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 February 2, 2016. The filing covers the period ended December 31, 2015, and includes consolidated capitalization and earnings ratios prepared in accordance with International Financial Reporting Standards (IFRS). The document serves as a supplement to the annual report on Form 20-F for the year ended December 31, 2014, and the third-quarter 2015 report.
Key Financial Metrics
Capitalization (as of December 31, 2015)
| Item | CHF (Million) | USD (Million) |
|---|---|---|
| Short-term debt issued | 50,895 | 50,811 |
| Long-term debt issued | 87,999 | 87,854 |
| Total debt issued | 138,893 | 138,665 |
| Equity attributable to UBS AG shareholders | 55,248 | 55,157 |
| Equity attributable to preferred note holders | 1,954 | 1,951 |
| Equity attributable to non-controlling interests | 41 | 41 |
| Total capitalization | 196,137 | 195,814 |
Earnings and Fixed Charges (Quarter Ended December 31, 2015)
- Pre-tax earnings from continuing operations: CHF 287 million
- Total fixed charges: CHF 1,548 million (Interest expense: CHF 1,386 million; Other: CHF 162 million)
- Ratio of earnings to fixed charges: 1.19
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 December 31, 2015, to the same period in 2014:
- Pre-tax earnings: Decreased significantly from CHF 2,424 million in 2014 to CHF 287 million in 2015.
- Fixed charges: Decreased from CHF 7,293 million in 2014 to CHF 1,548 million in 2015.
- Earnings to fixed charges ratio: Declined from 1.33 in 2014 to 1.19 in 2015.
- Debt levels: Total debt issued decreased from CHF 149,302 million (as of September 30, 2015) to CHF 138,893 million (as of December 31, 2015).
Guidance, Outlook, and Risks
The filing text does not contain specific management commentary, forward-looking guidance, or a detailed discussion of risks and contingencies. It notes that the ratios are calculated based on earnings from continuing operations and that no mandatory preferred share dividends were paid in the periods indicated. The document primarily functions to incorporate financial data by reference into registration statements.
Investor Verification Checklist
- Verify the full annual report on Form 20-F for the year ended December 31, 2015, to obtain comprehensive revenue and net income figures not present in this summary.
- Confirm the impact of the significant drop in pre-tax earnings (from CHF 2,424m to CHF 287m) on the company's overall annual performance.
- Review the detailed breakdown of "Other" fixed charges and interest expense components in the full IFRS financial statements.
- Check the exchange rate sensitivity, as USD figures are translated at CHF 1 = USD 0.99835 for the period end.