2022 net profit of USD 7.6bn, 17.0% return on CET1 capital
Strong momentum with our clients in challenging markets
In 2022, the combined impact of persistent inflation, rapid central bank tightening, the Russia–Ukraine war, and other geopolitical tensions affected asset pricing levels and investor sentiment. Our unwavering commitment to our clients enabled us to maintain positive momentum across the firm. Against this backdrop, we attracted USD 60bn in net new fee-generating assets1 in GWM for the full year, USD 25bn of net new money in AM (of which USD 26bn in Money Market), and CHF 2bn of net new investment products for Personal Banking, an 8% growth rate. As clients repositioned their investments in response to interest rate increases, we captured demand for higher yield through our savings products, certificates of deposit and money market funds. And we delivered a 17% YoY increase in net interest income across GWM and P&C in 2022. While private clients generally remained on the sidelines throughout the year due to high uncertainty and unfavorable market trends, institutional clients were very active, driven by sustained equity market volatility in 1H22, and by strong FX and rates markets in 2H22.
In Americas, for the full year, GWM attracted net new fee-generating assets1 of USD 17bn, and we closed the year with another strong quarter in advisor recruiting. We continued to see positive momentum in Private Markets, which attracted USD 10bn net new commitments, and in our SMA2 offering, which contributed USD 21bn of net new money in AM.
In Switzerland, we retained our position as #1 bank3. In 2022, we saw USD 7bn net new loans and USD 9bn net new deposits in GWM and P&C combined, contributing to record loan and deposit volumes, and we attracted USD 9bn net new fee-generating assets1.
In EMEA, we generated USD 20bn of net new fee-generating assets1 and we completed the sale of our domestic wealth management business in Spain, which further optimises our footprint. In the IB, our Global Markets business had its best year on record, and we outperformed the fee pool in Global Banking.
In APAC, we attracted USD 14bn of net new fee-generating assets1 for the year, and we were #1 in equity capital markets4 for non-domestic banks. We also delivered the best M&A year on record5, and were recently named the best Investment Bank6 in Asia and Australia by Finance Asia.
We continued to improve the way we manage, change and develop technology, and we have been fostering our engineering culture. For instance, 65% of our applications are currently on the Cloud, and engineers make up 68% of the technology teams that have transitioned to Agile. We achieved this while remaining disciplined on costs, progressing our cost-saving program as planned and investing in our growth initiatives.
Executing on our strategy and achieved our Group targets in 2022
In 2022, we remained focused on executing our strategy, and delivered a return on CET1 capital of 17.0% and a cost/income ratio of 72.1%, in line with our Group targets. PBT was USD 9,604m (up 1% YoY). Total revenues decreased 2% YoY, with operating expenses down 4%. Net profit attributable to shareholders was USD 7,630m (up 2% YoY), with diluted earnings per share of USD 2.25.
4Q22 PBT was USD 1937 million (up 12 % YoY). Total revenues were down 8 % YoY, while operating expenses decreased 13 %. The cost/income ratio was 75.8 %. Net profit attributable to shareholders was USD 1653 million (up 23 % YoY), with diluted earnings per share of USD 0.50. The return on CET1 capital was 14.7 %. We repurchased USD 1.3 billion of shares in 4Q22.
1 In GWM; net new fee-generating assets exclude the effects on fee-generating assets of strategic decisions by UBS to exit markets or services.
2 Separately managed accounts.
3 Euromoney, 2022.
4 Dealogic.
5 2017–2022.
6 Finance Asia, December 2022.
7 Loans and advances to customers.
8 Shareholders whose shares are held through SIX (ISIN CH0244767585) will receive dividends in Swiss francs, based on a published exchange rate calculated to five decimal places immediately before the ex-dividend date. Shareholders holding shares through DTC (ISIN: CH0244767585; CUSIP: H42097107) will be paid dividends in US dollars. Subject to approval by shareholders at the Annual General Meeting scheduled for April 5, 2023, the dividend will be paid on April14, 2023 to shareholders of record on April 13, 2023. The ex-dividend date will be April 12, 2023. In accordance with Swiss tax law, 50 % of the dividend will be paid out of retained earnings and the balance will be paid out of capital contribution reserves. Dividends paid out of capital contribution reserves are not subject to Swiss withholding tax. The portion of the dividend paid out of retained earnings will be subject to a 35 % Swiss withholding tax. For US federal income tax purposes, we expect that the dividend will be paid out of current or accumulated earnings and profits.
