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 November 6, 2015. The filing covers the period ended September 30, 2015, and presents financial data prepared in accordance with International Financial Reporting Standards (IFRS). The report includes consolidated capitalization and earnings ratios, referencing the company's third-quarter 2015 report and the annual report on Form 20-F for the year ended December 31, 2014.
Key Financial Metrics
Capitalization (as of September 30, 2015)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 56,410 | 57,865 |
| Long-term debt issued | 92,892 | 95,287 |
| Total debt issued | 149,302 | 153,152 |
| Equity attributable to UBS AG shareholders | 54,126 | 55,521 |
| Equity attributable to preferred note holders | 1,919 | 1,969 |
| Equity attributable to non-controlling interests | 38 | 39 |
| Total capitalization | 205,385 | 210,681 |
Earnings and Fixed Charges (Quarter Ended September 30, 2015)
- Pre-tax earnings from continuing operations: CHF 693 million
- Total fixed charges: CHF 1,538 million (Interest expense: CHF 1,391 million; Other: CHF 148 million)
- Pre-tax earnings before fixed charges: CHF 2,231 million
- Ratio of earnings to fixed charges: 1.45
The filing 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 September 30, 2015, to the quarter ended June 30, 2015:
- Total Debt Issued: Decreased from CHF 157,137 million to CHF 149,302 million.
- Equity Attributable to Shareholders: Increased from CHF 51,685 million to CHF 54,126 million.
- Total Capitalization: Decreased from CHF 210,699 million to CHF 205,385 million.
Comparing the quarter ended September 30, 2015, to the full year ended December 31, 2014:
- Pre-tax Earnings: The quarterly figure of CHF 693 million is significantly lower than the full-year 2014 figure of CHF 2,424 million.
- Fixed Charges: Quarterly fixed charges were CHF 1,538 million compared to CHF 7,293 million for the full year 2014.
Guidance, Outlook, and Risks
The filing text does not contain specific management guidance, future outlook, or detailed risk factors. It notes that the report should be read in conjunction with the annual report on Form 20-F and the third-quarter 2015 report for additional disclosures. The document confirms that there were no mandatory preferred share dividends in the periods indicated, which affects the calculation of the earnings to fixed charges ratio.
Investor Verification Checklist
- Verify the full third-quarter 2015 report for detailed revenue, net income, and cash flow statements not included in this summary.
- Confirm the impact of the exchange rate fluctuation (CHF 1 = USD 1.02579 as of Sept 30, 2015) on USD-denominated capitalization figures.
- Review the Form 20-F for the year ended December 31, 2014, to understand the full-year context for the earnings ratios presented.
- Check for any updates on the "Other" fixed charges component, which relates to the interest component of rental expense.