Business Context and Reporting Period
This Form 6-K filing by UBS Group AG and UBS AG, dated August 4, 2016, reports financial data for the quarter ended June 30, 2016. The reports are prepared in accordance with International Financial Reporting Standards (IFRS) and are submitted to the SEC as a foreign private issuer. The filing incorporates by reference into various registration statements and prospectuses.
Key Financial Metrics
Capitalization (as of June 30, 2016)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 62,917 | 64,372 |
| Long-term debt issued | 76,551 | 78,320 |
| Total debt issued | 139,469 | 142,692 |
| Equity attributable to UBS AG shareholders | 53,353 | 54,586 |
| Equity attributable to preferred note holders | 649 | 664 |
| Equity attributable to non-controlling interests | 37 | 38 |
| Total capitalization | 193,508 | 197,980 |
Earnings and Fixed Charges (Quarter Ended June 30, 2016)
- Pre-tax earnings from continuing operations: CHF 1,463 million
- Total fixed charges: CHF 2,532 million (Interest expense: CHF 2,390 million; Other: CHF 142 million)
- Pre-tax earnings before fixed charges: CHF 3,995 million
- Ratio of earnings to fixed charges: 1.58
The filing text does not provide specific values for revenue, net profit, operating cash flow, or liquidity ratios beyond the capitalization table.
Material Changes Versus Prior Period
Comparing the quarter ended June 30, 2016, to the quarter ended March 31, 2016:
- Total Debt Issued: Decreased slightly from CHF 139,704 million to CHF 139,469 million.
- Shareholder Equity: Decreased from CHF 55,660 million to CHF 53,353 million.
- Total Capitalization: Decreased from CHF 197,305 million to CHF 193,508 million.
Comparing the quarter ended June 30, 2016, to the full year ended December 31, 2015:
- Pre-tax earnings from continuing operations: CHF 1,463 million for the quarter versus CHF 5,349 million for the full year.
- Ratio of earnings to fixed charges: 1.58 for the quarter versus 1.76 for the full year 2015.
Guidance, Outlook, and Risks
The filing text does not contain specific management commentary, forward-looking guidance, or detailed risk factors for the period. It notes that no mandatory preferred share dividends were paid in the periods indicated. The document serves primarily to update capitalization and earnings-to-fixed-charges ratios for regulatory incorporation into registration statements.
Investor Verification Checklist
- Verify the full quarterly financial statements (revenue, net income, cash flow) in the separate Q2 2016 report referenced in the filing.
- Confirm the impact of the CHF to USD exchange rate (1.02311) on the translated USD figures.
- Review the annual report on Form 20-F for the year ended December 31, 2015, for comprehensive risk disclosures.
- Check the specific composition of "Other" fixed charges (CHF 142 million) to understand non-interest obligations.