgets

Serv

ices a

nd G

roup A

LM

Net co

st reductio

nCH

F 1

.0 b

illion b

y 2

015 y

ear-e

nd e

xit ra

te

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re a

nd

Legacy

Portfo

lio

Net co

st reductio

n

Base

l III RW

A (fu

lly a

pplie

d)

CH

F 0

.4 b

illion b

y 2

015 y

ear-e

nd e

xit ra

te, a

dditio

nal C

HF 0

.7 b

illion a

fter 2

015

~CH

F 4

0 b

illion b

y 3

1.1

2.1

5, ~

CH

F 2

5 b

illion b

y 3

1.1

2.1

7

Gro

up a

nd b

usin

ess d

ivisio

n ta

rgets

27

Ranges fo

r susta

inable

perfo

rmance

over th

e cy

cle1

Bu

sin

ess d

ivis

ion

s

Co

rpo

rate

Ce

nte

r

Reta

il & C

orp

ora

teN

et n

ew

busin

ess v

olu

me g

row

th ra

te

Net in

tere

st marg

in

Adju

sted co

st/inco

me ra

tio

1-4

% (re

tail b

usin

ess)

140-1

80 b

ps

50-6

0%

Glo

bal A

sset

Managem

ent

Net n

ew

money g

row

th ra

te

Adju

sted co

st/inco

me ra

tio

Adju

sted a

nnual p

re-ta

x p

rofit

3-5

% e

xclu

din

g m

oney m

ark

et

60-7

0%

CH

F 1

billio

n in

the m

ediu

m te

rm

Investm

ent B

ank

Adju

sted a

nnual p

re-ta

x R

oAE

Adju

sted co

st/inco

me ra

tio

Base

l III RW

A lim

it (fully

applie

d)

Funded a

ssets lim

it

>15%

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unded.

UBS First Quarter 2015 Earnings Call Remarks

May 5, 2015

Sergio P. Ermotti (Group CEO): Opening remarks

SLIDE 2 – 1Q15 highlights

While the first quarter is typically the strongest of the year, our results this quarter are exceptionally good. We reported adjusted pre-tax profit of almost 2.3 billion francs, and net profit was almost 2.0 billion francs. And the results were strong across the board, with all of our business divisions performing well. Our Basel 3 fully applied CET1 ratio also rose to 13.7%, so we remain the best capitalized bank in our peer group.

The results underline that our business model works and our approach to thinking long-term and acting early is paying off. From a macroeconomic and market point of view, the first quarter was more demanding than a typical year, but we were prepared.

So while our results for the quarter are very good and I am confident about our momentum, like we said at Q4, we wouldn’t multiply any quarterly result by four.

Turning to the business divisions -

Together our wealth management businesses delivered the highest profits since 2008 and made solid progress with their strategic initiatives to grow lending and increase mandate penetration.

Wealth Management had its best quarter since 2008 in terms of profitability. Net new money was very strong, even for a first quarter, and was achieved without compromising our profitability standards.

Page 1

Wealth Management Americas delivered another record profit before tax on its highest ever invested asset base, and attracted solid net new money.

Despite a very challenging macroeconomic environment, Retail and Corporate delivered its best first quarter in five years.

Global Asset Management also posted strong results and robust net new money.

The Investment Bank deserves applause not only for its excellent performance with pre-tax profit of 844 million francs, but also because the results were delivered without increasing our risk profile, and while remaining within allocated resource limits. This is a very important point to consider when assessing our results. Our strategy focusses on areas where we excel, and it is well-suited to the high volume and volatility environment we saw in Q1.

Our strategic cost reduction program is ambitious, and I am pleased with the progress we are making in its implementation. While improving our efficiency and effectiveness is a top priority, short-term dynamics will not change our plans, as this would impact our ability to deliver long-term sustainable growth.

Tom will now take you through the details of the quarter.

Tom Naratil (Group CFO & Group COO): Walk-through of the quarter

SLIDE 3 – UBS Group AG results (consolidated)

As usual, my commentary will reference adjusted results unless otherwise stated.

