UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: July 26, 2019
UBS Group AG
Commission File Number: 1-36764
UBS AG
Commission File Number: 1-15060
(Registrants' Name)
Bahnhofstrasse 45, Zurich, Switzerland and
Aeschenvorstadt 1, Basel, Switzerland
(Address of principal executive offices)
Indicate by check mark whether the registrants file or will file annual reports under cover of Form 20‑F or Form 40-F.
Form 20-F x Form 40-F o
This Form 6-K consists of the following legal entity financial information for half year ended June 30th, 2019, which appears immediately following this page:
1. UBS Group AG standalone financial information
2. UBS Group Funding (Switzerland) AG standalone interim financial statements
3. UBS Switzerland AG standalone interim financial statements
UBS Group AG standalone
Financial information for the six months ended 30 June 2019
Table of contents | |
UBS Group AG standalone | |
1 | |
1 | |
1 | |
|
|
Appendix | |
2 | |
Contacts
Switchboards
For all general inquiries
www.ubs.com/contact
Zurich +41-44-234 1111
London +44-207-567 8000
New York +1-212-821 3000
Hong Kong +852-2971 8888
Singapore +65-6495 8000
Investor Relations
UBS’s Investor Relations team supports institutional, professional and retail investors from
our offices in Zurich,
New York and Krakow.
UBS Group AG, Investor Relations
P.O. Box, CH-8098 Zurich, Switzerland
www.ubs.com/investors
Zurich +41-44-234 4100
New York +1-212-882 5734
Media Relations
UBS’s Media Relations team supports
global media and journalists
from offices in Zurich, London, New York and Hong Kong.
www.ubs.com/media
Zurich +41-44-234 8500
mediarelations@ubs.com
London +44-20-7567 4714
ubs-media-relations@ubs.com
New York +1-212-882 5858
mediarelations-ny@ubs.com
Hong Kong +852-2971 8200
sh-mediarelations-ap@ubs.com
Office of the Group Company Secretary
The Group Company Secretary receives inquiries on compensation and related issues addressed to members of the Board of Directors.
UBS Group AG, Office of the
Group Company Secretary
P.O. Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
+41-44-235 6652
Shareholder Services
UBS’s Shareholder Services team,
a unit of the Group Company Secretary office, is responsible
for the registration of UBS Group AG registered shares.
UBS Group AG, Shareholder Services
P.O. Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
+41-44-235 6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
P.O. Box 505000
Louisville, KY 40233-5000, USA
Shareholder online inquiries:
https://www-us.computershare.com/
investor/Contact
Shareholder website:
www.computershare.com/investor
Calls from the US +1-866-305-9566
Calls from outside the US +1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | www.ubs.com
Language: English
© UBS 2019. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.
Income statement |
|
|
|
|
|
|
|
| USD million |
| CHF million | ||
|
| Year-to-date |
| Year-to-date | ||
|
| 30.6.19 | 30.6.18¹ |
| 30.6.19 | 30.6.18 |
Dividend income from the investment in UBS AG |
| 3,250 | 3,123 |
| 3,312 | 3,065 |
Other operating income |
| 317 | 260 |
| 319 | 255 |
Operating income |
| 3,567 | 3,383 |
| 3,630 | 3,320 |
Operating expenses |
| 253 | 219 |
| 252 | 215 |
Operating profit / (loss) before tax |
| 3,314 | 3,164 |
| 3,379 | 3,105 |
Tax expense / (benefit) |
| 0 | 0 |
| 0 | 0 |
Net profit / (loss) for the period |
| 3,314 | 3,164 |
| 3,379 | 3,105 |
1 All comparative prior-period information for the six months ended 30 June 2018 is translated into US dollars at the conversion date rate, consistent with the conversion method applied during 2018. Refer to Note 2 of the UBS Group AG standalone financial statements as of 31 December 2018 for more information. | ||||||
Balance sheet | ||||||
|
| USD million |
| CHF million | ||
|
| 30.6.19 | 31.12.18 |
| 30.6.19 | 31.12.18 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
| 2,016 | 1,804 |
| 1,968 | 1,774 |
Non-current assets |
| 42,624 | 42,674 |
| 41,609 | 41,959 |
of which: investment in UBS AG |
| 40,889 | 40,889 |
| 39,915 | 40,203 |
Total assets |
| 44,641 | 44,479 |
| 43,577 | 43,733 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Short-term liabilities |
| 2,019 | 1,922 |
| 1,971 | 1,890 |
Long-term liabilities |
