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: March 7, 2022
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 UBS AG audited standalone financial statements for the year ended 31 December 2021, as well as the consent of Ernst & Young Ltd. with respect thereto, which appear immediately following this page.
UBS AG
Standalone financial statements and regulatory information
for the year ended 31 December 2021
UBS AG standalone financial statements (audited)
UBS AG standalone financial statements
(audited)
Income statement |
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| USD million |
| CHF million | ||
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| For the year ended |
| For the year ended | ||
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| Note |
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Interest and discount income1 |
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| 4,091 | 4,699 |
| 3,745 | 4,406 |
Interest and dividend income from trading portfolio1 |
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| 2,572 | 2,000 |
| 2,360 | 1,869 |
Interest and dividend income from financial investments |
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| 115 | 266 |
| 105 | 251 |
Interest expense2 |
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| (5,128) | (5,701) |
| (4,704) | (5,357) |
Gross interest income |
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| 1,649 | 1,264 |
| 1,506 | 1,169 |
Credit loss (expense) / release |
| 14 |
| 78 | (548) |
| 72 | (498) |
Net interest income |
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| 1,727 | 716 |
| 1,578 | 671 |
Fee and commission income from securities and investment business and other fee and commission income |
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| 3,703 | 3,580 |
| 3,390 | 3,343 |
Credit-related fees and commissions |
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| 109 | 223 |
| 100 | 209 |
Fee and commission expense |
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| (810) | (644) |
| (741) | (599) |
Net fee and commission income |
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| 3,002 | 3,160 |
| 2,749 | 2,953 |
Net trading income |
| 3 |
| 3,623 | 4,323 |
| 3,301 | 4,060 |
Net income from disposal of financial investments |
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| 56 | 152 |
| 52 | 142 |
Dividend income from investments in subsidiaries and other participations |
| 4 |
| 6,401 | 3,214 |
| 5,882 | 2,995 |
Income from real estate holdings |
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| 480 | 532 |
| 439 | 497 |
Sundry ordinary income |
| 5 |
| 1,342 | 1,288 |
| 1,229 | 1,202 |
Sundry ordinary expenses |
| 5 |
| (338) | (434) |
| (308) | (404) |
Other income from ordinary activities |
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| 7,940 | 4,752 |
| 7,295 | 4,432 |
Total operating income |
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| 16,293 | 12,951 |
| 14,923 | 12,116 |
Personnel expenses |
| 6 |
| 3,221 | 3,545 |
| 2,943 | 3,323 |
General and administrative expenses |
| 7 |
| 3,625 | 3,662 |
| 3,317 | 3,413 |
Subtotal operating expenses |
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| 6,846 | 7,207 |
| 6,260 | 6,736 |
Impairment of investments in subsidiaries and other participations |
| 8 |
| 1,187 | 134 |
| 1,090 | 127 |
Depreciation, amortization and impairment of property, equipment, software, goodwill and intangible assets |
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| 816 | 917 |
| 747 | 850 |
Changes in provisions for litigation, regulatory and similar matters, and other provisions |
| 9 |
| 862 | 112 |
| 787 | 101 |
Total operating expenses |
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| 9,712 | 8,370 |
| 8,885 | 7,814 |
Operating profit |
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| 6,581 | 4,581 |
| 6,037 | 4,302 |
Extraordinary income |
| 10 |
| 282 | 435 |
| 262 | 403 |
Extraordinary expenses |
| 10 |
| 1 | 0 |
| 1 | 0 |
Tax expense / (benefit) |
| 11 |
| 315 | 476 |
| 286 | 440 |
Net profit / (loss) |
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| 6,548 | 4,539 |
| 6,013 | 4,265 |
1 Interest income includes negative interest income of approximately USD 0.5 billion (CHF 0.4 billion) for the year ended 31 December 2021 (approximately USD 0.4 billion (CHF 0.4 billion) for the year ended 31 December 2020). 2 Includes negative interest expense on financial liabilities of approximately USD 0.5 billion (CHF 0.4 billion) for the year ended 31 December 2021 (approximately USD 0.3 billion (CHF 0.3 billion) for the year ended 31 December 2020). |
2
Balance sheet |
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| USD million |
| CHF million | ||||
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| Note |
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
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Assets |
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Cash and balances at central banks |
| 14 |
| 53,760 | 34,148 |
| 49,012 | 30,239 |
Due from banks |
| 14, 25 |
| 33,330 | 38,357 |
| 30,386 | 33,966 |
Receivables from securities financing transactions |
| 12, 14, 25 |
| 56,336 | 63,305 |
| 51,360 | 56,058 |
Due from customers |
| 13, 14, 25 |
| 121,812 | 124,596 |
| 111,052 | 110,334 |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity1 |
| 13, 14, 25 |
| 27,530 | 26,354 |
| 25,098 | 23,337 |
Mortgage loans |
| 13, 14 |
| 5,492 | 5,406 |
| 5,007 | 4,787 |
Trading portfolio assets |
| 15 |
| 119,795 | 115,164 |
| 109,213 | 101,981 |
Derivative financial instruments |
| 16 |
| 11,921 | 17,203 |
| 10,868 | 15,234 |
Financial investments |
| 17 |
| 19,482 | 23,852 |
| 17,761 | 21,122 |
Accrued income and prepaid expenses |
| 14 |
| 1,213 | 1,414 |
| 1,106 | 1,253 |
Investments in subsidiaries and other participations |
| 18 |
| 50,671 | 50,444 |
| 46,195 | 44,670 |
Property, equipment and software |
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| 5,580 | 6,091 |
| 5,087 | 5,394 |
Other assets |
| 13, 14, 19 |
| 2,927 | 2,690 |
| 2,667 | 2,381 |
Total assets |
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| 509,851 | 509,024 |
| 464,814 | 450,756 |
of which: subordinated assets |
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| 18,751 | 19,999 |
| 17,095 | 17,710 |
of which: subject to mandatory conversion and / or debt waiver |
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| 17,813 | 18,067 |
| 16,239 | 15,998 |
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Liabilities |
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Due to banks |
| 25 |
| 40,293 | 49,655 |
| 36,734 | 43,971 |
Payables from securities financing transactions |
| 12, 25 |
| 23,046 | 24,407 |
| 21,010 | 21,613 |
Due to customers |
| 25 |
| 141,119 | 132,747 |
| 128,654 | 117,553 |
Funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level measured at amortized cost1 |
| 25 |
| 57,078 | 53,585 |
| 52,036 | 47,451 |
Trading portfolio liabilities |
| 15 |
| 25,711 | 28,806 |
| 23,440 | 25,509 |
Derivative financial instruments |
| 16 |
| 14,128 | 21,918 |
| 12,880 | 19,409 |
Financial liabilities designated at fair value |
| 15, 22 |
| 73,081 | 58,737 |
| 66,625 | 52,014 |
of which: funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level 1 |
| 22, 25 |
| 2,137 |
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| 1,948 |
|
Bonds issued |
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| 73,631 | 76,490 |
| 67,127 | 67,734 |
of which: eligible as total loss-absorbing capacity at UBS AG level 1 |
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| 5,048 | 7,480 |
| 4,602 | 6,624 |
Accrued expenses and deferred income |
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| 2,919 | 3,282 |
| 2,661 | 2,906 |
Other liabilities |
| 19 |
| 2,305 | 5,591 |
| 2,100 | 4,951 |
Provisions |
| 14 |
| 2,136 | 1,411 |
| 1,947 | 1,250 |
Total liabilities |
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| 455,446 | 456,628 |
| 415,215 | 404,359 |
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Equity |
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Share capital |
| 23 |
| 393 | 393 |
| 386 | 386 |
General reserve |
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| 36,326 | 36,326 |
| 35,649 | 35,649 |
of which: statutory capital reserve |
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| 36,326 | 36,326 |
| 35,649 | 35,649 |
of which: capital contribution reserve 2 |
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| 36,326 | 36,326 |
| 35,649 | 35,649 |
Voluntary earnings reserve |
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| 11,138 | 11,138 |
| 7,552 | 6,098 |
Net profit / (loss) for the period |
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| 6,548 | 4,539 |
| 6,013 | 4,265 |
Total equity |
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| 54,405 | 52,396 |
| 49,599 | 46,397 |
Total liabilities and equity |
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| 509,851 | 509,024 |
| 464,814 | 450,756 |
of which: subordinated liabilities |
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| 65,219 | 62,053 |
| 59,459 | 54,950 |
of which: subject to mandatory conversion and / or debt waiver |
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| 64,654 | 61,486 |
| 58,943 | 54,448 |
1 Represents the Swiss GAAP carrying amount of instruments qualifying as total loss-absorbing capital. 2 The Swiss Federal Tax Administration’s current position is that, of the CHF 35.6 billion capital contribution reserve available as of 31 December 2021, an amount limited to CHF 20.5 billion is available from which dividends may be paid without a Swiss withholding tax deduction. |
3
UBS AG standalone financial statements (audited)
Balance sheet (continued) |
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| USD million |
| CHF million | ||
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| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
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Off-balance sheet items |
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Contingent liabilities, gross |
| 19,046 | 14,617 |
| 17,364 | 12,944 |
Sub-participations |
| (1,093) | (1,287) |
| (997) | (1,140) |
Contingent liabilities, net |
| 17,953 | 13,330 |
| 16,367 | 11,804 |
of which: guarantees to third parties related to subsidiaries |
| 7,825 | 6,110 |
| 7,133 | 5,411 |
Irrevocable loan commitments, gross |
| 17,394 | 19,337 |
| 15,858 | 17,123 |
Sub-participations |
| 0 | 0 |
| 0 | 0 |
Irrevocable loan commitments, net |
| 17,394 | 19,337 |
| 15,858 | 17,123 |
Forward starting transactions1 |
| 41,719 | 26,690 |
| 38,034 | 23,634 |
of which: reverse repurchase agreements |
| 24,559 | 17,265 |
| 22,390 | 15,289 |
of which: repurchase agreements |
| 17,160 | 9,424 |
| 15,644 | 8,345 |
Liabilities for calls on shares and other equity instruments |
| 5 | 5 |
| 4 | 4 |
1 Cash to be paid in the future by either UBS AG or the counterparty. |
Off-balance sheet items
Contingent liabilities include indemnities and guarantees issued by UBS AG for the benefit of subsidiaries and creditors of subsidiaries.
Where the indemnity amount issued by UBS AG is not specifically defined, the indemnity relates to the solvency or minimum capitalization of a subsidiary, and therefore no amount is included in the table above.
Joint and several liability – value-added tax (VAT)
UBS AG is jointly and severally liable for the combined VAT liability of UBS entities that belong to the VAT group of UBS in Switzerland. This contingent liability is not included in the table above.
Guarantees – UBS Europe SE
Following the combined UK business transfer and cross-border merger of UBS Limited into UBS Europe SE in March 2019, UBS AG issued a guarantee for the benefit of counterparties of UBS Europe SE’s Investment Bank, covering transactions subject to master netting agreements.
A similar guarantee that UBS AG issued in 2003 for the benefit of each counterparty of UBS Limited also continues to be effective. This guarantee covers transactions in accordance with and contemplated under any agreement entered into by UBS Limited prior to the merger into UBS Europe SE, to the extent that such an agreement has not been amended by UBS Europe SE thereafter.
Under both guarantees, UBS AG promises to pay to the beneficiary counterparties any unpaid liabilities covered under the terms of the guarantees on demand. These guarantees are included as contingent liabilities in the off-balance sheet items table above.
Indemnities – UBS Europe SE
In connection with the establishment of UBS Europe SE in 2016, UBS AG entered into agreements with UBS Europe SE under which UBS AG would provide UBS Europe SE with limited indemnification of payment obligations that may arise from certain litigation, regulatory and similar matters.
As of 31 December 2021, the amount of such potential payment obligations could not be reliably estimated and the likelihood of an outflow is not considered to be probable or the probability of an outflow was assessed to be remote; therefore, the table above does not include any amount related to this limited indemnification.
In addition, in accordance with the bylaws of the Deposit Protection Fund of the Association of German Banks, UBS AG issued an indemnity in favor of this fund on behalf of UBS Europe SE. The probability of an outflow was assessed to be remote, and as a result, the table above does not include any exposure arising under this indemnity.
4
Statement of changes in equity |
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USD million | Share capital | Statutory capital reserve | Voluntary earnings reserve and profit / (loss) carried forward | Net profit / (loss) for the period | Total equity |
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Balance as of 1 January 2021 | 393 | 36,326 | 11,138 | 4,539 | 52,396 |
Dividends and other distributions |
|
| (4,539) |
| (4,539) |
Net profit / (loss) appropriation |
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| 4,539 | (4,539) | 0 |
Net profit / (loss) for the period |
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| 6,548 | 6,548 |
Balance as of 31 December 2021 | 393 | 36,326 | 11,138 | 6,548 | 54,405 |
CHF million | Share capital | Statutory capital reserve | Voluntary earnings reserve and profit / (loss) carried forward | Net profit / (loss) for the period | Total equity |
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Balance as of 1 January 2021 | 386 | 35,649 | 6,098 | 4,265 | 46,397 |
Dividends and other distributions |
|
| (4,149) |
| (4,149) |
Net profit / (loss) appropriation |
|
| 4,265 | (4,265) | 0 |
Net profit / (loss) for the period |
|
|
| 6,013 | 6,013 |
Currency translation difference |
|
| 1,338 |
| 1,338 |
Balance as of 31 December 2021 | 386 | 35,649 | 7,552 | 6,013 | 49,599 |
5
UBS AG standalone financial statements (audited)
Statement of proposed appropriation of total profit and dividend distribution
The Board of Directors proposes that the Annual General Meeting of Shareholders (the AGM) on 5 April 2022 approve the appropriation of total profit and an ordinary dividend distribution of USD 4,200 million out of the total profit as follows:
|
| USD million |
| CHF million |
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| For the year ended |
| For the year ended |
|
| 31.12.21 |
| 31.12.21 |
Net profit for the period |
| 6,548 |
| 6,013 |
Profit / (loss) carried forward |
| 0 |
| 0 |
Total profit available for appropriation |
| 6,548 |
| 6,013 |
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Appropriation of total profit |
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Appropriation to voluntary earnings reserve |
| (2,348) |
| (2,184) |
Dividend distribution |
| (4,200) |
| (3,829)1 |
Profit / (loss) carried forward |
| 0 |
| 0 |
1 For illustrative purposes, converted at closing exchange rate as of 31 December 2021 (CHF / USD 1.10). |
The ordinary dividend distribution is declared and paid in US dollars. The total amount of the dividend distribution is capped at CHF 8,400 million (the Cap). To the extent that the Swiss franc equivalent of the total dividend distribution of USD 4,200 million would exceed the Cap on the day of the AGM, based on the exchange rate determined by the Board of Directors in its reasonable opinion, the US dollar per share amount of the dividend will be reduced on a pro rata basis so that the total Swiss franc amount does not exceed the Cap. To the extent the Swiss franc equivalent of the total dividend distribution exceeds CHF 6,013 million but does not exceed the Cap, the total dividend distribution in US dollars remains as is and is booked against the total profit in US dollars, while the Swiss franc currency difference of maximum CHF 2,387 million is balanced through the Swiss franc translation of the voluntary earnings reserve account.
6
UBS AG is incorporated and domiciled in Switzerland. Its registered offices are at Bahnhofstrasse 45, CH-8001 Zurich and Aeschenvorstadt 1, CH-4051 Basel, Switzerland. UBS AG operates under Art. 620 et seq. of the Swiss Code of Obligations and Swiss banking law as an Aktiengesellschaft, a corporation limited by shares.
UBS AG is a regulated bank in Switzerland and is 100% owned by UBS Group AG, the ultimate parent of the UBS Group. UBS AG holds investments in and provides funding to subsidiaries, including the other banking subsidiaries of the UBS Group. In addition, UBS AG operates globally, including business activities from all four UBS business divisions and Group Functions. In the ordinary course of business, main contributors to the net profit / (loss) of UBS AG are the Investment Bank, Global Wealth Management, Group Treasury and Group Services. The balance sheet is mainly composed of financial assets and liabilities from the Investment Bank, Group Treasury and Global Wealth Management business booked outside of Switzerland as well as investments in subsidiaries and other participations in Group Treasury and fixed assets of Group Services.
UBS AG employed 10,169 personnel on a full-time equivalent basis as of 31 December 2021 compared with 10,364 personnel as of 31 December 2020.
a) Significant accounting policies
UBS AG standalone financial statements are prepared in accordance with Swiss GAAP (the FINMA Accounting Ordinance, FINMA Circular 2020/1 “Accounting – banks” and the Banking Ordinance) and represent “reliable assessment statutory single-entity financial statements.” The accounting policies are principally the same as those outlined in Note 1 to the consolidated financial statements of UBS AG included in the UBS Group AG and UBS AG Annual Report 2021. Major differences between the Swiss GAAP requirements and International Financial Reporting Standards are described in Note 34 to the consolidated financial statements of UBS AG. The significant accounting policies applied for the standalone financial statements of UBS AG are discussed below.
› Refer to the UBS Group AG and UBS AG Annual Report 2021 for more information
Risk management
UBS AG is fully integrated into the Group-wide risk management process described in the audited part of the “Risk management and control” section of the UBS Group AG and UBS AG Annual Report 2021.
Further information on the use of derivative instruments and hedge accounting is provided on the following pages and in Notes 1, 10 and 26 to the consolidated financial statements of UBS AG.
› Refer to the UBS Group AG and UBS AG Annual Report 2021 for more information
Compensation policy
The compensation structure and processes of UBS AG conform to the compensation principles and framework of UBS Group AG. For detailed information, refer to the Compensation Report of UBS Group AG.
Deferred compensation
Expenses for deferred compensation awards granted by UBS Group AG to employees of UBS AG in the form of UBS shares, notional investment funds and notional additional tier 1 (AT1) capital instruments are charged by UBS Group AG to UBS AG.
› Refer to Note 28 to the UBS AG consolidated financial statements in the UBS Group AG and UBS AG Annual Report 2021 for more information
Foreign currency translation
Non-US dollar-denominated transactions are translated into US dollars at the spot exchange rate on the date of the transaction. At the balance sheet date, all non-US dollar-denominated monetary assets and liabilities, as well as non-US dollar-denominated equity instruments recorded in Trading portfolio assets and Financial investments, are translated into US dollars using the closing exchange rate. Non-monetary items measured at historic cost are translated at the spot exchange rate on the date of the transaction. Assets and liabilities of branches with functional currencies other than the US dollar are translated into US dollars at the closing exchange rate. Income and expense items of such branches are translated at weighted average exchange rates for the period. All currency translation effects are recognized in the income statement.
The main currency translation rates used by UBS AG are provided in Note 33 of the consolidated financial statements of UBS AG.
› Refer to the UBS Group AG and UBS AG Annual Report 2021 for more information
7
UBS AG standalone financial statements (audited)
Note 2 Accounting policies (continued)
Presentation currencies
As the primary presentation currency of the financial statements of UBS AG is the US dollar, amounts in Swiss francs are additionally presented for each component of the financial statements. UBS AG applies the modified closing rate method for translating the US dollar presentation currency amounts into Swiss francs: assets and liabilities are translated at the closing rate, equity positions at historic rates, and income and expense items at the weighted average rate for the period. The resulting currency translation effects are recognized separately in the Voluntary earnings reserve, amounting to a negative currency translation effect of CHF 3,619 million as of 31 December 2021 (negative CHF 4,957 million as of 31 December 2020).