This quarter, we excluded net restructuring charges of 305 million Swiss francs, an own credit gain of 226 million, gains on sales of real estate of 378 million and a gain of 141 million on the sale of a subsidiary in Wealth Management. The net effect of these adjustment items is an accretion to capital of around 150 million in the quarter. An overview of these adjustments can be found on page 15 of our first quarter report.

Page 2

Profit before tax was 2.3 billion, up from 514 million in the prior quarter.

IFRS net profit attributable to shareholders was nearly 2 billion, and adjusted return on tangible equity was seasonally high at 14.4%, ahead of our full-year target of around 10%.

Net profit attributable to non-controlling interests was 61 million. This primarily related to net profit attributable to non-controlling interests in UBS AG reflecting the non-exchanged UBS AG shares. We also expect to attribute net profit of approximately 80 million to non-controlling interests related to the preferred notes issued by UBS AG, all of which will be booked in the second quarter of 2015.

SLIDE 4 – Wealth Management

Wealth Management delivered a strong performance, with profit before tax of 856 million, up 23% to its highest level since the third quarter of 2008.

Operating income increased 5% to 2.1 billion, as transaction-based income rose in all regions, but most notably in APAC and Switzerland. While transaction-based income was up across nearly all products, the increase was largely driven by seasonal effects, portfolio rebalancing and higher volumes in FX as a consequence of the SNB’s actions in January.

Both net interest income and recurring net fees were down due to the stronger Swiss Franc. Excluding the effect of currency movements, recurring income increased on a continued rise in recurring net fees. This underlying trend gives us even more confidence in our ability to deliver on our key initiatives, as net mandate sales were strongly positive in all regions.

Expenses decreased 5%, mainly due to lower marketing expenses and Corporate Center costs, as well as favorable currency effects. This brought the cost/income ratio to 59%, within our target range of 55 to 65%.

Page 3


Net new money was a strong 14.4 billion, the highest it’s been in eight quarters.

Mandate penetration increased 110 basis points to 25.5% of invested assets, as the business delivered 15 billion in net mandate sales.

Both gross and net margin were up on higher revenues and profit before tax, and on a lower average invested asset base. Gross margin increased 4 basis points to 86 basis points, and net margin increased 7 basis points to 35 basis points, its highest level in over five years.

Marginal transactional activity continues to cause significant swings in trading and commission revenues, resulting in large month-to-month swings in our gross margin, which was 91 basis points in January, 82 basis points in February and 92 basis points in March. What we’ve seen in two out of three months in the first quarter shows the potential upside in a more normalized environment.


Net new money was positive in all regions, with the largest net inflows in APAC, which delivered 8.2 billion of net new money. Europe delivered net new money of 3 billion, with strong inflows from our domestic business, and positive net inflows from our international business, following seasonally high offshore outflows in the fourth quarter. Net new money was 1.6 billion in Switzerland and 1.5 billion in Emerging Markets.

On a global basis, net new money continued to be strong, with 10.1 billion from our ultra-high net worth clients and a solid contribution from our high net worth clients. Of the 14.4 billion of net new money delivered in the quarter, only 1.8 billion came from increased Lombard lending.

Our net new money is one of many KPIs that we use to monitor our performance, and we don’t buy net new money. Surprisingly, we’ve seen some irrational competition for net new money as some large competitors pay premiums for deposits and these assets.

Page 4

In contrast to some of these competitors, as we highlighted in our fourth quarter earnings call, we’ll be taking action on a number of fronts to optimize our resource utilization, and to ensure that any resource constraints are appropriately priced. Some of these actions may cause affected clients to withdraw some of their cash assets, thus impacting our net new money. These exits would result in net new money outflows, which we’ll exclude from our net new money growth KPI calculation. While it’s unlikely that all assets will be withdrawn, the assets in scope approach 30 billion francs. We expect the bulk of the liquidity coverage ratio and leverage ratio denominator relief from these actions to come in the second quarter, with a slight benefit to come in the third.