| 2,730 | 3,246 |
| 2,665 | 3,192 |
Total liabilities |
| 4,749 | 5,168 |
| 4,636 | 5,082 |
of which: Deferred Contingent Capital Plan |
| 1,657 | 1,965 |
| 1,617 | 1,932 |
of which: other deferred compensation plans |
| 2,039 | 2,466 |
| 1,991 | 2,425 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Share capital¹ |
| 393 | 393 |
| 386 | 386 |
General reserve² |
| 28,352 | 30,846 |
| 27,730 | 30,271 |
of which: statutory capital reserve |
| 28,352 | 30,846 |
| 27,730 | 30,271 |
of which: capital contribution reserve |
| 28,352 | 30,846 |
| 27,730 | 30,271 |
Voluntary earnings reserve² |
| 10,683 | 7,513 |
| 10,250 | 7,452 |
Treasury shares |
| (2,851) | (2,612) |
| (2,803) | (2,569) |
Reserve for own shares held by subsidiaries |
| 0 | 0 |
| 0 | 0 |
Net profit / (loss) |
| 3,314 | 3,171 |
| 3,379 | 3,111 |
Equity attributable to shareholders |
| 39,892 | 39,310 |
| 38,942 | 38,651 |
Total liabilities and equity |
| 44,641 | 44,479 |
| 43,577 | 43,733 |
1 Refer to “UBS shares” in the “Capital management” section of the UBS Group AG second quarter 2019 report for information on UBS Group AG shares. 2 During the second quarter of 2019, as approved by the Annual General Meeting of shareholders held on 2 May 2019, the 2018 net profit of USD 3,171 million was appropriated to the voluntary earnings reserve. In addition, a payment of an ordinary cash dividend of CHF 0.70 per dividend-bearing share, totaling USD 2,544 million, was made out of the capital contribution reserve within the general reserve. | ||||||
The UBS Group AG standalone financial statements are prepared in accordance with the principles of the Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations). More information on the accounting policies applied for the standalone financial statements of UBS Group AG is provided in Note 2 to the UBS Group AG standalone financial statements in the Annual Report 2018.
In preparing the interim financial information for UBS Group AG, the same accounting policies and methods of computation have been applied as in the annual financial statements as of 31 December 2018. This interim financial information is unaudited and should be read in conjunction with the audited financial statements of UBS Group AG included in the Annual Report 2018.
1
Cautionary Statement | This report and the information contained herein are provided solely for information purposes, and are not to be construed as solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s second quarter 2019 report and its Annual Report 2018, available at www.ubs.com/investors, for additional information.
Rounding | Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages, percent changes, and adjusted results are calculated on the basis of unrounded figures. Information on absolute changes between reporting periods, which is provided in text and that can be derived from figures displayed in the tables, is calculated on a rounded basis.
Tables | Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented as a mathematical calculation of the change between periods.
2
UBS Group AG
P.O. Box
CH-8098 Zurich
ubs.com
UBS Group Funding (Switzerland) AG
Interim financial statements for the six months ended 30 June 2019
Table of contents | |
UBS Group Funding (Switzerland) AG | |
7 | |
7 | |
7 | |
|
|
Appendix | |
8 | |
Contacts
Switchboards
For all general inquiries
www.ubs.com/contact
Zurich +41-44-234 1111
London +44-207-567 8000
New York +1-212-821 3000
Hong Kong +852-2971 8888
Singapore +65-6495 8000
Investor Relations
UBS’s Investor Relations team supports
institutional, professional and retail
investors from our offices in Zurich,
New York and Krakow.
UBS Group AG, Investor Relations
P.O. Box, CH-8098 Zurich, Switzerland
www.ubs.com/investors
Zurich +41-44-234 4100
New York +1-212-882 5734
Media Relations
UBS’s Media Relations team supports
global media and journalists from
offices in Zurich, London, New York
and Hong Kong.
www.ubs.com/media
Zurich +41-44-234 8500
mediarelations@ubs.com
London +44-20-7567 4714
ubs-media-relations@ubs.com
New York +1-212-882 5858
mediarelations-ny@ubs.com
Hong Kong +852-2971 8200
sh-mediarelations-ap@ubs.com
© UBS 2019. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.
