Business Context and Reporting Period
This Form 6-K filing by UBS Group AG and UBS AG, dated May 5, 2015, discloses the consolidated BIS Basel III leverage ratio information as of March 31, 2015. The disclosure is mandated by the revised FINMA Circular 2008/22 and marks the first quarterly reporting under the BIS Basel III leverage ratio requirements effective in Switzerland on January 1, 2015.
Key Financial Metrics
The filing focuses exclusively on regulatory capital and exposure metrics rather than standard GAAP/IFRS revenue or profit figures.
- BIS Basel III Leverage Ratio (Phase-in): 4.4%
- BIS Basel III Leverage Ratio (Fully Applied): 3.4%
- Total Exposures (Leverage Ratio Denominator) - Phase-in: CHF 995.9 billion
- Total Exposures (Leverage Ratio Denominator) - Fully Applied: CHF 990.5 billion
- Tier 1 Capital (Phase-in): CHF 43.8 billion
- Tier 1 Capital (Fully Applied): CHF 33.5 billion
- IFRS Total Assets: CHF 1,048.9 billion
Material Changes and Reconciliations
The filing details the reconciliation between IFRS total assets and the BIS Basel III leverage ratio denominator. Key adjustments include:
- Derivatives: Carrying values of derivative financial instruments (CHF 287.5 billion) and securities financing transactions (CHF 122.0 billion) are deducted from IFRS assets and recalculated as exposure items under Basel III rules.
- Regulatory Scope: Adjustments were made for investments in banking and financial entities consolidated for accounting purposes but outside the regulatory scope (CHF 17.1 billion deduction).
- Capital Deductions: Asset amounts deducted in determining Tier 1 capital totaled CHF 14.9 billion on a phase-in basis and an additional CHF 5.3 billion on a fully applied basis.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the regulatory context. It explicitly states that the document is for information purposes only and is not a solicitation to buy or sell securities. Investors are directed to the First Quarter 2015 report and the Annual Report 2014 for comprehensive financial results and risk disclosures.
Key Facts for Investor Verification
- Verify the full Q1 2015 financial results (revenue, profit, cash flow) in the separate First Quarter 2015 report, as this filing contains only leverage ratio data.
- Confirm the impact of the "fully applied" leverage ratio (3.4%) versus the "phase-in" ratio (4.4%) on future capital planning.
- Review the reconciliation of IFRS assets to regulatory exposures to understand the magnitude of off-balance sheet items and derivative exposures.
- Check the Annual Report 2014 for details on the regulatory scope of consolidation differences noted in this filing.