Our net new money growth of 5.8% in the first quarter does not exclude any outflows associated with these assets.

Both APAC and Switzerland saw a sharp rise in revenue, as transaction-based income increased on higher client activity. In APAC, we saw strong demand for structured products, particularly related to equities. In Switzerland, the increase was largely driven by rebalancing and foreign-exchange related revenues triggered by the SNB’s actions in January. Revenues were relatively stable in Emerging Markets and down in Europe on a stronger Swiss Franc.

SLIDE 7 – Wealth Management Americas

Wealth Management Americas had a record quarter, generating a profit before tax of 293 million dollars, up 26% on lower expenses.

Operating income was 1.9 billion dollars, and decreased from the fourth quarter, mainly as there were fewer calendar and trading days. As a percentage of revenue, recurring income increased to a record 77%.

Page 5

Expenses were down 5% to 1.6 billion dollars, mainly due to lower FA compensation on lower compensable revenues, and also as charges for litigation, regulatory and similar matters declined from the prior quarter.

Our cost/income ratio was 84.6%, at the top end our target range of 75 to 85%.


Wealth Management America’s trillion dollar invested asset base continued to grow to record levels, on both positive market performance and solid net new money at 4.8 billion dollars. Net inflows were driven by advisors who’ve been with the firm for more than one year. For the second quarter, we expect to see the typical trend of increased client withdrawals associated with seasonal income tax payments.

We continued to see positive trends in mandate penetration, which increased 40 basis points to 33.9%.

Net margin increased 2 basis points to 11 basis points on lower expenses, which more than offset the impact of a higher average invested asset base and lower revenues, while gross margin was down 2 basis points to 73 basis points.


Invested assets per FA increased to a record 150 million dollars, while our annualized revenue per FA remained industry leading at 1.1 million dollars. The average production of recruits continued to outpace production of FAs leaving, with 77% of our recruits ranked in the first and second industry quintile, compared with 29% of FAs who left. In general, we’ve continued to see low FA attrition in the industry and at UBS.

Consistent with our strategy, we continued to grow lending balances with total loans growing 2% to 45.5 billion dollars. Average mortgage balances increased 2% to 7.8 billion dollars and securities-backed lending balances were up 3% to 32.1 billion. Although pricing on securities-based lending remains firm, mortgage spreads are under pressure as the industry targets high quality High Net Worth and Ultra High Net Worth mortgage loans.

Page 6

SLIDE 10 – Retail & Corporate

Retail and Corporate delivered its best first quarter in five years with a profit before tax of 443 million francs, up 24%. All KPIs were within their target ranges.

Operating income was up 7%, mostly reflecting lower credit loss expenses, but also higher transaction-based income and net interest income.

Transaction-based income was up 4% to 284 million, as the volatility in both interest rates and foreign-exchange after the SNB’s actions led to increased client activity in FX hedging and trading, as well as gains from macro fair-value hedge ineffectiveness. This was partly offset by a decline in credit card-related income, which was higher in the fourth quarter reflecting seasonal holiday activity.

Net interest income increased 2% to 568 million with increases in both loans and deposits, as we introduced pricing measures in response to the SNB’s policy changes, and as we saw continued benefits from pricing measures we implemented in the prior year. This more than offset the continued effect of persistently low interest rates on our replication portfolios.

On our fourth quarter earnings call, we noted that if the negative interest rate environment in Switzerland continued, our net interest margin would likely be at the lower end of our target range of 140 to 180 basis points. Considering today’s environment, in a constant rate scenario and if asset spreads hold firm despite new market entrants in the mortgage market, as we approach year-end, we would expect a net interest margin that is a bit lower than the middle of our target range.

Following a typical seasonal pattern, net new business volume growth for our retail business was solid at 3.1%, within our target range of 1 to 4%. Net new business volume for retail clients stood at 1.1 billion, and was impacted by over half a billion francs of euro-denominated cash withdrawals following the SNB’s actions.

