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 November 1, 2017. The filing covers the period ended September 30, 2017, and incorporates by reference the third quarter 2017 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, 2017)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 76,404 | 78,896 |
| Long-term debt issued | 71,999 | 74,347 |
| Total debt issued | 148,404 | 153,243 |
| Equity attributable to UBS AG shareholders | 53,246 | 54,983 |
| Equity attributable to preferred noteholders | 687 | 709 |
| Equity attributable to non-controlling interests | 56 | 58 |
| Total capitalization | 202,393 | 208,993 |
Earnings and Fixed Charges (Quarter Ended September 30, 2017)
- Pre-tax earnings from continuing operations: CHF 1,162 million
- Total fixed charges: CHF 2,014 million (Interest expense: CHF 1,881 million; Other: CHF 133 million)
- Pre-tax earnings before fixed charges: CHF 3,176 million
- Ratio of earnings to fixed charges: 1.58
Material Changes Versus Prior Period
Comparing the quarter ended September 30, 2017, to the quarter ended June 30, 2017:
- Total Debt Issued: Increased from CHF 138,688 million to CHF 148,404 million.
- Equity (Shareholders): Increased from CHF 51,735 million to CHF 53,246 million.
- Total Capitalization: Increased from CHF 191,116 million to CHF 202,393 million.
Comparing the quarter ended September 30, 2017, to the full year ended December 31, 2016:
- Pre-tax earnings: The quarterly figure of CHF 1,162 million is lower than the full-year 2016 figure of CHF 4,009 million.
- Fixed Charges: Quarterly fixed charges were CHF 2,014 million compared to CHF 7,998 million for the full year 2016.
Guidance, Outlook, and Risks
The filing text does not provide specific forward-looking guidance, management commentary on future outlook, or detailed risk factors beyond the standard incorporation by reference to other reports. The document notes that no mandatory preferred share dividends were paid in the periods indicated. The ratio of earnings to fixed charges for the quarter (1.58) indicates that earnings covered fixed charges 1.58 times.
Key Facts for Investor Verification
- Verify the full third quarter 2017 earnings report referenced in this filing for detailed revenue and profit breakdowns, as this Form 6-K focuses on capitalization and fixed charge ratios.
- Confirm the exchange rates used for translation: CHF 1 = USD 1.03261 (as of Sept 30, 2017) and CHF 1 = USD 1.04202 (as of June 30, 2017).
- Note that the "Other" fixed charges relate specifically to the interest component of rental expense.
- Review the annual report on Form 20-F for the year ended December 31, 2016, for comprehensive context on the company's financial position.