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UBS UBS Group AG - Registered Shares

Filed: 5 Mar 21, 7:03am

 



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' 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                         Form 40-F 

 


 

This Form 6-K consists of the UBS Switzerland AG audited standalone financial statements for the year ended 31 December 2020, which appear immediately following this page.

 

 

 


 

 

UBS Switzerland AG

Standalone financial statements and regulatory information
for the year ended 31 December 2020

 


 

  

 



UBS Switzerland AG standalone financial statements (audited) 

UBS Switzerland AG standalone financial statements (audited)

Income statement

 

 

 

 

 

 

 

 

 

 

For the year ended

CHF million

 

Note

 

31.12.20

 

31.12.19

Interest and discount income1

 

 

 

 3,182 

 

 3,301 

Interest and dividend income from financial investments

 

 

 

 111 

 

 159 

Interest expense2

 

 

 

 (226) 

 

 (405) 

Gross interest income

 

 

 

 3,067 

 

 3,055 

Credit loss (expense) / release

 

2b, 9

 

 (470) 

 

 (18) 

Net interest income

 

 

 

 2,597 

 

 3,038 

Fee and commission income from securities and investment business

 

 

 

 3,430 

 

 3,347 

Credit-related fees and commissions

 

 

 

 175 

 

 164 

Other fee and commission income

 

 

 

 679 

 

 804 

Fee and commission expense

 

 

 

 (776) 

 

 (817) 

Net fee and commission income

 

 

 

 3,509 

 

 3,498 

Net trading income

 

 3 

 

 792 

 

 864 

Net income from disposal of financial investments

 

 

 

 68 

 

 25 

Dividend income from investments in subsidiaries and other participations

 

 

 

 16 

 

 15 

Income from real estate holdings

 

 

 

 (1) 

 

 (1) 

Sundry ordinary income

 

 

 

 220 

 

 264 

Sundry ordinary expenses

 

 

 

 (15) 

 

 (15) 

Other income from ordinary activities

 

 

 

 287 

 

 289 

Total operating income

 

 

 

 7,185 

 

 7,688 

Personnel expenses

 

 4 

 

 2,014 

 

 1,940 

General and administrative expenses

 

 5 

 

 3,215 

 

 3,257 

Subtotal operating expenses

 

 

 

 5,229 

 

 5,197 

Depreciation and impairment of property, equipment and software

 

 

 

 57 

 

 38 

Amortization and impairment of goodwill and other intangible assets

 

 

 

 263 

 

 1,050 

Changes in provisions and other allowances and losses

 

 

 

 41 

 

 66 

Total operating expenses

 

 

 

 5,590 

 

 6,351 

Operating profit

 

 

 

 1,595 

 

 1,337 

Tax expense / (benefit)

 

 6 

 

 324 

 

 299 

Net profit / (loss) for the period3

 

 

 

 1,271 

 

 1,039 

1 Interest and discount income includes negative interest income on financial assets of CHF 70 million and CHF 140 million for the years ended 31 December 2020 and 31 December 2019, respectively.    2 Interest expense includes negative interest expense on financial liabilities of CHF 276 million and CHF 209 million for the years ended 31 December 2020 and 31 December 2019, respectively.    3 Net profit 2020 and 2019 does not include the share of profit from a portion of Global Wealth Management international business, see Note 2c.

 

2 


 

Balance sheet

 

 

 

 

 

 

CHF million

 

Note

 

31.12.20

 

31.12.19

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and balances at central banks

 

 

 

 81,148 

 

 58,984 

Due from banks

 

 9 

 

 3,399 

 

 4,466 

Receivables from securities financing transactions

 

 7 

 

 3,565 

 

 12,136 

Due from customers

 

8, 9

 

 49,894 

 

 39,575 

Mortgage loans

 

8, 9

 

 156,418 

 

 152,591 

Trading portfolio assets

 

 10 

 

 1,838 

 

 1,679 

Derivative financial instruments

 

 11 

 

 2,794 

 

 2,085 

Financial investments

 

 12 

 

 16,425 

 

 11,928 

Accrued income and prepaid expenses

 

 

 

 228 

 

 189 

Investments in subsidiaries and other participations

 

13, 14

 

 95 

 

 68 

Property, equipment and software

 

 15 

 

 473 

 

 372 

Goodwill and other intangible assets

 

 16 

 

 0 

 

 263 

Other assets

 

 17 

 

 551 

 

 678 

Total assets

 

 

 

 316,829 

 

 285,014 

of which: subordinated assets

 

 

 

 1 

 

 1 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Due to banks

 

 

 

 30,688 

 

 27,344 

of which: total loss-absorbing capacity eligible

 

 

 

 16,000 

 

 15,626 

Payables from securities financing transactions

 

 7 

 

 501 

 

 547 

Due to customers

 

 

 

 259,792 

 

 231,693 

Trading portfolio liabilities

 

 10 

 

 297 

 

 371 

Derivative financial instruments

 

 11 

 

 1,528 

 

 1,092 

Loans from central mortgage institutions

 

 24 

 

 8,577 

 

 8,308 

Accrued expenses and deferred income

 

 

 

 751 

 

 748 

Other liabilities

 

 17 

 

 1,794 

 

 2,099 

Provisions

 

 9 

 

 266 

 

 139 

Total liabilities

 

 

 

 304,194 

 

 272,341 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

 

 25 

 

 10 

 

 10 

General reserve

 

 

 

 11,354 

 

 11,624 

of which: statutory capital reserve

 

 

 

 11,354 

 

 11,624 

of which: capital contribution reserve

 

 

 

 11,354 

 

 11,624 

Net profit / (loss) for the period

 

 

 

 1,271 

 

 1,039 

Total equity

 

 

 

 12,634 

 

 12,673 

Total liabilities and equity

 

 

 

 316,829 

 

 285,014 

of which: subordinated liabilities1

 

 

 

 16,022 

 

 4,729 

of which: subject to mandatory conversion and / or debt waiver

 

 

 

 16,022 

 

 4,729 

1 Group-internal instruments are required to be contractually subordinated in order to be eligible as gone concern loss-absorbing capacity in accordance with the revised Capital Adequacy Ordinance effective 1 January 2020.

 

3 


UBS Switzerland AG standalone financial statements (audited) 

 

Balance sheet (continued)

 

 

 

 

CHF million

 

31.12.20

 

31.12.19

 

 

 

 

 

Off-balance sheet items

 

 

 

 

Contingent liabilities, gross

 

 8,961 

 

 12,338 

Sub-participations

 

 (1,068) 

 

 (1,120) 

Contingent liabilities, net

 

 7,893 

 

 11,218 

of which: guarantees to third parties related to subsidiaries

 

 14 

 

 10 

of which: credit guarantees and similar instruments

 

 2,443 

 

 5,023 

of which: performance guarantees and similar instruments

 

 2,402 

 

 2,302 

of which: documentary credits

 

 3,033 

 

 3,882 

Irrevocable commitments, gross

 

 17,090 

 

 10,580 

Sub-participations

 

 0 

 

 (4) 

Irrevocable commitments, net

 

 17,090 

 

 10,576 

of which: loan commitments

 

 16,212 

 

 9,700 

of which: payment commitment related to deposit insurance

 

 879 

 

 876 

Forward starting transactions1

 

 250 

 

 0 

of which: reverse repurchase agreements

 

 250 

 

 0 

Liabilities for calls on shares and other equity instruments

 

 50 

 

 43 

1 Cash to be paid in the future by either UBS or the counterparty.

 

 

 

Off-balance sheet items

UBS Switzerland 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. This contingent liability is not included in the table above.

Swiss deposit insurance

Swiss banking law and the deposit insurance system require Swiss banks and securities dealers to jointly guarantee an amount of up to CHF 6 billion for privileged client deposits in the event that a Swiss bank or securities dealer becomes insolvent. The Swiss Financial Market Supervisory Authority (FINMA) estimates the share of UBS Switzerland AG from 1 July 2020 to 30 June 2021 to be CHF 879 million, which is reflected in the table above.

Joint and several liability

In June 2015, the Personal & Corporate Banking and Wealth Management businesses booked in Switzerland were transferred from UBS AG to UBS Switzerland AG through an asset transfer in accordance with the Swiss Merger Act. Under the Swiss Merger Act, UBS AG assumed joint liability for obligations existing on the asset transfer date, i.e., 14 June 2015, that were transferred to UBS Switzerland AG.

Similarly, under the terms of the asset transfer agreement, UBS Switzerland AG assumed joint liability for approximately CHF 325 billion of contractual obligations of UBS AG existing on the asset transfer date, excluding the collateralized portion of secured contractual obligations and covered bonds. UBS Switzerland AG has no liability for new obligations incurred by UBS AG after the asset transfer date. The joint liability amount declines as obligations mature, terminate or are novated following the asset transfer date.

As of 31 December 2020, the joint liability of UBS Switzerland AG for contractual obligations of UBS AG amounted to CHF 9 billion, compared with CHF 17 billion as of 31 December 2019. Under certain circumstances, the Swiss Banking Act and the Bank Insolvency Ordinance of FINMA authorize FINMA to modify, extinguish or convert to common equity liabilities of a bank in connection with a resolution or insolvency of such bank. As of 31 December 2020, the probability of an outflow under this joint and several liability was assessed to be remote, and as a result, the table above does not include any exposures arising under this joint and several liability.

