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AMNA Ubs

Filed: 5 Mar 21, 6:58am

 

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 5, 2021

 

UBS Group AG

Commission File Number: 1-36764

UBS AG

Commission File Number: 1-15060

(Registrants' Names)

 

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                         Form 40-F 

 

 

 


 

This Form 6-K consists of the UBS Group AG audited standalone financial statements for the year ended 31 December 2020, as well as the consent of Ernst & Young Ltd. with respect thereto, which appear immediately following this page.

 


 

UBS Group AG

Standalone financial statements for the year ended 31 December 2020

 


 

  

 



UBS Group AG standalone financial statements 

UBS Group AG standalone financial statements

Audited |

Income statement

 

 

 

 

 

 

 

 

 

 

 

 

USD million

 

CHF million

 

 

 

 

For the year ended

 

For the year ended

 

 

Note

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Dividend income from investments in subsidiaries

 

 3 

 

 3,853 

 3,400 

 

 3,646 

 3,464 

Other operating income

 

 4 

 

 17 

 155 

 

 16 

 153 

Financial income

 

 5 

 

 1,836 

 498 

 

 1,714 

 491 

Operating income

 

 

 

 5,706 

 4,052 

 

 5,376 

 4,108 

Personnel expenses

 

 6 

 

 19 

 21 

 

 18 

 21 

Other operating expenses

 

 7 

 

 69 

 81 

 

 63 

 80 

Amortization of intangible assets

 

 

 

 4 

 4 

 

 4 

 4 

Financial expenses

 

 8 

 

 1,765 

 625 

 

 1,650 

 618 

Operating expenses

 

 

 

 1,858 

 732 

 

 1,735 

 724 

Profit / (loss) before income taxes

 

 

 

 3,848 

 3,320 

 

 3,641 

 3,384 

Tax expense / (benefit)

 

 

 

 6 

 0 

 

 6 

 0 

Net profit / (loss)

 

 

 

 3,841 

 3,320 

 

 3,635 

 3,384 

 

 

 

 

 

 

 

 

 

 

 

2 


 

Balance sheet

 

 

 

 

 

 

 

USD million

 

CHF million

 

 

Note

 

31.12.20

31.12.19

 

31.12.20

31.12.19

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Liquid assets

 

 9 

 

 2,198 

 1,177 

 

 1,946 

 1,140 

Marketable securities

 

 10 

 

 84 

 83 

 

 74 

 80 

Other short-term receivables

 

 11 

 

 5,555 

 2,412 

 

 4,919 

 2,335 

Accrued income and prepaid expenses

 

 12 

 

 947 

 1,010 

 

 839 

 978 

Total current assets

 

 

 

 8,784 

 4,682 

 

 7,779 

 4,533 

Investments in subsidiaries

 

 13 

 

 41,199 

 41,209 

 

 36,483 

 39,896 

of which: investment in UBS AG

 

 

 

 40,889 

 40,889 

 

 36,209 

 39,586 

Financial assets

 

 14 

 

 50,062 

 47,113 

 

 44,332 

 45,612 

Other intangible assets

 

 

 

 4 

 8 

 

 3 

 8 

Other non-current assets

 

 

 

 21 

 15 

 

 19 

 15 

Total non-current assets

 

 

 

 91,286 

 88,346 

 

 80,837 

 85,530 

Total assets

 

 

 

 100,071 

 93,028 

 

 88,616 

 90,063 

of which: amounts due from subsidiaries

 

 

 

 58,340 

 51,295 

 

 51,662 

 49,660 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current interest-bearing liabilities

 

 15 

 

 3,853 

 2,547 

 

 3,412 

 2,466 

Accrued expenses and deferred income

 

 16 

 

 2,097 

 2,102 

 

 1,857 

 2,035 

Total short-term liabilities

 

 

 

 5,950 

 4,649 

 

 5,269 

 4,501 

Long-term interest-bearing liabilities

 

 17 

 

 50,993 

 45,989 

 

 45,156 

 44,523 

Compensation-related long-term liabilities

 

 18 

 

 3,128 

 2,938 

 

 2,770 

 2,845 

Total long-term liabilities

 

 

 

 54,120 

 48,927 

 

 47,925 

 47,368 

Total liabilities

 

 

 

 60,071 

 53,576 

 

 53,194 

 51,869 

of which: amounts due to subsidiaries

 

 

 

 1,268 

 987 

 

 1,123 

 955 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 19 

 

 393 

 393 

 

 386 

 386 

General reserves

 

 

 

 27,048 

 28,352 

 

 26,506 

 27,730 

of which: statutory capital reserve

 

 

 

 27,048 

 28,352 

 

 26,506 

 27,730 

of which: capital contribution reserve

 

 

 

 27,048 

 28,352 

 

 26,506 

 27,730 

Voluntary earnings reserve

 

 

 

 12,738 

 10,682 

 

 8,812 

 9,937 

Treasury shares

 

 20 

 

 (4,020) 

 (3,297) 

 

 (3,917) 

 (3,244) 

    of which: against capital contribution reserve

 

 

 

 (180) 

 0 

 

 (174) 

 0 

Reserve for own shares held by subsidiaries

 

 

 

 0 

 1 

 

 0 

 1 

Net profit / (loss)

 

 

 

 3,841 

 3,320 

 

 3,635 

 3,384 

Equity attributable to shareholders

 

 

 

 40,000 

 39,452 

 

 35,421 

 38,194 

Total liabilities and equity

 

 

 

 100,071 

 93,028 

 

 88,616 

 90,063 

 

3 


UBS Group AG standalone financial statements 

 

Statement of proposed appropriation of total profit and dividend distribution out of total profit and capital contribution reserve

 

The Board of Directors proposes that the Annual General Meeting of Shareholders (AGM) on 8 April 2021 approve the appropriation of total profit and an ordinary dividend distribution of USD 0.37 (gross) in cash per share of CHF 0.10 nominal value under the terms set out below:

 

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.20

 

31.12.20

Net profit for the period

 

 3,841 

 

 3,635 

Profit / (loss) carried forward

 

 0 

 

 0 

Total profit available for appropriation

 

 3,841 

 

 3,635 

 

 

 

 

 

Appropriation of total profit

 

 

 

 

Appropriation to voluntary earnings reserve

 

 (3,127) 

 

 (3,004) 

Dividend distribution: USD 0.37 (gross) per dividend-bearing share, USD 0.185 of which out of total profit1

 

 (714) 

 

 (632)2

Profit / (loss) carried forward

 

 0 

 

 0 

1 Dividend-bearing shares are all shares issued except for treasury shares held by UBS Group AG as of the record date. The amount of USD 714 million presented is based on the total number of shares issued as of 31 December 2020. If the final total amount of the dividend is higher / lower, the difference will be balanced through the appropriation to the voluntary earnings reserve.    2 For illustrative purposes, translated at closing exchange rate as of 31 December 2020 (CHF / USD 1.13).