UBS Group Funding (Switzerland) AG
Income statement |
|
|
|
|
|
|
|
| USD million |
| CHF million | ||
|
| Year-to-date |
| Year-to-date | ||
|
| 30.6.19 | 30.6.18¹ |
| 30.6.19 | 30.6.18 |
Financial income |
| 881 | 738 |
| 879 | 724 |
Operating income |
| 881 | 738 |
| 879 | 724 |
Other operating expenses |
| 0 | 0 |
| 0 | 0 |
Financial expenses |
| 876 | 736 |
| 874 | 722 |
Operating expenses |
| 876 | 736 |
| 874 | 722 |
Profit / (loss) before income taxes |
| 6 | 2 |
| 6 | 2 |
Tax expense / (benefit) |
| 1 | 0 |
| 1 | 0 |
Net profit / (loss) |
| 5 | 1 |
| 5 | 1 |
1 All comparative prior-period information for the six months ended 30 June 2018 is translated into US dollars at the conversion date rate, consistent with the conversion method applied during 2018. Refer to Note 2 of the UBS Group Funding (Switzerland) AG standalone financial statements as of 31 December 2018 for more information. | ||||||
Balance sheet |
|
|
| |||
|
| USD million |
| CHF million | ||
|
| 30.6.19 | 31.12.18 |
| 30.6.19 | 31.12.18 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Liquid assets |
| 65 | 115 |
| 63 | 113 |
Accrued income and prepaid expenses |
| 1,048 | 1,017 |
| 1,023 | 1,000 |
Total current assets |
| 1,113 | 1,133 |
| 1,086 | 1,114 |
Financial assets |
| 44,648 | 41,784 |
| 43,585 | 41,083 |
Other non-current assets |
| 23 | 33 |
| 22 | 33 |
Total non-current assets |
| 44,671 | 41,817 |
| 43,607 | 41,116 |
Total assets |
| 45,784 | 42,950 |
| 44,694 | 42,230 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current interest-bearing liabilities |
| 10 | 0 |
| 10 | 0 |
Other current liabilities |
| 45 | 42 |
| 44 | 42 |
Accrued expenses and deferred income |
| 673 | 728 |
| 657 | 715 |
Total short-term liabilities |
| 728 | 770 |
| 711 | 757 |
Long-term interest-bearing liabilities |
| 44,907 | 42,019 |
| 43,838 | 41,314 |
Other long-term liabilities |
| 134 | 145 |
| 131 | 142 |
Total long-term liabilities |
| 45,041 | 42,163 |
| 43,969 | 41,456 |
Total liabilities |
| 45,769 | 42,933 |
| 44,679 | 42,213 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Share capital |
| 0 | 0 |
| 0 | 0 |
General reserves |
| 10 | 10 |
| 10 | 10 |
of which: statutory capital reserve |
| 10 | 10 |
| 10 | 10 |
of which: capital contribution reserve |
| 10 | 10 |
| 10 | 10 |
Net profit / (loss) |
| 5 | 6 |
| 5 | 6 |
Equity attributable to shareholders |
| 15 | 16 |
| 14 | 16 |
Total liabilities and equity |
| 45,784 | 42,950 |
| 44,694 | 42,230 |
|
|
|
| |||
The UBS Group Funding (Switzerland) AG standalone financial statements are prepared in accordance with the principles of the Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations). More information on the accounting policies applied is provided in Note 2 to the UBS Group Funding (Switzerland) AG standalone financial statements as of 31 December 2018.
In preparing the interim financial statements for UBS Group Funding (Switzerland) AG, the same accounting policies and methods of computation have been applied as in the financial statements as of 31 December 2018. These interim financial statements are unaudited and should be read in conjunction with the audited financial statements of UBS Group Funding (Switzerland) AG as of 31 December 2018.
7
Cautionary Statement | This report and the information contained herein are provided solely for information purposes, and are not to be construed as solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s second quarter 2019 report and its Annual Report 2018, available at www.ubs.com/investors, for additional information.
Rounding | Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages, percent changes, and adjusted results are calculated on the basis of unrounded figures. Information on absolute changes between reporting periods, which is provided in text and that can be derived from figures displayed in the tables, is calculated on a rounded basis.
Tables | Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented as a mathematical calculation of the change between periods.
8
UBS Group AG
P.O. Box
CH-8098 Zurich
ubs.com
UBS Switzerland AG standalone
Interim financial statements for the six months ended 30 June 2019
Table of contents | |
UBS Switzerland AG standalone | |
13 | |
14 | |
15 | |
16 | |
|
|
Appendix | |
17 | |
Contacts
Switchboards
For all general inquiries
www.ubs.com/contact
Zurich +41-44-234 1111
London +44-207-567 8000
New York +1-212-821 3000
Hong Kong +852-2971 8888
Singapore +65-6495 8000
Investor Relations
UBS’s Investor Relations team supports
institutional, professional and retail
investors from our offices in Zurich,
New York and Krakow.
