22
Cautionary Statement
Regarding Forward-Looking
Statements |
This presentation contains
statements that constitute
“forward-looking statements,”
including but
not limited
to management’s
outlook for
UBS’s financial
performance, statements
relating to
the anticipated
effect
of transactions
and
strategic initiatives on UBS’s business and
future development and goals or
intentions to achieve climate, sustainability and other
social objectives. While
these forward-looking
statements represent
UBS’s judgments,
expectations and
objectives concerning
the matters
described, a
number of
risks, uncertainties
and other important factors could cause actual developments and results to differ materially from UBS’s expectations. In particular, recent terrorist activity
and escalating armed conflict in
the middle east, as well
as the continuing Russia–Ukraine war, may have significant
impacts on global markets, exacerbate
global inflationary pressures, and
slow global growth. In
addition, the ongoing conflicts may
continue to cause significant
population displacement, and
lead
to
shortages
of
vital
commodities,
including
energy
shortages
and
food
insecurity
outside
the
areas
immediately
involved
in
armed
conflict.
Governmental responses to the armed conflicts, including, with respect to the Russia-Ukraine war, coordinated successive sets
of sanctions on Russia and
Belarus, and Russian and Belarusian entities and nationals, and the uncertainty
as to whether the ongoing conflicts will widen and intensify, may continue
to have significant adverse effects on the market and macroeconomic conditions,
including in ways that cannot be anticipated. UBS’s
acquisition of Credit
Suisse has materially changed our outlook and strategic direction and introduced new operational challenges. The integration of the Credit Suisse entities
into the UBS structure is
expected to take between
three and five years and
presents significant risks, including
the risks that UBS Group
AG may be unable
to achieve
the cost
reductions and
other benefits
contemplated by the
transaction. This creates
significantly greater
uncertainty about
forward-looking
statements. Other factors that may affect our performance and ability to achieve our plans, outlook and
other objectives also include, but are not limited
to: (i)
the degree to
which UBS is
successful in the
execution of its
strategic plans, including
its cost reduction
and efficiency initiatives
and its ability
to
manage its
levels of
risk-weighted assets (RWA)
and leverage
ratio denominator
(LRD), liquidity
coverage ratio
and other
financial resources,
including
changes in RWA assets and liabilities arising from higher market
volatility and the size of the combined bank; (ii) the degree
to which UBS is successful in
implementing changes to its businesses to
meet changing market, regulatory and other conditions,
including as a result of the acquisition of Credit Suisse;
(iii) increased inflation
and interest rate
volatility in
major markets;
(iv) developments
in the
macroeconomic climate
and in the
markets in
which UBS
operates
or to which
it is exposed, including
movements in securities prices
or liquidity,
credit spreads, currency
exchange rates, deterioration or
slow recovery in
residential
and
commercial real
estate markets,
the effects
of
economic conditions,
including increasing
inflationary pressures,
market
developments,
increasing geopolitical tensions, and changes to national trade policies on the financial position or creditworthiness of UBS’s clients and counterparties,
as
well as on client sentiment and
levels of activity,
including the COVID-19 pandemic and the measures taken to
manage it, which have had and may
also
continue to
have a
significant adverse
effect on
global and
regional economic
activity,
including disruptions
to global
supply chains
and labor
market
displacements; (v) changes in the
availability of capital and funding, including
any adverse changes in UBS’s credit
spreads and credit ratings of UBS, Credit
Suisse, sovereign issuers, structured
credit products or
credit-related exposures, as
well as availability and
cost of funding to
meet requirements for
debt
eligible
for
total
loss-absorbing
capacity
(TLAC),
in
particular
in
light
of
the
acquisition
of
Credit
Suisse;
(vi)
changes
in
central
bank
policies
or
the
implementation of financial legislation and regulation in Switzerland, the US, the UK, the European
Union and other financial centers that have imposed,
or resulted
in, or
may do
so in
the future,
more stringent
or entity-specific capital,
TLAC, leverage ratio,
net stable
funding ratio, liquidity
and funding
requirements, heightened operational
resilience requirements, incremental
tax requirements, additional
levies, limitations
on permitted activities,
constraints
on remuneration, constraints on transfers
of capital and liquidity
and sharing of operational costs
across the Group or other measures, and
the effect these
will or would
have on UBS’s
business activities;
(vii) UBS’s ability
to successfully
implement resolvability
and related regulatory
requirements and the
potential
need
to
make
further changes
to
the
legal structure
or
booking model
of
UBS
in
response
to
legal
and
regulatory
requirements and
any additional
requirements due to
its acquisition
of Credit Suisse,
or other developments;
(viii) UBS’s ability
to maintain
and improve its
systems and controls
for complying
with sanctions in a timely manner and for the detection and prevention of money laundering to meet evolving regulatory requirements
and expectations,
in particular in current geopolitical turmoil; (ix) the uncertainty arising from domestic stresses in certain major economies;
