Business Context and Reporting Period
This Form 6-K filing by UBS Group AG and UBS AG, dated November 10, 2016, provides selected regulatory information for UBS Americas Holding LLC (consolidated). The data covers the third quarter of 2016, with a reporting period end date of September 30, 2016. The information is prepared in accordance with applicable US Basel III rules and has not been audited.
Key Financial Metrics
The filing focuses exclusively on regulatory capital components and ratios. It does not provide data on revenue, profit, cash flow, operating margins, debt levels, or liquidity metrics.
| Capital Component (USD million) | Value as of 30.9.16 |
|---|---|
| Common equity tier 1 capital | 9,707 |
| Additional tier 1 capital | 0 |
| Tier 1 capital | 9,707 |
| Tier 2 capital | 696 |
| Total capital | 10,403 |
| Metric | Value |
|---|---|
| Total risk-weighted assets (USD million) | 57,375 |
| Common equity tier 1 capital ratio (%) | 16.9 |
| Tier 1 capital ratio (%) | 16.9 |
| Total capital ratio (%) | 18.1 |
Material Changes and Regulatory Requirements
The filing does not provide comparative data for prior periods to calculate material changes in capital or assets. However, it notes the following regulatory requirements as of September 30, 2016, under US Basel III phase-in rules:
- CET1 capital ratio requirement: 5.125%
- Tier 1 capital ratio requirement: 6.625%
- Total capital ratio requirement: 8.625%
UBS Americas Holding LLC's reported ratios significantly exceed these minimum requirements.
Management Commentary and Unusual Items
The filing includes specific footnotes explaining capital composition:
- Equity vs. CET1 Discrepancy: The difference between total equity of USD 22.6 billion and CET1 capital of USD 9.7 billion is primarily due to deductions for goodwill, intangible assets, and deferred tax assets.
- Additional Tier 1 Capital: This figure is reduced to zero due to the deduction of deferred tax assets attributable to net operating losses.
The document contains a standard notice to investors stating it is for information purposes only and not a solicitation to buy or sell securities. It directs investors to the full third quarter 2016 report and Annual Report 2015 for comprehensive financial data.
Investor Verification Checklist
- Verify the full consolidated financial results for UBS Group AG in the official Q3 2016 report, as this filing only covers the US holding company's regulatory capital.
- Confirm the impact of net operating losses on Additional Tier 1 capital and future tax asset recoverability.
- Review the specific deductions for goodwill and intangible assets to understand the gap between total equity and regulatory capital.
- Check the latest US Basel III phase-in requirements to ensure continued compliance beyond the September 2016 snapshot.