Structured debt instruments
Structured debt instruments comprise debt instruments issued and transacted over the counter and include a host contract and one or more embedded derivatives that do not relate to UBS AG’s own equity. By applying the fair value option, the vast majority of structured debt instruments are measured at fair value as a whole and recognized in Financial liabilities designated at fair value. The fair value option for structured debt instruments can be applied only if the following criteria are cumulatively met:
– the structured debt instrument is measured on a fair value basis and is subject to risk management that is equivalent to risk management for trading activities;
– the application of the fair value option eliminates or significantly reduces an accounting mismatch that would otherwise arise; and
– changes in fair value attributable to changes in unrealized own credit are not recognized.
Fair value changes related to Financial liabilities designated at fair value, excluding changes in unrealized own credit, are recognized in Net trading income. Interest expense on Financial liabilities designated at fair value is recognized in Interest expense.
Where the designation criteria for the fair value option are not met, the embedded derivatives are assessed for bifurcation for measurement purposes. Bifurcated embedded derivatives are measured at fair value through profit or loss and presented in the same balance sheet line as the host contract.
› Refer to Note 22 for more information
Group-internal funding
UBS AG obtains funding from UBS Group AG in the form of loans that either qualify as going concern additional tier 1 capital or as gone concern loss-absorbing capacity at the UBS AG consolidated and standalone levels. A portion of Group-internal funding obtained is further on-lent by UBS AG to certain subsidiaries in the form of loans.
Where such Group-internal funding is eligible to meet the requirements for total loss-absorbing capacity (TLAC) at the level of UBS AG consolidated or standalone, or at the levels of significant regulated subsidiaries as defined for Pillar 3 disclosure purposes, the aggregate amounts of the respective obligations and claims are separately disclosed on the balance sheet. For those TLAC instruments that are eligible to meet the going concern capital requirements (i.e., are subordinated and subject to mandatory conversion and / or debt waiver, as explained below), the aggregate corresponding amounts are disclosed on the balance sheet.
UBS AG obligations arising from Group-internal funding it has received are presented as Funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level measured at amortized cost and Funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level within Financial liabilities designated at fair value. UBS AG claims arising from Group-internal funding it has provided are presented as Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity and measured at amortized cost less any allowance for expected credit losses.
Subordinated assets and liabilities
Subordinated assets are comprised of claims that, based on an irrevocable written declaration, in the event of liquidation, bankruptcy or composition concerning the debtor, rank after the claims of all other creditors and may not be offset against amounts payable to the debtor nor be secured by its assets. Subordinated liabilities are comprised of corresponding obligations.
Subordinated assets and liabilities that contain a point-of-non-viability clause in accordance with Swiss capital requirements pursuant to Art. 29 and 30 of the Capital Adequacy Ordinance are disclosed as being Subject to mandatory conversion and / or debt waiver and provide for the claim or the obligation to be written off or converted into equity in the event that the issuing bank reaches a point of non-viability.
8
Note 2 Accounting policies (continued)
Investments in subsidiaries and other participations
Investments in subsidiaries and other participations are equity interests that are held to carry on the business of UBS AG or for other strategic purposes. They include all subsidiaries directly held by UBS AG through which UBS AG conducts its business on a global basis. The investments are measured individually and carried at cost less impairment. The carrying amount is tested for impairment annually and when indicators of a potential decrease in value exist, which include significant operating losses incurred or a severe depreciation of the currency in which the investment is denominated. If an investment in a subsidiary is impaired, its value is generally written down to the net asset value. Subsequent recoveries in value are recognized up to the original cost value based on either the increased net asset value or a value above the net asset value if, in the opinion of management, forecasts of future profitability provide sufficient evidence that a carrying amount above net asset value is supported. Management may exercise its discretion as to what extent and in which period a recovery in value is recognized.
Impairments of investments are presented as Impairment of investments in subsidiaries and other participations and reversals of impairments are presented as Extraordinary income in the income statement. Impairments and partial or full reversals of impairments for a subsidiary during the same annual period are determined on a net basis.
› Refer to Note 18 for more information
Hedge accounting for Investments in subsidiaries and other participations
UBS AG applies hedge accounting for certain investments in subsidiaries and other participations denominated in currencies other than the US dollar, which are designated as hedged items. For this purpose, foreign exchange (FX) derivatives, mainly FX forwards and FX swaps, are used and designated as hedging instruments.
The hedged risk is determined as the change in the carrying amount of the hedged item arising solely from changes in spot FX rates. Consequently, UBS AG only designates the spot element of the FX derivatives as hedging instruments. Changes in the fair value of the hedging instruments attributable to changes in forward points are not part of a hedge accounting designation. These amounts, therefore, do not form part of the effectiveness assessment and are recognized in Net trading income.
The effective portion of gains and losses of these FX derivatives is deferred on the balance sheet as Other assets or Other liabilities to the extent no change is recognized in the carrying amount of the hedged item arising from changes in spot FX rates. Otherwise the effective portion of gains and losses of these FX derivatives is matched with the corresponding valuation adjustments of the hedged item recorded in the income statement and recorded either as a reduction of Impairment of investments in subsidiaries and other participations or as Extraordinary income.
Revenue and expense transfers with other Group entities
UBS AG pays to and receives amounts from other Group entities in connection with revenue sharing arrangements, primarily related to the Investment Bank. Revenues transferred to and received from Group entities are settled in cash as hard revenue transfers paid or received. When the nature of the underlying transaction between UBS AG and the Group entity contains a single, clearly identifiable service element, related income and expenses are presented in the respective income statement line item, e.g., Fee and commission income from securities and investment business and other fee and commission income, Fee and commission expense or Net trading income. To the extent the nature of the underlying transaction contains various service elements and is not clearly attributable to a particular income statement line item, related income and expenses are presented in Sundry ordinary expenses.
UBS AG receives services from UBS Business Solutions AG, the main Group service company, mainly relating to Group Technology and Group Corporate Services, as well as certain other services from other Group entities. UBS AG also provides services to Group entities, mainly relating to real estate and selected other Group Services functions. Services received from and provided to Group entities are settled in cash as hard cost transfers paid or received. Hard cost transfers paid are presented within General and administrative expenses and hard cost transfers received are presented within Sundry ordinary income or Income from real estate holdings.
› Refer to Notes 5 and 7 for more information
Post-employment benefit plans
Swiss GAAP permits the use of IFRS or Swiss accounting standards for post-employment benefit plans, with the election made on a plan-by-plan basis.
UBS AG has elected to apply Swiss GAAP (FER 16) for the Swiss pension plan in its standalone financial statements. The requirements of Swiss GAAP are better aligned with the specific nature of Swiss pension plans, which are hybrid in that they combine elements of defined contribution and defined benefit plans but are treated as defined benefit plans under IFRS. Swiss GAAP requires that the employer contributions to the pension fund are recognized as Personnel expenses in the income statement. The employer contributions to the Swiss pension fund are determined as a percentage of contributory compensation. Furthermore, Swiss GAAP requires an assessment as to whether, based on the financial statements of the pension fund prepared in accordance with Swiss accounting standards (FER 26), an economic benefit to, or obligation of, UBS AG arises from the pension fund that is recognized in the balance sheet when conditions are met. Conditions for recording a pension asset or liability would be met if, for example, an employer contribution reserve is available or UBS AG is required to contribute to the reduction of a pension deficit (on an FER 26 basis).
9
UBS AG standalone financial statements (audited)
Note 2 Accounting policies (continued)
Key differences between Swiss GAAP and IFRS include the treatment of dynamic elements, such as future salary increases and future interest credits on retirement savings, which are not considered under the static method used in accordance with Swiss GAAP. Also, the discount rate used to determine the defined benefit obligation in accordance with IFRS is based on the yield of high-quality corporate bonds of the market in the respective pension plan country. The discount rate used in accordance with Swiss GAAP, i.e., the technical interest rate, is determined by the Pension Foundation Board, based on the expected returns of the Board’s investment strategy.
› Refer to Note 24 for more information
UBS AG has elected to apply IFRS (IAS 19) for its non-Swiss defined benefit plans. However, remeasurements of the defined benefit obligation and the plan assets are recognized in the income statement rather than directly in equity. For corresponding disclosures in accordance with IAS 19 requirements, refer to Note 27 to the consolidated financial statements of UBS AG.
› Refer to the UBS Group AG and UBS AG Annual Report 2021 for more information
Deferred taxes
Deferred tax assets are not recognized in UBS AG’s standalone financial statements. However, deferred tax liabilities may be recognized for taxable temporary differences. Changes in the deferred tax liability balance are recognized in the income statement.
Allowances and provisions for expected credit losses
UBS AG is required to apply an expected credit loss (ECL) approach for non-impaired financial instruments in its standalone financial statements in addition to the approach for impaired financial instruments.
For the substantial majority of non-impaired exposures in scope of the Swiss GAAP ECL requirements, UBS AG has chosen to apply the IFRS ECL approach that is also applied in its consolidated financial statements. These exposures include all financial assets measured at amortized cost under both Swiss GAAP and IFRS, fee and lease receivables, claims arising from Group-internal funding presented as Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity, guarantees, irrevocable loan commitments, revolving revocable credit lines and forward starting reverse repurchase and securities borrowing agreements. Further information on the ECL approach under IFRS is provided in Note 1 to the consolidated financial statements of UBS AG.
› Refer to the UBS Group AG and UBS AG Annual Report 2021 for more information
In addition, for a small population of exposures in scope of the Swiss GAAP ECL requirements, which are not subject to ECL under IFRS due to classification and measurement differences, an alternative approach is applied. Where the Pillar 1 internal ratings-based (IRB) models are applied for measurement of credit risk, ECL for such exposures is calculated as the regulatory expected loss (EL), with an add-on for scaling up to the residual maturity of exposures maturing beyond the next 12 months. This approach is mainly applied for brokerage receivables presented within Due from customers, which generally mature within 12 months, and therefore are not subject to any add-on. For detailed information on regulatory EL, refer to the “Risk management and control” section in the UBS Group AG and UBS AG Annual Report 2021. For exposures for which the Pillar 1 standardized approach (SA) is applied for the measurement of credit risk, ECL is determined using a portfolio approach that derives conservative probability of default (PD) and loss given default (LGD) for the entire portfolio. This approach is mainly applied for a small number of loans to large corporate clients presented within Due from customers.
UBS applies a single definition of default for credit risk management purposes, regulatory reporting and ECL, with a counterparty classified as defaulted based on quantitative and qualitative criteria.
› Refer to “Credit policies for distressed assets” in the “Risk management and control” section of the UBS Group AG Annual Report 2021 for more information
An allowance for credit losses is reported as a decrease in the carrying amount of a financial asset. For an off-balance sheet item, such as a commitment, a provision for credit losses is reported in Provisions. Changes to allowances and provisions for credit losses are recognized in Credit loss (expense) / release.
› Refer to Note 14 for more information
10
Note 2 Accounting policies (continued)
Dispensations in the standalone financial statements
As UBS AG prepares consolidated financial statements in accordance with IFRS, UBS AG is exempt from various disclosures in the standalone financial statements. The dispensations include the management report, the statement of cash flows and various note disclosures, as well as the publication of full interim financial statements. As a Swiss issuer of debt, in order to validly issue debt throughout the year, UBS AG discloses interim mid-year financial information as per the requirements of Art. 1156 of the Swiss Code of Obligations in conjunction with Art. 652a thereof, including an income statement, a balance sheet and a note on the basis of accounting.
b) Changes in accounting policies
There were no significant changes in accounting policies during 2021.
|
| USD million |
| CHF million | ||
|
| For the year ended |
| For the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Investment Bank |
| 3,588 | 4,235 |
| 3,263 | 3,981 |
of which: Global Markets |
| 3,632 | 4,208 |
| 3,303 | 3,954 |
of which: Global Banking |
| (44) | 27 |
| (40) | 27 |
Other business divisions and Group Functions |
| 35 | 88 |
| 38 | 79 |
Total net trading income |
| 3,623 | 4,323 |
| 3,301 | 4,060 |
2021 included a loss of USD 861 million (CHF 811 million) incurred in the first half of 2021 in the Investment Bank on a default by a US-based client of UBS AG’s prime brokerage business.
|
| USD million |
| CHF million | ||
|
| For the year ended |
| For the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Equity instruments (including funds) |
| 2,283 | 2,014 |
| 2,069 | 1,885 |
Foreign exchange instruments |
| 978 | 1,305 |
| 896 | 1,231 |
Interest rate and credit instruments (including funds) |
| 310 | 965 |
| 290 | 908 |
Other |
| 51 | 40 |
| 47 | 37 |
Total net trading income |
| 3,623 | 4,323 |
| 3,301 | 4,060 |
of which: net gains / (losses) from financial liabilities designated at fair value 1 |
| (4,318) | 1,661 |
| (3,929) | 1,950 |
1 Excludes fair value changes of hedges related to financial liabilities designated at fair value and foreign currency effects arising from translating foreign currency transactions into the respective functional currency, both of which are reported within Net trading income. |
Note 4 Dividend income from investments in subsidiaries and other participations
The increase in Dividend income from investments in subsidiaries and other participations of USD 3,187 million (CHF 2,887 million) was mainly attributable to UBS Americas Holding LLC and UBS Europe SE, as in 2021 dividends of USD 3,788 million (CHF 3,490 million) and USD 1,363 million (CHF 1,249 million), respectively, were received, compared with dividends of USD 945 million (CHF 881 million) and USD 14 million (CHF 13 million), respectively, received in 2020. This was partly offset by lower dividends received from UBS Switzerland AG of USD 377 million (CHF 344 million) in 2021, compared with USD 1,382 million (CHF 1,298 million) in 2020.
11
UBS AG standalone financial statements (audited)
|
| USD million |
| CHF million | ||
|
| For the year ended |
| For the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Income from services provided to UBS Group AG or its subsidiaries1 |
| 1,312 | 1,272 |
| 1,201 | 1,187 |
Other |
| 30 | 16 |
| 28 | 15 |
Total sundry ordinary income |
| 1,342 | 1,288 |
| 1,229 | 1,202 |
Expenses from revenue transfers to UBS Group AG or its subsidiaries |
| (289) | (418) |
| (262) | (389) |
Other |
| (49) | (16) |
| (45) | (15) |
Total sundry ordinary expenses |
| (338) | (434) |
| (308) | (404) |
1 Services provided by UBS AG primarily related to Group Functions. |
Note 6 Personnel expenses
|
| USD million |
| CHF million | ||
|
| For the year ended |
| For the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Salaries |
| 1,710 | 1,671 |
| 1,566 | 1,560 |
Variable compensation – performance awards |
| 1,158 | 1,264 |
| 1,060 | 1,184 |
Variable compensation – other |
| 53 | 51 |
| 48 | 48 |
Contractors |
| 51 | 49 |
| 47 | 45 |
Social security |
| 216 | 215 |
| 198 | 201 |
Post-employment benefit plans |
| (74) | 195 |
| (73) | 190 |
of which: value adjustments for economic benefits or obligations from non-Swiss pension funds 1 |
| (208) | 61 |
| (195) | 64 |
Other personnel expenses |
| 106 | 102 |
| 97 | 95 |
Total personnel expenses |
| 3,221 | 3,545 |
| 2,943 | 3,323 |
1 Reflects the remeasurement of the defined benefit obligation and return on plan assets excluding amounts included in interest income for the non-Swiss defined benefit plans, for which IAS 19 is applied. |
|
| USD million |
| CHF million | ||
|
| For the year ended |
| For the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Real estate |
| 461 | 511 |
| 422 | 477 |
Market data services |
| 108 | 106 |
| 99 | 99 |
IT expenses |
| 90 | 73 |
| 83 | 68 |
Outsourcing costs |
| 83 | 86 |
| 76 | 81 |
Marketing & communication |
| 29 | 31 |
| 27 | 28 |
Travel and entertainment |
| 18 | 22 |
| 16 | 21 |
Fees to audit firms |
| 13 | 14 |
| 12 | 13 |
of which: financial and regulatory audits |
| 11 | 12 |
| 10 | 11 |
of which: audit-related services |
| 2 | 2 |
| 2 | 2 |
of which: tax and other services |
| 0 | 0 |
| 0 | 0 |
Other professional fees |
| 108 | 127 |
| 99 | 118 |
Other G&A |
| 2,715 | 2,693 |
| 2,484 | 2,510 |
of which: shared services costs charged by UBS Group AG or its subsidiaries |
| 2,524 | 2,492 |
| 2,310 | 2,324 |
Total general and administrative expenses |
| 3,625 | 3,662 |
| 3,317 | 3,413 |
1 In 2021, UBS AG changed the presentation of the line items within general and administrative expenses. Prior-period information reflects the new presentation structure, with no effect on Total general and administrative expenses. |
12
Note 8 Impairment of investments in subsidiaries and other participations
UBS AG recognized an Impairment of investments in subsidiaries and other participations of USD 1,187 million (CHF 1,090 million) in 2021 compared with USD 134 million (CHF 127 million) in 2020. The increase mainly related to UBS Europe SE, as in 2021 an impairment of USD 1,063 million (CHF 973 million) was recorded, following a dividend received of USD 1,363 million (CHF 1,249 million).
2021 included a USD 755 million (CHF 688 million) increase in litigation provisions for the French cross-border matter.
› Refer to Note 18 to the UBS AG consolidated financial statements in the UBS Group AG and UBS AG Annual Report 2021 for more information
|
| USD million |
| CHF million | ||
|
| For the year ended |
| For the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Reversal of impairments of and provisions for subsidiaries and other participations1 |
| 161 | 258 |
| 151 | 240 |
Net gains from disposals of properties |
| 114 | 168 |
| 104 | 155 |
Gains from disposals of subsidiaries and other participations |
| 2 | 1 |
| 2 | 1 |
Other extraordinary income |
| 5 | 8 |
| 5 | 8 |
Total extraordinary income |
| 282 | 435 |
| 262 | 403 |
Total extraordinary expenses |
| 1 | 0 |
| 1 | 0 |
1 Refer to Note 18 for more information. |
Net gains from disposals of properties of USD 114 million (CHF 104 million) in 2021 mainly reflected gains on the sale of properties in Basel. Net gains from disposals of properties of USD 168 million (CHF 155 million) in 2020 mainly reflected a gain on the sale of a property in Geneva.
|
| USD million |
| CHF million | ||
|
| For the year ended |
| For the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Income tax expense / (benefit) |
| 307 | 455 |
| 279 | 421 |
of which: current |
| 282 | 459 |
| 256 | 424 |
of which: deferred |
| 25 | (4) |
| 23 | (3) |
Capital tax |
| 8 | 21 |
| 7 | 20 |
Total tax expense / (benefit) |
| 315 | 476 |
| 286 | 440 |
There was an income tax expense of USD 307 million (CHF 279 million) for 2021, as compared to an income tax expense of USD 455 million (CHF 421 million) for 2020. The income tax expense for 2021 was reduced by a benefit of USD 163 million (CHF 149 million) in respect of the utilization of tax losses carried forward, primarily in the US. The income tax expense for 2021 relates to UBS AG’s taxable profits that were earned in other locations.
The income tax expense for 2020 was reduced by a benefit of USD 164 million (CHF 153 million) in respect of the utilization of tax losses carried forward, primarily in the US. The income tax expense for 2020 relates to UBS AG’s taxable profits that were earned in other locations.
For 2021, the average tax rate, defined as income tax expense divided by the sum of operating profit and extraordinary income minus extraordinary expenses and capital tax, was 4.5% (2020: 9.1%).