 

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.20

 

31.12.20

Total statutory capital reserve: capital contribution reserve before proposed distribution1

 

 27,048 

 

 26,506 

Dividend distribution: USD 0.37 (gross) per dividend-bearing share, USD 0.185 of which out of capital contribution reserve2

 

 (714) 

 

 (632)3

Total statutory capital reserve: capital contribution reserve after proposed distribution

 

 26,334 

 

 25,874 

1 The Swiss Federal Tax Administration’s current position is that, of the CHF 26.5 billion capital contribution reserve available as of 31 December 2020, an amount limited to CHF 11.9 billion is available from which dividends may be paid without a Swiss withholding tax deduction.    2 Dividend-bearing shares are all shares issued except for treasury shares held by UBS Group AG as of the record date. The amount of USD 714 million presented is based on the total number of shares issued as of 31 December 2020.    3 For illustrative purposes, translated at closing exchange rate as of 31 December 2020 (CHF / USD 1.13).

 

 

As set out above, half of the ordinary dividend distribution of USD 0.37 (gross) in cash per share is payable out of total profit and the other half is payable out of the capital contribution reserve. The portion of the dividend paid out of total profit will be subject to a 35% Swiss withholding tax.

The ordinary dividend distribution is declared in USD. Shareholders whose shares are held through SIX SIS AG will receive dividends in CHF, based on a published exchange rate calculated up to five decimal places on the day prior to the ex-dividend date. Shareholders holding shares through DTC or directly registered in the US share register with Computershare will be paid dividends in USD. The total amount of the dividend distribution will be capped at CHF 2,628 million (the Cap). To the extent that the CHF equivalent of the total dividend distribution 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 USD per share amount of the dividend will be reduced on a pro rata basis so that the total CHF amount does not exceed the Cap.

Provided that the proposed dividend distribution out of the total profit and the capital contribution reserve is approved, the payment of the dividend will be made on 15 April 2021 to holders of shares on the record date 14 April 2021. The shares will be traded ex-dividend as of 13 April 2021 and, accordingly, the last day on which the shares may be traded with entitlement to receive the dividend will be 12 April 2021.

  

4 


 

Note 1  Corporate information

UBS Group AG is incorporated and domiciled in Switzerland and its registered office is at Bahnhofstrasse 45, CH-8001 Zurich, Switzerland. UBS Group AG operates under Art. 620 et seq. of the Swiss Code of Obligations as an Aktiengesellschaft (a corporation limited by shares).

UBS Group AG is the ultimate holding company of the UBS Group, the grantor of the majority of UBS’s deferred compensation plans and the issuer of loss-absorbing capital notes which qualify as Basel III additional tier 1 (AT1) capital on a consolidated UBS Group basis and senior unsecured debt which contributes to the total loss-absorbing capacity (TLAC) of the Group.

The proceeds from the issuances of loss-absorbing AT1 capital notes and TLAC-eligible senior unsecured debt instruments are on-lent to UBS AG.

   Refer to Notes 15 and 17 for more information about the main terms and conditions of the loss-absorbing AT1 capital notes and TLAC-eligible senior unsecured debt instruments issued

 


Furthermore, UBS Group AG grants Deferred Contingent Capital Plan (DCCP) awards to UBS Group employees. These DCCP awards also qualify as Basel III AT1 capital on a consolidated UBS Group basis.

As of 31 December 2020, UBS Group AGs distributable items for the purpose of AT1 capital instruments were USD 39.5 billion (CHF 35.0 billion) (31 December 2019: USD 39.0 billion (CHF 37.7 billion)). For this purpose, distributable items are defined in the terms and conditions of the relevant instruments as the aggregate of (i) net profits carried forward and (ii) freely distributable reserves, in each case, less any amounts that must be contributed to legal reserves under applicable law.

 

5 

 


UBS Group AG standalone financial statements 

 

Note 2  Accounting policies

The UBS Group AG standalone financial statements are prepared in accordance with the principles of the Swiss law on accounting and financial reporting (32nd title of the Swiss Code of Obligations).

The functional currency of UBS Group AG is the US dollar. The significant accounting and valuation principles applied are described below.

Presentation currencies

As the primary presentation currency of the standalone financial statements of UBS Group AG is the US dollar, amounts in Swiss francs are additionally presented for each component of the financial statements. UBS Group AG applies the modified closing rate method for converting US dollar 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. All resulting currency translation effects are recognized separately in Voluntary earnings reserve, amounting to a negative currency translation effect of CHF 3,867 million as of 31 December 2020 (31 December 2019: negative CHF 544 million).

Foreign currency translation

Transactions denominated in foreign currency are translated into US dollars at the spot exchange rate on the date of the transaction. At the balance sheet date, all current assets and short-term liabilities as well as Financial assets measured at fair value that are denominated in a foreign currency are translated into US dollars using the closing exchange rate. For Other non-current assets and long-term liabilities, where the asset mirrors the terms of a corresponding liability or the asset and liability otherwise form an economic hedge relationship, the asset and liability are treated as one unit of account for foreign currency translation purposes, with offsetting unrealized foreign currency translation gains and losses based on the closing exchange rate presented net in the income statement. Investments in subsidiaries measured at historic cost are translated at the spot exchange rate on the date of the transaction. Currency translation effects from dividends paid in Swiss francs are recognized in equity. All other currency translation effects are recognized in the income statement.

The main currency translation rates used by UBS Group AG are provided in Note 33 of the consolidated financial statements.


Marketable securities

Marketable securities include investments in alternative investment vehicles (AIVs) with a short-term holding period. The holding period is deemed short term if the vesting of the awards hedged by the AIV is within 12 months after the balance sheet date. These are equity instruments and are measured at fair value based on quoted market prices or other observable market prices as of the balance sheet date. Gains and losses resulting from fair value changes are recognized in Financial income and Financial expenses, respectively.

Financial assets

Financial assets include investments in AIVs with a long-term holding period. The holding period is deemed long term if the vesting of the awards hedged by the AIV is more than 12 months after the balance sheet date. These are equity instruments and are measured at fair value based on their quoted market prices or other observable market prices as of the balance sheet date. Gains and losses resulting from fair value changes are recognized in Financial income and Financial expenses, respectively.

Investments in AIVs that have no quoted market price or no other observable market price are recognized as Financial assets and are measured at their acquisition cost adjusted for impairment losses.

Financial assets further include loans granted to UBS AG that substantially mirror the terms of the perpetual AT1 capital notes and the TLAC-eligible senior unsecured debt instruments issued as well as fixed-term deposits with UBS AG with maturities more than 12 months after the balance sheet date. The loans and deposits are measured at nominal value.

   Refer to Note 14 for more information

Derivative instruments

UBS Group AG uses derivative instruments to manage exposures to foreign currency risks from investments in foreign subsidiaries. The derivative instruments are entered into with UBS AG, mirroring the conditions of the closing transactions UBS AG enters into with third parties.

Derivative instruments are measured at fair value based on quoted market prices or other observable market prices as of the balance sheet date. Unrealized gains and losses are recognized on the balance sheet as Accrued income and prepaid expenses and Accrued expenses and deferred income, respectively. Corresponding gains and losses resulting from fair value changes are recognized in Financial income and Financial expenses, respectively.

 

6 


 

 

Note 2  Accounting policies (continued)

Investments in subsidiaries

Investments in subsidiaries are equity interests that are held to carry on the business of the UBS Group or for other strategic purposes. They include all subsidiaries directly held by UBS Group AG through which UBS conducts its business on a global basis. The investments are measured individually and carried at cost less impairment.