 

4 


 

 

Statement of changes in equity

 

 

 

 

 

 

 

 

CHF million

 

Share capital

 

Statutory capital reserve

 

Net profit / (loss) for the period

 

Total equity

Balance as of 1 January 2020

 

 10 

 

 11,624 

 

 1,039 

 

 12,673 

Capital increase

 

 

 

 0 

 

 

 

 0 

Dividends and other distributions

 

 

 

 (271) 

 

 (1,039) 

 

 (1,309) 

Net profit / (loss) for the period

 

 

 

 

 

 1,271 

 

 1,271 

Balance as of 31 December 2020

 

 10 

 

 11,354 

 

 1,271 

 

 12,634 

 

Statement of proposed appropriation of total profit and dividend distribution

The Board of Directors proposes that the Annual General Meeting of Shareholders (AGM) on 7 April 2021 approve the appropriation of total profit and an ordinary dividend distribution of CHF 350 million out of total profit as follows:

 

 

 

For the year ended

CHF million

 

31.12.20

Net profit for the period

 

 1,271 

Profit / (loss) carried forward

 

 0 

Total profit available for appropriation

 

 1,271 

 

 

 

Appropriation of total profit

 

 

Appropriation to voluntary earnings reserve

 

 (921) 

Dividend distribution

 

 (350) 

Profit / (loss) carried forward

 

 0 

 

 

 

  

5 


Note 1  Name, legal form and registered office

UBS Switzerland AG is incorporated and domiciled in Switzerland and operates under Art. 620 et seq. of the Swiss Code of Obligations and Swiss banking law as an Aktiengesellschaft, a corporation limited by shares. Its registered office is at Bahnhofstrasse 45, CH-8001 Zurich, Switzerland. UBS Switzerland AG is 100% owned by UBS AG.

  

 

Note 2  Accounting policies

a) Significant accounting policies

UBS Switzerland 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 for the consolidated financial statements of UBS Group AG outlined in Note 1 to the consolidated financial statements of UBS Group AG included in the UBS Group AG Annual Report 2020. Major differences between the Swiss GAAP requirements and International Financial Reporting Standards are described in Note 35 of the consolidated financial statements of UBS Group AG. The functional currency of UBS Switzerland AG is the Swiss franc. The significant accounting policies applied for the standalone financial statements of UBS Switzerland AG are discussed below.

   Refer to the UBS Group AG Annual Report 2020 for more information

Risk management

UBS Switzerland 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 Annual Report 2020.

Further information on the use of derivative instruments and hedge accounting is provided in Notes 1 and 10 to the consolidated financial statements of UBS Group AG.

   Refer to the UBS Group AG Annual Report 2020 for more information


Compensation policy

The compensation structure and processes of UBS Switzerland AG conform to the compensation principles and framework of UBS Group AG. For detailed information refer to the Compensation Report of UBS Group AG.

   Refer to the UBS Group AG Annual Report 2020 for more information

Deferred compensation

UBS Group AG is the grantor of the majority of UBS’s deferred compensation plans. Expenses for awards granted under such plans to UBS Switzerland AG employees are charged by UBS Group AG to UBS Switzerland AG.

   Refer to Note 27 of the UBS Group AG consolidated financial statements in the UBS Group AG Annual Report 2020 for more information

Foreign currency translation

Transactions denominated in foreign currency are translated into Swiss francs at the spot exchange rate on the date of the transaction. At the balance sheet date, all monetary assets and liabilities, as well as equity instruments recorded in Trading portfolio assets and Financial investmentsdenominated in foreign currency are translated into Swiss francs 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. All currency translation effects are recognized in the income statement.

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

   Refer to the UBS Group AG Annual Report 2020 for more information

 

6 


 

 

Note 2  Accounting policies (continued) 

Group-internal funding

UBS Switzerland AG obtains funding from UBS AG in the form of loans that qualify as going concern additional tier 1 capital and as gone concern loss-absorbing capacity at the UBS Switzerland AG standalone level.

Where such Group-internal funding is eligible to meet the requirements for total loss-absorbing capacity (TLAC) at the level of UBS Switzerland AG, the aggregate amount of the respective obligations is 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.

Obligations of UBS Switzerland AG arising from Group-internal funding it has received are presented as Due to banks and measured at amortized cost.

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.

Services received from and provided to Group entities

UBS Switzerland AG receives services from UBS Business Solutions AG, the main Group service company, mainly relating to Group Technology, Group Operations and Group Corporate Services, as well as certain other services from other Group entities. UBS Switzerland AG provides services to Group entities mainly relating to the distribution of security and investment products. Services received from and provided to Group entities are settled in cash as hard cost transfers or hard revenue transfers paid or received.

When the nature of the underlying transaction between UBS Switzerland 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, Other fee and commission income, Fee and commission expense, Net trading income or General and administrative expenses. 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 income and Sundry ordinary expenses.

   Refer to Note 5 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 Switzerland AG has elected to apply Swiss GAAP (FER 16) for its pension plan. 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 Switzerland AG arises from the pension fund and 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 Switzerland AG is required to contribute to the reduction of a pension deficit (on a FER 26 basis).

   Refer to Note 26 for more information

Goodwill

As part of the business transfer to UBS Switzerland AG, mainly of the Personal & Corporate Banking and Wealth Management businesses booked in Switzerland, from UBS AG effective 1 April 2015, UBS Switzerland AG recognized goodwill of CHF 5,250 million. This goodwill has been fully amortized on a straight-line basis over five years ending in March 2020.

Deferred taxes

Deferred tax assets are not recognized in UBS Switzerland 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.

7 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 2  Accounting policies (continued) 

Dispensations in the standalone financial statements

As UBS Switzerland AG has no listed shares outstanding and is within the scope of the UBS Group AG consolidated financial statements prepared in accordance with IFRS, UBS Switzerland AG is exempt from various disclosures in the standalone financial statements. The dispensations include the management report and the statement of cash flows. As the UBS Group AG consolidated financial statements are presented in USD, UBS Switzerland AG provides certain notes disclosures that would otherwise be covered by the disclosure dispensation; i.e., notes 13, 14, 15, 16, 19, 20, 21, 23 and 24.

 

b) Changes in accounting policies

Allowances and provisions for expected credit losses

Under amended Swiss GAAP (the FINMA Accounting Ordinance and FINMA Circular 2020/1 “Accounting – banks”), UBS Switzerland 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 existing approach for impaired financial instruments. UBS Switzerland AG has chosen to early adopt the new ECL requirements as of 31 December 2020.

 

Policy applicable from 31 December 2020

For the substantial majority of non-impaired exposures in scope of the Swiss GAAP ECL requirements, UBS Switzerland AG has chosen to apply the IFRS ECL approach that is applied in the UBS Group AG consolidated financial statements for its standalone financial statements. These exposures include all financial assets measured at amortized cost under both Swiss GAAP and IFRS, fee and lease receivables, 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 of the consolidated financial statements of UBS Group AG.

   Refer to the UBS Group AG Annual Report 2020 for more information

 

For the payment commitment related to deposit insurance, an alternative simple conservative approach is applied.

The impact from the adoption of Swiss GAAP ECL was an expense of CHF 348 million recognized in Credit loss (expense) / release in the income statement for the year ended 31 December 2020.

   Refer to Note 9 for more information

 


While the new ECL approach for non-impaired financial instruments is applied since 31 December 2020, the policy for impaired financial instruments, as outlined in the next paragraph, continues to apply.

 

Policy applicable prior to 31 December 2020

UBS applies a single definition of default for determining the probability of default of its obligors. A claim is impaired and an allowance or provision for credit losses is recognized when objective evidence demonstrates that a loss event has occurred after the initial recognition and that the loss event has an effect on future cash flows that can be reliably estimated (incurred loss approach). UBS Switzerland AG considers a claim to be impaired if it will be unable to collect all amounts due on it based on the original contractual terms as a result of credit deterioration of the issuer or counterparty. Impairment under the incurred loss approach is in line with ECL for credit-impaired claims in stage 3 under IFRS, as outlined in Note 1 to the consolidated financial statements of UBS Group AG included in the UBS Group AG Annual Report 2020. A claim can be a loan or receivable or other debt instrument held to maturity measured at amortized cost, a debt instrument available for sale measured at the lower of amortized cost or market value, or a commitment, such as a letter of credit, a guarantee or a similar instrument.

   Refer to the UBS Group AG Annual Report 2020 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

 

Apart from the new ECL requirements, the amended Swiss GAAP rules remained materially unchanged from the previously applicable FINMA Circular 2015/1 “Accounting – banks”.