13
UBS AG standalone financial statements (audited)
|
| USD billion |
| CHF billion | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
|
|
|
|
|
|
|
On-balance sheet |
|
|
|
|
|
|
Receivables from securities financing transactions, gross |
| 139.9 | 125.4 |
| 127.6 | 111.1 |
Netting of securities financing transactions |
| (83.6) | (62.1) |
| (76.2) | (55.0) |
Receivables from securities financing transactions, net |
| 56.3 | 63.3 |
| 51.4 | 56.1 |
|
|
|
|
|
|
|
Payables from securities financing transactions, gross |
| 106.6 | 86.5 |
| 97.2 | 76.6 |
Netting of securities financing transactions |
| (83.6) | (62.1) |
| (76.2) | (55.0) |
Payables from securities financing transactions, net |
| 23.0 | 24.4 |
| 21.0 | 21.6 |
|
|
|
|
|
|
|
Assets pledged as collateral in connection with securities financing transactions |
| 58.8 | 64.4 |
| 53.6 | 57.0 |
of which: trading portfolio assets |
| 57.0 | 61.5 |
| 52.0 | 54.5 |
of which: assets that may be sold or repledged by counterparties |
| 47.3 | 54.0 |
| 43.1 | 47.8 |
of which: financial investments |
| 1.8 | 2.9 |
| 1.6 | 2.6 |
of which: assets that may be sold or repledged by counterparties |
| 1.8 | 2.9 |
| 1.6 | 2.6 |
|
|
|
|
|
|
|
Off-balance sheet |
|
|
|
|
|
|
Fair value of assets received as collateral in connection with securities financing transactions |
| 343.5 | 332.2 |
| 313.2 | 294.2 |
of which: repledged |
| 248.0 | 222.1 |
| 226.1 | 196.7 |
of which: sold in connection with short sale transactions |
| 25.7 | 28.8 |
| 23.4 | 25.5 |
|
| 31.12.21 |
| 31.12.20 | ||||||||||||||||
|
| Secured |
| Unsecured |
| Total |
| Secured |
| Unsecured |
| Total | ||||||||
|
| Secured by collateral |
| Secured by other credit enhancements2 |
|
|
|
|
| Secured by collateral |
| Secured by other credit enhancements2 |
|
|
|
| ||||
USD million |
| Real estate |
| Other collateral1 |
|
|
|
|
|
| Real estate |
| Other collateral1 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from customers, gross3 |
| 4 |
| 85,928 |
| 192 |
| 35,9014 |
| 122,025 |
| 2 |
| 93,800 |
| 355 |
| 30,8134 |
| 124,970 |
Mortgage loans, gross |
| 5,496 |
|
|
|
|
|
|
| 5,496 |
| 5,417 |
|
|
|
|
|
|
| 5,417 |
of which: residential mortgages |
| 4,233 |
|
|
|
|
|
|
| 4,233 |
| 4,538 |
|
|
|
|
|
|
| 4,538 |
of which: office and business premises mortgages |
| 671 |
|
|
|
|
|
|
| 671 |
| 715 |
|
|
|
|
|
|
| 715 |
of which: industrial premises mortgages |
| 454 |
|
|
|
|
|
|
| 454 |
| 54 |
|
|
|
|
|
|
| 54 |
of which: other mortgages |
| 138 |
|
|
|
|
|
|
| 138 |
| 111 |
|
|
|
|
|
|
| 111 |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
|
|
|
|
|
|
| 27,561 |
| 27,561 |
|
|
|
|
|
|
| 26,406 |
| 26,406 |
Total on-balance sheet, gross |
| 5,500 |
| 85,928 |
| 192 |
| 63,463 |
| 155,083 |
| 5,419 |
| 93,800 |
| 355 |
| 57,218 |
| 156,793 |
Allowances |
| (4) |
| (78) |
| 0 |
| (167) |
| (249) |
| (12) |
| (9) |
| (0) |
| (417) |
| (437) |
Total on-balance sheet, net |
| 5,496 |
| 85,850 |
| 192 |
| 63,296 |
| 154,834 |
| 5,407 |
| 93,791 |
| 355 |
| 56,802 |
| 156,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross |
| 0 |
| 8,190 |
| 1,093 |
| 9,762 |
| 19,046 |
| 0 |
| 5,813 |
| 1,287 |
| 7,517 |
| 14,617 |
Irrevocable commitments, gross |
| 253 |
| 8,192 |
| 226 |
| 8,723 |
| 17,394 |
| 239 |
| 7,526 |
| 212 |
| 11,359 |
| 19,337 |
Forward starting reverse repurchase and securities borrowing transactions |
|
|
| 24,559 |
|
|
| 0 |
| 24,559 |
|
|
| 17,265 |
|
|
|
|
| 17,265 |
Liabilities for calls on shares and other equities |
|
|
|
|
|
|
| 5 |
| 5 |
|
|
|
|
|
|
| 5 |
| 5 |
Total off-balance sheet |
| 253 |
| 40,941 |
| 1,320 |
| 18,490 |
| 61,005 |
| 240 |
| 30,604 |
| 1,499 |
| 18,881 |
| 51,224 |
1 Mainly comprised of cash and securities. 2 Includes guarantees. 3 Includes prime brokerage margin lending receivables and prime brokerage receivables relating to securities financing transactions. 4 Primarily comprised of amounts due from subsidiaries and other Group entities. |
14
Note 13a Collateral for loans and off-balance sheet transactions (continued)
|
| 31.12.21 |
| 31.12.20 | ||||||||||||||||
|
| Secured |
| Unsecured |
| Total |
| Secured |
| Unsecured |
| Total | ||||||||
|
| Secured by collateral |
| Secured by other credit enhancements2 |
|
|
|
|
| Secured by collateral |
| Secured by other credit enhancements2 |
|
|
|
| ||||
CHF million |
| Real estate |
| Other collateral1 |
|
|
|
|
|
| Real estate |
| Other collateral1 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from customers, gross3 |
| 4 |
| 78,338 |
| 175 |
| 32,7304 |
| 111,247 |
| 1 |
| 83,063 |
| 315 |
| 27,2864 |
| 110,665 |
Mortgage loans, gross |
| 5,011 |
|
|
|
|
|
|
| 5,011 |
| 4,797 |
|
|
|
|
|
|
| 4,797 |
of which: residential mortgages |
| 3,859 |
|
|
|
|
|
|
| 3,859 |
| 4,019 |
|
|
|
|
|
|
| 4,019 |
of which: office and business premises mortgages |
| 612 |
|
|
|
|
|
|
| 612 |
| 633 |
|
|
|
|
|
|
| 633 |
of which: industrial premises mortgages |
| 414 |
|
|
|
|
|
|
| 414 |
| 47 |
|
|
|
|
|
|
| 47 |
of which: other mortgages |
| 126 |
|
|
|
|
|
|
| 126 |
| 98 |
|
|
|
|
|
|
| 98 |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
|
|
|
|
|
|
| 25,127 |
| 25,127 |
|
|
|
|
|
|
| 23,383 |
| 23,383 |
Total on-balance sheet, gross |
| 5,014 |
| 78,338 |
| 175 |
| 57,857 |
| 141,384 |
| 4,799 |
| 83,063 |
| 315 |
| 50,669 |
| 138,845 |
Allowances |
| (3) |
| (71) |
| 0 |
| (152) |
| (227) |
| (10) |
| (7) |
| (0) |
| (370) |
| (387) |
Total on-balance sheet, net |
| 5,011 |
| 78,267 |
| 175 |
| 57,705 |
| 141,157 |
| 4,788 |
| 83,056 |
| 315 |
| 50,299 |
| 138,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross |
| 0 |
| 7,467 |
| 997 |
| 8,900 |
| 17,364 |
| 0 |
| 5,147 |
| 1,140 |
| 6,657 |
| 12,944 |
Irrevocable commitments, gross |
| 231 |
| 7,468 |
| 206 |
| 7,953 |
| 15,858 |
| 212 |
| 6,665 |
| 188 |
| 10,059 |
| 17,123 |
Forward starting reverse repurchase and securities borrowing transactions |
|
|
| 22,390 |
|
|
| 0 |
| 22,390 |
|
|
| 15,289 |
|
|
|
|
| 15,289 |
Liabilities for calls on shares and other equities |
|
|
|
|
|
|
| 4 |
| 4 |
|
|
|
|
|
|
| 4 |
| 4 |
Total off-balance sheet |
| 231 |
| 37,325 |
| 1,203 |
| 16,857 |
| 55,616 |
| 212 |
| 27,101 |
| 1,328 |
| 16,720 |
| 45,361 |
1 Mainly comprised of cash and securities. 2 Includes guarantees. 3 Includes prime brokerage margin lending receivables and prime brokerage receivables relating to securities financing transactions. 4 Primarily comprised of amounts due from subsidiaries and other Group entities. |
|
| 31.12.21 |
| 31.12.20 | ||||||
USD million |
| Gross impaired financial instruments | Allowances and provisions | Estimated liquidation proceeds of collateral | Net impaired financial instruments |
| Gross impaired financial instruments | Allowances and provisions | Estimated liquidation proceeds of collateral | Net impaired financial instruments |
Amounts due from customers |
| 395 | 147 | 184 | 63 |
| 566 | 277 | 220 | 68 |
Mortgage loans |
| 118 | 4 | 114 | 0 |
| 180 | 11 | 167 | 1 |
Other assets |
| 1 | 1 | 0 | 0 |
| 2 | 2 | 0 | 0 |
Guarantees and loan commitments |
| 14 | 0 | 14 | 0 |
| 43 | 7 | 24 | 11 |
Total impaired financial instruments1 |
| 528 | 153 | 312 | 63 |
| 790 | 298 | 412 | 80 |
1 Impaired financial instruments are financial assets and off-balance sheet positions subject to incurred credit losses, also referred to as stage 3 positions. |
|
| 31.12.21 |
| 31.12.20 | ||||||
CHF million |
| Gross impaired financial instruments | Allowances and provisions | Estimated liquidation proceeds of collateral | Net impaired financial instruments |
| Gross impaired financial instruments | Allowances and provisions | Estimated liquidation proceeds of collateral | Net impaired financial instruments |
Amounts due from customers |
| 360 | 134 | 168 | 58 |
| 501 | 246 | 195 | 60 |
Mortgage loans |
| 108 | 4 | 104 | 0 |
| 159 | 10 | 148 | 1 |
Other assets |
| 1 | 1 | 0 | 0 |
| 2 | 1 | 0 | 0 |
Guarantees and loan commitments |
| 13 | 0 | 13 | 0 |
| 38 | 6 | 22 | 10 |
Total impaired financial instruments1 |
| 481 | 139 | 285 | 58 |
| 699 | 264 | 364 | 71 |
1 Impaired financial instruments are financial assets and off-balance sheet positions subject to incurred credit losses, also referred to as stage 3 positions. |
15
UBS AG standalone financial statements (audited)
Note 14 Allowances and provisions
Total allowances and provisions of USD 2,395 million (CHF 2,184 million) as of 31 December 2021 included allowances and provisions for credit losses of USD 336 million (CHF 307 million). Total allowances and provisions of USD 1,859 million (CHF 1,647 million) as of 31 December 2020 included allowances and provisions for credit losses of USD 556 million (CHF 492 million).
The 2021 decrease in allowances and provisions for credit losses of USD 219 million (CHF 185 million) includes total credit loss releases of USD 78 million (CHF 72 million), as well as USD 141 million (CHF 113 million) for write-offs and other movements that did not impact the income statement. Total credit loss releases in 2021 also included a net release of USD 6 million (CHF 5 million) on positions subject to incurred credit losses (also referred to as stage 3 losses), primarily related to Global Wealth Management.
USD million | Balance as of 31.12.20 | Increase recognized in the income statement | Release recognized in the income statement | Write-offs | Recoveries and past due interest | Reclassifications / other | Foreign currency translation | Balance as of 31.12.21 |
Default risk relating to on-balance sheet exposures | 448 | 1 | (49) | (135) | 1 | 0 | (8) | 259 |
of which: incurred credit losses | 291 | 1 | 0 | (135) | 1 | 0 | (6) | 153 |
of which: expected credit losses 1 | 157 | 0 | (49) | 0 | 0 | 0 | (2) | 106 |
Total allowances for credit losses | 448 | 1 | (49) | (135) | 1 | 0 | (8) | 259 |
1 Includes ECL allowances where an approach other than IFRS ECL is applied of USD 4 million as of 31 December 2021 (USD 4 million as of 31 December 2020). Refer to Note 2 for more information. |
CHF million | Balance as of 31.12.20 | Increase recognized in the income statement | Release recognized in the income statement | Write-offs | Recoveries and past due interest | Reclassifications / other | Foreign currency translation | Balance as of 31.12.21 |
Default risk relating to on-balance sheet exposures | 397 | 1 | (45) | (123) | 3 | 0 | 6 | 237 |
of which: incurred credit losses | 258 | 1 | 0 | (123) | 3 | 0 | 1 | 139 |
of which: expected credit losses 1 | 139 | 0 | (45) | 0 | 0 | 0 | 5 | 98 |
Total allowances for credit losses | 397 | 1 | (45) | (123) | 3 | 0 | 6 | 237 |
1 Includes ECL allowances where an approach other than IFRS ECL is applied of CHF 4 million as of 31 December 2021 (CHF 4 million as of 31 December 2020). Refer to Note 2 for more information. |
16
Note 14b Provisions
USD million | Balance as of 31.12.20 | Increase recognized in the income statement | Release recognized in the income statement | Provisions used in conformity with designated purpose | Recoveries | Reclassifications | Foreign currency translation / other2 | Balance as of 31.12.21 |
Default risk related to off-balance sheet items and credit lines | 108 | 0 | (30) | 0 | 0 | 0 | (1) | 77 |
of which: incurred credit losses | 7 | 0 | (7) | 0 | 0 | 0 | 0 | 0 |
of which: expected credit losses | 101 | 0 | (23) | 0 | 0 | 0 | (1) | 77 |
Litigation, regulatory and similar matters | 971 | 867 | (7) | (69) | 0 | 0 | (52) | 1,711 |
Restructuring | 100 | 54 | (21) | (66) | 0 | 0 | 4 | 70 |
Real estate1 | 117 | 34 | (4) | (32) | 0 | 0 | 15 | 130 |
Employee benefits | 29 | 5 | (7) | 0 | 0 | 0 | (1) | 25 |
Deferred taxes | 46 | 25 | 0 | 0 | 0 | 0 | 0 | 71 |
Other | 40 | 24 | (10) | (2) | 0 | 0 | 0 | 52 |
Total provisions | 1,411 | 1,009 | (79) | (169) | 0 | 0 | (36) | 2,136 |
1 Includes provisions for onerous contracts of USD 67 million as of 31 December 2021 (31 December 2020: USD 53 million) and reinstatement cost provisions for leasehold improvements of USD 63 million as of 31 December 2021 (31 December 2020: USD 64 million). 2 Other mainly includes changes related to capitalized reinstatement costs and unwind of discounting. |
CHF million | Balance as of 31.12.20 | Increase recognized in the income statement | Release recognized in the income statement | Provisions used in conformity with designated purpose | Recoveries | Reclassifications | Foreign currency translation / other2 | Balance as of 31.12.21 |
Default risk related to off-balance sheet items and credit lines | 95 | 0 | (28) | 0 | 0 | 0 | 2 | 70 |
of which: incurred credit losses | 6 | 0 | (6) | 0 | 0 | 0 | 0 | 0 |
of which: expected credit losses | 89 | 0 | (21) | 0 | 0 | 0 | 2 | 70 |
Litigation, regulatory and similar matters | 860 | 791 | (6) | (63) | 0 | 0 | (22) | 1,560 |
Restructuring | 88 | 49 | (19) | (61) | 0 | 0 | 7 | 64 |
Real estate1 | 104 | 32 | (3) | (29) | 0 | 0 | 16 | 119 |
Employee benefits | 25 | 4 | (6) | 0 | 0 | 0 | 0 | 23 |
Deferred taxes | 41 | 23 | 0 | 0 | 0 | 0 | 1 | 65 |
Other | 36 | 22 | (9) | (2) | 0 | 0 | 1 | 47 |
Total provisions | 1,250 | 921 | (73) | (155) | 0 | 0 | 4 | 1,947 |
1 Includes provisions for onerous contracts of CHF 61 million as of 31 December 2021 (31 December 2020: CHF 47 million) and reinstatement cost provisions for leasehold improvements of CHF 58 million as of 31 December 2021 (31 December 2020: CHF 57 million). 2 Other mainly includes changes related to capitalized reinstatement costs and unwind of discounting. |
17
UBS AG standalone financial statements (audited)
Note 14c Development of ECL allowances and provisions
USD million | Total | Stage 1 | Stage 2 | Stage 3 |
Balance as of 31 December 2020 | (556) | (193) | (65) | (298) |
Net movement from new and derecognized transactions1 | 15 | 6 | 9 | 0 |
of which: Large corporate clients | 1 | (8) | 9 | 0 |
of which: Financial intermediaries and hedge funds | 14 | 14 | 0 | 0 |
Remeasurements with stage transfers2 | (2) | 1 | 7 | (10) |
of which: Large corporate clients | (1) | 1 | 7 | (8) |
of which: SME clients | 1 | 0 | 0 | 0 |
of which: Financial intermediaries and hedge funds | (2) | 0 | 0 | (2) |
Remeasurements without stage transfers3 | 33 | 14 | 4 | 15 |
of which: Private clients with mortgages | (1) | 0 | 0 | (1) |
of which: Real estate financing | (1) | (1) | 0 | 0 |
of which: Large corporate clients | 9 | (5) | 3 | 10 |
of which: SME clients | 4 | (1) | 0 | 5 |
of which: Financial intermediaries and hedge funds | 22 | 20 | 0 | 1 |
Model changes4 | 32 | 23 | 9 | 0 |
Total ECL allowance movements with profit or loss impact | 78 | 44 | 29 | 6 |
Movements without profit or loss impact (write-off, FX and other)5 | 142 | 1 | 0 | 140 |
Balance as of 31 December 2021 | (336) | (148) | (35) | (153) |
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value. 4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates. |
CHF million | Total | Stage 1 | Stage 2 | Stage 3 |
Balance as of 31 December 2020 | (492) | (172) | (57) | (264) |
Net movement from new and derecognized transactions1 | 14 | 5 | 8 | 0 |
of which: Large corporate clients | 0 | (8) | 8 | 0 |
of which: Financial intermediaries and hedge funds | 13 | 13 | 0 | 0 |
Remeasurements with stage transfers2 | (2) | 1 | 7 | (9) |
of which: Large corporate clients | (1) | 1 | 7 | (8) |
of which: SME clients | 1 | 0 | 0 | 0 |
of which: Financial intermediaries and hedge funds | (2) | 0 | 0 | (2) |
Remeasurements without stage transfers3 | 31 | 13 | 3 | 14 |
of which: Private clients with mortgages | (1) | 0 | 0 | (1) |
of which: Real estate financing | 0 | 0 | 0 | 0 |
of which: Large corporate clients | 8 | (4) | 3 | 10 |
of which: SME clients | 4 | (1) | 0 | 4 |
of which: Financial intermediaries and hedge funds | 20 | 19 | 0 | 1 |
Model changes4 | 29 | 21 | 9 | 0 |
Total ECL allowance movements with profit or loss impact | 72 | 41 | 27 | 5 |
Movements without profit or loss impact (write-off, FX and other)5 | 113 | (6) | (2) | 120 |
Balance as of 31 December 2021 | (307) | (136) | (32) | (139) |
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value. 4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates. |
18
Note 14d Balance sheet and off-balance sheet positions subject to ECL
The tables below provide ECL exposure and ECL allowance and provision information about financial instruments and certain non-financial instruments that are subject to ECL.