   Refer to Note 13 for more information

   Refer to Note in the “Consolidated financial statements” section of this report for a description of businesses of the UBS Group

Long-term interest-bearing liabilities

Long-term interest-bearing liabilities include perpetual loss-absorbing capital notes that qualify as Basel III AT1 capital and TLAC-eligible senior unsecured debt instruments at Group level. They are measured at nominal value. Any difference to nominal value, e.g., premium, discount or external costs that are directly related to the issue, is deferred as Accrued income and prepaid expenses or Accrued expenses and deferred income and amortized to Financial expenses or Financial income over the maturity of the instrument or until the first call date or optional redemption date, where applicable.

   Refer to Note 17 for more information

Treasury shares

Treasury shares acquired by UBS Group AG are recognized at acquisition cost and are presented as a deduction from shareholders’ equity.

 

Policy applicable from 1 January 2020

Upon disposal of treasury shares or settlement of related share-based awards, any realized gain or loss is recognized in Voluntary earnings reserve. Realized gains and losses from settlement of share-based awards represent the difference between the acquisition cost of the UBS Group AG shares and the grant date fair value of the share-based awards. For the year ended 31 December 2020, a net gain of USD 38 million (CHF 37 million) from settlement of share-based awards was recognized in Voluntary earnings reserve (2019 comparative period: a net loss of USD 191 million (CHF 191 million) was recognized in the income statement under the previously applied accounting policy as outlined below). UBS deems the revised prospectively applied accounting policy a more reliable presentation of the related gains and losses.

 

Policy applicable prior to 1 January 2020

Upon disposal of treasury shares or settlement of related share-based awards, any realized gain or loss is recognized through the income statement as Financial income and Financial expenses, respectively. For settlement of related share-based awards, the realized gains and losses on treasury shares represent the difference between the market price of the treasury shares at settlement and their acquisition cost.

For UBS Group AG shares acquired by a direct or indirect subsidiary, a Reserve for own shares held by subsidiaries is generally created in UBS Group AG’s equity. However, where UBS AG or UBS Switzerland AG acquire UBS Group AG shares and hold such in their trading portfolios, no Reserve for own shares held by subsidiaries is created.

   Refer to Note 20 for more information

Share-based and other deferred compensation plans

Share-based compensation plans

The grant date fair value of equity-settled share-based compensation awards granted to employees is generally recognized over the vesting period of the awards. Awards granted in the form of UBS Group AG shares and notional shares are settled by delivering UBS Group AG shares at vesting except in jurisdictions where this is not permitted for legal or tax reasons. They are recognized as Compensation-related long-term liabilities if vesting is more than 12 months after the balance sheet date or as Accrued expenses and deferred income if vesting is within 12 months of the balance sheet date. The amount recognized is adjusted for forfeiture assumptions, such that the amount ultimately recognized is based on the number of awards that meet the related service conditions at the vesting date. The grant date fair value is based on the UBS Group AG share price on the date of grant, taking into consideration post-vesting sale and hedge restrictions, dividend rights, non-vesting conditions and market conditions, where applicable.

 

Policy applicable from 1 January 2020

Upon settlement of the share-based awards, any realized gain or loss on the treasury shares is recognized in Voluntary earnings reserve. Realized gains and losses from settlement of share-based awards represent the difference between the acquisition cost of the UBS Group AG shares and the grant date fair value of the share-based awards.

 

Policy applicable prior to 1 January 2020

Upon settlement of the share-based awards, any realized gain or loss is recognized in the income statement as Other operating income and Other operating expenses, respectively. Realized gains and losses on share-based awards represent the difference between the market price of the UBS Group AG shares at settlement and the grant date fair value of the share-based awards.

 

 

7 


UBS Group AG standalone financial statements 

 

Note 2  Accounting policies (continued)

Other deferred compensation plans

Deferred compensation plans that are not share-based, including DCCP awards and awards in the form of AIVs, are accounted for as cash-settled awards. The present value or fair value of the amount payable to employees that is settled in cash is recognized as a liability generally over the vesting period, as Compensation-related long-term liabilities if vesting is more than 12 months after the balance sheet date and as Accrued expenses and deferred income if vesting is within 12 months from the balance sheet date. The liabilities are remeasured at each balance sheet date at the present value of the corresponding DCCP award and the fair value of investments in AIVs. Gains and losses resulting from remeasurement of the liabilities are recognized in Other operating income and Other operating expenses, respectively.


Recharge of compensation expenses

Expenses related to deferred compensation plans are recharged by UBS Group AG to its subsidiaries employing the personnel. Upon recharge, UBS Group AG recognizes a receivable from its subsidiaries corresponding to a liability representing its obligation toward the employees.

Dispensations in the standalone financial statements

As UBS Group AG prepares consolidated financial statements in accordance with IFRS, UBS Group AG is exempt from various disclosures in the standalone financial statements. The dispensations include the management report and the statement of cash flows, as well as certain note disclosures.

  

8 


 

Income statement notes

Note 3  Dividend income from investments in subsidiaries

Dividend income from investments in subsidiaries in 2020 consisted of USD 3,848 million (CHF 3,641 million) received from UBS AG related to the 2019 financial year, which was approved by the Annual General Meeting of the Shareholders of UBS AG on 27 April 2020 (USD 2,550 million (CHF 2,462 million)) and the Extraordinary General Meeting of the Shareholders of UBS AG on 19 November 2020 (USD 1,298 million (CHF 1,179 million)), and USD 5 million (CHF 5 million) net liquidation dividend received from UBS Group Funding (Switzerland) AG in Liquidation following liquidation of the entity in the course of 2020, which was approved by the Extraordinary General Meeting of the Shareholders of UBS Group Funding (Switzerland) AG in Liquidation held on 8 October 2020. In 2019, dividend income from investments in subsidiaries consisted of USD 3,250 million (CHF 3,311 million) received from UBS AG related to the financial year ended 31 December 2018, which was approved by the Annual General Meeting of the Shareholders of UBS AG on 18 April 2019, USD 143 million (CHF 146 million) received from UBS Business Solutions AG related to the financial year ended 31 December 2018, which was approved by the Annual General Meeting of the Shareholders of UBS Business Solutions AG on 17 April 2019, and USD 6 million (CHF 6 million) received from UBS Group Funding (Switzerland) AG related to the financial year ended 31 December 2018, which was approved by the Annual General Meeting of the Shareholders of UBS Group Funding (Switzerland) AG on 8 March 2019.

Note 4  Other operating income

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Gains related to equity-settled and cash-settled awards

 

 17 

 120 

 

 16 

 119 

Commission income from guarantees issued

 

 0 

 35 

 

 0 

 34 

Total other operating income

 

 17 

 155 

 

 16 

 153 

 

 

 

 

Note 5  Financial income

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Fair value gains on investments in AIVs

 

 49 

 45 

 

 44 

 45 

Interest income on onward lending to UBS AG1

 

 1,769 

 421 

 

 1,653 

 414 

Interest income on other interest-bearing assets

 

 14 

 29 

 

 13 

 28 

Other

 

 4 

 3 

 

 4 

 3 

Total financial income

 

 1,836 

 498 

 

 1,714 

 491 

1 In October 2019, onward lending was transferred from UBS Group Funding (Switzerland) AG to UBS Group AG. Interest income for the year ended 31 December 2019 includes interest for the period from the transfer date until the end of the year.

