Business Context and Reporting Period
This Form 6-K is a report of a foreign private issuer filed by UBS Group AG and UBS AG on August 3, 2017. The filing provides supplemental financial data for the quarter ended June 30, 2017, and the year ended December 31, 2016. The reports are prepared in accordance with International Financial Reporting Standards (IFRS) and are presented in Swiss francs (CHF) with US dollar (USD) translations.
Key Financial Metrics
Capitalization (as of June 30, 2017)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 72,805 | 75,864 |
| Long-term debt issued | 65,883 | 68,652 |
| Total debt issued | 138,688 | 144,516 |
| Equity attributable to UBS AG shareholders | 51,735 | 53,909 |
| Equity attributable to preferred note holders | 657 | 684 |
| Equity attributable to non-controlling interests | 37 | 38 |
| Total capitalization | 191,116 | 199,148 |
Earnings and Fixed Charges
Quarter Ended June 30, 2017:
- Pre-tax earnings from continuing operations: CHF 1,449 million
- Total fixed charges: CHF 2,321 million (Interest expense: CHF 2,186 million; Other: CHF 135 million)
- Ratio of earnings to fixed charges: 1.62
Year Ended December 31, 2016:
- Pre-tax earnings from continuing operations: CHF 4,009 million
- Total fixed charges: CHF 7,998 million
- Ratio of earnings to fixed charges: 1.50
Note: The filing text does not provide specific values for revenue, net profit after tax, operating cash flow, or liquidity ratios beyond the capitalization table.
Material Changes Versus Prior Period
Comparing the quarter ended June 30, 2017, to the quarter ended March 31, 2017:
- Total Debt Issued: Increased from CHF 134,203 million to CHF 138,688 million.
- Short-term Debt: Increased from CHF 65,569 million to CHF 72,805 million.
- Long-term Debt: Decreased from CHF 68,634 million to CHF 65,883 million.
- Shareholder Equity: Decreased slightly from CHF 51,990 million to CHF 51,735 million.
Comparing the quarter ended June 30, 2017, to the full year ended December 31, 2016:
- Pre-tax Earnings: The quarterly figure of CHF 1,449 million represents a portion of the annual CHF 4,009 million.
- Fixed Charges: Quarterly fixed charges were CHF 2,321 million compared to CHF 7,998 million for the full prior year.
Guidance, Outlook, and Risks
The filing does not contain specific management commentary, forward-looking guidance, or a discussion of risks and contingencies. It serves primarily to incorporate by reference the company's annual report on Form 20-F and quarterly reports on Form 6-K filed on May 3, 2017, and August 3, 2017. The document notes that no mandatory preferred share dividends were paid in the periods indicated.
Key Facts for Investor Verification
- Verify the full quarterly earnings report (Form 6-K dated August 3, 2017) for detailed revenue, net income, and cash flow data not included in this summary.
- Confirm the impact of the exchange rate (CHF 1 = USD 0.95967 as of June 30, 2017) on the USD translation of debt and equity figures.
- Review the referenced Form 20-F for the year ended December 31, 2016, for comprehensive risk factors and strategic outlook.
- Note the increase in short-term debt issuance relative to long-term debt in the second quarter of 2017.