USD million |
| 31.12.21 | ||||||||
|
| Carrying amount1 |
| ECL allowances | ||||||
Financial instruments measured at amortized cost |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Cash and balances at central banks |
| 53,760 | 53,760 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Due from banks |
| 33,330 | 33,330 | 0 | 0 |
| (5) | (5) | (0) | 0 |
Receivables from securities financing transactions |
| 56,336 | 56,336 | 0 | 0 |
| (2) | (2) | (0) | 0 |
Due from customers2 |
| 121,812 | 119,892 | 1,672 | 247 |
| (214) | (56) | (10) | (147) |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 27,530 | 27,530 | 0 | 0 |
| (32) | (32) | 0 | 0 |
Mortgage loans |
| 5,492 | 5,379 | 0 | 114 |
| (4) | 0 | 0 | (4) |
Accrued income and prepaid expenses |
| 1,213 | 1,212 | 2 | 0 |
| 0 | 0 | 0 | 0 |
Other assets3 |
| 912 | 912 | 0 | 0 |
| (2) | (1) | (0) | (1) |
Total on balance sheet financial assets in scope of ECL |
| 300,386 | 298,351 | 1,674 | 361 |
| (259) | (96) | (10) | (153) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total exposure |
| ECL provisions | ||||||
Off-balance sheet (in scope of ECL) |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Contingent liabilities, gross |
| 19,046 | 18,860 | 176 | 10 |
| (4) | (3) | (1) | 0 |
Irrevocable commitments, gross |
| 17,394 | 15,967 | 1,423 | 4 |
| (72) | (49) | (24) | 0 |
Forward starting transactions (securities financing transactions)4 |
| 1,097 | 1,097 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Credit lines |
| 8,388 | 7,966 | 422 | 0 |
| (1) | (1) | (1) | 0 |
Irrevocable committed prolongation of existing loans |
| 736 | 736 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Total off-balance sheet financial instruments and credit lines in scope of ECL |
| 46,662 | 44,627 | 2,021 | 14 |
| (77) | (52) | (25) | 0 |
Total allowances and provisions |
|
|
|
|
|
| (336) | (148) | (35) | (153) |
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes USD 4 million ECL allowances where an approach other than "IFRS ECL" is applied. Refer to Note 2 for more information. 3 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS Group and other assets in scope of ECL. Refer to Note 19a for more information. 4 Includes forward starting reverse repurchase agreements in scope of ECL. |
CHF million |
| 31.12.21 | ||||||||
|
| Carrying amount1 |
| ECL allowances | ||||||
Financial instruments measured at amortized cost |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Cash and balances at central banks |
| 49,012 | 49,012 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Due from banks |
| 30,386 | 30,386 | 0 | 0 |
| (5) | (5) | (0) | 0 |
Receivables from securities financing transactions |
| 51,360 | 51,360 | 0 | 0 |
| (2) | (2) | (0) | 0 |
Due from customers2 |
| 111,052 | 109,302 | 1,524 | 225 |
| (195) | (51) | (9) | (134) |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 25,098 | 25,098 | 0 | 0 |
| (29) | (29) | 0 | 0 |
Mortgage loans |
| 5,007 | 4,904 | 0 | 104 |
| (4) | 0 | 0 | (4) |
Accrued income and prepaid expenses |
| 1,106 | 1,105 | 1 | 0 |
| 0 | 0 | 0 | 0 |
Other assets3 |
| 832 | 832 | 0 | 0 |
| (2) | (1) | (0) | (1) |
Total on balance sheet financial assets in scope of ECL |
| 273,853 | 271,998 | 1,526 | 329 |
| (237) | (89) | (9) | (139) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total exposure |
| ECL provisions | ||||||
Off-balance sheet (in scope of ECL) |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Contingent liabilities, gross |
| 17,364 | 17,194 | 160 | 9 |
| (3) | (2) | (1) | 0 |
Irrevocable commitments, gross |
| 15,858 | 14,557 | 1,298 | 4 |
| (65) | (44) | (21) | 0 |
Forward starting transactions (securities financing transactions)4 |
| 1,000 | 1,000 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Credit lines |
| 7,647 | 7,263 | 384 | 0 |
| (2) | (1) | (1) | 0 |
Irrevocable committed prolongation of existing loans |
| 671 | 671 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Total off-balance sheet financial instruments and credit lines in scope of ECL |
| 42,540 | 40,685 | 1,842 | 13 |
| (70) | (47) | (23) | 0 |
Total allowances and provisions |
|
|
|
|
|
| (307) | (136) | (32) | (139) |
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes CHF 4 million ECL allowances where an approach other than "IFRS ECL" is applied. Refer to Note 2 for more information. 3 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS Group and other assets in scope of ECL. Refer to Note 19a for more information. 4 Includes forward starting reverse repurchase agreements in scope of ECL. |
19
UBS AG standalone financial statements (audited)
Note 14d Balance sheet and off-balance sheet positions subject to ECL (continued)
USD million |
| 31.12.20 | ||||||||
|
| Carrying amount1 |
| ECL allowances | ||||||
Financial instruments measured at amortized cost |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Cash and balances at central banks |
| 34,148 | 34,148 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Due from banks |
| 38,357 | 38,348 | 9 | 0 |
| (7) | (7) | (0) | 0 |
Receivables from securities financing transactions |
| 63,305 | 63,305 | 0 | 0 |
| (2) | (2) | 0 | 0 |
Due from customers2 |
| 124,596 | 121,988 | 2,319 | 288 |
| (374) | (76) | (20) | (277) |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 26,354 | 26,354 | 0 | 0 |
| (52) | (52) | 0 | 0 |
Mortgage loans |
| 5,406 | 5,193 | 45 | 167 |
| (11) | 0 | 0 | (11) |
Accrued income and prepaid expenses |
| 1,414 | 1,412 | 2 | 0 |
| 0 | 0 | 0 | 0 |
Other assets3 |
| 922 | 922 | 0 | 0 |
| (2) | (0) | (0) | (2) |
Total on balance sheet financial assets in scope of ECL |
| 294,502 | 291,669 | 2,376 | 457 |
| (448) | (137) | (20) | (291) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total exposure |
| ECL provisions | ||||||
Off-balance sheet (in scope of ECL) |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Contingent liabilities, gross |
| 14,617 | 14,345 | 259 | 13 |
| (11) | (2) | (2) | (7) |
Irrevocable commitments, gross |
| 19,337 | 16,790 | 2,523 | 23 |
| (95) | (53) | (42) | 0 |
Forward starting transactions (securities financing transactions)4 |
| 2,869 | 2,869 | 0 | 0 |
| (0) | (0) | 0 | 0 |
Credit lines |
| 7,378 | 6,842 | 529 | 7 |
| (1) | (1) | (0) | 0 |
Irrevocable committed prolongation of existing loans |
| 1,071 | 1,071 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Total off-balance sheet financial instruments and credit lines in scope of ECL |
| 45,272 | 41,918 | 3,312 | 43 |
| (108) | (56) | (45) | (7) |
Total allowances and provisions |
|
|
|
|
|
| (556) | (193) | (65) | (298) |
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes USD 4 million ECL allowances where an approach other than "IFRS ECL" is applied. Refer to Note 2 for more information. 3 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS Group and other assets in scope of ECL. Refer to Note 19a for more information. 4 Includes forward starting reverse repurchase agreements in scope of ECL. |
CHF million |
| 31.12.20 | ||||||||
|
| Carrying amount1 |
| ECL allowances | ||||||
Financial instruments measured at amortized cost |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Cash and balances at central banks |
| 30,239 | 30,239 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Due from banks |
| 33,966 | 33,958 | 8 | 0 |
| (6) | (6) | (0) | 0 |
Receivables from securities financing transactions |
| 56,058 | 56,058 | 0 | 0 |
| (2) | (2) | 0 | 0 |
Due from customers2 |
| 110,334 | 108,024 | 2,054 | 255 |
| (331) | (68) | (17) | (246) |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 23,337 | 23,337 | 0 | 0 |
| (46) | (46) | 0 | 0 |
Mortgage loans |
| 4,787 | 4,599 | 40 | 148 |
| (10) | 0 | 0 | (10) |
Accrued income and prepaid expenses |
| 1,253 | 1,250 | 2 | 0 |
| 0 | 0 | 0 | 0 |
Other assets3 |
| 817 | 817 | 0 | 0 |
| (1) | (0) | (0) | (1) |
Total on balance sheet financial assets in scope of ECL |
| 260,791 | 258,282 | 2,104 | 404 |
| (397) | (122) | (17) | (258) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total exposure |
| ECL provisions | ||||||
Off-balance sheet (in scope of ECL) |
| Total | Stage 1 | Stage 2 | Stage 3 |
| Total | Stage 1 | Stage 2 | Stage 3 |
Contingent liabilities, gross |
| 12,944 | 12,703 | 230 | 11 |
| (10) | (2) | (2) | (6) |
Irrevocable commitments, gross |
| 17,123 | 14,868 | 2,234 | 20 |
| (84) | (47) | (38) | 0 |
Forward starting transactions (securities financing transactions)4 |
| 2,540 | 2,540 | 0 | 0 |
| (0) | (0) | 0 | 0 |
Credit lines |
| 6,534 | 6,058 | 469 | 7 |
| (1) | (1) | (0) | 0 |
Irrevocable committed prolongation of existing loans |
| 949 | 949 | 0 | 0 |
| 0 | 0 | 0 | 0 |
Total off-balance sheet financial instruments and credit lines in scope of ECL |
| 40,090 | 37,119 | 2,933 | 38 |
| (95) | (50) | (40) | (6) |
Total allowances and provisions |
|
|
|
|
|
| (492) | (172) | (57) | (264) |
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes CHF 4 million ECL allowances where an approach other than "IFRS ECL" is applied. Refer to Note 2 for more information. 3 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS Group and other assets in scope of ECL. Refer to Note 19a for more information. 4 Includes forward starting reverse repurchase agreements in scope of ECL. |
20
Note 14e Financial assets subject to credit risk by rating category
The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s internal credit rating system and year-end stage classification.
Financial assets subject to credit risk by rating category | ||||||||||
USD million |
| 31.12.21 | ||||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total gross carrying amount | ECL allowances | Net carrying amount (maximum exposure to credit risk) |
Financial instruments measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
Cash and balances at central banks |
| 53,680 | 80 | 0 | 0 | 0 | 0 | 53,760 | 0 | 53,760 |
of which: stage 1 |
| 53,680 | 80 | 0 | 0 | 0 | 0 | 53,760 | 0 | 53,760 |
Due from banks |
| 466 | 32,410 | 454 | 0 | 4 | 0 | 33,335 | (5) | 33,330 |
of which: stage 1 |
| 466 | 32,410 | 454 | 0 | 4 | 0 | 33,335 | (5) | 33,330 |
Receivables from securities financing transactions |
| 13,983 | 8,793 | 8,256 | 23,871 | 1,435 | 0 | 56,338 | (2) | 56,336 |
of which: stage 1 |
| 13,983 | 8,793 | 8,256 | 23,871 | 1,435 | 0 | 56,338 | (2) | 56,336 |
Due from customers |
| 3,116 | 34,793 | 14,591 | 66,766 | 2,365 | 395 | 122,025 | (214) | 121,812 |
of which: stage 1 |
| 3,116 | 34,790 | 14,236 | 66,007 | 1,800 | 0 | 119,948 | (56) | 119,892 |
of which: stage 2 |
| 0 | 3 | 355 | 759 | 566 | 0 | 1,682 | (10) | 1,672 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 395 | 395 | (147) | 247 |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 0 | 27,561 | 0 | 0 | 0 | 0 | 27,561 | (32) | 27,530 |
of which: stage 1 |
| 0 | 27,561 | 0 | 0 | 0 | 0 | 27,561 | (32) | 27,530 |
Mortgage loans |
| 0 | 2 | 457 | 4,919 | 1 | 118 | 5,496 | (4) | 5,492 |
of which: stage 1 |
| 0 | 1 | 457 | 4,919 | 1 | 0 | 5,379 | (0) | 5,379 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 118 | 118 | (4) | 114 |
Accrued income and prepaid expenses |
| 47 | 225 | 327 | 582 | 33 | 0 | 1,213 | 0 | 1,213 |
of which: stage 1 |
| 47 | 225 | 327 | 581 | 32 | 0 | 1,212 | 0 | 1,212 |
of which: stage 2 |
| 0 | 0 | 0 | 1 | 1 | 0 | 2 | 0 | 2 |
Other assets |
| 0 | 100 | 2 | 810 | 3 | 1 | 915 | (2) | 912 |
of which: stage 1 |
| 0 | 100 | 2 | 810 | 3 | 0 | 914 | (1) | 912 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 1 | 1 | (1) | (0) |
Total in scope of ECL assets / ECL amounts by stages |
| 71,293 | 103,963 | 24,086 | 96,948 | 3,841 | 514 | 300,644 | (259) | 300,386 |
Off-balance sheet positions and credit lines subject to expected credit loss by rating category | |||||||||
USD million |
| 31.12.21 | |||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total off-balance sheet exposure (maximum exposure to credit risk) | ECL provisions |
Off-balance sheet (in scope of ECL) |
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross |
| 4,385 | 10,960 | 1,782 | 1,498 | 411 | 10 | 19,046 | (4) |
of which: stage 1 |
| 4,385 | 10,937 | 1,729 | 1,495 | 315 | 0 | 18,860 | (3) |
of which: stage 2 |
| 0 | 24 | 52 | 3 | 97 | 0 | 176 | (1) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 10 | 10 | (0) |
Irrevocable commitments, gross |
| 1,778 | 5,058 | 3,316 | 2,082 | 5,156 | 4 | 17,394 | (72) |
of which: stage 1 |
| 1,778 | 4,792 | 3,107 | 1,758 | 4,532 | 0 | 15,967 | (49) |
of which: stage 2 |
| 0 | 266 | 209 | 324 | 624 | 0 | 1,423 | (24) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 4 | 4 | 0 |
Forward starting transactions (securities financing transactions) |
| 0 | 0 | 0 | 1,097 | 0 | 0 | 1,097 | (0) |
of which: stage 1 |
| 0 | 0 | 0 | 1,097 | 0 | 0 | 1,097 | (0) |
Credit lines |
| 6 | 3,314 | 135 | 3,771 | 1,161 | 0 | 8,388 | (1) |
of which: stage 1 |
| 6 | 3,266 | 8 | 3,567 | 1,119 | 0 | 7,966 | (1) |
of which: stage 2 |
| 0 | 48 | 127 | 204 | 42 | 0 | 422 | (1) |
Irrevocable committed prolongation of existing loans |
| 0 | 736 | 0 | 0 | 0 | 0 | 736 | 0 |
of which: stage 1 |
| 0 | 736 | 0 | 0 | 0 | 0 | 736 | 0 |
Total off-balance sheet financial instruments and credit lines |
| 6,168 | 20,069 | 5,233 | 8,448 | 6,729 | 14 | 46,662 | (77) |
21
UBS AG standalone financial statements (audited)
Note 14e Financial assets subject to credit risk by rating category (continued)
Financial assets subject to credit risk by rating category | ||||||||||
CHF million |
| 31.12.21 | ||||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total gross carrying amount | ECL allowances | Net carrying amount (maximum exposure to credit risk) |
Financial instruments measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
Cash and balances at central banks |
| 48,939 | 73 | 0 | 0 | 0 | 0 | 49,012 | 0 | 49,012 |
of which: stage 1 |
| 48,939 | 73 | 0 | 0 | 0 | 0 | 49,012 | 0 | 49,012 |
Due from banks |
| 425 | 29,548 | 414 | 0 | 4 | 0 | 30,391 | (5) | 30,386 |
of which: stage 1 |
| 425 | 29,548 | 414 | 0 | 4 | 0 | 30,391 | (5) | 30,386 |
Receivables from securities financing transactions |
| 12,748 | 8,016 | 7,527 | 21,763 | 1,308 | 0 | 51,362 | (2) | 51,360 |
of which: stage 1 |
| 12,748 | 8,016 | 7,527 | 21,763 | 1,308 | 0 | 51,362 | (2) | 51,360 |
Due from customers |
| 2,841 | 31,719 | 13,302 | 60,868 | 2,156 | 360 | 111,247 | (195) | 111,052 |
of which: stage 1 |
| 2,841 | 31,717 | 12,978 | 60,176 | 1,641 | 0 | 109,353 | (51) | 109,302 |
of which: stage 2 |
| 0 | 2 | 324 | 692 | 516 | 0 | 1,533 | (9) | 1,524 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 360 | 360 | (134) | 225 |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 0 | 25,127 | 0 | 0 | 0 | 0 | 25,127 | (29) | 25,098 |
of which: stage 1 |
| 0 | 25,127 | 0 | 0 | 0 | 0 | 25,127 | (29) | 25,098 |
Mortgage loans |
| 0 | 1 | 416 | 4,485 | 1 | 108 | 5,011 | (4) | 5,007 |
of which: stage 1 |
| 0 | 1 | 416 | 4,485 | 1 | 0 | 4,903 | (0) | 4,904 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 108 | 108 | (4) | 104 |
Accrued income and prepaid expenses |
| 43 | 205 | 298 | 531 | 30 | 0 | 1,106 | 0 | 1,106 |
of which: stage 1 |
| 43 | 205 | 298 | 530 | 29 | 0 | 1,105 | 0 | 1,105 |
of which: stage 2 |
| 0 | 0 | 0 | 1 | 1 | 0 | 1 | 0 | 1 |
Other assets |
| 0 | 91 | 1 | 738 | 3 | 1 | 834 | (2) | 832 |
of which: stage 1 |
| 0 | 91 | 1 | 738 | 3 | 0 | 834 | (1) | 832 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 1 | 1 | (1) | (0) |
Total in scope of ECL assets / ECL amounts by stages |
| 64,996 | 94,781 | 21,958 | 88,384 | 3,501 | 468 | 274,089 | (237) | 273,853 |
Off-balance sheet positions and credit lines subject to expected credit loss by rating category | |||||||||
CHF million |
| 31.12.21 | |||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total off-balance sheet exposure (maximum exposure to credit risk) | ECL provisions |
Off-balance sheet (in scope of ECL) |
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross |
| 3,997 | 9,992 | 1,624 | 1,366 | 375 | 9 | 17,364 | (3) |
of which: stage 1 |
| 3,997 | 9,971 | 1,577 | 1,363 | 287 | 0 | 17,194 | (2) |
of which: stage 2 |
| 0 | 22 | 47 | 3 | 88 | 0 | 160 | (1) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 9 | 9 | (0) |
