Business Context and Reporting Period
This Form 6-K is a report of foreign private issuer filed by UBS Group AG and UBS AG on October 31, 2018. The filing covers the period ended September 30, 2018, and incorporates by reference the third quarter 2018 report. Financial data is presented in accordance with International Financial Reporting Standards (IFRS) in Swiss francs (CHF) and translated into US dollars (USD).
Key Financial Metrics
Capitalization (as of September 30, 2018)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 75,928 | 77,371 |
| Long-term debt issued | 81,715 | 83,268 |
| Total debt issued | 157,643 | 160,639 |
| Equity attributable to UBS AG shareholders | 50,136 | 51,089 |
| Equity attributable to non-controlling interests | 38 | 39 |
| Total capitalization | 207,817 | 211,766 |
Earnings and Fixed Charges (Quarter Ended September 30, 2018)
- Pre-tax earnings from continuing operations: CHF 1,528 million
- Total fixed charges: CHF 2,651 million (Interest expense: CHF 2,620 million; Other: CHF 32 million)
- Pre-tax earnings before fixed charges: CHF 4,180 million
- Ratio of earnings to fixed charges: 1.58
Note: Revenue, net profit, cash flow, and margin percentages are not explicitly detailed in this specific filing text.
Material Changes Versus Prior Period
Comparing the quarter ended September 30, 2018, to the quarter ended June 30, 2018:
- Total Debt Issued: Increased from CHF 155,779 million to CHF 157,643 million.
- Equity Attributable to Shareholders: Increased from CHF 49,961 million to CHF 50,136 million.
- Total Capitalization: Increased from CHF 205,800 million to CHF 207,817 million.
Comparing the ratio of earnings to fixed charges for the quarter ended September 30, 2018 (1.58) to the full year ended December 31, 2017 (1.63), the ratio decreased slightly.
Guidance, Outlook, and Risks
This filing does not contain specific forward-looking guidance, management commentary on future outlook, or a detailed discussion of risks and contingencies beyond the standard incorporation by reference of previous reports. The filing notes that UBS AG redeemed its last outstanding preferred notes in December 2017, meaning no mandatory preferred share dividends were applicable for the periods presented.
Investor Verification Checklist
- Verify the full third quarter 2018 report (filed October 31, 2018) for detailed revenue, net income, and cash flow statements not included in this summary.
- Confirm the impact of the IAS 1 amendments adopted on January 1, 2018, on the presentation of interest income and expense.
- Review the annual report on Form 20-F for the year ended December 31, 2017, for comprehensive risk factors and strategic context.
- Monitor the exchange rate fluctuations between CHF and USD, as the filing uses specific rates (CHF 1 = USD 1.01900 as of Sept 30, 2018) for translation.