Note 6  Personnel expenses

Personnel expenses include recharges from UBS AG and UBS Business Solutions AG for personnel-related costs for activities performed by the personnel of those companies for the benefit of UBS Group AG.


UBS Group AG had no employees throughout 2020 and 2019. All employees of the UBS Group, including the members of the Group Executive Board (GEB) of UBS Group AG, were employed by subsidiaries of UBS Group AG. As of 31 December 2020, the UBS Group employed 71,551 personnel (31 December 2019: 68,601) on a full-time equivalent basis.

 

9 


UBS Group AG standalone financial statements 

 

Note 7  Other operating expenses

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Fair value losses on AIV awards

 

 48 

 45 

 

 43 

 45 

Capital tax

 

 9 

 13 

 

 8 

 13 

Other

 

 12 

 22 

 

 12 

 22 

Total other operating expenses

 

 69 

 81 

 

 63 

 80 

 

Note 8  Financial expenses

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Treasury share losses1

 

 0 

 191 

 

 0 

 191 

Interest expense on interest-bearing liabilities2

 

 1,756 

 429 

 

 1,641 

 422 

Other

 

 10 

 5 

 

 9 

 5 

Total financial expenses

 

 1,765 

 625 

 

 1,650 

 618 

1 As of 1 January 2020, a new accounting policy for the recognition of realized gains and losses on treasury shares was applied. Refer to Note 2 for more information.    2 In October 2019, loss-absorbing AT1 capital notes and TLAC-eligible senior unsecured debt instruments that had previously been issued by UBS Group Funding (Switzerland) AG were transferred to UBS Group AG. Related interest expense for the year ended 31 December 2019 includes interest for the period from the transfer date until the end of the year.

 

  

10 


 

Balance sheet notes

Note 9  Liquid assets

As of 31 December 2020, liquid assets comprised USD 987 million (CHF 874 million) held on current accounts at UBS Switzerland AG and UBS AG and USD 1,211 million (CHF 1,072 million) of time deposits placed with UBS AG. As of 31 December 2019, liquid assets comprised USD 794 million (CHF 769 million) held on current accounts at UBS Switzerland AG and UBS AG and USD 383 million (CHF 371 million) of time deposits placed with UBS AG.

 

Note 10  Marketable securities

Marketable securities include investments in AIVs related to compensation awards vesting within 12 months after the balance sheet date.

 

Note 11  Other short-term receivables

 

 

USD million

 

CHF million

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Onward lending to UBS AG1

 

 4,987 

 1,870 

 

 4,416 

 1,811 

Receivables from employing entities related to compensation awards

 

 517 

 482 

 

 458 

 466 

Other

 

 51 

 60 

 

 45 

 59 

Total other short-term receivables

 

 5,555 

 2,412 

 

 4,919 

 2,335 

1 Short-term receivables from the onward lending of the proceeds from the issuances of TLAC-eligible senior unsecured debt and loss-absorbing additional tier 1 perpetual capital notes to UBS AG. Refer to Note 1 for more information.

 

Note 12  Accrued income and prepaid expenses

 

 

USD million

 

CHF million

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Accrued interest income

 

 754 

 816 

 

 668 

 790 

Other accrued income and prepaid expenses

 

 193 

 194 

 

 171 

 188 

Total accrued income and prepaid expenses

 

 947 

 1,010 

 

 839 

 978 

 

11 


UBS Group AG standalone financial statements 

 

Note 13  Investments in subsidiaries

Unless otherwise stated, the subsidiaries listed below have share capital consisting solely of ordinary shares, which are held by UBS Group AG or UBS AG. The proportion of ownership interest held is equal to the voting rights held by UBS Group AG or UBS AG. The country where the respective registered office is located is also the principal place of business. UBS AG operates through a global network of branches and a significant proportion of its business activity is conducted outside Switzerland in the UK, the US, Singapore, Hong Kong and other countries. UBS Europe SE has branches and offices in a number of EU Member States, including Germany, Italy, Luxembourg, Spain and Austria. Share capital is provided in the currency of the legally registered office.

 

Individually significant subsidiaries of UBS Group AG as of 31 December 2020

 

 

 

Company

Registered office

 

Share capital in million

Equity interest accumulated in %

UBS AG

Zurich and Basel, Switzerland

 

CHF

 385.8 

 100.0 

UBS Business Solutions AG1

Zurich, Switzerland

 

CHF

 1.0 

 100.0 

1 UBS Business Solutions AG holds subsidiaries in Poland, China and India.

 

 

 

 

 

 

Individually significant subsidiaries of UBS AG as of 31 December 20201

 

 

 

Company

Registered office

Primary business

Share capital in million

Equity interest accumulated in %

UBS Americas Holding LLC

Wilmington, Delaware, USA

Group Functions

USD

 3,150.02

 100.0 

UBS Americas Inc.

Wilmington, Delaware, USA

Group Functions

USD

 0.0 

 100.0 

UBS Asset Management AG

Zurich, Switzerland

Asset Management

CHF

 43.2 

 100.0 

UBS Bank USA

Salt Lake City, Utah, USA

Global Wealth Management

USD

 0.0 

 100.0 

UBS Europe SE

Frankfurt, Germany

Global Wealth Management

EUR

 446.0 

 100.0 

UBS Financial Services Inc.

Wilmington, Delaware, USA

Global Wealth Management

USD

 0.0 

 100.0 

UBS Securities LLC

Wilmington, Delaware, USA

Investment Bank

USD

 1,283.13

 100.0 

UBS Switzerland AG

Zurich, Switzerland

Personal & Corporate Banking

CHF

 10.0 

 100.0 

1 Includes direct and indirect subsidiaries of UBS AG.    2 Consists of common share capital of USD 1,000 and non-voting preferred share capital of USD 3,150,000,000.    3 Consists of common share capital of USD 100,000 and non-voting preferred share capital of USD 1,283,000,000.

 

Individually significant subsidiaries of UBS AG are those entities that contribute significantly to the Group’s financial position or results of operations, based on a number of criteria, including the subsidiaries’ equity and their contribution to the Group’s
total assets and profit or loss before tax, in accordance with Swiss regulations.

   Refer to Note 28 in the “Consolidated financial statements” section of this report for more information

 

Note 14  Financial assets

 

 

USD million

 

CHF million

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Long-term receivables from UBS AG1

 

 49,554 

 46,644 

 

 43,882 

 45,158 

Investments in alternative investment vehicles at fair value related to awards vesting after 12 months

 

 248 

 229 

 

 219 

 222 

Investments in alternative investment vehicles at cost less impairment

 

 2 

 4 

 

 2 

 4 

Other

 

 258 

 236 

 

 229 

 229 

Total financial assets

 

 50,062 

 47,113 

 

 44,332 

 45,612 

1 Long-term receivables from UBS AG include the onward lending of the proceeds from the issuances of TLAC-eligible senior unsecured debt and loss-absorbing additional tier 1 perpetual capital notes for the total amount of USD 48,598 million (CHF 43,035 million) as of 31 December 2020 (31 December 2019: USD 45,682 million (CHF 44,226 million)). Refer to Note 1 for more information. 