Irrevocable commitments, gross |
| 1,621 | 4,612 | 3,023 | 1,898 | 4,701 | 4 | 15,858 | (65) |
of which: stage 1 |
| 1,621 | 4,369 | 2,833 | 1,602 | 4,132 | 0 | 14,557 | (44) |
of which: stage 2 |
| 0 | 243 | 191 | 295 | 569 | 0 | 1,298 | (21) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 4 | 4 | 0 |
Forward starting transactions (securities financing transactions) |
| 0 | 0 | 0 | 1,000 | 0 | 0 | 1,000 | 0 |
of which: stage 1 |
| 0 | 0 | 0 | 1,000 | 0 | 0 | 1,000 | 0 |
Credit lines |
| 5 | 3,021 | 123 | 3,438 | 1,059 | 0 | 7,647 | (2) |
of which: stage 1 |
| 5 | 2,978 | 7 | 3,252 | 1,020 | 0 | 7,263 | (1) |
of which: stage 2 |
| 0 | 44 | 116 | 186 | 39 | 0 | 384 | (1) |
Irrevocable committed prolongation of existing loans |
| 0 | 671 | 0 | 0 | 0 | 0 | 671 | 0 |
of which: stage 1 |
| 0 | 671 | 0 | 0 | 0 | 0 | 671 | 0 |
Total off-balance sheet financial instruments and credit lines |
| 5,623 | 18,296 | 4,771 | 7,702 | 6,135 | 13 | 42,540 | (70) |
› Refer to Note 9 and Note 20 to the UBS AG consolidated financial statements in the UBS Group AG and UBS AG Annual Report 2021 for more information on ECL in accordance with IFRS
22
Note 14e Financial assets subject to credit risk by rating category (continued)
Financial assets subject to credit risk by rating category | ||||||||||
USD million |
| 31.12.20 | ||||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total gross carrying amount | ECL allowances | Net carrying amount (maximum exposure to credit risk) |
Financial instruments measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
Cash and balances at central banks |
| 34,119 | 28 | 0 | 0 | 0 | 0 | 34,148 | 0 | 34,148 |
of which: stage 1 |
| 34,119 | 28 | 0 | 0 | 0 | 0 | 34,148 | 0 | 34,148 |
Due from banks |
| 273 | 36,166 | 523 | 1,381 | 21 | 0 | 38,364 | (7) | 38,357 |
of which: stage 1 |
| 273 | 36,166 | 523 | 1,381 | 12 | 0 | 38,355 | (7) | 38,348 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 9 | 0 | 9 | 0 | 9 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Receivables from securities financing transactions |
| 9,831 | 6,419 | 13,122 | 32,092 | 1,842 | 0 | 63,306 | (2) | 63,305 |
of which: stage 1 |
| 9,831 | 6,419 | 13,122 | 32,092 | 1,842 | 0 | 63,306 | (2) | 63,305 |
Due from customers |
| 2,473 | 31,658 | 17,210 | 71,515 | 1,548 | 566 | 124,970 | (374) | 124,596 |
of which: stage 1 |
| 2,473 | 31,658 | 16,568 | 70,409 | 958 | 0 | 122,065 | (76) | 121,988 |
of which: stage 2 |
| 0 | 0 | 642 | 1,107 | 590 | 0 | 2,339 | (20) | 2,319 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 566 | 566 | (277) | 288 |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 0 | 26,406 | 0 | 0 | 0 | 0 | 26,406 | (52) | 26,354 |
of which: stage 1 |
| 0 | 26,406 | 0 | 0 | 0 | 0 | 26,406 | (52) | 26,354 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mortgage loans |
| 0 | 1 | 80 | 5,155 | 1 | 179 | 5,417 | (11) | 5,406 |
of which: stage 1 |
| 0 | 1 | 35 | 5,155 | 1 | 0 | 5,193 | 0 | 5,193 |
of which: stage 2 |
| 0 | 0 | 45 | 0 | 0 | 0 | 45 | 0 | 45 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 179 | 179 | (11) | 167 |
Accrued income and prepaid expenses |
| 87 | 83 | 153 | 1,070 | 20 | 0 | 1,414 | 0 | 1,414 |
of which: stage 1 |
| 87 | 83 | 153 | 1,070 | 18 | 0 | 1,412 | 0 | 1,412 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 2 | 0 | 2 | 0 | 2 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other assets |
| 0 | 154 | 2 | 762 | 3 | 2 | 924 | (2) | 922 |
of which: stage 1 |
| 0 | 154 | 2 | 762 | 3 | 0 | 922 | 0 | 922 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 2 | 2 | (2) | 0 |
Total in scope of ECL assets / ECL amounts by stages |
| 46,783 | 100,915 | 31,091 | 111,976 | 3,435 | 748 | 294,949 | (448) | 294,502 |
Off-balance sheet positions and credit lines subject to expected credit loss by rating category | |||||||||
USD million |
| 31.12.20 | |||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total off-balance sheet exposure (maximum exposure to credit risk) | ECL provisions |
Off-balance sheet (in scope of ECL) |
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross |
| 2,957 | 8,574 | 998 | 1,453 | 622 | 13 | 14,617 | (11) |
of which: stage 1 |
| 2,957 | 8,538 | 968 | 1,372 | 510 | 0 | 14,345 | (2) |
of which: stage 2 |
| 0 | 36 | 31 | 81 | 112 | 0 | 259 | (2) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 13 | 13 | (7) |
Irrevocable commitments, gross |
| 1,778 | 6,885 | 2,872 | 3,593 | 4,186 | 23 | 19,337 | (95) |
of which: stage 1 |
| 1,778 | 6,415 | 2,275 | 3,241 | 3,081 | 0 | 16,790 | (53) |
of which: stage 2 |
| 0 | 470 | 597 | 351 | 1,105 | 0 | 2,523 | (42) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 23 | 23 | 0 |
Forward starting transactions (securities financing transactions) |
| 0 | 150 | 0 | 2,719 | 0 | 0 | 2,869 | 0 |
of which: stage 1 |
| 0 | 150 | 0 | 2,719 | 0 | 0 | 2,869 | 0 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Credit lines |
| 3 | 840 | 166 | 5,145 | 1,217 | 7 | 7,378 | (1) |
of which: stage 1 |
| 3 | 794 | 36 | 5,068 | 941 | 0 | 6,842 | (1) |
of which: stage 2 |
| 0 | 46 | 130 | 78 | 276 | 0 | 529 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 7 | 7 | 0 |
Irrevocable committed prolongation of existing loans |
| 0 | 1,071 | 0 | 0 | 0 | 0 | 1,071 | 0 |
of which: stage 1 |
| 0 | 1,071 | 0 | 0 | 0 | 0 | 1,071 | 0 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total off-balance sheet financial instruments and credit lines |
| 4,738 | 17,521 | 4,036 | 12,910 | 6,025 | 43 | 45,272 | (108) |
23
UBS AG standalone financial statements (audited)
Note 14e Financial assets subject to credit risk by rating category (continued)
Financial assets subject to credit risk by rating category | ||||||||||
CHF million |
| 31.12.20 | ||||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total gross carrying amount | ECL allowances | Net carrying amount (maximum exposure to credit risk) |
Financial instruments measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
Cash and balances at central banks |
| 30,214 | 25 | 0 | 0 | 0 | 0 | 30,239 | 0 | 30,239 |
of which: stage 1 |
| 30,214 | 25 | 0 | 0 | 0 | 0 | 30,239 | 0 | 30,239 |
Due from banks |
| 241 | 32,026 | 463 | 1,223 | 19 | 0 | 33,973 | (6) | 33,966 |
of which: stage 1 |
| 241 | 32,026 | 463 | 1,223 | 11 | 0 | 33,965 | (6) | 33,958 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 8 | 0 | 8 | 0 | 8 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Receivables from securities financing transactions |
| 8,706 | 5,685 | 11,620 | 28,419 | 1,631 | 0 | 56,060 | (2) | 56,058 |
of which: stage 1 |
| 8,706 | 5,685 | 11,620 | 28,419 | 1,631 | 0 | 56,060 | (2) | 56,058 |
Due from customers |
| 2,190 | 28,034 | 15,240 | 63,329 | 1,371 | 501 | 110,665 | (331) | 110,334 |
of which: stage 1 |
| 2,190 | 28,034 | 14,671 | 62,349 | 848 | 0 | 108,092 | (68) | 108,024 |
of which: stage 2 |
| 0 | 0 | 569 | 980 | 523 | 0 | 2,071 | (17) | 2,054 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 501 | 501 | (246) | 255 |
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 0 | 23,383 | 0 | 0 | 0 | 0 | 23,383 | (46) | 23,337 |
of which: stage 1 |
| 0 | 23,383 | 0 | 0 | 0 | 0 | 23,383 | (46) | 23,337 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mortgage loans |
| 0 | 1 | 71 | 4,565 | 1 | 159 | 4,797 | (10) | 4,787 |
of which: stage 1 |
| 0 | 1 | 31 | 4,565 | 1 | 0 | 4,598 | 0 | 4,599 |
of which: stage 2 |
| 0 | 0 | 40 | 0 | 0 | 0 | 40 | 0 | 40 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 159 | 159 | (10) | 148 |
Accrued income and prepaid expenses |
| 77 | 74 | 136 | 948 | 18 | 0 | 1,252 | 0 | 1,253 |
of which: stage 1 |
| 77 | 74 | 136 | 948 | 16 | 0 | 1,250 | 0 | 1,250 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 1 | 0 | 2 | 0 | 2 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other assets |
| 0 | 137 | 2 | 675 | 3 | 2 | 818 | (1) | 817 |
of which: stage 1 |
| 0 | 137 | 2 | 675 | 3 | 0 | 817 | 0 | 817 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 2 | 2 | (1) | 0 |
Total in scope of ECL assets / ECL amounts by stages |
| 41,428 | 89,364 | 27,532 | 99,159 | 3,042 | 662 | 261,188 | (397) | 260,791 |
Off-balance sheet positions and credit lines subject to expected credit loss by rating category | |||||||||
CHF million |
| 31.12.20 | |||||||
Rating category |
| 0–1 | 2–3 | 4–5 | 6–8 | 9–13 | Credit-impaired (defaulted) | Total off-balance sheet exposure (maximum exposure to credit risk) | ECL provisions |
Off-balance sheet (in scope of ECL) |
|
|
|
|
|
|
|
|
|
Contingent liabilities, gross |
| 2,619 | 7,592 | 884 | 1,287 | 551 | 11 | 12,944 | (10) |
of which: stage 1 |
| 2,619 | 7,561 | 857 | 1,215 | 452 | 0 | 12,703 | (2) |
of which: stage 2 |
| 0 | 31 | 27 | 72 | 99 | 0 | 230 | (2) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 11 | 11 | (6) |
Irrevocable commitments, gross |
| 1,574 | 6,097 | 2,543 | 3,182 | 3,707 | 20 | 17,123 | (84) |
of which: stage 1 |
| 1,574 | 5,681 | 2,015 | 2,870 | 2,728 | 0 | 14,868 | (47) |
of which: stage 2 |
| 0 | 416 | 528 | 311 | 979 | 0 | 2,234 | (38) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 20 | 20 | 0 |
Forward starting transactions (securities financing transactions) |
| 0 | 133 | 0 | 2,407 | 0 | 0 | 2,540 | 0 |
of which: stage 1 |
| 0 | 133 | 0 | 2,407 | 0 | 0 | 2,540 | 0 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Credit lines |
| 3 | 744 | 147 | 4,556 | 1,078 | 7 | 6,534 | (1) |
of which: stage 1 |
| 3 | 703 | 32 | 4,488 | 833 | 0 | 6,058 | (1) |
of which: stage 2 |
| 0 | 41 | 115 | 69 | 244 | 0 | 469 | (1) |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 7 | 7 | 0 |
Irrevocable committed prolongation of existing loans |
| 0 | 949 | 0 | 0 | 0 | 0 | 949 | 0 |
of which: stage 1 |
| 0 | 949 | 0 | 0 | 0 | 0 | 949 | 0 |
of which: stage 2 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
of which: stage 3 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total off-balance sheet financial instruments and credit lines |
| 4,196 | 15,515 | 3,574 | 11,432 | 5,336 | 38 | 40,090 | (95) |
24
|
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Trading portfolio assets |
| 119,795 | 115,164 |
| 109,213 | 101,981 |
of which: debt instruments1 |
| 18,045 | 20,908 |
| 16,451 | 18,515 |
of which: listed |
| 12,750 | 16,223 |
| 11,624 | 14,366 |
of which: equity instruments |
| 98,424 | 90,013 |
| 89,730 | 79,709 |
of which: precious metals and other physical commodities |
| 3,326 | 4,243 |
| 3,032 | 3,757 |
Total assets measured at fair value |
| 119,795 | 115,164 |
| 109,213 | 101,981 |
of which: fair value derived using a valuation model |
| 15,028 | 15,628 |
| 13,700 | 13,839 |
of which: securities eligible for repurchase transactions in accordance with liquidity regulations 2 |
| 7,042 | 10,662 |
| 6,420 | 9,441 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Trading portfolio liabilities |
| 25,711 | 28,806 |
| 23,440 | 25,509 |
of which: debt instruments1 |
| 7,549 | 6,010 |
| 6,882 | 5,322 |
of which: listed |
| 7,293 | 5,576 |
| 6,649 | 4,937 |
of which: equity instruments |
| 18,162 | 22,796 |
| 16,557 | 20,186 |
Financial liabilities designated at fair value3 |
| 73,081 | 58,737 |
| 66,625 | 52,014 |
Total liabilities measured at fair value |
| 98,791 | 87,543 |
| 90,065 | 77,522 |
of which: fair value derived using a valuation model |
| 78,092 | 64,392 |
| 71,194 | 57,021 |
1 Includes money market paper. 2 Consists of high-quality liquid debt securities that are eligible for repurchase transactions at the Swiss National Bank or other central banks. 3 Refer to Note 22 for more information. |
25
UBS AG standalone financial statements (audited)
|
| 31.12.21 |
| 31.12.20 | ||||||
USD billion |
| Derivative financial assets | Derivative financial liabilities |
| Total notional values |
| Derivative financial assets | Derivative financial liabilities |
| Total notional values |
Interest rate contracts |
|
|
|
|
|
|
|
|
|
|
Forwards2 |
| 0.1 | 0.3 |
| 476 |
| 0.1 | 0.5 |
| 2,621 |
Swaps |
| 27.7 | 20.5 |
| 8,266 |
| 42.6 | 32.9 |
| 8,896 |
of which: designated in hedge accounting relationships |
| 0.0 | 0.0 |
| 115 |
| 0.0 | 0.0 |
| 110 |
Futures |
| 0.0 | 0.0 |
| 524 |
| 0.0 | 0.0 |
| 476 |
Over-the-counter (OTC) options |
| 6.6 | 9.2 |
| 1,100 |
| 10.1 | 12.6 |
| 908 |
Exchange-traded options |
| 0.1 | 0.1 |
| 196 |
| 0.0 | 0.0 |
| 190 |
Total |
| 34.6 | 30.1 |
| 10,562 3 |
| 52.9 | 46.0 |
| 13,092 |
Foreign exchange contracts |
|
|
|
|
|
|
|
|
|
|
Forwards |
| 23.8 | 23.8 |
| 2,053 |
| 27.3 | 29.0 |
| 1,633 |
of which: designated in hedge accounting relationships |
| 0.0 | 0.0 |
| 0 |
| 0.0 | 0.0 |
| 0 |
Swaps |
| 24.7 | 25.1 |
| 3,246 |
| 34.6 | 35.0 |
| 3,387 |
of which: designated in hedge accounting relationships |
| 0.1 | 0.4 |
| 40 |
| 0.5 | 0.2 |
| 34 |
Futures |
| 0.0 | 0.0 |
| 1 |
| 0.0 | 0.0 |
| 1 |
Over-the-counter (OTC) options |
| 5.2 | 5.3 |
| 823 |
| 7.2 | 7.1 |
| 837 |
Exchange-traded options |
| 0.0 | 0.1 |
| 10 |
| 0.1 | 0.1 |
| 9 |
Total |
| 53.8 | 54.3 |
| 6,134 |
| 69.1 | 71.2 |
| 5,867 |
Equity contracts |
|
|
|
|
|
|
|
|
|
|
Forwards |
| 0.3 | 0.3 |
| 27 |
| 0.4 | 0.4 |
| 32 |
Swaps |
| 5.0 | 9.7 |
| 279 |
| 6.5 | 10.0 |
| 209 |
Futures |
| 0.0 | 0.0 |
| 67 |
| 0.0 | 0.0 |
| 63 |
Over-the-counter (OTC) options |
| 4.8 | 6.5 |
| 170 |
| 7.3 | 11.1 |
| 242 |
Exchange-traded options |
| 12.1 | 12.5 |
| 636 |
| 14.0 | 13.1 |
| 615 |
Total |
| 22.3 | 29.1 |
| 1,178 |
| 28.2 | 34.6 |
| 1,159 |
Credit derivative contracts |
|
|
|
|
|
|
|
|
|
|
Credit default swaps |
| 1.2 | 1.4 |
| 88 |
| 1.6 | 1.9 |
| 119 |
Total return swaps |
| 0.1 | 0.2 |
| 3 |
| 0.3 | 0.4 |
| 5 |
Other |
| 0.0 | 0.0 |
| 5 |
| 0.0 | 0.0 |
| 2 |
Total |
| 1.3 | 1.6 |
| 95 |
| 1.9 | 2.3 |
| 126 |
Commodity, precious metals and other contracts |
|
|
|
|
|
|
|
|
|
|
Forwards4 |
| 0.1 | 0.1 |
| 51 |
| 0.2 | 0.2 |
| 37 |
Swaps |
| 0.5 | 0.8 |
| 45 |
| 0.5 | 0.8 |
| 36 |
Futures |
| 0.0 | 0.0 |
| 14 |
| 0.0 | 0.0 |
| 9 |
Over-the-counter (OTC) options |
| 0.4 | 0.2 |
| 24 |
| 1.0 | 0.7 |
| 41 |
Exchange-traded options |
| 0.6 | 0.4 |
| 2 |
| 0.5 | 0.4 |
| 3 |
Total |
| 1.5 | 1.5 |
| 138 |
| 2.2 | 2.0 |
| 126 |
Total before netting |
| 113.4 | 116.6 |
| 18,107 |
| 154.3 | 156.2 |
| 20,371 |
of which: trading derivatives |
| 113.3 | 116.2 |
|
|
| 153.8 | 156.0 |
|
|
of which: fair value derived using a valuation model |
| 112.7 | 115.6 |
|
|
| 153.1 | 155.3 |
|
|
of which: derivatives designated in hedge accounting relationships |
| 0.1 | 0.4 |
|
|
| 0.5 | 0.2 |
|
|
of which: fair value derived using a valuation model |
| 0.1 | 0.4 |
|
|
| 0.5 | 0.2 |
|
|
Netting with cash collateral payables / receivables |
| (13.9) | (14.8) |
|
|
| (19.8) | (16.9) |
|
|
Replacement value netting |
| (87.6) | (87.6) |
|
|
| (117.4) | (117.4) |
|
|
Total after netting |
| 11.9 | 14.1 |
|
|
| 17.2 | 21.9 |
|
|
of which: with central clearing counterparties |
| 0.5 | 0.4 |
|
|
| 0.8 | 0.6 |
|
|
of which: with bank and broker-dealer counterparties |
| 4.0 | 3.0 |
|
|
| 7.8 | 6.0 |
|
|
of which: other client counterparties |
| 7.5 | 10.7 |
|
|
| 8.6 | 15.3 |
|
|
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were not material for the periods presented. 2 Includes forward rate agreements. 3 Notional amounts related to interest rate contracts have decreased by USD 2.5 trillion compared with 31 December 2020, mainly reflecting trade compressions, which included activity as part of the ongoing transition to Alternative Reference Rates, and maturities. 4 Includes derivative loan commitments with notional values of USD 9 billion as of 31 December 2021 (31 December 2020: USD 9 billion) and negative replacement values of USD 33 million (31 December 2020: USD 30 million). |
26
Note 16 Derivative instruments (continued)1
|
| 31.12.21 |
| 31.12.20 | ||||||
CHF billion |
| Derivative financial assets | Derivative financial liabilities |
| Total notional values |
| Derivative financial assets | Derivative financial liabilities |
| Total notional values |
Interest rate contracts |
|
|
|
|
|
|
|
|
|
|
Forwards2 |
| 0.1 | 0.2 |
| 434 |
| 0.1 | 0.4 |
| 2,321 |
Swaps |
| 25.3 | 18.7 |
| 7,536 |
| 37.8 | 29.2 |
| 7,878 |
of which: designated in hedge accounting relationships |