Page 7

Net credit loss expenses were 21 million partly reflecting the strengthening of the Swiss Franc and more challenging economic conditions. At this point in time, we’ve not yet seen any significant impact on our loan portfolio from a higher Swiss franc. For the rest of this year, we expect to see more normalized and slightly increased credit loss expense levels compared with 2014. We continue to monitor both the environment and our loan portfolio closely.

Expenses decreased 4%, as lower general and administrative expenses more than offset an increase in personnel expenses. G&A expenses decreased by 48 million, as the prior quarter included higher investments in multichannel offerings, and as marketing expenses and professional fees declined.

SLIDE 11 – Global Asset Management

In Global Asset Management, the business delivered its strongest performance in over five years, with profit before tax increasing 50% to 186 million.

Operating income was up 3% to 511 million, on strong performance fees, with a notable increase in O’Connor and A&Q. This more than offset lower net management fees, which were impacted by currency moves, with the largest effect on traditional investments. Expenses declined by 13% to 325 million, on lower charges for provisions for litigation, regulatory and similar matters, and lower allocated costs from Corporate Center.

Net new money excluding money markets was 7.5 billion, as we saw strong inflows in alternatives as well as other asset classes. Net new money from our wealth management businesses was 5.1 billion, the highest it’s been since the first quarter of 2007.

Investment performance was solid overall, with strong performances in O’Connor and A&Q, where over 90% of assets eligible for performance fees were above high-water marks at quarter-end.

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SLIDE 12 – Investment Bank

The Investment Bank delivered a strong quarter, with a profit before tax of 844 million and an annualized return on attributed equity of 46%, as all regions generated double-digit revenue growth year-over-year.

Investor Client Services delivered its best quarter since the acceleration of our strategy in 2012, on higher volatility, client activity and volumes.

Equities revenues increased 27% versus the prior quarter to 1.2 billion, with stronger performance across all sectors and regions, largely on seasonally higher client activity. On a year-on-year basis, revenues were up 15% with strong performances in financing services and derivatives. Revenues increased year-over-year in all regions, but most notably in APAC, where there was a strong rise in revenues from equity finance on higher client activity levels.

In FX, Rates and Credit, revenues were 701 million, up from 297 million in the prior quarter, and up 71% year-over-year, reflecting increased client flows and volatility levels across FX and Rates, as well as solid results from credit flow on lower risk and resource utilization. In rates and credit, the business maintained high balance sheet velocity in order to meet the needs of our clients.

Corporate Client Solutions revenues were 801 million, up 13% on higher revenues in DCM, ECM, and financing solutions as well as higher risk management revenues, partly offset by lower advisory revenues.

On a year-over-year basis, revenues were up 4% mainly in ECM, on increased participation in public offerings, as well as higher revenues from private transactions. The performance in ECM along with increases in Advisory, Financing Solutions and Risk Management was partly offset by lower revenues in DCM, as the market fee pool was down 29% and as participation in leveraged finance transactions was lower.

Operating expenses were up 11% in the quarter on higher variable compensation expenses, partly offset by lower charges for litigation regulatory and similar matters, and as the prior quarter included a charge of 68 million for the annual UK bank levy. The cost/income ratio was down 17 percentage points to 68%.

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SLIDE 13 – Investment Bank

Once again, we’ve demonstrated that our business model works with the Investment Bank delivering excellent returns on attributed equity while carefully managing risk and deployment of its resources. As Sergio mentioned, this is a very important point to consider when assessing our results. We’ve provided this slide to place our results in the appropriate context.

We continue to focus on our traditional strengths in advisory, capital markets, equities and foreign exchange, complemented by a refocused rates and credit platform. The Investment Bank is an active participant in capital markets flow activities, including sales, trading and market-making. Our model is geared towards client facilitation and flow, and volumes explain almost all quarterly fluctuations in revenues.