 

c) Other events

Transfer of Global Wealth Management international business 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 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 compensation of UBS AG for its share of the profits for the full year 2020 of CHF 352 million is reflected in
Fee and commission expense

  

8 


 

Note 3a  Net trading income by business

 

 

For the year ended

CHF million

 

31.12.20

31.12.19

Global Wealth Management

 

 392 

 413 

Personal & Corporate Banking

 

 359 

 427 

Other business divisions and Group Functions

 

 41 

 24 

Total net trading income

 

 792 

 864 

 

 

 

Note 3b  Net trading income by underlying risk category

 

 

For the year ended

CHF million

 

31.12.20

31.12.19

Interest rate instruments (including funds)

 

 42 

 23 

Foreign exchange instruments

 

 707 

 810 

Equity instruments (including funds)

 

 (4) 

 (2) 

Credit instruments

 

 1 

 4 

Precious metals / commodities

 

 46 

 29 

Total net trading income

 

 792 

 864 

 

 

 

Note 4  Personnel expenses

 

 

For the year ended

CHF million

 

31.12.20

31.12.19

Salaries

 

 1,207 

 1,199 

Variable compensation – performance awards

 

 329 

 377 

Variable compensation – other

 

 11 

 8 

Contractors

 

 1 

 2 

Social security

 

 104 

 100 

Post-employment benefit plans

 

 317 

 208 

Other personnel expenses

 

 46 

 45 

Total personnel expenses

 

 2,014 

 1,940 

 

As of 31 December 2020, UBS Switzerland AG employed 9,107 personnel (31 December 2019: 9,226) on a full-time equivalent basis.

 

9 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 5  General and administrative expenses

 

 

For the year ended

CHF million

 

31.12.20

31.12.19

Occupancy

 

 2 

 1 

Rent and maintenance of IT equipment

 

 2 

 2 

Communication and market data services

 

 45 

 48 

Administration

 

 2,819 

 2,793 

of which: shared services costs charged by UBS Group AG and subsidiaries in the UBS Group

 

 2,741 

 2,712 

Marketing and public relations

 

 78 

 105 

Travel and entertainment

 

 54 

 84 

Fees to audit firms

 

 8 

 9 

of which: financial and regulatory audits

 

 8 

 8 

of which: audit-related services

 

 0 

 0 

Other professional fees

 

 61 

 70 

Outsourcing of IT and other services

 

 147 

 145 

Total general and administrative expenses

 

 3,215 

 3,257 

 

 

Note 6  Taxes

 

 

For the year ended

CHF million

 

31.12.20

31.12.19

Income tax expense / (benefit)

 

 304 

 278 

of which: current

 

 304 

 278 

of which: deferred

 

 

 0 

Capital tax

 

 20 

 20 

Total tax expense / (benefit)

 

 324 

 299 

 

For 2020, 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 19.3% (2019: 21.1%).

 

 

Note 7  Securities financing transactions

CHF billion

 

31.12.20

31.12.19

 

 

 

 

On-balance sheet

 

 

 

Receivables from securities financing transactions, gross

 

 7.6 

 14.1 

Netting of securities financing transactions

 

 (4.0) 

 (1.9) 

Receivables from securities financing transactions, net

 

 3.6 

 12.1 

Payables from securities financing transactions, gross

 

 4.5 

 2.5 

Netting of securities financing transactions

 

 (4.0) 

 (1.9) 

Payables from securities financing transactions, net

 

 0.5 

 0.5 

Assets pledged as collateral in connection with securities financing transactions

 

 8.0 

 6.6 

of which: financial investments

 

 8.0 

 6.6 

of which: assets that may be sold or repledged by counterparties

 

 3.8 

 2.9 

 

 

 

 

Off-balance sheet

 

 

 

Fair value of assets received as collateral in connection with securities financing transactions

 

 92.4 

 107.7 

of which: repledged

 

 82.3 

 87.9 

of which: sold in connection with short sale transactions

 

 0.3 

 0.4 

 

10 


 

 

Note 8a  Collateral for loans and off-balance sheet transactions

 

 

31.12.20

 

31.12.19

 

 

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, gross

 

 1,533 

 

 35,237 

 

 2,938 

 

 10,738 

 

 50,446 

 

 1,294 

 

 26,604 

 

 987 

 

 11,145 

 

 40,030 

Mortgage loans, gross

 

 156,553 

 

 

 

 

 

 

 

 156,553 

 

 152,591 

 

 

 

 

 

 

 

 152,591 

of which: residential mortgages

 

 134,291 

 

 

 

 

 

 

 

 134,291 

 

 130,502 

 

 

 

 

 

 

 

 130,502 

of which: office and business premises mortgages

 

 9,452 

 

 

 

 

 

 

 

 9,452 

 

 9,804 

 

 

 

 

 

 

 

 9,804 

of which: industrial premises mortgages

 

 2,958 

 

 

 

 

 

 

 

 2,958 

 

 2,722 

 

 

 

 

 

 

 

 2,722 

of which: other mortgages

 

 9,852 

 

 

 

 

 

 

 

 9,852 

 

 9,563 

 

 

 

 

 

 

 

 9,563 

Total on-balance sheet, gross

 

 158,086 

 

 35,237 

 

 2,938 

 

 10,738 

 

 206,999 

 

 153,885 

 

 26,604 

 

 987 

 

 11,145 

 

 192,621 

Allowances

 

 (135) 

 

 (3) 

 

 0 

 

 (550) 

 

 (687) 

 

 0 

 

 0 

 

 0 

 

 (454) 

 

 (454) 

Total on-balance sheet, net

 

 157,951 

 

 35,234 

 

 2,938 

 

 10,189 

 

 206,312 

 

 153,885 

 

 26,604 

 

 987 

 

 10,690 

 

 192,166 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Off-balance sheet

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Contingent liabilities, gross

 

 189 

 

 1,900 

 

 1,348 

 

 5,525 

 

 8,961 

 

 169 

 

 2,533 

 

 1,259 

 

 8,377 

 

 12,338 

Irrevocable commitments, gross

 

 959 

 

 2,121 

 

 2,090 

 

 11,921 

 

 17,090 

 

 833 

 

 525 

 

 223 

 

 9,000 

 

 10,580 

Forward starting reverse repurchase and securities borrowing transactions

 

  

 

 250 

 

  

 

  

 

 250 

 

  

 

  

 

  

 

  

 

  

Liabilities for calls on shares and other equities

 

 

 

 

 

 

 

 50 

 

 50 

 

 

 

 

 

 

 

 43 

 

 43 

Total off-balance sheet

 

 1,147 

 

 4,271 

 

 3,437 

 

 17,496 

 

 26,352 

 

 1,002 

 

 3,057 

 

 1,482 

 

 17,420 

 

 22,961 

1 Includes but is not limited to deposits, securities, life insurance contracts, inventory, accounts receivable, patents and copyrights.    2 Includes credit default swaps and guarantees.

 

Note 8b  Impaired financial instruments

 

 

31.12.20

 

31.12.19

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 banks

 

 1 

 1 

 

 0 

 

 1 

 1 

 

 0 

Amounts due from customers

 

 1,110 

 456 

 441 

 213 

 

 851 

 454 

 355 

 41 

Mortgage loans

 

 718 

 

 718 

 

 

 769 

 

 769 

 

Guarantees and loan commitments

 

 288 

 23 

 109 

 156 

 

 161 

 31 

 15 

 115 

Total impaired financial instruments

 

 2,117 

 480 

 1,268 

 369 

 

 1,782 

 487 

 1,139 

 156 

 

 

11 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 9a  Allowances

CHF million

Balance as of 31 December 2019

Increase recognized in the income statement

Release recognized in the income statement

Write-offs

Recoveries and past due interest

Reclassifications

Foreign currency translation

Balance as of 31 December 2020

Default risk relating to on-balance sheet exposures

 456 

 481 

 (112) 

 (145) 

 27 

 7 

 (13) 

 701 

of which: incurred credit losses

 456 

 236 

 (112) 

 (145) 

 27 

 7 

 (11) 

 457 

of which: expected credit losses1

 

 246 

 

 

 

 

 (2) 

 244 

Total allowances

 456 

 481 

 (112) 

 (145) 

 27 

 7 

 (13) 

 701 

1 Refer to Note 2 for more information on the implementation of the Swiss GAAP ECL requirements.

 

Note 9b  Provisions

CHF million

Balance as of 31 December 2019

Increase recognized in the income statement

Release recognized in the income statement

Provisions used in conformity with designated purpose

Recoveries

Reclassifications

Foreign currency translation

Balance as of 31 December 2020

Default risk related to off-balance sheet items and other credit lines

 31 

 104 

 (2) 

 

 

 (7) 

 (1) 

 125 

of which: incurred credit losses

 31 

 2 

 (2) 

 

 

 (7) 

 0 

 23 

of which: expected credit losses1

 

 102 

 

 

 

 

 (1) 

 101 

Operational risks

 2 

 1 

 0 

 0 

 0 

 

 0 

 3 

Litigation, regulatory and similar matters2

 68 

 49 

 (7) 

 (9) 

 1 

 

 0 

 102 

Restructuring

 0 

 27 

 (6) 

 (17) 

 

 (1) 

 0 

 3 

Employee benefits

 18 

 3 

 (4) 

 

 

 1 

 

 18 

Other

 19 

 3 

 (4) 

 (2) 

 

 

 0 

 16 

Total provisions

 139 

 186 

 (23) 

 (28) 

 1 

 (7) 

 (1) 

 266 

1 Refer to Note 2 for more information on the implementation of the Swiss GAAP ECL requirements.    2 Includes provisions for litigation resulting from security risks.