| 0.0 | 0.0 |
| 105 |
| 0.0 | 0.0 |
| 98 |
Futures |
| 0.0 | 0.0 |
| 477 |
| 0.0 | 0.0 |
| 422 |
Over-the-counter (OTC) options |
| 6.1 | 8.4 |
| 1,003 |
| 8.9 | 11.1 |
| 804 |
Exchange-traded options |
| 0.1 | 0.1 |
| 179 |
| 0.0 | 0.0 |
| 168 |
Total |
| 31.5 | 27.4 |
| 9,629 3 |
| 46.8 | 40.8 |
| 11,594 |
Foreign exchange contracts |
|
|
|
|
|
|
|
|
|
|
Forwards |
| 21.7 | 21.7 |
| 1,872 |
| 24.2 | 25.7 |
| 1,446 |
of which: designated in hedge accounting relationships |
| 0.0 | 0.0 |
| 0 |
| 0.0 | 0.0 |
| 0 |
Swaps |
| 22.5 | 22.9 |
| 2,960 |
| 30.7 | 31.0 |
| 2,999 |
of which: designated in hedge accounting relationships |
| 0.1 | 0.3 |
| 36 |
| 0.4 | 0.2 |
| 30 |
Futures |
| 0.0 | 0.0 |
| 1 |
| 0.0 | 0.0 |
| 1 |
Over-the-counter (OTC) options |
| 4.7 | 4.8 |
| 750 |
| 6.3 | 6.3 |
| 741 |
Exchange-traded options |
| 0.0 | 0.1 |
| 9 |
| 0.1 | 0.1 |
| 8 |
Total |
| 49.0 | 49.5 |
| 5,592 |
| 61.2 | 63.0 |
| 5,195 |
Equity contracts |
|
|
|
|
|
|
|
|
|
|
Forwards |
| 0.3 | 0.3 |
| 25 |
| 0.3 | 0.3 |
| 28 |
Swaps |
| 4.6 | 8.9 |
| 254 |
| 5.8 | 8.9 |
| 185 |
Futures |
| 0.0 | 0.0 |
| 61 |
| 0.0 | 0.0 |
| 56 |
Over-the-counter (OTC) options |
| 4.4 | 6.0 |
| 155 |
| 6.5 | 9.8 |
| 214 |
Exchange-traded options |
| 11.0 | 11.4 |
| 580 |
| 12.4 | 11.6 |
| 544 |
Total |
| 20.3 | 26.5 |
| 1,074 |
| 25.0 | 30.7 |
| 1,027 |
Credit derivative contracts |
|
|
|
|
|
|
|
|
|
|
Credit default swaps |
| 1.1 | 1.3 |
| 80 |
| 1.4 | 1.7 |
| 106 |
Total return swaps |
| 0.1 | 0.2 |
| 3 |
| 0.3 | 0.3 |
| 4 |
Other |
| 0.0 | 0.0 |
| 4 |
| 0.0 | 0.0 |
| 2 |
Total |
| 1.2 | 1.4 |
| 87 |
| 1.7 | 2.0 |
| 112 |
Commodity, precious metals and other contracts |
|
|
|
|
|
|
|
|
|
|
Forwards4 |
| 0.1 | 0.1 |
| 47 |
| 0.1 | 0.2 |
| 33 |
Swaps |
| 0.4 | 0.7 |
| 41 |
| 0.5 | 0.7 |
| 32 |
Futures |
| 0.0 | 0.0 |
| 13 |
| 0.0 | 0.0 |
| 8 |
Over-the-counter (OTC) options |
| 0.4 | 0.2 |
| 22 |
| 0.9 | 0.6 |
| 36 |
Exchange-traded options |
| 0.5 | 0.4 |
| 2 |
| 0.5 | 0.3 |
| 3 |
Total |
| 1.4 | 1.4 |
| 125 |
| 1.9 | 1.8 |
| 112 |
Total before netting |
| 103.4 | 106.3 |
| 16,508 |
| 136.7 | 138.3 |
| 18,039 |
of which: trading derivatives |
| 103.3 | 106.0 |
|
|
| 136.2 | 138.1 |
|
|
of which: fair value derived using a valuation model |
| 102.8 | 105.4 |
|
|
| 135.6 | 137.5 |
|
|
of which: derivatives designated in hedge accounting relationships |
| 0.1 | 0.3 |
|
|
| 0.4 | 0.2 |
|
|
of which: fair value derived using a valuation model |
| 0.1 | 0.3 |
|
|
| 0.4 | 0.2 |
|
|
Netting with cash collateral payables / receivables |
| (12.7) | (13.5) |
|
|
| (17.5) | (15.0) |
|
|
Replacement value netting |
| (79.9) | (79.9) |
|
|
| (103.9) | (103.9) |
|
|
Total after netting |
| 10.9 | 12.9 |
|
|
| 15.2 | 19.4 |
|
|
of which: with central clearing counterparties |
| 0.5 | 0.4 |
|
|
| 0.7 | 0.5 |
|
|
of which: with bank and broker-dealer counterparties |
| 3.6 | 2.7 |
|
|
| 6.9 | 5.3 |
|
|
of which: other client counterparties |
| 6.8 | 9.8 |
|
|
| 7.6 | 13.6 |
|
|
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were not material for the periods presented. 2 Includes forward rate agreements. 3 Notional amounts related to interest rate contracts have decreased by CHF 2.0 trillion compared with 31 December 2020, mainly reflecting trade compressions, which included activity as part of the ongoing transition to Alternative Reference Rates, and maturities. 4 Includes derivative loan commitments with notional values of CHF 8 billion as of 31 December 2021 (31 December 2020: CHF 8 billion) and negative replacement values of CHF 30 million (31 December 2020: CHF 27 million). |
27
UBS AG standalone financial statements (audited)
|
| 31.12.21 |
| 31.12.20 | ||
USD million |
| Carrying amount | Fair value |
| Carrying amount | Fair value |
Debt instruments |
| 19,423 | 19,801 |
| 23,807 | 24,518 |
of which: held to maturity |
| 6,968 | 7,039 |
| 6,321 | 6,524 |
of which: available for sale |
| 12,455 | 12,762 |
| 17,485 | 17,995 |
Equity instruments |
| 58 | 67 |
| 44 | 53 |
of which: qualified participations 1 |
| 25 | 31 |
| 21 | 21 |
Property |
| 1 | 1 |
| 1 | 1 |
Total financial investments |
| 19,482 | 19,870 |
| 23,852 | 24,573 |
of which: securities eligible for repurchase transactions in accordance with liquidity regulations 2 |
| 16,253 | 16,332 |
| 20,979 | 21,313 |
1 Qualified participations are investments in which UBS AG holds 10% or more of the total capital or has at least 10% of total voting rights. 2 Consists of high-quality liquid debt securities that are eligible for repurchase transactions at the Swiss National Bank or other central banks. |
|
| 31.12.21 |
| 31.12.20 | ||
CHF million |
| Carrying amount | Fair value |
| Carrying amount | Fair value |
Debt instruments |
| 17,707 | 18,052 |
| 21,082 | 21,712 |
of which: held to maturity |
| 6,353 | 6,417 |
| 5,598 | 5,777 |
of which: available for sale |
| 11,354 | 11,635 |
| 15,484 | 15,935 |
Equity instruments |
| 53 | 61 |
| 39 | 47 |
of which: qualified participations 1 |
| 23 | 28 |
| 18 | 18 |
Property |
| 1 | 1 |
| 1 | 1 |
Total financial investments |
| 17,761 | 18,115 |
| 21,122 | 21,760 |
of which: securities eligible for repurchase transactions in accordance with liquidity regulations 2 |
| 14,817 | 14,890 |
| 18,578 | 18,874 |
1 Qualified participations are investments in which UBS AG holds 10% or more of the total capital or has at least 10% of total voting rights. 2 Consists of high-quality liquid debt securities that are eligible for repurchase transactions at the Swiss National Bank or other central banks. |
|
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Internal UBS rating1 |
|
|
|
|
|
|
0–1 |
| 14,047 | 19,421 |
| 12,806 | 17,198 |
2–3 |
| 5,365 | 4,367 |
| 4,891 | 3,867 |
4–5 |
| 0 | 1 |
| 0 | 1 |
6–8 |
| 0 | 0 |
| 0 | 0 |
9–13 |
| 0 | 0 |
| 0 | 0 |
Non-rated |
| 11 | 18 |
| 10 | 16 |
Total financial investments |
| 19,423 | 23,807 |
| 17,707 | 21,082 |
1 Refer to Note 21 for more information. |
|
|
|
Note 18 Investments in subsidiaries and other participations
| Registered office | Equity interest accumulated in % |
| Carrying amount in USD million |
| Carrying amount in CHF million | ||
|
|
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
UBS Americas Holding LLC | Wilmington, Delaware, USA | 100 |
| 33,233 | 32,208 |
| 30,297 | 28,521 |
UBS Switzerland AG | Zurich, Switzerland | 100 |
| 7,983 | 7,983 |
| 7,278 | 7,069 |
UBS Europe SE | Frankfurt, Germany | 100 |
| 3,946 | 5,190 |
| 3,597 | 4,596 |
UBS Asset Management AG | Zurich, Switzerland | 100 |
| 1,726 | 1,669 |
| 1,573 | 1,478 |
Other |
|
|
| 3,784 | 3,395 |
| 3,449 | 3,007 |
Total investments in subsidiaries and other participations |
|
|
| 50,671 | 50,444 |
| 46,195 | 44,670 |
|
28
Note 19a Other assets
|
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Deposits and collateral provided in connection with litigation, regulatory and similar matters1 |
| 1,515 | 1,406 |
| 1,381 | 1,245 |
Fee- and commission-related receivables |
| 240 | 172 |
| 218 | 152 |
Net assets for defined benefit plans |
| 232 | 27 |
| 211 | 24 |
VAT and other indirect tax receivables |
| 157 | 153 |
| 143 | 135 |
Other |
| 784 | 933 |
| 714 | 825 |
of which: other receivables due from UBS Group AG and subsidiaries in the UBS Group |
| 477 | 741 |
| 436 | 656 |
Total other assets2 |
| 2,927 | 2,690 |
| 2,667 | 2,381 |
1 Refer to item 1 in Note 18b to the UBS AG consolidated financial statements in the UBS Group AG and UBS AG Annual Report 2021 for more information. 2 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS Group and other assets totaling USD 912 million (CHF 832 million) as of December 2021 (USD 922 million (CHF 817 million) as of December 2020), which are in scope of expected credit loss accounting. Refer to Note 14d for more information. |
|
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Deferral position for hedging instruments |
| 630 | 3,587 |
| 575 | 3,177 |
Settlement and clearing accounts |
| 105 | 182 |
| 96 | 161 |
Net defined benefit liabilities |
| 83 | 100 |
| 75 | 89 |
VAT and other indirect tax payables |
| 79 | 101 |
| 72 | 89 |
Other |
| 1,408 | 1,621 |
| 1,283 | 1,436 |
of which: other payables due to UBS Group AG and subsidiaries in the UBS Group |
| 960 | 994 |
| 876 | 880 |
Total other liabilities |
| 2,305 | 5,591 |
| 2,100 | 4,951 |
|
|
|
|
The table below provides information on pledged assets, other than assets placed with central banks related to undrawn credit lines and for payment, clearing and settlement purposes (31 December 2021: USD 4.4 billion (CHF 4.0 billion); 31 December 2020: USD 1.2 billion (CHF 1.1 billion)) and those pledged in connection with securities financing transactions (refer to Note 12 for more information).
| 31.12.21 |
| 31.12.20 |
USD million | Carrying amount of pledged assets |
| Carrying amount of pledged assets |
Securities1 | 4,609 |
| 1,995 |
Property2 | 2,392 |
| 2,490 |
Total pledged assets | 7,002 |
| 4,484 |
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a portfolio basis across counterparties and product types, and therefore there is no direct relationship between the specific collateral pledged and the associated liability. Also includes amounts pledged in connection with a guarantee which is recognized as an off-balance sheet exposure within Contingent liabilities of USD 0 million as of 31 December 2021 (USD 814 million as of 31 December 2020). 2 These pledged properties serve as collateral for an existing mortgage loan from UBS Switzerland AG, the carrying amount of which was USD 2,879 million as of 31 December 2021 (USD 3,105 million as of 31 December 2020). |
| 31.12.21 |
| 31.12.20 |
CHF million | Carrying amount of pledged assets |
| Carrying amount of pledged assets |
Securities1 | 4,202 |
| 1,766 |
Property2 | 2,181 |
| 2,205 |
Total pledged assets | 6,383 |
| 3,971 |
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a portfolio basis across counterparties and product types, and therefore there is no direct relationship between the specific collateral pledged and the associated liability. Also includes amounts pledged in connection with a guarantee which is recognized as an off-balance sheet exposure within Contingent liabilities of CHF 0 million as of 31 December 2021 (CHF 721 million as of 31 December 2020). 2 These pledged properties serve as collateral for an existing mortgage loan from UBS Switzerland AG, the carrying amount of which was CHF 2,625 million as of 31 December 2021 (CHF 2,750 million as of 31 December 2020).
|
29
UBS AG standalone financial statements (audited)
Note 21 Country risk of total assets
The table below provides a breakdown of total non-Swiss assets by credit rating. These credit ratings reflect the sovereign credit rating of the country to which the ultimate risk of the underlying asset is related. The ultimate country of risk for unsecured loan positions is the domicile of the immediate borrower or, in the case of a legal entity, the domicile of the ultimate parent entity. For collateralized or guaranteed positions, the ultimate country of risk is the domicile of the provider of the collateral or guarantor or, if applicable, the domicile of the ultimate parent entity of the provider of the collateral or guarantor. For mortgage loans, the ultimate country of risk is the country where the real estate is located. Similarly, the ultimate country of risk for property and equipment is the country where the property and equipment are located. Assets for which Switzerland is the ultimate country of risk are provided separately at the bottom of the table in order to provide a reconciliation to total balance sheet assets.
› Refer to the “Risk management and control” section of the UBS Group AG and UBS AG Annual Report 2021 for more information
|
|
|
|
|
|
| 31.12.21 |
| 31.12.20 | ||
Classification | Internal UBS rating | Description | Moody’s Investors Service | Standard & Poor’s | Fitch |
| USD million | % |
| USD million | % |
Low risk | 0 and 1 | Investment grade | Aaa | AAA | AAA |
| 235,039 | 46 |
| 224,813 | 44 |
2 |
| Aa1 to Aa3 | AA+ to AA– | AA+ to AA– |
| 115,906 | 23 |
| 120,528 | 24 | |
Medium risk | 3 |
| A1 to A3 | A+ to A– | A+ to A– |
| 71,763 | 14 |
| 67,440 | 13 |
4 |
| Baa1 to Baa2 | BBB+ to BBB | BBB+ to BBB |
| 11,065 | 2 |
| 12,462 | 2 | |
5 |
| Baa3 | BBB– | BBB– |
| 6,297 | 1 |
| 6,038 | 1 | |
High risk | 6 | Sub-investment grade | Ba1 | BB+ | BB+ |
| 1,146 | 0 |
| 914 | 0 |
7 |
| Ba2 | BB | BB |
| 599 | 0 |
| 4,157 | 1 | |
8 |
| Ba3 | BB– | BB– |
| 2,363 | 0 |
| 860 | 0 | |
9 |
| B1 | B+ | B+ |
| 1,015 | 0 |
| 1,098 | 0 | |
Very high risk | 10 |
| B2 | B | B |
| 914 | 0 |
| 388 | 0 |
11 |
| B3 | B– | B– |
| 126 | 0 |
| 169 | 0 | |
12 |
| Caa1 to Caa3 |
|
|
| 254 | 0 |
| 211 | 0 | |
13 |
| Ca to C | CCC to C | CCC to C |
| 41 | 0 |
| 61 | 0 | |
Distressed | Default | Defaulted |
| D | D |
| 34 | 0 |
| 87 | 0 |
Subtotal |
|
|
|
|
|
| 446,561 | 88 |
| 439,227 | 86 |
Switzerland |
|
|
|
|
|
| 63,288 | 12 |
| 69,797 | 14 |
Total assets |
|
|
|
|
|
| 509,851 | 100 |
| 509,024 | 100 |
|
|
|
|
|
|
| 31.12.21 |
| 31.12.20 | ||
Classification | Internal UBS rating | Description | Moody’s Investors Service | Standard & Poor’s | Fitch |
| CHF million | % |
| CHF million | % |
Low risk | 0 and 1 | Investment grade | Aaa | AAA | AAA |
| 214,277 | 46 |
| 199,077 | 44 |
2 |
| Aa1 to Aa3 | AA+ to AA– | AA+ to AA– |
| 105,668 | 23 |
| 106,732 | 24 | |
Medium risk | 3 |
| A1 to A3 | A+ to A– | A+ to A– |
| 65,424 | 14 |
| 59,721 | 13 |
4 |
| Baa1 to Baa2 | BBB+ to BBB | BBB+ to BBB |
| 10,087 | 2 |
| 11,036 | 2 | |
5 |
| Baa3 | BBB– | BBB– |
| 5,741 | 1 |
| 5,347 | 1 | |
High risk | 6 | Sub-investment grade | Ba1 | BB+ | BB+ |
| 1,044 | 0 |
| 810 | 0 |
7 |
| Ba2 | BB | BB |
| 546 | 0 |
| 3,681 | 1 | |
8 |
| Ba3 | BB– | BB– |
| 2,154 | 0 |
| 762 | 0 | |
9 |
| B1 | B+ | B+ |
| 925 | 0 |
| 972 | 0 | |
Very high risk | 10 |
| B2 | B | B |
| 834 | 0 |
| 344 | 0 |
11 |
| B3 | B– | B– |
| 115 | 0 |
| 149 | 0 | |
12 |
| Caa1 to Caa3 |
|
|
| 232 | 0 |
| 187 | 0 | |
13 |
| Ca to C | CCC to C | CCC to C |
| 37 | 0 |
| 54 | 0 | |
Distressed | Default | Defaulted |
| D | D |
| 31 | 0 |
| 77 | 0 |
Subtotal |
|
|
|
|
|
| 407,115 | 88 |
| 388,948 | 86 |
Switzerland |
|
|
|
|
|
| 57,698 | 12 |
| 61,808 | 14 |
Total assets |
|
|
|
|
|
| 464,814 | 100 |
| 450,756 | 100 |
30
The table below provides a breakdown of financial liabilities designated at fair value that are considered structured debt instruments.
|
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Fixed-rate bonds with structured features |
| 1,819 | 1,890 |
| 1,658 | 1,674 |
Structured debt instruments issued: |
|
|
|
|
|
|
Equity-linked |
| 46,834 | 40,848 |
| 42,698 | 36,172 |
Rates-linked |
| 16,152 | 10,690 |
| 14,725 | 9,466 |
Credit-linked |
| 1,506 | 1,613 |
| 1,373 | 1,429 |
Commodity-linked1 |
| 2,913 | 1,497 |
| 2,655 | 1,326 |
FX-linked |
| 412 | 589 |
| 375 | 521 |
Debt issued that contributes to total loss-absorbing capacity2 |
| 2,137 |
|
| 1,948 |
|
Structured over-the-counter (OTC) debt instruments |
| 1,308 | 1,611 |
| 1,193 | 1,426 |
Total financial liabilities designated at fair value |
| 73,081 | 58,737 |
| 66,625 | 52,014 |
1 Includes precious metals-linked debt instruments issued. 2 In 2021, UBS AG elected to apply the fair value option on certain instruments issued by UBS Group AG and on-lent to UBS AG that are eligible as total loss-absorbing capacity at the UBS AG level. Prior to 2021, these instruments were presented as Funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level measured at amortized cost. |
In addition to Financial liabilities designated at fair value, certain structured debt instruments were reported within the balance sheet lines Due to banks, Due to customers and Bonds issued. These instruments were bifurcated for measurement purposes. As of 31 December 2021, the total carrying amount of the host
instruments was USD 7,613 million (CHF 6,941 million) (31 December 2020: USD 7,003 million (CHF 6,201 million)) and the total carrying amount of the bifurcated embedded derivatives was positive USD 57 million (CHF 52 million) (31 December 2020: positive USD 54 million (CHF 48 million)).
