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 May 3, 2017. The filing provides supplemental financial data for the quarter ended March 31, 2017, prepared in accordance with International Financial Reporting Standards (IFRS). The report is intended to be read in conjunction with the annual report on Form 20-F for the year ended December 31, 2016.
Key Financial Metrics
Capitalization (as of March 31, 2017)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 65,569 | 65,442 |
| Long-term debt issued | 68,634 | 68,501 |
| Total debt issued | 134,203 | 133,943 |
| Equity attributable to UBS AG shareholders | 51,990 | 51,889 |
| Equity attributable to preferred note holders | 641 | 639 |
| Equity attributable to non-controlling interests | 38 | 38 |
| Total capitalization | 186,872 | 186,510 |
Earnings and Fixed Charges (Quarter Ended March 31, 2017)
- Pre-tax earnings from continuing operations: CHF 1,625 million
- Total fixed charges: CHF 1,844 million (Interest expense: CHF 1,704 million; Other: CHF 140 million)
- Pre-tax earnings before fixed charges: CHF 3,469 million
- Ratio of earnings to fixed charges: 1.88
Material Changes vs. Prior Period
Comparing the quarter ended March 31, 2017, to the prior year-end position (December 31, 2016):
- Debt: Total debt issued increased from CHF 128,927 million to CHF 134,203 million. This was driven by an increase in short-term debt (CHF 55,878 million to CHF 65,569 million), partially offset by a decrease in long-term debt (CHF 73,049 million to CHF 68,634 million).
- Equity: Equity attributable to UBS AG shareholders decreased from CHF 53,662 million to CHF 51,990 million.
- Profitability: Pre-tax earnings from continuing operations for the quarter (CHF 1,625 million) were lower than the full-year pre-tax earnings of the prior year (CHF 4,009 million), though the ratio of earnings to fixed charges improved to 1.88 from 1.50 in the prior year.
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 registration statements. The document notes that no mandatory preferred share dividends were paid in the periods indicated. The filing incorporates by reference various registration statements (Forms F-3, S-8) and prospectuses, including those related to Corporate Asset Backed Corporation (CABCO).
Investor Verification Checklist
- Verify the full annual report on Form 20-F (filed March 10, 2017) for comprehensive revenue, net income, and cash flow data not included in this summary.
- Confirm the composition of the increase in short-term debt to assess liquidity requirements.
- Review the "Other" fixed charges (CHF 140 million) to understand the interest component of rental expenses.
- Check the exchange rate sensitivity, as USD figures are translated at CHF 1 = USD 0.99806.