 

Note 9c  Balance sheet and off-balance sheet positions subject to 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

 

 81,148 

 81,148 

 

 

 

 

 

 

 

Due from banks

 

 3,399 

 3,244 

 154 

 0 

 

 (13) 

 (7) 

 (5) 

 (1) 

Receivables from securities financing transactions

 

 3,565 

 3,565 

 0 

 

 

 0 

 0 

 0 

 0 

Due from customers

 

 49,894 

 46,302 

 2,937 

 654 

 

 (552) 

 (45) 

 (52) 

 (456) 

Mortgage loans

 

 156,418 

 143,574 

 12,125 

 718 

 

 (135) 

 (25) 

 (110) 

 0 

Accrued income and prepaid expenses

 

 228 

 223 

 4 

 1 

 

 0 

 0 

 0 

 0 

Other assets2

 

 535 

 535 

 0 

 

 

 0 

 0 

 0 

 0 

Total on-balance sheet financial assets in scope of ECL

 

 295,188 

 278,593 

 15,221 

 1,374 

 

 (701) 

 (77) 

 (167) 

 (457) 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 8,961 

 7,087 

 1,735 

 139 

 

 (45) 

 (10) 

 (11) 

 (23) 

Irrevocable commitments, gross

 

 17,090 

 15,372 

 1,650 

 69 

 

 (37) 

 (15) 

 (22) 

 0 

Forward starting transactions (securities financing transactions)

 

 250 

 250 

 0 

 0 

 

 0 

 0 

 0 

 0 

Other credit lines

 

 22,405 

 18,613 

 3,713 

 80 

 

 (41) 

 (23) 

 (18) 

 0 

Irrevocable committed prolongation of existing loans

 

 4,433 

 4,427 

 5 

 0 

 

 (2) 

 (2) 

 0 

 0 

Total off-balance sheet financial instruments and other credit lines in scope of ECL

 

 53,139 

 45,749 

 7,102 

 288 

 

 (125) 

 (50) 

 (52) 

 (23) 

Total allowances and provisions

 

 

 

 

 

 

 (825) 

 (127) 

 (219) 

 (480) 

1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances.    2 Includes components of Settlement and clearing accounts and Other in scope of ECL. Refer to Note 17a for more information.

 

 

 

12 


 

 

Note 9d  Financial assets subject to credit risk by rating category

 

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

 

 81,148 

 

 0 

 

 0 

 

 81,148 

 

 81,148 

of which: stage 1

 

 81,148 

 

 0 

 

 0 

 

 81,148 

 

 81,148 

Due from banks

 

 136 

 1,828 

 803 

 617 

 28 

 1 

 3,412 

 (13) 

 3,399 

of which: stage 1

 

 136 

 1,773 

 736 

 579 

 28 

 

 3,251 

 (7) 

 3,244 

of which: stage 2

 

 

 55 

 67 

 37 

 

 

 159 

 (5) 

 154 

of which: stage 3

 

 

 

 

 

 

 1 

 1 

 (1) 

 0 

Receivables from securities financing transactions

 

 370 

 900 

 792 

 1,504 

 

 

 3,565 

 0 

 3,565 

of which: stage 1

 

 370 

 900 

 792 

 1,504 

 

 

 3,565 

 0 

 3,565 

Due from customers

 

 1,300 

 35,780 

 5,936 

 4,869 

 1,451 

 1,110 

 50,446 

 (552) 

 49,894 

of which: stage 1

 

 1,300 

 35,255 

 4,743 

 3,728 

 1,321 

 

 46,346 

 (45) 

 46,302 

of which: stage 2

 

 

 526 

 1,193 

 1,141 

 129 

 

 2,990 

 (52) 

 2,937 

of which: stage 3

 

 

 

 

 

 

 1,110 

 1,110 

 (456) 

 654 

Mortgage loans

 

 1,115 

 61,667 

 41,180 

 37,476 

 14,398 

 718 

 156,553 

 (135) 

 156,418 

of which: stage 1

 

 1,115 

 61,109 

 39,441 

 31,194 

 10,741 

 

 143,600 

 (25) 

 143,574 

of which: stage 2

 

 

 558 

 1,738 

 6,283 

 3,656 

 

 12,235 

 (110) 

 12,125 

of which: stage 3

 

 

 

 

 

 

 718 

 718 

 

 718 

Accrued income and prepaid expenses

 

 39 

 22 

 5 

 147 

 14 

 1 

 228 

 0 

 228 

of which: stage 1

 

 39 

 22 

 5 

 146 

 11 

 

 223 

 0 

 223 

of which: stage 2

 

 

 0 

 0 

 1 

 3 

 

 4 

 

 4 

of which: stage 3

 

 

 

 

 

 

 1 

 1 

 

 1 

Other assets

 

 

 30 

 0 

 505 

 

 

 536 

 0 

 535 

of which: stage 1

 

 

 30 

 0 

 505 

 

 

 536 

 0 

 535 

of which: stage 2

 

 

 

 

 

 

 

 

 0 

 0 

of which: stage 3

 

 

 

 

 

 

 

 

 

 

Total assets in scope of ECL

 

 84,108 

 100,227 

 48,715 

 45,117 

 15,890 

 1,830 

 295,888 

 (701) 

 295,188 

 

 

13 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 9d  Financial assets subject to credit risk by rating category (continued)

 

Off-balance sheet positions 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 carrying amount

(maximum exposure to credit risk)

ECL provision

Off-balance sheet (in scope of ECL)

 

 

 

 

 

 

 

 

 

Contingent liabilities, gross

 

 522 

 2,951 

 3,168 

 2,110 

 73 

 139 

 8,961 

 (45) 

of which: stage 1

 

 522 

 2,356 

 2,479 

 1,656 

 73 

 

 7,087 

 (10) 

of which: stage 2

 

 

 594 

 688 

 454 

 

 

 1,735 

 (11) 

of which: stage 3

 

 

 

 

 

 

 139 

 139 

 (23) 

Irrevocable commitments, gross

 

 1,035 

 6,407 

 4,943 

 4,355 

 281 

 69 

 17,090 

 (37) 

of which: stage 1

 

 1,035 

 5,631 

 4,069 

 4,355 

 281 

 0 

 15,372 

 (15) 

of which: stage 2

 

 

 776 

 873 

 

 

 0 

 1,650 

 (22) 

of which: stage 3

 

 

 

 

 

 

 69 

 69 

 

Forward starting transactions (securities financing transactions)

 

 

 

 

 250 

 

 

 250 

 0 

of which: stage 1

 

 

 

 

 250 

 

 

 250 

 0 

Other credit lines

 

 476 

 3,320 

 4,573 

 6,305 

 7,650 

 80 

 22,405 

 (41) 

of which: stage 1

 

 476 

 2,814 

 3,300 

 4,643 

 7,379 

 

 18,613 

 (23) 

of which: stage 2

 

 

 506 

 1,273 

 1,662 

 271 

 

 3,713 

 (18) 

of which: stage 3

 

 

 

 

 

 

 80 

 80 

 

Irrevocable committed prolongation of existing loans

 

 17 

 1,673 

 1,242 

 984 

 517 

 0 

 4,433 

 (2) 

of which: stage 1

 

 17 

 1,672 

 1,241 

 981 

 516 

 

 4,427 

 (2) 

of which: stage 2

 

 

 1 

 1 

 2 

 1 

 

 5 

 0 

of which: stage 3

 

 

 

 

 

 

 0 

 0 

 

Total off-balance sheet financial instruments and other credit lines

 

 2,051 

 14,350 

 13,925 

 14,004 

 8,521 

 288 

 53,139 

 (125) 

 

   Refer to Note 9 of the UBS Group AG consolidated financial statements in the UBS Group AG Annual Report 2020 for more information on ECL in accordance with IFRS

 

Note 10  Trading portfolio and other financial instruments measured at fair value

CHF million

 

31.12.20

 

31.12.19

 

 

 

 

 

Assets

 

 

 

 

Trading portfolio assets

 

 1,838 

 

 1,679 

of which: debt instruments1

 

 24 

 

 14 

of which: listed

 

 9 

 

 8 

of which: equity instruments

 

 25 

 

 37 

of which: precious metals and other physical commodities

 

 1,789 

 

 1,628 

Total assets measured at fair value

 

 1,838 

 

 1,679 

of which: fair value derived using a valuation model

 

 31 

 

 39 

of which: securities eligible for repurchase transactions in accordance with liquidity regulations2

 

 6 

 

 2 

 

 

 

 

 

Liabilities

 

 

 

 

Trading portfolio liabilities

 

 297 

 

 371 

of which: debt instruments1

 

 62 

 

 125 

of which: listed

 

 53 

 

 102 

of which: equity instruments

 

 235 

 

 246 

Total liabilities measured at fair value

 

 297 

 

 371 

of which: fair value derived using a valuation model

 

 218 

 

 325 

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.