UBS AG shares
As of 31 December 2021, UBS AG’s share capital of CHF 386 million (31 December 2020: CHF 386 million) consisted of fully paid up registered issued shares with a nominal value of CHF 0.10, which entitle the holder to one vote at the meeting of the shareholders of UBS AG, if entered into the share register as having the right to vote, as well as a proportionate share of distributed dividends. UBS AG’s shares are not subject to any restrictions or limitations on their transferability.
As of 31 December 2021, shares issued by UBS AG totaled 3,858,408,466 shares (unchanged from 31 December 2020). The shares were all dividend bearing and held by UBS Group AG.
Additionally, as of 31 December 2021, 380,000,000 registered shares with a nominal value of CHF 0.10 each were available to be issued out of conditional capital (unchanged from 31 December 2020) through the voluntary or mandatory exercise of conversion rights and / or warrants granted in connection with the issuance of bonds or similar financial instruments on national or international capital markets.
Non-distributable reserves
Non-distributable reserves consist of 50% of the share capital of UBS AG, amounting to USD 197 million (CHF 193 million) as of 31 December 2021 (unchanged from 31 December 2020).
31
UBS AG standalone financial statements (audited)
The sole direct shareholder of UBS AG is UBS Group AG, which holds 100% of UBS AG shares. These shares are entitled to voting rights. Indirect shareholders of UBS AG included in the table below comprise direct shareholders of UBS Group AG (acting in their own name or in their capacity as nominees for other investors or beneficial owners) that were registered in the UBS Group AG share register with 3% or more of the share capital of UBS Group AG as of 31 December 2021 or as of 31 December 2020. The shares and share capital of UBS AG held by indirect shareholders, as shown in the table below, represent their relative holding of UBS Group AG shares. They do not have voting rights in UBS AG.
› Refer to Note 23 to the UBS Group AG standalone financial statements in the UBS Group AG Annual Report 2021 for more information on significant shareholders of UBS Group AG
|
| 31.12.21 |
| 31.12.20 | ||
USD million, except where indicated |
| Share capital held | Shares held (%) |
| Share capital held | Shares held (%) |
Significant direct shareholder of UBS AG |
|
|
|
|
|
|
UBS Group AG |
| 393 | 100 |
| 393 | 100 |
Significant indirect shareholders of UBS AG |
|
|
|
|
|
|
Chase Nominees Ltd., London |
| 35 | 9 |
| 41 | 10 |
DTC (Cede & Co.), New York1 |
| 23 | 6 |
| 20 | 5 |
Nortrust Nominees Ltd., London |
| 19 | 5 |
| 20 | 5 |
1 DTC (Cede & Co.), New York, “The Depository Trust Company,” is a US securities clearing organization. |
|
| 31.12.21 |
| 31.12.20 | ||
CHF million, except where indicated |
| Share capital held | Shares held (%) |
| Share capital held | Shares held (%) |
Significant direct shareholder of UBS AG |
|
|
|
|
|
|
UBS Group AG |
| 386 | 100 |
| 386 | 100 |
Significant indirect shareholders of UBS AG |
|
|
|
|
|
|
Chase Nominees Ltd., London |
| 34 | 9 |
| 40 | 10 |
DTC (Cede & Co.), New York1 |
| 22 | 6 |
| 19 | 5 |
Nortrust Nominees Ltd., London |
| 19 | 5 |
| 20 | 5 |
1 DTC (Cede & Co.), New York, “The Depository Trust Company,” is a US securities clearing organization. |
32
a) Assets related to non-Swiss defined benefit plans |
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Net assets for non-Swiss defined benefit plans1 |
| 232 | 27 |
| 211 | 24 |
Total assets for non-Swiss defined benefit plans |
| 232 | 27 |
| 211 | 24 |
1 As of 31 December 2021, USD 192 million (CHF 175 million) related to the UK defined benefit pension plan and USD 39 million (CHF 36 million) related to the US defined benefit pension plan. As of 31 December 2020, USD 27 million (CHF 24 million) related to US defined benefit pension plan. | ||||||
|
|
|
| |||
b) Liabilities related to Swiss pension plan and non-Swiss defined benefit plans |
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Provision for Swiss pension plan |
| 0 | 0 |
| 0 | 0 |
Net defined benefit liabilities for non-Swiss defined benefit plans1 |
| 83 | 100 |
| 75 | 89 |
Total provision for Swiss pension plan and net defined benefit liabilities for non-Swiss defined benefit plans |
| 83 | 100 |
| 75 | 89 |
Bank accounts at UBS and UBS debt instruments held by Swiss pension fund |
| 15 | 19 |
| 14 | 17 |
UBS derivative financial instruments held by Swiss pension fund |
| 10 | 12 |
| 9 | 10 |
Total liabilities related to Swiss pension plan and non-Swiss defined benefit plans |
| 108 | 131 |
| 98 | 116 |
1 As of 31 December 2021, USD 44 million (CHF 40 million) related to the US plans and USD 22 million (CHF 20 million) related to the UK plan. As of 31 December 2020, USD 48 million (CHF 42 million) related to the US plans and USD 36 million (CHF 32 million) related to the UK plans. | ||||||
|
|
|
| |||
c) Swiss pension plan |
|
|
|
|
|
|
|
| USD million |
| CHF million | ||
|
| As of or for the year ended | ||||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Pension plan surplus1 |
| 588 | 569 |
| 536 | 504 |
Economic benefit / (obligation) of UBS AG |
| 0 | 0 |
| 0 | 0 |
Change in economic benefit / obligation recognized in the income statement |
| 0 | 0 |
| 0 | 0 |
Employer contributions in the period recognized in the income statement |
| 52 | 54 |
| 47 | 51 |
Performance awards-related employer contributions accrued |
| 5 | 6 |
| 5 | 5 |
Total pension expense recognized in the income statement within Personnel expenses |
| 58 | 59 |
| 52 | 56 |
1 The pension plan surplus is determined in accordance with FER 26 and consists of the reserve for the fluctuation in asset value. The surplus did not represent an economic benefit for UBS AG in accordance with FER 16 both as of 31 December 2021 and 31 December 2020. |
UBS AG has elected to apply FER 16 for its Swiss pension plan and IFRS (IAS 19) for its non-Swiss defined benefit plans. However, remeasurements of the defined benefit obligations for non-Swiss defined benefit plans are recognized in the income statement rather than directly in equity.
In 2021 a credit of USD 74 million (CHF 73 million) was recognized in the income statement, driven by a net gain related to the UK defined benefit plan that reflected an increase in the applicable discount rate and a positive return on plan assets, partly offset by a loss due to an increase in the applicable inflation rate. This net gain was partly offset by expenses related to the Swiss plan and other non-Swiss defined benefit plans.
› Refer to Note 2 for more information
› Refer to Note 27 of the UBS AG consolidated financial statements in the UBS Group AG and UBS AG Annual Report 2021 for more information on non-Swiss defined benefit plans in accordance with IFRS
The Swiss pension plan had no employer contribution reserve as of both 31 December 2021 and 31 December 2020.
33
UBS AG standalone financial statements (audited)
Transactions with related parties are conducted at internally agreed transfer prices or at arm’s length terms and neither involve more than the normal risk of collectability nor contain any other unfavorable features for the firm. Loans, fixed advances and mortgages granted to non-independent members of the governing bodies in the ordinary course of business are also on substantially the same terms and conditions that are available to other employees, including interest rates and collateral. Independent members of the governing bodies are granted loans and mortgages in the ordinary course of business at general market conditions.
|
| 31.12.21 |
| 31.12.20 | ||||
USD million |
| Amounts due from |
| Amounts due to |
| Amounts due from |
| Amounts due to |
Qualified shareholders1 |
| 725 |
| 62,245 |
| 1,219 |
| 57,661 |
of which: due from / to customers |
| 672 |
| 2,030 |
| 1,204 |
| 3,043 |
of which: funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level measured at amortized cost |
|
|
| 57,078 |
|
|
| 53,585 |
of which: funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level designated at fair value |
|
|
| 2,137 |
|
|
|
|
Subsidiaries |
| 93,934 |
| 49,574 |
| 98,938 |
| 62,340 |
of which: due from / to banks |
| 28,062 |
| 31,602 |
| 30,445 |
| 41,684 |
of which: due from / to customers |
| 26,596 |
| 2,279 |
| 20,246 |
| 2,877 |
of which: receivables / payables from securities financing transactions |
| 9,346 |
| 13,880 |
| 17,058 |
| 13,978 |
of which: funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 27,530 |
|
|
| 26,354 |
|
|
Affiliated entities2 |
| 345 |
| 336 |
| 235 |
| 277 |
of which: due from / to customers |
| 316 |
| 130 |
| 209 |
| 42 |
Members of governing bodies3 |
| 34 |
|
|
| 38 |
|
|
External auditors |
|
|
| 4 |
|
|
| 4 |
Other related parties4 |
| 1 |
| 2 |
| 55 |
| 2 |
1 The qualified shareholder of UBS AG is UBS Group AG. 2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG. 3 Members of governing bodies consist of the members of the Board of Directors and Group Executive Board of UBS Group AG and the members of the Board of Directors and Executive Board of UBS AG. 4 Includes amounts due to / from other participations. |
|
| 31.12.21 |
| 31.12.20 | ||||
CHF million |
| Amounts due from |
| Amounts due to |
| Amounts due from |
| Amounts due to |
Qualified shareholders1 |
| 661 |
| 56,747 |
| 1,080 |
| 51,061 |
of which: due from / to customers |
| 613 |
| 1,851 |
| 1,066 |
| 2,694 |
of which: funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level measured at amortized cost |
|
|
| 52,036 |
|
|
| 47,451 |
of which: funding received from UBS Group AG eligible as total loss-absorbing capacity at UBS AG level designated at fair value |
|
|
| 1,948 |
|
|
|
|
Subsidiaries |
| 85,636 |
| 45,195 |
| 87,613 |
| 55,204 |
of which: due from / to banks |
| 25,583 |
| 28,810 |
| 26,960 |
| 36,913 |
of which: due from / to customers |
| 24,246 |
| 2,078 |
| 17,928 |
| 2,548 |
of which: receivables / payables from securities financing transactions |
| 8,521 |
| 12,654 |
| 15,105 |
| 12,378 |
of which: funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity |
| 25,098 |
|
|
| 23,337 |
|
|
Affiliated entities2 |
| 314 |
| 306 |
| 208 |
| 245 |
of which: due from / to customers |
| 288 |
| 118 |
| 185 |
| 37 |
Members of governing bodies3 |
| 31 |
|
|
| 34 |
|
|
External auditors |
|
|
| 3 |
|
|
| 3 |
Other related parties4 |
| 1 |
| 2 |
| 49 |
| 2 |
1 The qualified shareholder of UBS AG is UBS Group AG. 2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG. 3 Members of governing bodies consist of the members of the Board of Directors and Group Executive Board of UBS Group AG and the members of the Board of Directors and Executive Board of UBS AG. 4 Includes amounts due to / from other participations. |
In addition to the information in the table above, as of 31 December 2021, off-balance sheet positions related to subsidiaries amounted to USD 9.2 billion (CHF 8.4 billion) (31 December 2020: USD 8.0 billion (CHF 7.1 billion)), of which USD 7.8 billion (CHF 7.1 billion) were guarantees to third parties (31 December 2020: USD 6.1 billion (CHF 5.4 billion)) and USD 0.8 billion (CHF 0.7 billion) were loan commitments (31 December 2020: USD 1.3 billion (CHF 1.2 billion)).
34
|
| USD million |
| CHF million | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Fiduciary deposits |
| 63 | 192 |
| 57 | 170 |
of which: placed with third-party banks |
| 63 | 192 |
| 57 | 170 |
of which: placed with subsidiaries and affiliated entities |
| 0 | 0 |
| 0 | 0 |
Total fiduciary transactions |
| 63 | 192 |
| 57 | 170 |
Fiduciary transactions encompass transactions entered into by UBS AG that result in holding or placing assets on behalf of individuals, trusts, defined benefit plans and other institutions. Unless the recognition criteria for the assets are satisfied, these assets and the related income are excluded from UBS AG’s balance sheet and income statement but are disclosed in this Note as off-balance sheet fiduciary transactions. Client deposits that are initially placed as fiduciary transactions with UBS AG may be recognized on UBS AG’s balance sheet in situations in which the deposit is subsequently placed within UBS AG. In such cases, these deposits are not reported in the table above.
|
| USD billion |
| CHF billion | ||
|
| As of or for the year ended |
| As of or for the year ended | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Discretionary assets |
| 67 | 63 |
| 61 | 55 |
Other invested assets |
| 493 | 535 |
| 449 | 474 |
Total invested assets |
| 560 | 598 |
| 510 | 529 |
of which: double counts |
| 0 | 0 |
| 0 | 0 |
Net new money |
| 18 | 9 |
| 16 | 8 |
|
|
| USD billion |
| CHF billion | ||
|
| 31.12.21 | 31.12.20 |
| 31.12.21 | 31.12.20 |
Total invested assets at the beginning of the year1 |
| 598 | 500 |
| 529 | 484 |
Net new money |
| 18 | 9 |
| 16 | 8 |
Market movements2 |
| (48) | 83 |
| (43) | 73 |
Foreign currency translation |
| (5) | 5 |
| 10 | (36) |
Other effects |
| (3) | 0 |
| (2) | 0 |
Total invested assets at the end of the year1 |
| 560 | 598 |
| 510 | 529 |
1 Includes no double counts. 2 Includes interest and dividend income. |
› Refer to Note 32 of the UBS AG consolidated financial statements in the UBS Group AG and UBS AG Annual Report 2021 for more information
35
UBS AG standalone financial statements (audited)
Note 28 Change in organization
Transfer of Global Wealth Management international from UBS Switzerland AG to UBS AG
In the fourth quarter of 2020, UBS decided not to proceed with the transfer of a portion of the Global Wealth Management business booked in Switzerland from UBS Switzerland AG to UBS AG. As a result of this decision, the beneficial ownership of that business was re-transferred from UBS AG to UBS Switzerland AG with effective date 31 December 2020. The income statement for the year ended 31 December 2020 includes UBS AG’s share of the profits for 2020 of USD 378 million (CHF 354 million) within Fee and commission income from securities and investment business and other fee and commission income, as well as a USD 67 million (CHF 59 million) impairment of internally generated software within Depreciation, amortization and impairment of property, equipment, software, goodwill and intangible assets.
Note 29 Events after the reporting period
Russia’s invasion of Ukraine
Russia’s invasion of Ukraine on 24 February 2022 has triggered disruptions and uncertainties in the markets and the global economy, as well as coordinated implementation of sanctions by Switzerland, the United States, the European Union, the United Kingdom and others against Russia, Russian entities and nationals. These events, together with potential counter-sanctions and other measures taken by Russia, impact UBS AG’s businesses.
UBS AG’s direct country risk exposure to Russia was approximately USD 0.3 billion (CHF 0.3 billion) across its business divisions as of 31 December 2021. This exposure has been reduced since year-end 2021. In addition, UBS AG is currently monitoring settlement risk on certain open transactions with Russian banks and non-bank counterparties or Russian underlyings. UBS AG’s balance sheet as of 31 December 2021 also included an investment in its Russian subsidiary, OOO UBS Bank, with a carrying value of USD 39 million (CHF 35 million). As of 3 March 2022, UBS AG also had approximately USD 0.1 billion (CHF 0.1 billion) of indirect exposure arising from reliance on Russian assets as collateral on secured financing in Global Wealth Management.
UBS AG continues to closely monitor related effects on its financial statements, including estimated direct and indirect impacts on expected credit loss calculations and on fair value measurement of assets, liabilities and off-balance sheet exposures. The situation continues to evolve and broader implications for other counterparties of UBS AG, including financial institutions, are not possible to assess at this time; however, there were no material adverse effects on UBS AG’s financial statements as of 4 March 2022.
› Refer to “Top and emerging risks” and “Country risk” in the “Risk management and control” section and to “Performance in the financial services industry is affected by market conditions and the macroeconomic climate” in the “Risk factors” section of the UBS Group AG Annual Report 2021 for more information
36
37
UBS AG standalone financial statements (audited)
38
39
UBS AG standalone financial statements (audited)
40
41
UBS AG standalone regulatory information
Key metrics of the fourth quarter of 2021
Quarterly | The table on the following page is based on Basel Committee on Banking Supervision (BCBS) Basel III rules.
During the fourth quarter of 2021, common equity tier 1 (CET1) capital increased by USD 1.6 billion to USD 52.8 billion, mainly due to operating profit before tax, partly offset by additional accruals for capital returns to UBS Group AG. Tier 1 capital increased by USD 1.4 billion to USD 66.7 billion, primarily driven by the aforementioned increase in CET1 capital, partly offset by interest rate risk hedge effects. Total capital increased by USD 1.4 billion to USD 68.1 billion, reflecting the aforementioned increase in tier 1 capital.
Phase-in risk-weighted assets (RWA) decreased by USD 0.8 billion to USD 317.9 billion during the fourth quarter of 2021, primarily driven by decreases in market risk and to a lesser extent operational risk RWA, partly offset by increases in credit and counterparty credit risk and participation RWA.
Leverage ratio exposure decreased by USD 4 billion to USD 594 billion, mainly driven by lower derivative exposures and securities financing transactions, partly offset by increases in lending balances and trading assets.
Correspondingly, our CET1 capital ratio increased 0.5 percentage points to 16.6%, predominantly reflecting the increase in CET1 capital. Our Basel III leverage ratio increased 0.3 percentage points to 11.2%, due to the increase in tier 1 capital and lower leverage ratio exposure.
In the fourth quarter of 2021, the UBS AG liquidity coverage ratio (LCR) was 173%, remaining above the prudential requirements communicated by the Swiss Financial Market Supervisory Authority (FINMA). The average high-quality liquid assets (HQLA) decreased by USD 2.8 billion to USD 89.5 billion, driven by matured unsecured debt issued. Average total net cash outflows increased by USD 1.5 billion to USD 52.2 billion.