UBS Group AG, Investor Relations
P.O. Box, CH-8098 Zurich, Switzerland
www.ubs.com/investors
Zurich +41-44-234 4100
New York +1-212-882 5734
Media Relations
UBS’s Media Relations team supports
global media and journalists from
offices in Zurich, London, New York
and Hong Kong.
www.ubs.com/media
Zurich +41-44-234 8500
mediarelations@ubs.com
London +44-20-7567 4714
ubs-media-relations@ubs.com
New York +1-212-882 5858
mediarelations-ny@ubs.com
Hong Kong +852-2971 8200
sh-mediarelations-ap@ubs.com
© UBS 2019. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.
UBS Switzerland AG standalone interim financial statements
Income statement |
|
|
|
|
| ||
|
| For the quarter ended |
| Year-to-date | |||
CHF million |
| 30.6.19 | 31.3.19 | 30.6.18 |
| 30.6.19 | 30.6.18 |
Interest and discount income¹ |
| 841 | 836 | 881 |
| 1,677 | 1,714 |
Interest and dividend income from financial investments |
| 37 | 39 | 35 |
| 76 | 62 |
Interest expense² |
| (107) | (106) | (78) |
| (213) | (145) |
Gross interest income |
| 771 | 769 | 838 |
| 1,539 | 1,631 |
Credit loss (expense) / recovery |
| 3 | 1 | 1 |
| 5 | (26) |
Net interest income |
| 774 | 770 | 838 |
| 1,544 | 1,604 |
Fee and commission income from securities and investment business |
| 839 | 847 | 852 |
| 1,687 | 1,738 |
Credit-related fees and commissions |
| 40 | 47 | 45 |
| 87 | 90 |
Other fee and commission income |
| 204 | 194 | 186 |
| 398 | 366 |
Fee and commission expense |
| (334) | (86) | (94) |
| (421) | (196) |
Net fee and commission income |
| 749 | 1,002 | 989 |
| 1,751 | 1,999 |
Net trading income |
| 212 | 236 | 221 |
| 448 | 484 |
Net income from disposal of financial investments |
| 3 | 0 | 0 |
| 3 | 1 |
Dividend income from investments in subsidiaries and other participations |
| 15 | 0 | 20 |
| 15 | 20 |
Sundry ordinary income |
| 62 | 54 | 38 |
| 116 | 72 |
Sundry ordinary expenses |
| (3) | (2) | (2) |
| (5) | (29) |
Other income from ordinary activities |
| 77 | 52 | 56 |
| 128 | 65 |
Total operating income |
| 1,812 | 2,060 | 2,105 |
| 3,871 | 4,151 |
Personnel expenses |
| 497 | 510 | 524 |
| 1,007 | 1,048 |
General and administrative expenses |
| 799 | 815 | 830 |
| 1,614 | 1,646 |
Subtotal operating expenses |
| 1,296 | 1,325 | 1,353 |
| 2,621 | 2,693 |
Depreciation and impairment of property, equipment and software |
| 9 | 8 | 4 |
| 17 | 9 |
Amortization and impairment of goodwill and other intangible assets |
| 263 | 263 | 263 |
| 525 | 525 |
Changes in provisions and other allowances and losses |
| 51 | 5 | 1 |
| 55 | 5 |
Total operating expenses |
| 1,618 | 1,600 | 1,621 |
| 3,218 | 3,232 |
Operating profit |
| 194 | 460 | 484 |
| 653 | 919 |
Tax expense / (benefit) |
| 51 | 100 | 104 |
| 151 | 201 |
Net profit / (loss) for the period |
| 142 | 360 | 380 |
| 502 | 717 |
1 Interest and discount income includes negative interest income on financial assets of CHF 41 million, CHF 43 million and CHF 29 million for the quarters ended 30 June 2019, 31 March 2019 and 30 June 2018, respectively. 2 Interest expense includes negative interest expense on financial liabilities of CHF 53 million, CHF 52 million and CHF 48 million for the quarters ended 30 June 2019, 31 March 2019 and 30 June 2018, respectively. | |||||||
13
Balance sheet |
|
| ||
CHF million |
| 30.6.19 | 31.3.19 | 31.12.18 |
|
|
|
|
|
Assets |
|
|
|
|
Cash and balances at central banks |
| 48,523 | 51,709 | 52,593 |
Due from banks |
| 4,526 | 4,809 | 3,949 |
Receivables from securities financing transactions |
| 33,696 | 31,900 | 28,157 |
Due from customers |
| 38,888 | 38,626 | 39,152 |
Mortgage loans |
| 151,994 | 151,491 | 150,208 |