 

14 


 

 

Note 11  Derivative instruments

 

 

31.12.20

 

31.12.19

CHF million, except where indicated

 

Derivative financial assets

 

Derivative financial liabilities

 

Total notional values

(CHF billion)

 

Derivative financial assets

 

Derivative financial liabilities

 

Total notional values

(CHF billion)

Interest rate contracts

 

 

 

 

 

 

 

 

 

 

 

 

Forwards1

 

 51 

 

 45 

 

 8 

 

 34 

 

 27 

 

 17 

Swaps

 

 2,054 

 

 1,679 

 

 125 

 

 1,910 

 

 1,579 

 

 139 

of which: designated in hedge accounting relationships

 

 501 

 

 200 

 

 32 

 

 422 

 

 193 

 

 23 

Over-the-counter (OTC) options

 

 70 

 

 70 

 

 7 

 

 64 

 

 74 

 

 8 

Total

 

 2,175 

 

 1,794 

 

 140 

 

 2,009 

 

 1,679 

 

 164 

Foreign exchange contracts

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

 418 

 

 405 

 

 31 

 

 324 

 

 312 

 

 34 

Interest and currency swaps

 

 1,532 

 

 1,266 

 

 140 

 

 599 

 

 745 

 

 100 

Over-the-counter (OTC) options

 

 243 

 

 243 

 

 28 

 

 110 

 

 109 

 

 27 

Total

 

 2,194 

 

 1,913 

 

 198 

 

 1,033 

 

 1,166 

 

 160 

Equity / index contracts

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

 86 

 

 80 

 

 8 

 

 31 

 

 22 

 

 3 

Swaps

 

 73 

 

 73 

 

 1 

 

 29 

 

 29 

 

 1 

Over-the-counter (OTC) options

 

 184 

 

 184 

 

 4 

 

 91 

 

 91 

 

 3 

Exchange-traded options

 

 462 

 

 462 

 

 0 

 

 332 

 

 332 

 

 0 

Total

 

 805 

 

 798 

 

 13 

 

 483 

 

 474 

 

 8 

Credit derivative contracts

 

 

 

 

 

 

 

 

 

 

 

 

Credit default swaps

 

 26 

 

 32 

 

 1 

 

 1 

 

 8 

 

 0 

Total

 

 26 

 

 32 

 

 1 

 

 1 

 

 8 

 

 0 

Commodity, precious metals and other contracts

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

 19 

 

 19 

 

 1 

 

 7 

 

 7 

 

 1 

Swaps

 

 23 

 

 23 

 

 2 

 

 25 

 

 24 

 

 1 

Over-the-counter (OTC) options

 

 374 

 

 374 

 

 13 

 

 558 

 

 558 

 

 22 

Total

 

 416 

 

 415 

 

 16 

 

 590 

 

 589 

 

 24 

Total before netting

 

 5,616 

 

 4,952 

 

 368 

 

 4,115 

 

 3,917 

 

 357 

of which: trading derivatives

 

 5,115 

 

 4,753 

 

 

 

 3,694 

 

 3,724 

 

 

of which: fair value derived using a valuation model

 

 4,997 

 

 4,644 

 

 

 

 3,643 

 

 3,684 

 

 

of which: derivatives designated in hedge accounting relationships

 

 501 

 

 200 

 

 

 

 422 

 

 193 

 

 

of which: fair value derived using a valuation model

 

 501 

 

 200 

 

 

 

 422 

 

 193 

 

 

Netting with cash collateral payables / receivables

 

 0 

 

 (603) 

 

 

 

 0 

 

 (795) 

 

 

Replacement value netting

 

 (2,821) 

 

 (2,821) 

 

 

 

 (2,030) 

 

 (2,030) 

 

 

Total after netting

 

 2,794 

 

 1,528 

 

 

 

 2,085 

 

 1,092 

 

 

of which: with bank and broker-dealer counterparties

 

 269 

 

 482 

 

 

 

 120 

 

 444 

 

 

of which: other client counterparties

 

 2,525 

 

 1,046 

 

 

 

 1,965 

 

 648 

 

 

1 Includes forward rate agreements.

 

15 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 12a  Financial investments by instrument type

 

 

31.12.20

 

31.12.19

CHF million

 

Carrying amount

Fair value

 

Carrying amount

Fair value

Debt instruments

 

 16,400 

 16,626 

 

 11,874 

 11,911 

of which: held to maturity

 

 5,075 

 5,276 

 

 5,620 

 5,634 

of which: available for sale

 

 11,326 

 11,350 

 

 6,255 

 6,277 

Equity instruments

 

 10 

 25 

 

 21 

 47 

Property

 

 15 

 15 

 

 33 

 33 

Total financial investments

 

 16,425 

 16,665 

 

 11,928 

 11,991 

of which: securities eligible for repurchase transactions in accordance with liquidity regulations1

 

 16,002 

 16,223 

 

 10,458 

 10,493 

1 Consists of high-quality liquid debt securities that are eligible for repurchase transactions at the Swiss National Bank (SNB) or other central banks.

 

Note 12b  Financial investments by counterparty rating – debt instruments

CHF million

 

31.12.20

 

31.12.19

Internal UBS rating1

 

 

 

 

0–1

 

 9,340 

 

 10,270 

2–3

 

 7,061 

 

 1,604 

4–5

 

 

 

 

6–8

 

 

 

 

9–13

 

 

 

 

Non-rated

 

 

 

 

Total financial investments

 

 16,400 

 

 11,874 

1 Refer to Note 22 for more information.

 

Note 13  Investments in subsidiaries and other participations

CHF million

31.12.20

31.12.19

Historical cost

 

 

Balance at the beginning of the year

 77 

 69 

Additions

 27 

 8 

Balance at the end of the year

 104 

 77 

Accumulated value adjustments and changes in book value

 

 

Balance at the beginning of the year

 (9) 

 (9) 

Balance at the end of the year

 (9) 

 (9) 

Net book value

 

 

Book value at the beginning of the year

 68 

 60 

Book value at the end of the year

 95 

 68 

of which: without market value

 95 

 68 

of which: other participations

 72 

 53 

of which: Pfandbriefbank

 63 

 47 

of which: TWINT AG

 7 

 6 

of which: subsidiaries

 23 

 15 

 

 

16 


 

 

Note 14  Companies in which the bank holds a permanent direct or indirect significant participation

 

 

 

 

31.12.20

 

Company name

Domicile

Primary business division

 

Share capital in thousand

Share of capital

(in %)

Share of votes 

(in %)

Held directly

in thousand

Held

indirectly

UBS Card Center AG

Switzerland

Personal & Corporate Banking

 

CHF

 100 

 100 

 100 

 100 

UBS Hypotheken AG

Switzerland

Personal & Corporate Banking

 

CHF

 100 

 98 

 98 

 98 

TopCard Service AG

Switzerland

Personal & Corporate Banking

 

CHF

 150 

 100 

 100 

 150 

TWINT AG

Switzerland

Personal & Corporate Banking

 

CHF

 12,750 

 11 

 11 

 1,462 

Houzy AG

Switzerland

Personal & Corporate Banking

 

CHF

 336 

 19 

 19 

 65 

Pfandbriefbank schweizerischer Hypothekarinstitute AG

Switzerland

Personal & Corporate Banking

 

CHF

 1,000,000 

 9 

 9 

 89,334 

SwissSign Group AG

Switzerland

Personal & Corporate Banking

 

CHF

 12,500 

 6 

 6 

 766 

 

Note 15  Property, equipment and software

At historical cost less accumulated depreciation

 

 

 

 

CHF million

 

IT hardware and communication

 

Internally generated software

 

Other machines and equipment

 

Projects in progress1

 

31.12.20

 

31.12.19

Historical cost

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the year

 

 8 

 

 297 

 

 97 

 

 99 

 

 501 

 

 333 

Additions

 

 0 

 

 0 

 

 3 

 

 153 

 

 157 

 

 172 

Disposals / write-offs2

 

 (1) 

 

 

 

 (1) 

 

 

 

 (2) 

 

 (3) 

Reclassifications

 

 

 

 162 

 

 

 

 (162) 

 

 

 

 

Balance at the end of the year

 

 8 

 

 459 

 

 100 

 

 90 

 

 657 

 

 501 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the year

 

 4 

 

 39 

 

 85 

 

 

 

 129 

 

 94 

Depreciation

 

 2 

 

 48 

 

 7 

 

 

 

 57 

 

 38 

Disposals / write-offs2

 

 (1) 

 

 

 

 (1) 

 

 

 

 (2) 

 

 (3) 

Balance at the end of the year

 

 5 

 

 88 

 

 92 

 

 

 

 184 

 

 129 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

 

 

 

 

 

 

Net book value at the beginning of the year

 

 4 

 

 257 

 

 12 

 

 99 

 

 372 

 

 238 

Net book value at the end of the year

 

 3 

 

 371 

 

 9 

 

 90 

 

 473 

 

 372 

1 Entirely related to Internally generated software.    2 Includes write-offs of fully depreciated assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease commitments

 

 

 

 

 

 

 

 

 

 

 

 

CHF million

 

 

 

 

 

 

 

 

 

 

 

31.12.20

Expenses for operating leases to be recognized in:

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

177

2022

 

 

 

 

 

 

 

 

 

 

 

164

2023

 

 

 

 

 

 

 

 

 

 

 

152

2024

 

 

 

 

 

 

 

 

 

 

 

72

2025

 

 

 

 

 

 

 

 

 

 

 

34

2026 and thereafter

 

 

 

 

 

 

 

 

 

 

 

138

Total commitments for minimum payments under operating leases

 

 

 

 

 

 

 

 

 

 

 

737

 

 

Property, equipment and software are depreciated on a straight-line basis over their useful life, which is between 3 and 10 years.