As of 31 December 2021, the net stable funding ratio (NSFR) of UBS AG was 89%, remaining above the prudential requirements communicated by FINMA. The available stable funding increased by USD 6.7 billion to USD 258 billion, mainly due to an increase in customer deposits and debt issued designated at fair value. Required stable funding increased by USD 5.5 billion to USD 289 billion, mainly due to higher lending and an increase in the trading portfolio. p
44
Quarterly |
KM1: Key metrics |
|
|
|
|
|
|
|
|
| |
USD million, except where indicated | ||||||||||
|
|
| 31.12.21 | 30.9.21 |
| 30.6.21 |
| 31.3.21 |
| 31.12.20 |
Available capital (amounts) |
|
|
|
|
|
|
|
|
| |
1 | Common Equity Tier 1 (CET1) |
| 52,818 | 51,233 |
| 51,279 |
| 50,223 |
| 50,269 |
1a | Fully loaded ECL accounting model CET11 |
| 52,803 | 51,217 |
| 51,255 |
| 50,189 |
| 50,266 |
2 | Tier 1 |
| 66,658 | 65,211 |
| 66,487 |
| 64,652 |
| 64,699 |
2a | Fully loaded ECL accounting model Tier 11 |
| 66,643 | 65,195 |
| 66,463 |
| 64,618 |
| 64,696 |
3 | Total capital |
| 68,054 | 66,639 |
| 68,421 |
| 67,126 |
| 69,639 |
3a | Fully loaded ECL accounting model total capital1 |
| 68,039 | 66,624 |
| 68,398 |
| 67,091 |
| 69,636 |
Risk-weighted assets (amounts)2 |
|
|
|
|
|
|
|
|
| |
4 | Total risk-weighted assets (RWA) |
| 317,913 | 318,755 |
| 319,195 |
| 317,824 |
| 305,575 |
4a | Minimum capital requirement3 |
| 25,433 | 25,500 |
| 25,536 |
| 25,426 |
| 24,446 |
4b | Total risk-weighted assets (pre-floor) |
| 317,913 | 318,755 |
| 319,195 |
| 317,824 |
| 305,575 |
Risk-based capital ratios as a percentage of RWA2 |
|
|
|
|
|
|
|
|
| |
5 | CET1 ratio (%) |
| 16.61 | 16.07 |
| 16.06 |
| 15.80 |
| 16.45 |
5a | Fully loaded ECL accounting model CET1 ratio (%)1 |
| 16.61 | 16.07 |
| 16.06 |
| 15.79 |
| 16.45 |
6 | Tier 1 ratio (%) |
| 20.97 | 20.46 |
| 20.83 |
| 20.34 |
| 21.17 |
6a | Fully loaded ECL accounting model Tier 1 ratio (%)1 |
| 20.96 | 20.45 |
| 20.82 |
| 20.33 |
| 21.17 |
7 | Total capital ratio (%) |
| 21.41 | 20.91 |
| 21.44 |
| 21.12 |
| 22.79 |
7a | Fully loaded ECL accounting model total capital ratio (%)1 |
| 21.40 | 20.90 |
| 21.43 |
| 21.11 |
| 22.79 |
Additional CET1 buffer requirements as a percentage of RWA |
|
|
|
|
|
|
|
|
| |
8 | Capital conservation buffer requirement (%) |
| 2.50 | 2.50 |
| 2.50 |
| 2.50 |
| 2.50 |
9 | Countercyclical buffer requirement (%) |
| 0.02 | 0.02 |
| 0.02 |
| 0.02 |
| 0.01 |
9a | Additional countercyclical buffer for Swiss mortgage loans (%) |
|
|
|
|
|
|
|
|
|
10 | Bank G-SIB and / or D-SIB additional requirements (%)4 |
|
|
|
|
|
|
|
|
|
11 | Total of bank CET1 specific buffer requirements (%) |
| 2.52 | 2.52 |
| 2.52 |
| 2.52 |
| 2.51 |
12 | CET1 available after meeting the bank’s minimum capital requirements (%) |
| 12.11 | 11.57 |
| 11.56 |
| 11.30 |
| 11.95 |
Basel III leverage ratio5 |
|
|
|
|
|
|
|
|
| |
13 | Total Basel III leverage ratio exposure measure |
| 593,868 | 597,542 |
| 606,536 |
| 611,022 |
| 595,017 |
14 | Basel III leverage ratio (%) |
| 11.22 | 10.91 |
| 10.96 |
| 10.58 |
| 10.87 |
14a | Fully loaded ECL accounting model Basel III leverage ratio (%)1 |
| 11.22 | 10.91 |
| 10.96 |
| 10.58 |
| 10.87 |
Liquidity coverage ratio (LCR)6 |
|
|
|
|
|
|
|
|
| |
15 | Total high-quality liquid assets (HQLA) |
| 89,488 | 92,333 |
| 88,964 |
| 82,041 |
| 83,905 |
16 | Total net cash outflow |
| 52,229 | 50,733 |
| 50,537 |
| 47,927 |
| 52,851 |
16a | of which: cash outflows |
| 163,207 | 167,240 |
| 170,847 |
| 171,815 |
| 166,097 |
16b | of which: cash inflows |
| 110,978 | 116,507 |
| 120,310 |
| 123,889 |
| 113,246 |
17 | LCR (%) |
| 173 | 183 |
| 176 |
| 172 |
| 159 |
Net stable funding ratio (NSFR)7 |
|
|
|
|
|
|
|
|
| |
18 | Total available stable funding |
| 257,992 | 251,277 |
|
|
|
|
|
|
19 | Total required stable funding |
| 289,195 | 283,682 |
|
|
|
|
|
|
20 | NSFR (%) |
| 89 | 89 |
|
|
|
|
|
|
1 The fully loaded ECL accounting model excludes the transitional relief of recognizing ECL allowances and provisions in CET1 capital in accordance with FINMA Circular 2013/1 “Eligible capital – banks.” 2 Based on phase-in rules for RWA. Refer to “Swiss SRB going gone concern requirements and information” on the next page for more information. 3 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 4 Swiss SRB going and gone concern requirements and information for UBS AG standalone are provided on the following pages in this section. 5 The temporary exemption that applied from 25 March 2020 until 1 January 2021 and was granted by FINMA in connection with COVID-19 had no net effect on UBS AG standalone in 2020. Refer to the “Introduction and basis for preparation” and “UBS AG standalone” sections of our 31 December 2020 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. 6 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of 66 data points in the fourth quarter of 2021 and 65 data points in the third quarter of 2021. For the prior quarter data points, please refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. 7 In accordance with Art. 17h para. 3 and 4 of the Liquidity Ordinance, UBS AG standalone is required to maintain a minimum NSFR of at least 80% without taking into account excess funding of UBS Switzerland AG and 100% after taking into account such excess funding. Refer to the “Introduction and basis for preparation” section of our 31 December 2021 Pillar 3 report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. |
p
45
UBS AG standalone regulatory information
Swiss SRB going and gone concern requirements and information
UBS AG standalone is considered a systemically relevant bank (an SRB) under Swiss banking law and is subject to capital regulations on a standalone basis.
The capital requirements based on RWA include a minimum CET1 capital requirement of 10.02%, including a countercyclical buffer of 0.02%, and a total going concern capital requirement of 14.32%, including a countercyclical buffer of 0.02%. The capital requirements based on the leverage ratio denominator (the LRD) include a minimum CET1 capital requirement of 3.5% and a total going concern leverage ratio requirement of 5.0%.
CET1 and high-trigger additional tier 1 (AT1) capital instruments are eligible as going concern capital. As of 31 December 2021, two remaining outstanding low-trigger AT1 capital instruments, amounting to USD 2.4 billion, that were on-lent from UBS Group AG to UBS AG qualify as going concern capital, as agreed with the Swiss Financial Market Supervisory Authority (FINMA).
From 1 January 2020, UBS AG standalone is subject to a gone concern capital requirement based on the sum of: (i) its third-party exposure on a standalone basis; (ii) a buffer requirement equal to 30% of the Group’s gone concern capital requirement on UBS AG’s consolidated exposure; and (iii) the nominal value of the gone concern instruments issued by UBS entities and held by the parent bank. A transitional period until 2024 has been granted for the buffer requirement. The gone concern capital coverage ratio reflects how much gone concern capital is available to meet the gone concern requirement. Outstanding high- and low-trigger loss-absorbing tier 2 capital instruments, non-Basel III-compliant tier 2 capital instruments and total loss-absorbing capacity (TLAC)-eligible senior unsecured debt instruments are eligible to meet gone concern requirements until one year before maturity.
FINMA granted relief concerning the regulatory capital requirements of UBS AG on a standalone basis by means of decrees issued on 20 December 2013 and 20 October 2017, the latter effective as of 1 July 2017 and partly replacing the former.
For direct and indirect investments, including the holding of regulatory capital instruments of UBS AG by subsidiaries that are active in banking and finance, the FINMA decree introduced a risk-weighting approach, with a phase-in period until 1 January 2028. Starting from 1 July 2017, these investments were risk-weighted at 200%. From 1 January 2019 onward, the risk weights are being gradually raised by 5 percentage points per year for Switzerland-domiciled investments and by 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights are 250% and 400%, respectively. As of 31 December 2021, the applicable phase-in risk weights are 215% for Switzerland-domiciled investments and 260% for foreign-domiciled investments.
› Refer to the “Introduction and basis for preparation” section of our 31 December 2021 Pillar 3 report for more information about the reactivation of the Swiss Countercyclical Buffer
› Refer to “Additional information” in the “Capital, liquidity and funding, and balance sheet” section of the UBS Group AG Annual Report 2021 for more information about the joint liability of UBS AG and UBS Switzerland AG
46
Quarterly | The tables below and on the next page provide details of the Swiss systemically relevant bank (SRB) RWA- and leverage ratio denominator (LRD)-based going and gone concern requirements and information as required by FINMA; details regarding eligible gone concern instruments are provided on the next page. p
Quarterly |
Swiss SRB going and gone concern requirements and information | |||||||||
As of 31.12.21 |
| RWA, phase-in |
| RWA, fully applied as of 1.1.28 |
| LRD | |||
USD million, except where indicated |
| in % |
|
| in% |
|
| in % |
|
Required going concern capital |
|
|
|
|
|
|
|
|
|
Total going concern capital |
| 14.321 | 45,513 |
| 14.321 | 54,822 |
| 5.001 | 29,693 |
Common equity tier 1 capital |
| 10.02 | 31,843 |
| 10.02 | 38,356 |
| 3.50 | 20,785 |
of which: minimum capital |
| 4.50 | 14,306 |
| 4.50 | 17,232 |
| 1.50 | 8,908 |
of which: buffer capital |
| 5.50 | 17,485 |
| 5.50 | 21,061 |
| 2.00 | 11,877 |
of which: countercyclical buffer |
| 0.02 | 52 |
| 0.02 | 62 |
|
|
|
Maximum additional tier 1 capital |
| 4.30 | 13,670 |
| 4.30 | 16,466 |
| 1.50 | 8,908 |
of which: additional tier 1 capital |
| 3.50 | 11,127 |
| 3.50 | 13,403 |
| 1.50 | 8,908 |
of which: additional tier 1 buffer capital |
| 0.80 | 2,543 |
| 0.80 | 3,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Eligible going concern capital |
|
|
|
|
|
|
|
|
|
Total going concern capital |
| 20.97 | 66,658 |
| 17.41 | 66,658 |
| 11.22 | 66,658 |
Common equity tier 1 capital |
| 16.61 | 52,818 |
| 13.79 | 52,818 |
| 8.89 | 52,818 |
Total loss-absorbing additional tier 1 capital |
| 4.35 | 13,840 |
| 3.61 | 13,840 |
| 2.33 | 13,840 |
of which: high-trigger loss-absorbing additional tier 1 capital |
| 3.59 | 11,414 |
| 2.98 | 11,414 |
| 1.92 | 11,414 |
of which: low-trigger loss-absorbing additional tier 1 capital |
| 0.76 | 2,426 |
| 0.63 | 2,426 |
| 0.41 | 2,426 |
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets / leverage ratio denominator |
|
|
|
|
|
|
|
|
|
Risk-weighted assets |
|
| 317,913 |
|
| 382,934 |
|
|
|
Leverage ratio denominator |
|
|
|
|
|
|
|
| 593,868 |
|
|
|
|
|
|
|
|
|
|
Required gone concern capital2 |
| Higher of RWA- or LRD-based |
|
|
|
|
|
| |
Total gone concern loss-absorbing capacity |
|
| 39,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eligible gone concern capital |
|
|
|
|
|
|
|
| |
Total gone concern loss-absorbing capacity |
|
| 44,250 |
|
|
|
|
| |
Gone concern capital coverage ratio |
| 112.02 |
|
|
|
|
|
|
|
1 Includes applicable add-ons of 1.44% for RWA and 0.50% for LRD. 2 A maximum of 25% of the gone concern requirements can be met with instruments that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. |
p
47
UBS AG standalone regulatory information
Quarterly |
Swiss SRB going and gone concern information | |||||
USD million, except where indicated |
| 31.12.21 |
| 30.9.21 | 31.12.20 |
|
|
|
|
|
|
Eligible going concern capital |
|
|
|
|
|
Total going concern capital |
| 66,658 |
| 65,211 | 64,699 |
Total tier 1 capital |
| 66,658 |
| 65,211 | 64,699 |
Common equity tier 1 capital |
| 52,818 |
| 51,233 | 50,269 |
Total loss-absorbing additional tier 1 capital |
| 13,840 |
| 13,978 | 14,430 |
of which: high-trigger loss-absorbing additional tier 1 capital |
| 11,414 |
| 11,509 | 11,854 |
of which: low-trigger loss-absorbing additional tier 1 capital |
| 2,426 |
| 2,469 | 2,575 |
|
|
|
|
|
|
Eligible gone concern capital |
|
|
|
|
|
Total gone concern loss-absorbing capacity |
| 44,250 |
| 42,412 | 45,520 |
Total tier 2 capital |
| 3,129 |
| 3,170 | 7,719 |
of which: low-trigger loss-absorbing tier 2 capital |
| 2,594 |
| 2,635 | 7,184 |
of which: non-Basel III-compliant tier 2 capital |
| 535 |
| 534 | 535 |
TLAC-eligible senior unsecured debt |
| 41,120 |
| 39,242 | 37,801 |
|
|
|
|
|
|
Total loss-absorbing capacity |
|
|
|
|
|
Total loss-absorbing capacity |
| 110,908 |
| 107,623 | 110,219 |
|
|
|
|
|
|
Denominators for going and gone concern ratios |
|
|
|
|
|
Risk-weighted assets phase-in |
| 317,913 |
| 318,755 | 305,575 |
of which: investments in Swiss-domiciled subsidiaries1 |
| 38,935 |
| 38,227 | 38,370 |
of which: investments in foreign-domiciled subsidiaries1 |
| 108,982 |
| 108,837 | 99,635 |
Risk-weighted assets fully applied as of 1.1.28 |
| 382,934 |
| 383,582 | 379,307 |
of which: investments in Swiss-domiciled subsidiaries1 |
| 45,273 |
| 44,450 | 45,678 |
of which: investments in foreign-domiciled subsidiaries1 |
| 167,664 |
| 167,442 | 166,058 |
Leverage ratio denominator |
| 593,868 |
| 597,542 | 595,0172 |
|
|
|
|
|
|
Capital and loss-absorbing capacity ratios (%) |
|
|
|
|
|
Going concern capital ratio, phase-in |
| 21.0 |
| 20.5 | 21.2 |
of which: common equity tier 1 capital ratio, phase-in |
| 16.6 |
| 16.1 | 16.5 |
Going concern capital ratio, fully applied as of 1.1.28 |
| 17.4 |
| 17.0 | 17.1 |
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28 |
| 13.8 |
| 13.4 | 13.3 |
|
|
|
|
|
|
Leverage ratios (%)2 |
|
|
|
|
|
Going concern leverage ratio |
| 11.2 |
| 10.9 | 10.9 |
of which: common equity tier 1 leverage ratio |
| 8.9 |
| 8.6 | 8.4 |
|
|
|
|
|
|
Capital coverage ratio (%) |
|
|
|
|
|
Gone concern capital coverage ratio |
| 112.0 |
| 110.2 | 135.7 |
1 Net exposure for direct and indirect investments including holding of regulatory capital instruments in Switzerland-domiciled subsidiaries (31 December 2021: USD 18,109 million; 30 September 2021: USD 17,780 million; 31 December 2020: USD 18,271 million) and for direct and indirect investments including holding of regulatory capital instruments in foreign-domiciled subsidiaries (31 December 2021: USD 41,916 million; 30 September 2021: USD 41,860 million; 31 December 2020: USD 41,515 million) are risk-weighted at 215% and 260%, respectively, for the current year (31 December 2020: 210% and 240%, respectively). Risk weights will gradually increase by 5 percentage points per year for Swiss-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and 400%, respectively, are applied. 2 The temporary exemption that applied from 25 March 2020 until 1 January 2021 and was granted by FINMA in connection with COVID-19 had no net effect on UBS AG standalone in 2020. Refer to the “Introduction and basis for preparation” and “UBS AG standalone” sections of our 31 December 2020 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. |
p
48
Leverage ratio information
Quarterly |
Swiss SRB leverage ratio denominator | ||||
|
|
|
| |
USD billion |
| 31.12.21 | 30.9.21 | 31.12.201 |
|
|
|
|
|
Leverage ratio denominator |
|
|
|
|
Swiss GAAP total assets |
| 509.9 | 508.8 | 509.0 |
Difference between Swiss GAAP and IFRS total assets |
| 125.0 | 121.5 | 160.0 |
Less: derivative exposures and SFTs2 |
| (216.4) | (225.2) | (271.8) |
Less: funding provided to significant regulated subsidiaries eligible as gone concern capital |
| (21.8) | (20.8) | (20.2) |
On-balance sheet exposures (excluding derivative exposures and SFTs) |
| 396.7 | 384.2 | 377.0 |
Derivative exposures |
| 89.7 | 103.6 | 98.2 |
Securities financing transactions |
| 85.4 | 88.6 | 99.4 |
Off-balance sheet items |
| 23.7 | 22.5 | 21.6 |
Items deducted from Swiss SRB tier 1 capital |
| (1.6) | (1.4) | (1.2) |
Total exposures (leverage ratio denominator) |
| 593.9 | 597.5 | 595.0 |
1 The temporary exemption granted by FINMA in connection with COVID-19 had no net effect on UBS AG standalone. 2 The exposures consist of derivative financial instruments, cash collateral receivables on derivative instruments, receivables from SFTs, and margin loans, as well as prime brokerage receivables and financial assets at fair value not held for trading, both related to SFTs. These exposures are presented separately under Derivative exposures and Securities financing transactions in this table. |
p
Climate risk
Annual | Our climate strategy and governance are determined and overseen at Group level. Similarly, we identify and manage climate risks, including climate-related financial risks, in our own operations, balance sheet, client assets and supply chain on Group level.
In 2021, we further embedded climate risk into the UBS risk appetite framework and operational risk appetite statement. To protect our clients’ and our own assets from climate-related risks, we continue to drive the integration of climate-related risk into our standard risk management framework and processes.
In 2021 we have introduced selected climate-related metrics for the legal entity UBS AG, which are presented along with respective metrics applicable to UBS Group in the UBS Group AG Annual Report 2021. p
› Refer to “Our focus on sustainability and climate” of the “How we create value for our stakeholders” section and to “Sustainability and climate risk” of the “Risk management and control” section of the UBS Group AG Annual Report 2021 for more information
› Refer to “Climate strategy” in the “Taking action on a net-zero future – our climate report” section of the Sustainability Report 2021, available from 11 March 2022 under “Annual reporting” at ubs.com/investors, for more information
49
Zurich, 07 March 2022
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in each of the following registration statements of UBS Group AG, UBS AG and their affiliates:
(1) on Form F-3 (Registration Number 333-253432), and each related prospectus currently outstanding under such registration statement,
(2) on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; 333-200665; 333-215254; 333-215255; 333-228653; and 333-230312; 333-249143), and each related prospectus currently outstanding under any of the aforementioned registration statements,
(3) the base prospectus of Corporate Asset Backed Corporation (CABCO) dated 23 June 2004 (Registration Number 333-111572),
(4) the Form 8-K of CABCO dated 23 June 2004 (SEC File Number 001-13444), and
(5) the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated 10 May 2004 (Registration Number 033-91744) and 17 May 2004 (Registration Number 033-91744-05),
of our report dated 04 March 2022, with respect to the standalone financial statements of UBS AG for the year ended 31 December 2021 included in this Report of Foreign Private Issuer (Form 6-K) dated 07 March 2022, filed with the Securities and Exchange Commission.
/s/ Ernst & Young Ltd
This Form 6-K is hereby incorporated by reference into (1) each of the registration statements of UBS AG on Form F-3 (Registration Number 333-253432), and of UBS Group AG on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; 333-200665; 333-215254; 333-215255; 333-228653; 333-230312; and 333-249143), and into each prospectus outstanding under any of the foregoing registration statements, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that incorporates by reference any Form 6-K’s of UBS AG that are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).
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/ Christopher Castello_______
Name: Christopher Castello
Title: Group Controller and
Chief Accounting Officer
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
UBS AG
By: _/s/ Christopher Castello_______
Name: Christopher Castello
Title: Controller and Chief
Accounting Officer
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
Date: March 7, 2022