Business Context and Reporting Period
This Form 6-K filing by UBS Group AG and UBS AG, dated May 6, 2016, reports financial data for the quarter ended March 31, 2016. The reports are prepared in accordance with International Financial Reporting Standards (IFRS) and are submitted to the SEC as a foreign private issuer. The filing incorporates by reference the company's annual report on Form 20-F for the year ended December 31, 2015, and the first quarter 2016 report.
Key Financial Metrics
Capitalization (as of March 31, 2016)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 56,909 | 59,206 |
| Long-term debt issued | 82,794 | 86,136 |
| Total debt issued | 139,704 | 145,342 |
| Equity attributable to UBS AG shareholders | 55,660 | 57,907 |
| Equity attributable to preferred note holders | 1,905 | 1,982 |
| Equity attributable to non-controlling interests | 36 | 37 |
| Total capitalization | 197,305 | 205,267 |
Earnings and Fixed Charges (Quarter Ended March 31, 2016)
- Pre-tax earnings from continuing operations: CHF 960 million
- Total fixed charges: CHF 1,848 million (Interest expense: CHF 1,697 million; Other: CHF 150 million)
- Pre-tax earnings before fixed charges: CHF 2,808 million
- Ratio of earnings to fixed charges: 1.52
The filing text 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 March 31, 2016, to the same period in 2015:
- Pre-tax earnings from continuing operations: Increased from CHF 5,349 million in the prior year to CHF 960 million in the current quarter. (Note: The prior year figure represents the full year ended Dec 31, 2015, while the current figure is for the quarter ended March 31, 2016; direct quarterly comparison data for Q1 2015 is not explicitly isolated in the provided text).
- Total debt issued: Increased from CHF 138,893 million (Dec 31, 2015) to CHF 139,704 million (March 31, 2016).
- Equity attributable to shareholders: Increased from CHF 55,248 million (Dec 31, 2015) to CHF 55,660 million (March 31, 2016).
- Ratio of earnings to fixed charges: Decreased from 1.76 (full year 2015) to 1.52 (quarter ended March 31, 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 notes that the ratio of earnings to fixed charges and preferred share dividends is not presented separately as there were no mandatory preferred share dividends in the periods indicated. The document primarily serves to update capitalization and earnings-to-fixed-charges ratios for regulatory compliance.
Key Facts for Investor Verification
- Verify the full Q1 2016 revenue and net income figures in the separate Q1 2016 report referenced in the filing, as this Form 6-K only provides pre-tax earnings from continuing operations.
- Confirm the composition of the "Other" fixed charges (CHF 150 million), which relate to the interest component of rental expense.
- Review the full Form 20-F for the year ended December 31, 2015, for comprehensive liquidity and cash flow analysis not detailed in this summary.
- Note the exchange rate impact: CHF amounts for March 31, 2016, were translated at CHF 1 = USD 1.04036, compared to CHF 1 = USD 0.99835 for December 31, 2015.