 

17 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 16  Goodwill1

At historical cost less accumulated amortization

 

 

 

CHF million

 

31.12.20

31.12.19

Historical cost

 

 

 

Balance at the beginning of the year

 

 5,250 

 5,250 

Balance at the end of the year

 

 5,250 

 5,250 

Accumulated amortization

 

 

 

Balance at the beginning of the year

 

 4,988 

 3,938 

Amortization

 

 263 

 1,050 

Balance at the end of the year

 

 5,250 

 4,988 

 

 

 

 

Net book value

 

 

 

Net book value at the beginning of the year

 

 263 

 1,313 

Net book value at the end of the year

 

 

 263 

1 Refer to Note 2 for more information about goodwill.

 

Note 17a  Other assets

CHF million

 

31.12.20

 

31.12.19

Settlement and clearing accounts

 

 409 

 

 466 

VAT and other indirect tax receivables

 

 12 

 

 16 

Other

 

 130 

 

 195 

of which: other receivables due from UBS Group AG and subsidiaries in the UBS Group

 

 113 

 

 179 

Total other assets1

 

 551 

 

 678 

1 Includes components of Settlement and clearing accounts and Other of CHF 535 million in scope of ECL. Refer to Note 9c for more information.

 

 

Note 17b  Other liabilities

CHF million

 

31.12.20

 

31.12.19

Deferral position for hedging instruments

 

 246 

 

 133 

Settlement and clearing accounts

 

 679 

 

 1,054 

VAT and other indirect tax payables

 

 139 

 

 130 

Other

 

 731 

 

 782 

of which: other payables due to UBS Group AG and subsidiaries in the UBS Group

 

 534 

 

 519 

Total other liabilities

 

 1,794 

 

 2,099 

 

Note 18  Pledged assets1

 

 

31.12.20

 

31.12.19

CHF million

 

Carrying amount of pledged assets

 

Effective

commitment

 

Carrying amount of pledged assets

 

Effective

commitment

Mortgage loans2

 

 15,538 

 

 10,984 

 

 17,193 

 

 10,737 

Due from customers3

 

 1,921 

 

 1,820 

 

 0 

 

 0 

Total pledged assets

 

 17,460 

 

 12,804 

 

 17,193 

 

 10,737 

1 Excluding securities financing transactions. Refer to Note 7 for more information on securities financing transactions.    2 These pledged mortgage loans serve as collateral for existing liabilities against Swiss central mortgage institutions and for existing covered bond issuances. Of these pledged mortgage loans, approximately CHF 1.9 billion as of 31 December 2020 (approximately CHF 5.4 billion as of 31 December 2019) could be withdrawn or used for future liabilities or covered bond issuances without breaching existing collateral requirements.    3 Related to COVID-19 loans granted under the program established by the Swiss Federal Council pledged to the Swiss National Bank.

 

18 


 

 

Note 19  Maturity structure of financial instruments

CHF million

At sight

Cancellable

Due within

1 month

Due between

1 and 3

months

Due between

3 and 12 months

Due between

1 and 5

years

Due after

5 years

Perpetual / Not applicable

Total

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Cash and balances at central banks

 81,148 

 

 

 

 

 

 

 

 81,148 

Due from banks

 1,829 

 0 

 472 

 593 

 465 

 19 

 20 

 

 3,399 

Receivables from securities financing transactions

 

 1,508 

 1,284 

 525 

 249 

 

 

 

 3,565 

Due from customers

 269 

 7,682 

 15,080 

 6,484 

 7,112 

 11,106 

 2,160 

 

 49,894 

Mortgage loans

 

 33,035 

 6,430 

 6,940 

 13,289 

 61,280 

 35,443 

 

 156,418 

Trading portfolio assets

 1,838 

 

 

 

 

 

 

 

 1,838 

Derivative financial instruments

 2,794 

 

 

 

 

 

 

 

 2,794 

Financial investments

 

 

 1,409 

 3,649 

 5,427 

 4,856 

 1,059 

 25 

 16,425 

Total assets / financial instruments

as of 31 December 2020

 87,879 

 42,226 

 24,675 

 18,192 

 26,542 

 77,261 

 38,682 

 25 

 315,482 

Total assets / financial instruments

as of 31 December 2019

 66,230 

 41,266 

 26,818 

 13,203 

 22,114 

 78,818 

 34,941 

 54 

 283,444 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Due to banks1

 6,564 

 1,842 

 6,107 

 135 

 40 

 6,174 

 4,650 

 5,176 

 30,688 

Payables from securities financing transactions

 

 333 

 168 

 

 

 

 

 

 501 

Due to customers

 199,334 

 59,830 

 310 

 234 

 35 

 39 

 10 

 

 259,792 

Trading portfolio liabilities

 297 

 

 

 

 

 

 

 

 297 

Derivative financial instruments

 1,528 

 

 

 

 

 

 

 

 1,528 

Loans from central mortgage institutions

 

 

 223 

 135 

 661 

 3,790 

 3,767 

 

 8,577 

Total liabilities / financial instruments

as of 31 December 2020

 207,722 

 62,005 

 6,809 

 504 

 735 

 10,004 

 8,428 

 5,176 

 301,383 

Total liabilities / financial instruments

as of 31 December 2019

 130,067 

 107,395 

 7,131 

 647 

 845 

 8,034 

 10,525 

 4,711 

 269,356 

1 Due to banks with maturity above one year and Perpetual mainly relates to loss-absorbing capacity-eligible positions.

 

19 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 20  Assets and liabilities by domestic and foreign origin in accordance with the domicile principle

 

 

31.12.20

 

31.12.19

CHF million

 

Domestic

Foreign

 

Domestic

Foreign

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and balances at central banks

 

 81,148 

 0 

 

 58,984 

 0 

Due from banks

 

 245 

 3,153 

 

 1,563 

 2,902 

Receivables from securities financing transactions

 

 1,265 

 2,301 

 

 1,099 

 11,037 

Due from customers

 

 22,485 

 27,409 

 

 19,352 

 20,223 

Mortgage loans

 

 156,401 

 16 

 

 152,572 

 19 

Trading portfolio assets

 

 1,800 

 38 

 

 1,639 

 39 

Derivative financial instruments

 

 1,680 

 1,115 

 

 1,144 

 941 

Financial investments

 

 497 

 15,928 

 

 1,202 

 10,727 

Accrued income and prepaid expenses

 

 88 

 140 

 

 89 

 100 

Investments in subsidiaries and other participations

 

 95 

 0 

 

 68 

 

Property, equipment and software

 

 473 

 

 

 372 

 

Goodwill and other intangible assets

 

 

 

 

 263 

 

Other assets

 

 513 

 39 

 

 604 

 73 

Total assets

 

 266,690 

 50,139 

 

 238,952 

 46,062 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Due to banks

 

 26,488 

 4,200 

 

 24,160 

 3,185 

Payables from securities financing transactions

 

 114 

 388 

 

 139 

 408 

Due to customers

 

 197,282 

 62,510 

 

 182,880 

 48,812 

Trading portfolio liabilities

 

 25 

 272 

 

 43 

 327 

Derivative financial instruments

 

 693 

 835 

 

 505 

 587 

Loans from central mortgage institutions

 

 8,577 

 

 

 8,308 

 

Accrued expenses and deferred income

 

 727 

 23 

 

 728 

 19 

Other liabilities

 

 1,724 

 70 

 

 1,899 

 200 

Provisions

 

 249 

 17 

 

 138 

 1 

Total liabilities

 

 235,880 

 68,314 

 

 218,802 

 53,540 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

 

 10 

 

 

 10 

 

General reserve

 

 11,354 

 

 

 11,624 

 

Net profit / (loss) for the period

 

 1,271 

 

 

 1,039 

 

Total equity

 

 12,634 

 

 

 12,673 

 

Total liabilities and equity

 

 248,514 

 68,314 

 

 231,475 

 53,540 

 

 

20 


 

 

Note 21  Total assets by geographic location

 

 

31.12.20

 

31.12.19

CHF million

 

CHF million

%

 

CHF million

%

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Switzerland

 

 266,690 

 84 

 

 238,952 

 84 

Europe, Middle East and Africa

 

 31,200 

 10 

 

 30,264 

 11 

of which: Germany

 

 4,366 

 1 

 

 3,804 

 1 

of which: United Kingdom

 

 3,365 

 1 

 

 11,649 

 4 

Americas

 

 13,032 

 4 

 

 13,237 

 5 

of which: United States

 

 4,752 

 1 

 

 5,236 

 2 

of which: British Virgin Islands

 

 3,075 

 1 

 

 2,834 

 1 

Asia Pacific

 

 5,907 

 2 

 

 2,561 

 1 

of which: Japan

 

 3,639 

 1 

 

 75 

 0 

Total assets

 

316,829

 100 

 

 285,014 

 100 

 

Note 22  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 is located. Assets for which Switzerland is the ultimate country of risk are provided separately in order to reconcile them to total balance sheet assets.