To support our goal of earning attractive risk-adjusted returns on our allocated capital, we operate within a tightly controlled framework for balance sheet, risk-weighted assets and LRD. This is evidenced by the stability of our resource consumption, despite the demands from seasonal activity.

Revenue per unit of VaR was the highest it’s been since the acceleration of our strategy and return on risk weighted assets was the highest in eight quarters, as average VaR remained flat and risk-weighted assets declined by 3 billion to 64 billion.

SLIDE 14 – Corporate Center

We’ve increased the level of detail in reporting for Corporate Center and reflected changes in its structure. Corporate Center is now divided into three units: Corporate Center Services, Corporate Center Group Asset and Liability Management, and Non-core and Legacy Portfolio.

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Profit before tax in Corporate Center Services was negative 222 million, compared with negative 261 million in the prior quarter. This was driven by reduced operating expenses before allocations on lower G&A and personnel expenses, slightly offset by comparatively lower net allocations.

Profit before tax in Corporate Center Group Asset and Liability Management was 122 million compared with a loss of 208 million in the prior quarter. Gross revenues from balance sheet risk management activities were broadly unchanged.

Gross revenues from hedging activities increased significantly to 167 million from a loss of 63 in the prior quarter, as a result of increased gains from ineffectiveness in our cash flow hedges and gains on cross-currency basis swaps held as economic hedges. While the accounting asymmetry within Group Asset and Liability Management creates quarterly volatility within our financials, the net economic effect is largely neutral, as the positions managed within Group ALM represent economic hedges offsetting UBS’s structural positioning.

Profit before tax in Non-core and Legacy Portfolio was negative 240 million. Operating income was negative 80 million, compared with negative 361 million in the prior quarter. The decrease in negative income was the result of greater novation and unwind activity in the prior quarter. Operating expenses decreased by 190 million to 160 million, on lower charges for provisions for litigation, regulatory and similar matters and as the prior quarter included 52 million for the annual UK bank levy and a net charge of 42 million related to certain disputed receivables.

SLIDE 15 – Corporate Center cost reductions

In the first quarter of what is a critical year for our cost reduction initiatives, we made good progress, increasing our annualized cost reduction by 600 million to 800 million, based on the March exit rate versus full-year 2013.

The exit rate captures the annualized cost run-rate at the end of March, where it has been adjusted to reflect seasonality for a more accurate comparison against a full year. For our March exit rate, this was a net upward adjustment to expenses.

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Our continued improvement in efficiency is the result of successful and ongoing execution of our outsourcing, near shoring and offshoring initiatives, continued optimization of our real estate footprint, and other key levers.

While we’re pleased with our progress in our effectiveness and efficiency efforts this quarter, we’ll need to work hard to offset incremental costs associated with permanent regulatory demand to achieve our net cost reduction target of 1.4 billion in Corporate Center by the end of the year.

SLIDE 16 – Swiss SRB Basel III capital and leverage ratios

Our fully applied CET1 ratio increased 30 basis points to 13.7% and remained above 10% post-stress, as CET1 regulatory capital increased largely on higher retained earnings, partly offset by the impact of a stronger Swiss franc. Risk-weighted assets were flat at 216 billion, with small moves within the business divisions and Corporate Center.

We highlighted in our annual report that the changes to the applicable discount rate and interest rate related assumptions for our Swiss pension plan during January and February would’ve reduced our IFRS equity and fully applied CET1 capital by around 700 million. Due to the sharp change in market and macroeconomic conditions, we carried out a detailed review of the actuarial assumptions. As a result, we enhanced the methodology for estimating the discount rate, by improving the construction of the yield curve where the market for long tenor maturities of Swiss high quality bonds was not sufficiently deep. Also, we now have a more complete set of data points based on full-year information for the rate of salary increases, interest credit on retirement savings, employee turnover and the rate of employee disabilities. These improvements in estimate more than offset the impact of a decrease in the applicable discount rate previously highlighted, resulting in a 490 million net decrease in our defined benefit obligation related to our Swiss plan. This, along with an increase in the fair value of the underlying plan assets, led to a pre-tax gain of 906 million recognized in OCI. We note that we’ve maintained a prudent approach in our review of the IFRS accounting for our Swiss Pension Plan, and I’d emphasize that none of these calculations impact our pensioners or current employees.