 

12 


 

 

Note 15  Current interest-bearing liabilities

As of 31 December 2020, current interest-bearing liabilities totaled USD 3,853 million (CHF 3,412 million) comprising TLAC-eligible senior unsecured debt instruments of USD 2,850 million (CHF 2,524 million) and loans from UBS AG and UBS Switzerland AG of USD 1,003 million (CHF 889 million). As of 31 December 2019, current interest-bearing liabilities totaled USD 2,547 million (CHF 2,466 million) comprising TLAC-eligible senior unsecured debt instruments of USD 1,800 million (CHF 1,743 million) and loans from UBS AG and UBS Switzerland AG of USD 747 million (CHF 723 million).

 

 

Notes issued, overview by amount, maturity and coupon

 

31.12.20

 

31.12.19

 

 

 

 

 

Carrying amount

 

Carrying amount

In million, except where indicated

Contractual maturity

First optional call date

Coupon1

 

in transaction

currency

in USD

in CHF

 

in transaction

currency

in USD

in CHF

US dollar-denominated TLAC-eligible senior unsecured notes

24.09.20

n/a

3M USD LIBOR + 144 bps

 

 0 

 0 

 0 

 

 300 

 300 

 290 

US dollar-denominated TLAC-eligible senior unsecured notes

24.09.20

n/a

2.95%

 

 0 

 0 

 0 

 

 1,500 

 1,500 

 1,452 

US dollar-denominated TLAC-eligible senior unsecured notes

14.04.21

n/a

3M USD LIBOR + 178 bps

 

 1,000 

 1,000 

 886 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes2

15.04.21

n/a

3%

 

 1,850 

 1,850 

 1,638 

 

 0 

 0 

 0 

Total notes issued

 

 

 

 

 

 2,850 

 2,524 

 

 

 1,800 

 1,743 

1 For TLAC-eligible senior unsecured notes, the disclosed coupon rate refers to the contractual coupon rate applied from the issue date up to the contractual maturity date or, if applicable, to the first optional call date.    2 Instrument was partially repurchased on 7 December 2020.

 

 

Note 16  Accrued expenses and deferred income

 

 

USD million

 

CHF million

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Short-term portion of compensation liabilities

 

 1,312 

 1,268 

 

 1,162 

 1,228 

of which: Deferred Contingent Capital Plan

 

 518 

 497 

 

 458 

 482 

of which: other deferred compensation plans

 

 794 

 771 

 

 703 

 746 

Accrued interest expense

 

 728 

 784 

 

 644 

 759 

Other

 

 57 

 50 

 

 51 

 48 

Total accrued expenses and deferred income

 

 2,097 

 2,102 

 

 1,857 

 2,035 

 

13 


UBS Group AG standalone financial statements 

 

Note 17  Long-term interest-bearing liabilities

As of 31 December 2020, long-term interest-bearing liabilities totaled USD 50,993 million (CHF 45,156 million) comprising loss-absorbing AT1 perpetual capital notes and TLAC-eligible senior unsecured debt instruments of USD 50,735 million (CHF 44,927 million) and fixed-term loans from UBS AG of USD 258 million (CHF 229 million). As of 31 December 2019, long-term interest-bearing liabilities totaled USD 45,989 million (CHF 44,523 million) comprising loss-absorbing AT1 perpetual capital notes and TLAC-eligible senior unsecured debt instruments of USD 45,752 million (CHF 44,294 million) and fixed-term loans from UBS AG of USD 236 million (CHF 229 million).

 

Notes issued, overview by amount, maturity and coupon

 

31.12.20

 

31.12.19

 

 

 

 

Carrying amount

 

Carrying amount

In million, except where indicated

Contractual maturity

First optional call date

Coupon1

 

in transaction

currency

in USD

in CHF

 

in transaction

currency

in USD

in CHF

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes2

Perpetual

19.02.20

7.125%

 

 0 

 0 

 0 

 

 1,250 

 1,250 

 1,210 

Australian dollar-denominated TLAC-eligible senior unsecured notes3

18.11.34

18.11.20

3.03%

 

 0 

 0 

 0 

 

 100 

 70 

 68 

US dollar-denominated TLAC-eligible senior unsecured notes

14.04.21

n/a

3M USD LIBOR + 178 bps

 

 0 

 0 

 0 

 

 1,000 

 1,000 

 968 

US dollar-denominated TLAC-eligible senior unsecured notes

15.04.21

n/a

3%

 

 0 

 0 

 0 

 

 2,000 

 2,000 

 1,936 

US dollar-denominated TLAC-eligible senior unsecured notes

01.02.22

n/a

3M USD LIBOR + 153 bps

 

 500 

 500 

 443 

 

 500 

 500 

 484 

US dollar-denominated TLAC-eligible senior unsecured notes

01.02.22

n/a

2.65%

 

 2,000 

 2,000 

 1,771 

 

 2,000 

 2,000 

 1,936 

Swiss franc-denominated TLAC-eligible senior unsecured notes

22.02.22

n/a

0.75%

 

 300 

 339 

 300 

 

 300 

 310 

 300 

Euro-denominated TLAC-eligible senior unsecured notes

20.09.22

20.09.21

3M EUR LIBOR + 70 bps

 

 1,750 

 2,137 

 1,892 

 

 1,750 

 1,962 

 1,900 

Euro-denominated TLAC-eligible senior unsecured notes

16.11.22

n/a

1.75%

 

 1,250 

 1,526 

 1,352 

 

 1,250 

 1,402 

 1,357 

US dollar-denominated TLAC-eligible senior unsecured notes

23.05.23

23.05.22

3.491%

 

 2,000 

 2,000 

 1,771 

 

 2,000 

 2,000 

 1,936 

US dollar-denominated TLAC-eligible senior unsecured notes

23.05.23

23.05.22

3M USD LIBOR + 122 bps

 

 1,000 

 1,000 

 886 

 

 1,000 

 1,000 

 968 

US dollar-denominated TLAC-eligible senior unsecured notes

15.08.23

15.08.22

3M USD LIBOR + 95 bps

 

 1,250 

 1,250 

 1,107 

 

 1,250 

 1,250 

 1,210 

US dollar-denominated TLAC-eligible senior unsecured notes

15.08.23

15.08.22

2.859%

 

 2,000 

 2,000 

 1,771 

 

 2,000 

 2,000 

 1,936 

Euro-denominated TLAC-eligible senior unsecured notes

04.03.24

n/a

2.125%

 

 750 

 916 

 811 

 

 750 

 841 

 814 

Swiss franc-denominated TLAC-eligible senior unsecured notes

18.05.24

18.05.23

0.625%

 

 400 

 452 

 400 

 

 400 

 413 

 400 

US dollar-denominated TLAC-eligible senior unsecured notes

30.07.24

30.07.23

1.008%

 

 1,300 

 1,300 

 1,151 

 

 0 

 0 

 0 

Yen-denominated TLAC-eligible senior unsecured notes

08.11.24

08.11.23

0.719%

 

 130,000 

 1,259 

 1,115 

 

 130,000 

 1,196 

 1,157 

Euro-denominated TLAC-eligible senior unsecured notes

30.11.24

30.11.23

1.5%

 

 1,250 

 1,526 

 1,352 

 