   Refer to the “Risk management and control” section of the UBS Group AG Annual Report 2020 for more information

 

  

  

  

  

  

  

 

31.12.20

 

31.12.19

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

 

 23,467 

 7 

 

 23,331 

 8 

2

 

Aa1 to Aa3

AA+ to AA–

AA+ to AA–

 

 10,009 

 3 

 

 11,960 

 4 

Medium risk

3

 

A1 to A3

A+ to A–

A+ to A–

 

 6,699 

 2 

 

 2,027 

 1 

4

 

Baa1 to Baa2

BBB+ to BBB

BBB+ to BBB

 

 5,281 

 2 

 

 3,479 

 1 

5

 

Baa3

BBB–

BBB–

 

 1,236 

 0 

 

 928 

 0 

High risk

6

Sub-investment grade

Ba1

BB+

BB+

 

 344 

 0 

 

 544 

 0 

7

 

Ba2

BB

BB

 

 470 

 0 

 

 372 

 0 

8

 

Ba3

BB–

BB–

 

 236 

 0 

 

 37 

 0 

9

 

B1

B+

B+

 

 514 

 0 

 

 578 

 0 

Very high risk

10

 

B2

B

B

 

 58 

 0 

 

 97 

 0 

11

 

B3

B–

B–

 

 166 

 0 

 

 23 

 0 

12

 

Caa

 

 

 

 34 

 0 

 

 102 

 0 

13

 

Ca to C

CCC to C

CCC to C

 

 48 

 0 

 

 46 

 0 

Distressed

Default

Defaulted

 

D

D

 

 22 

 0 

 

 6 

 0 

Subtotal

 

 

 

 

 

 

 48,584 

 15 

 

 43,530 

 15 

Switzerland

  

  

  

  

  

 

 268,245 

 85 

 

 241,483 

 85 

Total assets

 

 

 

 

 

 

 316,829 

 100 

 

 285,014 

 100 

 

21 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 23  Assets and liabilities by the most significant currencies for the bank

 

 

31.12.20

CHF million

 

CHF

USD

EUR

GBP

other

Total

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Cash and balances at central banks

 

 80,961 

 8 

 169 

 4 

 7 

 81,148 

Due from banks

 

 690 

 1,985 

 392 

 10 

 322 

 3,399 

Receivables from securities financing transactions

 

 1,863 

 178 

 321 

 1,204 

 

 3,565 

Due from customers

 

 15,503 

 18,516 

 13,824 

 1,096 

 954 

 49,894 

Mortgage loans

 

 154,453 

 1,902 

 61 

 0 

 1 

 156,418 

Trading portfolio assets

 

 8 

 32 

 6 

 0 

 1,792 

 1,838 

Derivative financial instruments

 

 2,794 

 

 

 

 

 2,794 

Financial investments

 

 497 

 7,512 

 4,764 

 75 

 3,577 

 16,425 

Accrued income and prepaid expenses

 

 107 

 83 

 34 

 2 

 2 

 228 

Investments in subsidiaries and other participations

 

 95 

 

 

 

 

 95 

Property, equipment and software

 

 473 

 

 

 

 

 473 

Other assets

 

 199 

 239 

 106 

 2 

 6 

 551 

Total assets shown on the balance sheet

 

 257,644 

 30,453 

 19,678 

 2,394 

 6,660 

 316,829 

Delivery entitlements from spot exchange, forward forex and forex options transactions

 

 10,715 

 22,570 

 13,343 

 4,227 

 7,790 

 58,645 

Total assets

 

 268,359 

 53,023 

 33,021 

 6,621 

 14,450 

 375,474 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Due to banks

 

 26,236 

 2,068 

 1,087 

 191 

 1,106 

 30,688 

Payables from securities financing transactions

 

 19 

 406 

 77 

 0 

 

 501 

Due to customers

 

 179,672 

 38,681 

 29,139 

 5,160 

 7,140 

 259,792 

Trading portfolio liabilities

 

 25 

 154 

 72 

 26 

 20 

 297 

Derivative financial instruments

 

 1,528 

 

 

 

 

 1,528 

Loans from central mortgage institutions

 

 8,557 

 19 

 0 

 

 

 8,577 

Accrued expenses and deferred income

 

 710 

 32 

 7 

 0 

 0 

 751 

Other liabilities

 

 1,438 

 282 

 66 

 1 

 6 

 1,794 

Provisions

 

 223 

 19 

 24 

 0 

 0 

 266 

Total liabilities shown on the balance sheet

 

 218,409 

 41,659 

 30,473 

 5,379 

 8,274 

 304,194 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Share capital

 

 10 

 

 

 

 

 10 

General reserve

 

 11,354 

 

 

 

 

 11,354 

Net profit / (loss) for the period

 

 1,271 

 

 

 

 

 1,271 

Total equity shown on the balance sheet

 

 12,634 

 

 

 

 

 12,634 

Total liabilities and equity shown on the balance sheet

 

 231,043 

 41,659 

 30,473 

 5,379 

 8,274 

 316,829 

Delivery obligations from spot exchange, forward forex and forex options transactions

 

 10,507 

 22,917 

 13,483 

 4,231 

 7,484 

 58,623 

Total equity and liabilities

 

 241,551 

 64,577 

 43,956 

 9,611 

 15,758 

 375,452 

Net position per currency as of 31 December 2020

 

 26,808 

 (11,554) 

 (10,935) 

 (2,990) 

 (1,308) 

 22 

Net position per currency as of 31 December 2019

 

 10,490 

 303 

 (6,204) 

 (984) 

 (3,588) 

 16 

 

 

 

22 


 

 

Note 24  Loans from central mortgage institutions

Contractual maturity of carrying amount

 

 

 

CHF million

 

2021

2022

2023

2024

2025

Thereafter

Total 31.12.20

Total 31.12.19

Non-subordinated debt

 

 

 

 

 

 

 

 

 

Fixed-rate

 

 1,019 

 822 

 919 

 979 

 1,071 

 3,767 

 8,577 

 8,308 

Interest rates (range in %)

 

0.0–2.4

0.1–3.4

0.1–2.2

0.1–2.4

0.2–1.8

0.1–2.8

 

 

Total

 

 1,019 

 822 

 919 

 979 

 1,071 

 3,767 

 8,577 

 8,308 

 

 

Note 25a  Share capital

 

 

31.12.20

 

31.12.19

 

 

Nominal value

in CHF

Number of

shares

of which: dividend bearing

 

Nominal value

in CHF

Number of shares

of which: dividend bearing

Share capital1

 

 10,000,000 

 100,000,000 

 100,000,000 

 

 10,000,000 

 100,000,000 

 100,000,000 

of which: shares outstanding

 

 10,000,000 

 100,000,000 

 100,000,000 

 

 10,000,000 

 100,000,000 

 100,000,000 

1 Registered shares issued.

 

UBS Switzerland AG’s share capital is fully paid up. Each share has a nominal value of CHF 0.10 and entitles the holder to one vote at the UBS Switzerland AG shareholders’ meeting, if entered into the share register as having the right to vote, as well as a proportionate share of distributed dividends. UBS Switzerland AG does not apply any restrictions or limitations on the transferability of shares.


Non-distributable reserves

Non-distributable reserves consist of 50% of the share capital of UBS Switzerland AG, amounting to CHF 5 million as of 31 December 2020.

 

Note 25b  Significant shareholders

The sole direct shareholder of UBS Switzerland AG is UBS AG, which holds 100% of UBS Switzerland AG shares. These shares are entitled to voting rights. Indirect shareholders of UBS Switzerland AG, who do not have voting rights, include UBS Group AG, which holds 100% of UBS AG shares. Included in the table below are also 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 2020 or as of 31 December 2019.

The shares and share capital of UBS Switzerland AG held by indirect shareholders shown in the table below represent their relative holding of UBS Group AG shares.

   Refer to Note 23 of the UBS Group AG standalone financial statements in the UBS Group AG Annual Report 2020 for more information on significant shareholders of UBS Group AG

 

 

 

 

31.12.20

 

31.12.19

CHF million, except where indicated

 

Share capital held

Shares held (%)

 

Share capital held

Shares held (%)

Significant direct shareholder of UBS Switzerland AG

 

 

 

 

 

 

UBS AG

 

 10 

 100 

 

 10 

 100 

Significant indirect shareholders of UBS Switzerland AG

 

 

 

 

 

 

UBS Group AG

 

 10 

 100 

 

 10 

 100 

Chase Nominees Ltd., London

 

 1 

 10 

 

 1 

 11 

DTC (Cede & Co.), New York1

 

 1 

 5 

 

 1 

 8 

Nortrust Nominees Ltd., London

 

 1 

 5 

 

 1 

 5 

1 DTC (Cede & Co.), New York, “The Depository Trust Company,” is a US securities clearing organization.

 

23 


UBS Switzerland AG standalone financial statements (audited) 

 

Note 26  Swiss pension plan

a) Liabilities related to Swiss pension plan

 

 

 

CHF million

 

31.12.20

31.12.19

Provision for Swiss pension plan

 

0

0

Bank accounts at UBS and UBS debt instruments held by Swiss pension fund

 

108

74

UBS derivative financial instruments held by Swiss pension fund

 

68

13

Total liabilities related to Swiss pension plan

 

176

87

 

 

 

 

b) Swiss pension plan

 

 

 

 

 

As of or for the year ended

CHF million

 

31.12.20

31.12.19

Pension plan surplus1

 

3,255

2,675

Economic benefit / (obligation) of UBS Switzerland AG

 

0

0

Change in economic benefit / (obligation) recognized in the income statement

 

0

0

Employer contributions in the period recognized in the income statement

 

294

183

Performance awards-related employer contributions accrued

 

23

25

Total pension expense recognized in the income statement within Personnel expenses

 

317

208

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 Switzerland AG in accordance with FER 16 both as of 31 December 2020 and 31 December 2019. Refer to Note 2 for more information.

