UBS’s third-quarter 2022 results


Zurich, 25 Oct 2022

Message from Ralph Hamers

UBS Group CEO comments on our results for the third quarter of 2022.

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3Q22 net profit of USD 1.7 billion, 15.5 % return on CET1 capital and 14.4 % CET1 capital ratio

Our proactive engagement with our clients led to positive momentum with USD 17 billion net new fee-generating assets1 (NNFGA) in GWM, USD 18bn of net new money in AM (of which USD 2bn excluding money market flows), and CHF 0.4 billion net new investment products in Personal Banking, an 8 % annualised growth, amidst challenging market conditions. As clients repositioned their investments in response to fast and steep interest rate increases, we continued to actively manage our deposit base which resulted in a 14 % YoY increase in net interest income across GWM and P&C. Client activity was differentiated across segments as institutional clients remained very active on the back of high volatility in foreign exchange and rates, whereas private investors remained generally on the sidelines.

In Americas, we attracted net new fee-generating assets of USD 4bn, we continued to see positive momentum in our SMA offering, which contributed USD 5 billion net new money in AM, and we had a strong quarter in advisor recruiting.

In Switzerland, we saw CHF 2 billion net new loans in GWM and P&C combined, primarily driven by mortgages.

In EMEA, our Global Markets business had its best 3Q on record, we generated USD 6bn net new fee-generating assets, and we completed the sale of our domestic wealth management business in Spain which further optimizes our footprint.

In APAC we saw USD 7 billion net new fee-generating assets and we were #1 in ECM for non-domestic banks.

We delivered a good performance and are executing our strategy

3Q22 PBT was USD 2323 million (down 19 % YoY) compared to a particularly strong quarter in the previous year. The cost/income ratio was 71.8 %. Total revenues were down 10 % YoY, while operating expenses decreased by 6 %. Net profit attributable to shareholders was USD 1733 million (down 24 % YoY), with diluted earnings per share of USD 0.52. Return on CET1 capital was 15.5 %. We repurchased USD 1.0 billion of shares in 3Q22 and USD 4.3 billion in the first 9 months of the year, and we expect to repurchase approximately USD 5.5 billion of shares during 2022. Our exposure to rising interest rates across the globe and expense controls contributed to the quarter’s solid performance.

We maintained a strong balance sheet and disciplined risk management

In the quarter, we maintained a strong capital position with a CET1 capital ratio of 14.4 % and a CET1 leverage ratio of 4.51 %, both significantly in excess of our guidance of ~13 % and >3.7 %, respectively. Our balance sheet remains strong, with a high-quality loan book where 95 % of our loans2 are collateralised, and with an average LTV of less than 55 %. Our highly accretive, capital-light business model with a balance sheet for all seasons and disciplined risk management position us well to face the challenges of the current macroeconomic environment.