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Our fully applied Swiss SRB leverage ratio increased 50 basis points to 4.6%, as our fully applied total regulatory capital increased, largely due to the issuance of 3.5 billion of high and low-trigger AT1 instruments out of UBS Group AG in February, and as our leverage ratio denominator decreased by 21 billion. Our fully applied BIS Basel III leverage ratio was 3.4%. Looking at a pro-forma measure of the Swiss SRB leverage ratio using a denominator based on BIS rules, our fully applied ratio would be 4.5%. We’ve added additional disclosure on our leverage ratio based on the BIS rules in the appendix of this presentation, the capital section of our quarterly report, as well as on our investor relations website.

The decrease in our Swiss SRB leverage ratio denominator was largely driven by Non-core and Legacy Portfolio, where it decreased by 9 billion to 84 billion, on continued trade unwinds, migrations and compressions.

Leverage ratio denominator also decreased by 7 billion in Wealth Management Americas, mainly due to a reassessment of securities-based lending credit lines.

We’ve also made continued progress in our measures to improve the resolvability of the bank in response to too big to fail requirements. We expect to complete the transfer of our Retail & Corporate and Wealth Management business booked in Switzerland from UBS AG to UBS Switzerland AG, as early as mid-June. The transfer arrangements will provide that UBS Switzerland AG and UBS AG will each have joint liability for most obligations of the other entity that exist on the asset transfer date. The joint liability is explained in further detail on page 10 of the report.

Thank you. I’ll now hand it back over to Sergio for some closing remarks.

Sergio P. Ermotti (Group CEO): Closing remarks

SLIDE 17 – The world’s leading wealth management franchise

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Thank you Tom.

It is clear that our businesses were at the top of their game this quarter.

In particular, our wealth management businesses combined delivered a pre-tax profit of over 1.1 billion francs, up 23% in the quarter and 24% year-over-year, the first time profits have exceeded 1 billion francs since 2008. Almost three quarters of the 3.9 billion in revenues we generated were recurring.

The businesses delivered 19 billion in net new money, which along with investment performance, partly offset currency-related headwinds to our two trillion franc invested asset base.

The positive long-term trends we see in our wealth management businesses remain strong. First quarter revenues, pre-tax profit, and invested assets have all increased year-over-year for 3 consecutive years.

UBS is the world’s largest and most geographically diverse wealth manager. As we’ve said in the past, you can’t realistically build or buy the world’s leading high and ultra-high net worth wealth management franchise. We’re also the only large bank with global wealth management at the center of its strategy. Our exposure to the world’s fastest growing wealth pools is evidenced by our strength in APAC, which is the result of over 50 years of commitment to the region, as well as the partnerships between Wealth Management, the Investment Bank and Global Asset Management.

SLIDE 18 – UBS—a unique and attractive investment proposition.

Before we open up for your questions, I would like to close with a few thoughts and observations.

Looking ahead, the macro-environment continues to evolve at an accelerated pace, especially as global monetary policies are likely to diverge. Negative interest rates in Switzerland and the Eurozone will continue to be an issue, at least in the short term, as well as high levels of volatility in foreign-exchange markets.

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The industry also continues to face increasing regulatory requirements. In Switzerland, the review of the too big to fail regulation is underway. We continue to support a strong and comprehensive regulatory framework while allowing Switzerland’s financial industry to remain competitive. While I have no reason to believe future changes will be unreasonable, it’s quite clear that the debate will include consequences not only for the banking industry but also for the overall economy, and as further requirements will most likely lead the industry to re-price in order to achieve appropriate shareholder returns. Therefore, the outcome of this process will not change the fundamental investment case for UBS.