 1,250 

 1,402 

 1,357 

Swiss franc-denominated TLAC-eligible senior unsecured notes

30.01.25

30.01.24

0.875%

 

 400 

 452 

 400 

 

 400 

 413 

 400 

Euro-denominated TLAC-eligible senior unsecured notes

17.04.25

17.04.24

1.25%

 

 1,750 

 2,137 

 1,892 

 

 1,750 

 1,962 

 1,900 

US dollar-denominated TLAC-eligible senior unsecured notes

24.09.25

n/a

4.125%

 

 2,500 

 2,500 

 2,214 

 

 2,500 

 2,500 

 2,420 

Euro-denominated TLAC-eligible senior unsecured notes

29.01.26

29.01.25

0.25%

 

 1,500 

 1,832 

 1,622 

 

 0 

 0 

 0 

Swiss franc-denominated TLAC-eligible senior unsecured notes

23.02.26

n/a

1.25%

 

 150 

 169 

 150 

 

 150 

 155 

 150 

US dollar-denominated TLAC-eligible senior unsecured notes

15.04.26

n/a

4.125%

 

 2,000 

 2,000 

 1,771 

 

 2,000 

 2,000 

 1,936 

Euro-denominated TLAC-eligible senior unsecured notes

01.09.26

n/a

1.25%

 

 1,250 

 1,526 

 1,352 

 

 1,250 

 1,402 

 1,357 

US dollar-denominated TLAC-eligible senior unsecured notes

30.01.27

30.01.26

1.364%

 

 1,300 

 1,300 

 1,151 

 

 0 

 0 

 0 

 

14 


 

 

Note 17  Long-term interest-bearing liabilities (continued)

Notes issued, overview by amount, maturity and coupon (continued)

 

31.12.20

 

31.12.19

 

 

 

 

Carrying amount

 

Carrying amount

In million, except where indicated

Contractual maturity

First optional call date

Coupon1

 

in transaction

currency

in USD

in CHF

 

in transaction

currency

in USD

in CHF

US dollar-denominated TLAC-eligible senior unsecured notes

23.03.28

23.03.27

4.253%

 

 2,000 

 2,000 

 1,771 

 

 2,000 

 2,000 

 1,936 

Euro-denominated TLAC-eligible senior unsecured notes

05.11.28

05.11.27

0.25%

 

 1,500 

 1,832 

 1,622 

 

 0 

 0 

 0 

Yen-denominated TLAC-eligible senior unsecured notes

09.11.28

09.11.27

0.973%

 

 20,000 

 194 

 171 

 

 20,000 

 184 

 178 

US dollar-denominated TLAC-eligible senior unsecured notes

13.08.30

13.08.29

3.126%

 

 1,500 

 1,500 

 1,328 

 

 1,500 

 1,500 

 1,452 

Australian dollar-denominated TLAC-eligible senior unsecured notes

18.08.35

18.08.30

Zero coupon accreting (annual yield of 2.5%)

 

 36 

 28 

 25 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

24.11.35

24.11.23

2.21%

 

 40 

 40 

 35 

 

 0 

 0 

 0 

Australian dollar-denominated TLAC-eligible senior unsecured notes

03.12.35

03.12.23

2.3%

 

 45 

 35 

 31 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

04.11.49

04.11.22

Zero coupon accreting (annual yield of 3.8%)

 

 146 

 146 

 129 

 

 141 

 141 

 136 

US dollar-denominated TLAC-eligible senior unsecured notes

04.03.50

04.03.25

Zero coupon accreting (annual yield of 3.6%)

 

 124 

 124 

 109 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

14.04.50

14.04.25

Zero coupon accreting (annual yield of 4%)

 

 206 

 206 

 182 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

22.05.50

22.05.25

Zero coupon accreting (annual yield of 3.5%)

 

 102 

 102 

 90 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

27.05.50

27.05.25

Zero coupon accreting (annual yield of 3.5%)

 

 510 

 510 

 452 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

22.09.50

22.09.23

Zero coupon accreting (annual yield of 2.8%)

 

 55 

 55 

 49 

 

 0 

 0 

 0 

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes4

Perpetual

22.03.21

6.875%

 

 1,500 

 1,500 

 1,328 

 

 1,500 

 1,500 

 1,452 

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

10.08.21

7.125%

 

 1,100 

 1,100 

 974 

 

 1,100 

 1,100 

 1,065 

Euro-denominated low-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

19.02.22

5.75%

 

 1,000 

 1,221 

 1,081 

 

 1,000 

 1,121 

 1,086 

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

31.01.23

5%

 

 2,000 

 2,000 

 1,771 

 

 2,000 

 2,000 

 1,936 

Singapore dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

28.11.23

5.875%

 

 700 

 529 

 469 

 

 700 

 521 

 504 

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

31.01.24

7%

 

 2,500 

 2,500 

 2,214 

 

 2,500 

 2,500 

 2,420 

Australian dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

27.08.24

4.375%

 

 700 

 540 

 478 

 

 700 

 491 

 475 

Singapore dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

04.09.24

4.85%

 

 750 

 567 

 502 

 

 750 

 558 

 540 

US dollar-denominated low-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

19.02.25

7%

 

 1,250 

 1,250 

 1,107 

 

 1,250 

 1,250 

 1,210 

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

07.08.25

6.875%

 

 1,575 

 1,575 

 1,395 

 

 1,575 

 1,575 

 1,525 

Swiss franc-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

13.11.25

3%

 

 275 

 311 

 275 

 

 275 

 284 

 275 

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes

Perpetual

29.07.26

5.125%

 

 750 

 750 

 664 

 

 0 

 0 

 0 

Total notes issued

 

 

 

 

 

 50,735 

 44,927 

 

 

 45,752 

 44,294 

1 For TLAC-eligible senior unsecured notes, the disclosed coupon rate refers to the contractual coupon rate applied from the issue date up to the contractual maturity date or, if applicable, to the first optional call date. For the loss-absorbing additional tier 1 perpetual capital notes, the disclosed coupon rate refers to the contractual fixed coupon rate from the issue date up to the first optional call date.    2 Instrument was redeemed on 19 February 2020.    3 Instrument was redeemed on 18 November 2020.    4 Instrument was called on 10 February 2021.

 

15 


UBS Group AG standalone financial statements 

 

Note 18  Compensation-related long-term liabilities

 

 

USD million

 

CHF million

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Long-term portion of compensation liabilities

 

 3,128 

 2,938 

 

 2,770 

 2,845 

of which: Deferred Contingent Capital Plan

 

 1,326 

 1,340 

 

 1,174 

 1,298 

of which: other deferred compensation plans

 

 1,802 

 1,598 

 

 1,595 

 1,547 

Total compensation-related long-term liabilities

 

 3,128 

 2,938 

 

 2,770 

 2,845 

 

Note 19  Share capital

As of 31 December 2020, the issued share capital consisted of 3,859,055,395 (31 December 2019: 3,859,055,395) registered shares with a nominal value of CHF 0.10 each.