Trading portfolio assets |
| 1,576 | 1,505 | 1,601 |
Derivative financial instruments |
| 2,086 | 1,773 | 1,662 |
Financial investments |
| 12,302 | 11,817 | 13,057 |
Accrued income and prepaid expenses |
| 324 | 313 | 259 |
Investments in subsidiaries and other participations |
| 60 | 60 | 60 |
Property, equipment and software |
| 313 | 277 | 238 |
Goodwill and other intangible assets |
| 788 | 1,050 | 1,313 |
Other assets |
| 675 | 476 | 786 |
Total assets |
| 295,749 | 295,806 | 293,034 |
of which: subordinated assets |
| 1 | 3 | 0 |
|
|
|
|
|
Liabilities |
|
|
|
|
Due to banks |
| 24,535 | 24,842 | 24,382 |
of which: total loss-absorbing capacity eligible |
| 15,164 | 15,193 | 15,174 |
Payables from securities financing transactions |
| 728 | 618 | 1,147 |
Due to customers |
| 245,408 | 243,764 | 241,347 |
Trading portfolio liabilities |
| 336 | 413 | 485 |
Derivative financial instruments |
| 917 | 1,086 | 915 |
Loans from central mortgage institutions |
| 8,520 | 8,473 | 8,434 |
Accrued expenses and deferred income |
| 715 | 628 | 885 |
Other liabilities |
| 2,299 | 1,624 | 1,444 |
Provisions |
| 153 | 164 | 161 |
Total liabilities |
| 283,612 | 281,612 | 279,200 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
| 10 | 10 | 10 |
General reserve |
| 11,624 | 12,139 | 12,139 |
of which: statutory capital reserve |
| 11,624 | 12,139 | 12,139 |
of which: capital contribution reserve¹ |
| 11,624 | 12,139 | 12,139 |
Voluntary earnings reserve¹ |
| 0 | 284 | 284 |
Profit / (loss) carried forward¹ |
| 0 | 1,401 | 0 |
Net profit / (loss) for the period |
| 502 | 360 | 1,401 |
Total equity |
| 12,137 | 14,194 | 13,834 |
Total liabilities and equity |
| 295,749 | 295,806 | 293,034 |
of which: subordinated liabilities |
| 4,256 | 4,277 | 4,260 |
of which: subject to mandatory conversion and / or debt waiver |
| 4,256 | 4,277 | 4,260 |
1 During the second quarter of 2019, a payment of a dividend of CHF 2,200 million was made out of the Profit carried forward (CHF 1,401 million), out of the Capital contribution reserve (CHF 515 million) and out of the Voluntary earnings reserve (CHF 284 million) to UBS AG, as approved at the Annual General Meeting of Shareholders held on 18 April 2019. | ||||
14
Balance sheet (continued) |
|
| ||
CHF million |
| 30.6.19 | 31.3.19 | 31.12.18 |
|
|
|
|
|
Off-balance sheet items |
|
|
|
|
Contingent liabilities, gross |
| 10,889 | 11,671 | 11,900 |
Sub-participations |
| (1,251) | (1,103) | (1,110) |
Contingent liabilities, net |
| 9,638 | 10,568 | 10,791 |
of which: guarantees to third parties related to subsidiaries |
| 7 | 6 | 6 |
of which: credit guarantees and similar instruments |
| 4,156 | 4,972 | 4,805 |
of which: performance guarantees and similar instruments |
| 2,314 | 2,299 | 2,385 |
of which: documentary credits |
| 3,161 | 3,292 | 3,595 |
Irrevocable commitments, gross |
| 10,375 | 9,575 | 10,047 |
Sub-participations |
| (4) | (4) | (4) |
Irrevocable commitments, net |
| 10,371 | 9,571 | 10,043 |
of which: loan commitments |
| 9,501 | 8,701 | 9,173 |
of which: payment commitment related to deposit insurance |
| 870 | 870 | 870 |
Forward starting transactions¹ |
| 1,135 | 82 | 12 |
of which: reverse repurchase agreements |
| 634 | 82 | 12 |
of which: repurchase agreements |
| 500 | 0 | 0 |
Liabilities for calls on shares and other equity instruments |
| 43 | 43 | 43 |
1 Cash to be paid in the future by either UBS or the counterparty. | ||||
Basis of accounting
The UBS Switzerland AG standalone financial statements are prepared in accordance with the interim reporting requirements of Swiss GAAP (FINMA Circular 2015/1 and the Banking Ordinance).
