Business Context and Reporting Period
This Form 6-K filing by UBS Group AG and UBS AG, dated November 2, 2016, reports financial data for the quarter ended September 30, 2016. The reports are prepared in accordance with International Financial Reporting Standards (IFRS). This filing incorporates by reference the third quarter 2016 report previously submitted to the SEC.
Key Financial Metrics
Capitalization (as of September 30, 2016)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 58,681 | 60,425 |
| Long-term debt issued | 74,099 | 76,302 |
| Total debt issued | 132,779 | 136,727 |
| Equity attributable to UBS AG shareholders | 53,556 | 55,149 |
| Equity attributable to preferred note holders | 654 | 673 |
| Equity attributable to non-controlling interests | 40 | 41 |
| Total capitalization | 187,029 | 192,589 |
Earnings and Fixed Charges (Quarter Ended September 30, 2016)
- Pre-tax earnings from continuing operations: CHF 859 million
- Total fixed charges: CHF 1,685 million (Interest expense: CHF 1,538 million; Other: CHF 146 million)
- Ratio of earnings to fixed charges: 1.51
Note: The filing text does not provide specific values for total revenue, net profit, operating cash flow, or liquidity ratios beyond the capitalization table.
Material Changes Versus Prior Period
Comparing the quarter ended September 30, 2016, to the quarter ended June 30, 2016:
- Total Debt Issued: Decreased from CHF 139,469 million to CHF 132,779 million.
- Equity (Shareholders): Increased slightly from CHF 53,353 million to CHF 53,556 million.
- Total Capitalization: Decreased from CHF 193,508 million to CHF 187,029 million.
Historical comparison of the earnings to fixed charges ratio shows a decline from 1.76 for the full year ended December 31, 2015, to 1.51 for the quarter ended September 30, 2016.
Guidance, Outlook, and Risks
The filing text does not contain specific management commentary, forward-looking guidance, or detailed risk factors for the current period. It references the annual report on Form 20-F and previous quarterly reports for comprehensive disclosures. The document notes that no mandatory preferred share dividends were paid in the periods indicated.
Investor Verification Checklist
- Verify the full quarterly revenue and net income figures in the referenced Q3 2016 report, as they are not explicitly detailed in this Form 6-K text.
- Confirm the composition of "Other" fixed charges (CHF 146 million) to understand non-interest cost drivers.
- Review the referenced Form 20-F and prior 6-K filings for detailed liquidity metrics and risk contingencies not present in this summary.
- Monitor the trend in the earnings to fixed charges ratio, which has fluctuated between 0.83 and 1.76 over the last five years.