   Refer to “UBS shares” in the “Capital, liquidity and funding, and balance sheet” section of this report for more information about UBS Group AG shares

 

Note 20  Treasury shares

 

Number of registered shares

Average price in USD

Average price in CHF

Balance as of 31 December 2018

 166,467,802 

 15.71 

 15.45 

of which: treasury shares held by UBS Group AG

 166,203,791 

 15.71 

 15.46 

of which: treasury shares held by UBS AG and other subsidiaries

 264,011 

 12.27 

 12.05 

Acquisitions

 146,876,692 

 11.86 

 11.75 

Disposals

 (5,999,827) 

 11.88 

 11.50 

Delivery of shares to settle equity-settled awards

 (64,323,371) 

 15.35 

 15.28 

Balance as of 31 December 2019

 243,021,296 

 13.57 

 13.35 

of which: treasury shares held by UBS Group AG1

 242,930,084 

 13.57 

 13.35 

of which: treasury shares held by UBS AG and other subsidiaries

 91,212 

 12.65 

 12.75 

Acquisitions

 128,372,257 

 12.27 

 11.53 

Disposals

 (10,188,059) 

 11.12 

 9.85 

Delivery of shares to settle equity-settled awards

 (53,728,492) 

 13.40 

 12.85 

Balance as of 31 December 2020

 307,477,002 

 13.14 

 12.80 

of which: treasury shares held by UBS Group AG1

 306,114,513 

 13.13 

 12.80 

of which: treasury shares held by UBS AG and other subsidiaries

 1,362,490 

 14.13 

 12.62 

1 Treasury shares held by UBS Group AG had a carrying value of USD 4,020 million / CHF 3,917 million as of 31 December 2020 (31 December 2019: USD 3,297 million / CHF 3,244 million). Shares repurchased under our 2018-2021 share repurchase program are expected to be canceled by means of a capital reduction, whereby the capital contribution reserve within the statutory capital reserve is expected to be reduced by USD 180 million (CHF 173 million, based on purchase price). Refer to “UBS shares” in the “Capital, liquidity and funding, and balance sheet” section of this report for more information.

 

  

16 


 

Additional information

Note 21  Assets pledged to secure own liabilities

As of 31 December 2020, total pledged assets of UBS Group AG amounted to USD 2,623 million (CHF 2,323 million). These assets consisted of certain liquid assets, marketable securities and financial assets and were pledged to UBS AG. As of 31 December 2019, total pledged assets of UBS Group AG amounted to USD 2,021 million (CHF 1,957 million). The associated liabilities secured by these pledged assets were USD 1,208 million (CHF 1,070 million) and USD 933 million (CHF 903 million) as of 31 December 2020 and 31 December 2019, respectively.

 

 

Note 22  Contingent liabilities

UBS Group AG is jointly and severally liable for the combined value added tax (VAT) liability of UBS entities that belong to the VAT group of UBS in Switzerland.

 

 

 

17 


UBS Group AG standalone financial statements 

 

Note 23  Significant shareholders

 

Shareholders registered in the UBS Group AG share register with 3% or more of the total share capital1

% of share capital

31.12.20

31.12.19

Chase Nominees Ltd., London2

 10.39 

 10.94 

Nortrust Nominees Ltd., London2

 5.15 

 4.90 

DTC (Cede & Co.), New York2,3

 4.99 

 7.57 

1 As registration in the UBS share register is optional, shareholders crossing the threshold percentages requiring SIX notification under the FMIA do not necessarily appear in this table.    2 Nominee companies and securities clearing organizations cannot autonomously decide how voting rights are exercised and are therefore not obligated to notify UBS and SIX if they reach, exceed or fall below the threshold percentages requiring disclosure notification under the FMIA. Consequently, they do not appear under “Shareholders subject to FMIA disclosure notifications” below.    3 DTC (Cede & Co.), New York, “The Depository Trust Company,” is a US securities clearing organization.

 

 

General rules

Under the Swiss Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading of 19 June 2015 (FMIA), anyone directly or indirectly, or acting in concert with third parties, holding shares in a company listed in Switzerland or holding derivative rights related to shares in such a company must notify the company and the SIX Swiss Exchange (SIX) if the holding reaches, falls below or exceeds one of the following thresholds: 3, 5, 10, 15, 20, 25, 3313, 50 or 6623% of voting rights, regardless of whether or not such rights may be exercised. Nominee companies that cannot autonomously decide how voting rights are exercised are not required to notify the company and SIX if they reach, exceed or fall below the above-mentioned thresholds.

Pursuant to the Swiss Code of Obligations, UBS Group AG discloses in its financial statements the identity of any shareholder with a holding of more than 5% of the total share capital of UBS Group AG.

Shareholders subject to FMIA disclosure notifications

According to the mandatory FMIA disclosure notifications filed with UBS Group AG and SIX, as of 31 December 2020, the following entities held more than 3% of the total share capital of UBS Group AG: Artisan Partners Limited Partnership, Milwaukee, which disclosed a holding of 3.15% on 18 November 2020; BlackRock Inc., New York, which disclosed a holding of 4.70% on 26 May 2020; and Norges Bank, Oslo, which disclosed a holding of 3.01% on 24 July 2019. As registration in the UBS share register is optional, shareholders crossing the aforementioned thresholds requiring SIX notification under the FMIA do not necessarily appear in the table above.


No new disclosures of significant shareholdings have been made since 31 December 2020.

In accordance with the FMIA, the aforementioned holdings are calculated in relation to the total share capital of UBS Group AG reflected in its Articles of Association at the time of the respective disclosure notification.

   Refer to ser-ag.com/en/resources/notifications-market-participants/significant-shareholders.html for information about disclosures under the FMIA

Shareholders registered in the UBS Group AG share register with 3% or more of the share capital of UBS Group AG

As a supplement to the mandatory disclosure requirements according to the SIX Swiss Exchange Corporate Governance Directive, the shareholders (acting in their own name or in their capacity as nominees for other investors or beneficial owners) who were registered in the UBS share register with 3% or more of the total share capital of UBS Group AG as of 31 December 2020 or as of 31 December 2019 are listed in the table above.

Cross-shareholdings

UBS Group AG has no cross-shareholdings where reciprocal ownership would be in excess of 5% of capital or voting rights with any other company.

 

 

18 


 

 

Note 24  Share and option ownership of the members of the Board of Directors, the Group Executive Board and other employees

Shares awarded

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended 31.12.20

 

For the year ended 31.12.19

 

 

Number of shares

 

Value of shares in USD million

Value of shares in CHF million

 

Number of shares

 

Value of shares in USD million

Value of shares in CHF million

Awarded to members of the BoD

 

 457,362 

 

 7 

 6 

 

 560,889 

 

 7 

 7 

Awarded to members of the GEB

 

 5,192,391 

 

 66 

 58 

 

 4,878,908 

 

 58 

 56 

Awarded to other UBS Group employees

 

 67,057,766 

 

 713 

 632 

 

 72,763,001 

 

 812 

 787 

Total

 

 72,707,519 

 

 786 

 696 

 

 78,202,798 

 

 878 

 850 

   Refer to the “Compensation” section of this report for more information about the terms and conditions of the shares and options awarded to the members of the Board of Directors and the Group Executive Board

 

 

Number of shares of BoD members1

Name, function

on 31 December

Number of shares held

Voting rights in %

Axel A. Weber, Chairman

2020

 1,046,994 

 0.062 

2019

 938,627 

 0.053 

David Sidwell, former Vice Chairman and Senior Independent Director2

2020

-

 