The accounting policies are principally the same as the IFRS-based accounting policies for the consolidated financial statements of UBS Group AG outlined in Note 1 to the consolidated financial statements of UBS Group AG included in the Annual Report 2018. Major differences between Swiss GAAP and IFRS are described in Note 39 to the consolidated financial statements of UBS Group AG. Further information on the accounting policies applied for the standalone financial statements of UBS Switzerland AG is provided in Note 2 to the UBS Switzerland AG standalone financial statements as of 31 December 2018.
In preparing the interim financial statements for UBS Switzerland AG, the same accounting policies and methods of
computation have been applied as in the annual standalone financial statements as of 31 December 2018.
In the second quarter of 2019, the beneficial ownership of a portion of Global Wealth Management international business booked in Switzerland was transferred from UBS Switzerland AG to UBS AG to further optimize Group legal and operational structures. The transfer was made in the form of a dividend in kind in the amount of CHF 2.1 billion. We expect full legal transfer to take place before the end of 2022. The compensation of UBS AG for its share of the net profits for the first half year of CHF 234 million is reflected in Fee and commission expense.
The interim financial statements are unaudited and should be read in conjunction with the audited 2018 standalone financial statements of UBS Switzerland AG, available under “Holding company and significant regulated subsidiaries and sub-groups” at www.ubs.com/investors.
15
Joint and several liability
In June 2015, the Personal & Corporate Banking and Wealth Management businesses booked in Switzerland were transferred from UBS AG to UBS Switzerland AG through an asset transfer in accordance with the Swiss Merger Act. Under the Swiss Merger Act, UBS AG assumed joint liability for obligations existing on the asset transfer date, 14 June 2015, which were transferred to UBS Switzerland AG.
Similarly under the terms of the asset transfer agreement, UBS Switzerland AG assumed joint liability for approximately CHF 325 billion of contractual obligations of UBS AG existing on the asset transfer date, excluding the collateralized portion of secured contractual obligations and covered bonds. UBS Switzerland AG has no liability for new obligations incurred by UBS AG after the asset transfer date. The joint liability amount declines as obligations mature, terminate or are novated following the asset transfer date.
As of 30 June 2019, the joint liability of UBS Switzerland AG for contractual obligations of UBS AG amounted to approximately CHF 22 billion compared with CHF 26 billion as of 31 December 2018. Under certain circumstances, the Swiss Banking Act and the Bank Insolvency Ordinance of FINMA authorize FINMA to modify, extinguish or convert to common equity liabilities of a bank in connection with a resolution or insolvency of such bank. As of 30 June 2019, the probability of an outflow under this joint and several liability was assessed to be remote, and as a result, the table on the previous page does not include any exposure arising under this joint and several liability.
® Refer to “Establishment of UBS Switzerland AG” in the “Legal entity financial and regulatory information” section of the Annual Report 2015 for more information
16
Cautionary Statement | This report and the information contained herein are provided solely for information purposes, and are not to be construed as solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s second quarter 2019 report and its Annual Report 2018, available at www.ubs.com/investors, for additional information.
Rounding | Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages, percent changes, and adjusted results are calculated on the basis of unrounded figures. Information on absolute changes between reporting periods, which is provided in text and that can be derived from figures displayed in the tables, is calculated on a rounded basis.
Tables | Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented as a mathematical calculation of the change between periods.
17
UBS Group AG
P.O. Box
CH-8098 Zurich
ubs.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.
UBS Group AG
By: _/s/ Todd Tuckner___________
Name: Todd Tuckner
Title: Group Controller and
Chief Accounting Officer
By: _/s/ David Kelly_____________
Name: David Kelly
Title: Managing Director
UBS AG
By: _/s/ Todd Tuckner___________
Name: Todd Tuckner
Title: Group Controller and
Chief Accounting Officer
By: _/s/ David Kelly_____________
Name: David Kelly
Title: Managing Director
Date: July 26, 2019