We have a unique business model with an attractive investment proposition. We are the world’s leading wealth manager, operating in the world’s largest and fastest growing markets. Retail & Corporate, Global Asset Management and the Investment Bank all add to our wealth management franchise, providing a unique proposition for clients.

We are confident that we will achieve our full-year targeted return on tangible equity of around 10% for this year. We remain committed to our attractive capital returns policy, without compromising our capacity to reinvest in our businesses, and while maintaining capital strength as a key element of our success.

In closing, I’m pleased with the strong quarter. We stayed close to our clients, we stayed disciplined on risk and we delivered across all businesses and regions. The results again demonstrate the benefits of a strategy defined early and executed with a focus on long-term value creation. I can assure you that we will have the same focus going forward.

Thank you. Tom and I will now take your questions.

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Cautionary statement regarding forward-looking statements: This presentation 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 cost reduction and efficiency initiatives and its planned further reduction in its Basel III risk-weighted assets (RWA) and leverage ratio denominator (LRD), and to maintain its stated capital return objective; (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, and the degree to which UBS is successful in implementing changes to its business to meet changing market, regulatory and other conditions; (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 transfer of business to UBS Switzerland AG, a establishing a US intermediate holding company and implementing the US enhanced prudential standards, completing the squeeze-out of minority shareholders of UBS AG, changing 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 proposals in Switzerland and 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) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including measures to impose new or enhanced duties when interacting with customers or in the execution and handling of customer transactions; (ix) 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; (x) 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; (xi) 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; (xii) 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; (xiii) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xiv) whether UBS will be successful in keeping pace with competitors in updating its technology, particularly in trading businesses; (xv) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading and systems failures; (xvi) restrictions to the ability of subsidiaries of the Group to make loans or distributions of any kind, directly or indirectly, to UBS Group AG; and (xvii) 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 2014. 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.

Disclaimer: This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this document. Refer to UBS’s first quarter 2015 report and its Annual report on Form 20-F for the year ended 31 December 2014. No representation or warranty is made or implied concerning, and UBS assumes no responsibility for, the accuracy, completeness, reliability or comparability of the information contained herein relating to third parties, which is based solely on publicly available information. UBS undertakes no obligation to update the information contained herein.

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Adjusted results: Unless otherwise indicated, first-quarter 2015 “adjusted” figures exclude each of the following items, to the extent applicable, on a Group and business division level: an own credit gain of CHF 226 million, the abovementioned gains on sales of real estate of CHF 378 million and the gain on sale of a subsidiary of CHF 141 million, as well as net restructuring charges of CHF 305 million. For the fourth quarter of 2014, the items we excluded were an own credit gain of CHF 70 million, gains on sales of real estate of CHF 20 million, net restructuring charges of CHF 208 million and a credit of CHF 8 million related to changes to retiree benefit plans in the US. Adjusted results are non-GAAP financial measures as defined by SEC regulations. Please refer to the “Group performance” section of the First Quarter 2015 Report for more information on adjusted results.

© UBS 2015. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.

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This Form 6-K is hereby incorporated by reference into (1) each of the registration statements of UBS AG on Form F-3 (Registration Number 333-200212) and of UBS Group AG on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; and 333-200665) and into each prospectus outstanding under any of the foregoing registration statements, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that incorporates by reference any Form 6-K’s of UBS AG that are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on itsbehalf by the undersigned, thereunto duly authorized.

Date: May 5, 2015

UBS Group AG

By: /s/ David Kelly Name: David KellyTitle: Managing Director

By: /s/ Sarah M. Starkweather Name: Sarah M. StarkweatherTitle: Executive Director

UBS AG

By: /s/ David Kelly Name: David KellyTitle: Managing Director

By: /s/ Sarah M. Starkweather Name: Sarah M. StarkweatherTitle: Executive Director

UBS Group AG - UBS Global topics · FORM 6-K REPORT OF FOREIGN ... UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date: May 5, 2015 UBS Group AG ... i urements fo r bail -in …

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