(x) changes in UBS’s competitive
position, including whether
differences in
regulatory capital and
other requirements among
the major
financial centers adversely
affect UBS’s
ability to
compete in certain
lines of business; (xi)
changes in the
standards of conduct
applicable to our
businesses that may result
from new regulations
or new
enforcement of existing
standards, including measures
to impose new
and enhanced duties
when interacting with
customers and in
the execution and
handling of customer
transactions; (xii) the
liability to which
UBS may
be exposed, or
possible constraints or
sanctions that regulatory
authorities might
impose on
UBS, due
to
litigation, contractual
claims and
regulatory investigations,
including the
potential for
disqualification from
certain businesses,
potentially large fines or
monetary penalties, or the
loss of licenses or
privileges as a result
of regulatory or other
governmental sanctions, as well as
the
effect that litigation, regulatory and
similar matters have on the
operational risk component of our RWA,
including as a result of
its acquisition of Credit
Suisse, as
well as
the amount
of capital
available for
return to
shareholders; (xiii)
the effects
on UBS’s
business, in
particular cross-border
banking, of
sanctions, tax or
regulatory developments and
of possible changes
in UBS’s policies and
practices; (xiv) UBS’s
ability to retain
and attract the
employees
necessary to
generate revenues
and to
manage, support
and control its
businesses, which
may be affected
by competitive
factors; (xv)
changes in
accounting
or tax standards
or policies, and
determinations or interpretations affecting the
recognition of gain or
loss, the valuation of
goodwill, the recognition of
deferred tax assets and other matters; (xvi) UBS’s ability
to implement new technologies and business
methods, including digital services and technologies,
and ability to successfully compete with both
existing and new financial service providers, some
of which may not be regulated
to the same extent; (xvii)
limitations on
the effectiveness of
UBS’s internal
processes for risk
management, risk
control, measurement
and modeling,
and of financial
models generally;
(xviii) the
occurrence of
operational failures,
such as
fraud, misconduct,
unauthorized trading,
financial crime,
cyberattacks, data
leakage and
systems
failures, the
risk of
which is
increased with cyberattack
threats from
both nation states
and non-nation-state actors
targeting financial institutions;
(xix)
restrictions on the ability of UBS Group AG to make payments or distributions, including due to
restrictions on the ability of its subsidiaries to make loans
or distributions, directly
or indirectly,
or,
in the case
of financial difficulties, due
to the exercise
by FINMA or
the regulators of
UBS’s operations in other
countries of their broad statutory powers
in relation to protective measures, restructuring and liquidation
proceedings; (xx) the degree to which changes
in
regulation, capital or legal structure, financial
results or other factors may affect
UBS’s ability to maintain its
stated capital return objective;
(xxi) uncertainty
over the scope
of actions that
may be
required by
UBS, governments and others
for UBS to
achieve goals relating
to climate, environmental
and social
matters, as
well as
the evolving nature
of underlying science
and industry and
the possibility of
conflict between different
governmental standards and
regulatory regimes;
(xxii) the
ability of
UBS to
access capital
markets; (xxiii)
the ability
of UBS
to successfully
recover from
a disaster
or other
business
continuity
problem
due
to
a
hurricane,
flood,
earthquake,
terrorist
attack,
war,
conflict
(e.g.,
the
Russia–Ukraine
war),
pandemic,
security
breach,
cyberattack, power
loss, telecommunications
failure
or other
natural or
man-made event,
including the
ability to
function remotely
during long-term
disruptions such as the COVID-19
(coronavirus) pandemic; (xxiv) the level
of success in the absorption of
Credit Suisse, in the integration of
the two groups
and their businesses, and in the execution of the planned strategy regarding cost reduction
and divestment of any non-core assets, the existing assets and
liabilities currently existing
in the Credit
Suisse Group, the
level of resulting
impairments and
write-downs, the
effect of the
consummation of
the integration
on the operational results, share price and
credit rating of UBS – delays,
difficulties, or failure in closing the
transaction may cause market disruption and
challenges for UBS to maintain business, contractual and operational
relationships; and (xxv) the effect that these or other factors or unanticipated
events,
including media
reports and
speculations, may
have on
our reputation
and the
additional consequences
that this
may have
on our
business and
performance.
The sequence in which the factors
above are presented is not indicative
of their likelihood of occurrence or
the potential magnitude of their
consequences.
Our business and financial performance could be affected
by other factors identified in our
past and future filings and
reports, including those filed with
the US Securities
and Exchange Commission
(the SEC). More detailed
information about those
factors is set forth
in documents furnished
by UBS and filings
made by UBS
with the SEC,
including the Annual Report
on Form 20-F
for the year ended
31 December 2022. UBS
is not under any
obligation to (and
expressly disclaims any obligation to) update or
alter its forward-looking statements, whether as
a result of new information, future events, or otherwise.