2019

 167,595 

 0.009 

Jeremy Anderson, Vice Chairman and Senior Independent Director

2020

 66,744 

 0.004 

2019

 31,456 

 0.002 

William C. Dudley, member

2020

 26,181 

 0.002 

2019

 0 

 0.000 

Reto Francioni, member

2020

 154,086 

 0.009 

2019

 125,628 

 0.007 

Fred Hu, member

2020

 42,428 

 0.003 

2019

 15,145 

 0.001 

Mark Hughes, member2

2020

 4,920 

 0.000 

2019

-

 

Nathalie Rachou, member2

2020

 0 

 0.000 

2019

-

 

Julie G. Richardson, member

2020

 88,401 

 0.005 

2019

 46,283 

 0.003 

Isabelle Romy, former member2

2020

-

 

2019

 143,928 

 0.008 

Robert W. Scully, former member2

2020

-

 

2019

 71,540 

 0.004 

Beatrice Weder di Mauro, member

2020

 198,578 

 0.012 

2019

 172,397 

 0.010 

Dieter Wemmer, member

2020

 88,743 

 0.005 

2019

 60,285 

 0.003 

Jeanette Wong, member

2020

 33,722 

 0.002 

2019

 0 

 0.000 

Total

2020

 1,750,797 

 0.104 

2019

 1,772,884 

 0.100 

1 Includes blocked and unblocked shares held by BoD members, including those held by related parties. No options were granted in 2020 and 2019.    2 At the 2020 AGM, Mark Hughes and Nathalie Rachou were newly elected and David Sidwell, Isabelle Romy and Robert W. Scully did not stand for re-election.

 

19 


UBS Group AG standalone financial statements 

 

Note 24  Share and option ownership of the members of the Board of Directors, the Group Executive Board and other employees (continued)

Share ownership / entitlements of GEB members1

Name, function

on

31 December

Number of

unvested

shares / at risk2

Number of

vested shares

Total number of shares

Potentially

conferred

voting

rights in %

Ralph A.J.G. Hamers, Group Chief Executive Officer

2020

 14,841 

 0 

 14,841 

 0.001 

2019

-

-

-

 

Sergio P. Ermotti, former Group Chief Executive Officer

2020

-

-

-

-

2019

 1,862,480 

 2,150,003 

 4,012,483 

 0.227 

Christian Bluhm, Group Chief Risk Officer

2020

 582,787 

 218 

 583,005 

 0.035 

2019

 440,953 

 0 

 440,953 

 0.025 

Markus U. Diethelm, Group General Counsel

2020

 706,845 

 617,858 

 1,324,703 

 0.079 

2019

 698,402 

 458,426 

 1,156,828 

 0.065 

Kirt Gardner, Group Chief Financial Officer

2020

 696,500 

 165,223 

 861,723 

 0.051 

2019

 532,643 

 129,807 

 662,450 

 0.037 

Suni Harford, President Asset Management

2020

 352,329 

 0 

 352,329 

 0.021 

2019

 63,211 

 0 

 63,211 

 0.004 

Robert Karofsky, Co-President Investment Bank

2020

 627,748 

 357,621 

 985,369 

 0.059 

2019

 577,606 

 492,476 

 1,070,082 

 0.061 

Sabine Keller-Busse, Group Chief Operating Officer and President UBS EMEA

2020

 639,087 

 349,834 

 988,921 

 0.059 

2019

 423,778 

 315,922 

 739,700 

 0.042 

Iqbal Khan, Co-President Global Wealth Management

2020

 742,546 

 68,253 

 810,799 

 0.048 

2019

 712,342 

 0 

 712,342 

 0.040 

Edmund Koh, President Asia Pacific

2020

 421,930 

 337,062 

 758,992 

 0.045 

2019

 380,340 

 183,104 

 563,444 

 0.032 

Axel P. Lehmann, President Personal & Corporate Banking and President UBS Switzerland

2020

 690,537 

 331,677 

 1,022,214 

 0.061 

2019

 522,202 

 277,978 

 800,180 

 0.045 

Tom Naratil, Co-President Global Wealth Management and President UBS Americas

2020

 1,383,854 

 770,780 

 2,154,634 

 0.128 

2019

 1,307,554 

 609,477 

 1,917,031 

 0.108 

Piero Novelli, Co-President Investment Bank

2020

 660,240 

 408,897 

 1,069,137 

 0.064 

2019

 599,156 

 429,652 

 1,028,808 

 0.058 

Markus Ronner, Group Chief Compliance and Governance Officer

2020

 302,584 

 130,097 

 432,681 

 0.026 

2019

 214,850 

 68,097 

 282,947 

 0.016 

Total

2020

 7,821,828 

 3,537,520 

 11,359,348 

 0.675 

2019

 8,335,517 

 5,114,942 

 13,450,459 

 0.761 

1 Includes all vested and unvested shares of GEB members, including those held by related parties. No options were held in 2020 and 2019 by any GEB member or any of its related parties. Refer to “Note 27 Employee benefits: variable compensation” in the “Consolidated financial statements” section of our Annual Report 2020 for more information.    2 Includes shares granted under variable compensation plans with forfeiture provisions. LTIP values reflect the fair value awarded at grant. The actual number of shares vesting in the future will be calculated under the terms of the plans. Refer to “Group compensation” in the “Compensation” section of this report for more information about the plans.

 

20 


 

 

Note 25  Related parties

Related parties are defined under the Swiss Code of Obligations as direct and indirect participants with voting rights of 20% or more, management bodies (BoD and GEB), external auditors, and direct and indirect investments in subsidiaries. Payables due to members of the GEB and the external auditors are provided in the table below. Amounts due from and due to subsidiaries are provided on the face of the balance sheet.

 

 

 

USD million

 

CHF million

 

 

31.12.20

31.12.19

 

31.12.20

31.12.19

Payables due to the members of the GEB

 

 155 

 178 

 

 138 

 172 

of which: Deferred Contingent Capital Plan

 

 69 

 76 

 

 62 

 74 

of which: other deferred compensation plans

 

 86 

 101 

 

 76 

 98 

Payables due to external auditors

 

 0 

 0 

 

 0 

 0 

 

 

 

 

 

 

 

p

  

21 


 

22 


 

23 


 

 

Zurich, 05 March 2021

 

 

 

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 333-225551 and 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; 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 2021, with respect to the standalone financial statements of UBS Group AG for the year ended 31 December 2020 included in this Report of Foreign Private Issuer (Form 6-K) dated 05 March 2021, filed with the Securities and Exchange Commission.

 

 

 

 

 

 

 

 

/s/ Ernst & Young Ltd

24 


 

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 333-225551 and 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/ Todd Tuckner___________ 

      Name: Todd Tuckner

      Title: Group Controller and

            Chief Accounting Officer

 

 

By: _/s/ David Kelly _____________

Name:  David Kelly

Title:    Managing Director

 

 

 

UBS AG

 

 

 

By: _/s/ Todd Tuckner___________ 

      Name: Todd Tuckner

      Title: Group Controller and

            Chief Accounting Officer

 

 

By: _/s/ David Kelly _____________

Name:  David Kelly

Title:    Managing Director

 

 

Date:  March 5, 2021