 

The Swiss pension plan had no employer contribution reserve both as of 31 December 2020 and 31 December 2019.

Note 27  Related parties

Transactions with related parties are conducted at internally agreed transfer prices, at arm’s length or, with respect to loans, fixed advances and mortgages to non-independent members of the governing bodies in the ordinary course of business, on substantially the same terms and conditions that are available to other employees, including interest rates and collateral, and neither involve more than the normal risk of collectability nor contain any other unfavorable features for the firm. Independent members of the governing bodies are granted loans and mortgages in the ordinary course of business at general market conditions.

 

 

 

31.12.20

 

31.12.19

CHF million

 

Amounts due from

 

Amounts due to

 

Amounts due from

 

Amounts due to

Qualified shareholders1

 

 4,922 

 

 25,384 

 

 16,042 

 

 24,101 

of which: due from / to banks

 

 3,452 

 

 24,339 

 

 5,574 

 

 23,148 

of which: receivables / payables from securities financing transactions

 

 1,202 

 

 166 

 

 10,256 

 

 0 

of which: due from / to customers

 

 51 

 

 96 

 

 51 

 

 138 

Subsidiaries2

 

 148 

 

 42 

 

 142 

 

 52 

of which: due from / to customers

 

 124 

 

 42 

 

 141 

 

 52 

Affiliated entities3

 

 266 

 

 1,238 

 

 385 

 

 978 

of which: due from / to banks

 

 122 

 

 749 

 

 222 

 

 481 

of which: due from / to customers

 

 1 

 

 247 

 

 1 

 

 278 

Members of governing bodies4

 

 53 

 

 

 

 49 

 

 

Other related parties5

 

 468 

 

 79 

 

 950 

 

 96 

1 Qualified shareholders of UBS Switzerland AG are UBS Group AG and UBS AG.    2 Subsidiaries of UBS Switzerland AG are UBS Card Center AG, TopCard Service AG and UBS Hypotheken AG.    3 Affiliated entities of UBS Switzerland AG are all direct and indirect subsidiaries of UBS Group AG including subsidiaries of UBS AG.    4 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 Switzerland AG and UBS AG.    5 As of 31 December 2020, a guarantee of CHF 8 million (31 December 2019: CHF 1,547 million) is reported off-balance sheet as a contingent liability under Credit guarantees and similar instruments.

 

24 


 

 

Note 28  Fiduciary transactions

CHF million

 

31.12.20

 

31.12.19

Fiduciary deposits

 

 32,419 

 

 55,520 

of which: placed with third-party banks

 

 8,536 

 

 15,461 

of which: placed with subsidiaries and affiliated entities

 

 23,883 

 

 40,059 

Fiduciary loans

 

 16 

 

 

Total fiduciary transactions

 

 32,435 

 

 55,520 

 

Fiduciary transactions encompass customer deposits and loans transactions entered into or granted by UBS Switzerland AG that result in holding or placing assets and liabilities on behalf of individuals, trusts, defined benefit plans and other institutions. Unless the recognition criteria for the assets and liabilities are satisfied, these assets and liabilities and the related income and expense are excluded from UBS Switzerland AG’s balance sheet and income statement, but disclosed in this Note as off-balance sheet fiduciary transactions. Client deposits that are initially placed as fiduciary transactions with UBS Switzerland AG may be recognized on UBS Switzerland AG’s balance sheet in situations in which the deposit is subsequently placed within UBS Switzerland AG. In such cases, these deposits are not reported in the table above.

 

 

 

Note 29a  Invested assets and net new money

 

 

As of or for the year ended

CHF billion

 

31.12.20

 

31.12.19

Fund assets managed

 

 0 

 

 0 

Discretionary assets

 

 107 

 

 103 

Other invested assets

 

 541 

 

 513 

Total invested assets (double counts included)

 

 648 

 

 616 

of which: double counts

 

 0 

 

 0 

Net new money (double counts included)

 

 27 

 

 18 

 

Note 29b  Development of invested assets

CHF billion

 

31.12.20

 

31.12.19

Total invested assets (including double counts) at the beginning of the year

 

 616 

 

 554 

Net new money inflows / (outflows)

 

 27 

 

 18 

Market movements (including dividends and interests)

 

 25 

 

 56 

Currency effects

 

 (20) 

 

 (7) 

Other effects

 

 0 

 

 (5) 

of which: acquisitions / (divestments)

 

 0 

 

 0 

Total invested assets (including double counts) at the end of the year1

 

 648 

 

 616 

1 As of 31 December 2020 and 31 December 2019 there were no invested assets double counts.

 

   Refer to Note 32 of the UBS Group AG consolidated financial statements in the UBS Group AG Annual Report 2020 for more information

  

25 


UBS Switzerland AG standalone financial statements (audited) 

26 


 

27 


 

28 


 

UBS Switzerland AG standalone
regulatory information

29 


UBS Switzerland AG standalone regulatory information 

UBS Switzerland AG standalone regulatory information

Key metrics of the fourth quarter of 2020

Quarterly | The table below is based on the Basel Committee on Banking Supervision (the BCBS) Basel III rules.

During the fourth quarter of 2020, common equity tier 1 (CET1) capital increased by CHF 0.2 billion, mainly as a result of operating profit, partly offset by additional accruals for dividends. Tier 1 capital increased by CHF 0.7 billion, reflecting a new issuance of CHF 500 million of an additional tier 1 capital instrument and the aforementioned increase in the CET1 capital. Risk-weighted assets (RWA) remained largely stable at CHF 107.3 billion. Leverage ratio exposure increased by CHF 8.1 billion, mainly driven by on-balance sheet exposures excluding securities financing transactions and derivatives.

Average high-quality liquid assets (HQLA) increased by CHF 4.7 billion, driven by greater average cash balances. Average total net cash outflows increased by CHF 2.1 billion, due to increased net cash outflows in average customer deposit outflows.

 

Quarterly |

KM1: Key metrics

 

 

 

 

 

 

 

 

 

 

CHF million, except where indicated

 

 

 

31.12.20

 

30.9.20

 

30.6.20

 

31.3.20

 

31.12.19

Available capital (amounts)

 

 

 

 

 

 

 

 

 

 

1

Common equity tier 1 (CET1)

 

 12,234 

 

 11,992 

 

 11,776 

 

 11,427 

 

 10,895 

1a

Fully loaded ECL accounting model CET11

 

 12,233 

 

 11,989 

 

 11,774 

 

 11,422 

 

 10,890 

2

Tier 1

 

 17,410 

 

 16,683 

 

 16,479 

 

 16,137 

 

 15,606 

2a

Fully loaded ECL accounting model tier 11

 

 17,409 

 

 16,680 

 

 16,476 

 

 16,132 

 

 15,601 

3

Total capital

 

 17,410 

 

 16,683 

 

 16,479 

 

 16,137 

 

 15,606 

3a

Fully loaded ECL accounting model total capital1

 

 17,409 

 

 16,680 

 

 16,476 

 

 16,132 

 

 15,601 

Risk-weighted assets (amounts)

 

 

 

 

 

 

 

 

 

 

4

Total risk-weighted assets (RWA)

 

 107,253 

 

 107,066 

 

 105,304 

 

 104,489 

 

 99,667 

4a

Minimum capital requirement2

 

 8,580 

 

 8,565 

 

 8,424 

 

 8,359 

 

 7,973 

4b

Total risk-weighted assets (pre-floor)

 

 92,164 

 

 92,755 

 

 92,740 

 

 92,981 

 

 89,234 

Risk-based capital ratios as a percentage of RWA

 

 

 

 

 

 

 

 

 

 

5

Common equity tier 1 ratio (%)

 

 11.41 

 

 11.20 

 

 11.18 

 

 10.94 

 

 10.93 

5a

Fully loaded ECL accounting model CET1 ratio (%)1

 

 11.41 

 

 11.20 

 

 11.18 

 

 10.93 

 

 10.93 

6

Tier 1 ratio (%)

 

 16.23 

 

 15.58 

 

 15.65 

 

 15.44 

 

 15.66 

6a

Fully loaded ECL accounting model tier 1 ratio (%)1

 

 16.23 

 

 15.58 

 

 15.65 

 

 15.44 

 

 15.65 

7

Total capital ratio (%)

 

 16.23 

 

 15.58 

 

 15.65 

 

 15.44 

 

 15.66 

7a

Fully loaded ECL accounting model total capital ratio (%)1

 

 16.23 

 

 15.58 

 

 15.65 

 

 15.44 

 

 15.65 

Additional CET1 buffer requirements as a percentage of RWA

 

 

 

 

 

 

 

 

 

 

8

Capital conservation buffer requirement (2.5% from 2019) (%)

 

 2.50 

 

 2.50 

 

 2.50 

 

 2.50 

 

 2.50 

9

Countercyclical buffer requirement (%)

 

 0.01 

 

 0.01 

 

 0.01 

 

 0.01 

 

 0.01 

9a

Additional countercyclical buffer for Swiss mortgage loans (%)

 

 

 

 

 

 

 

 

 

 0.57 

10

Bank G-SIB and / or D-SIB additional requirements (%)3

 

 

 

 

 

 

 

 

 

 

11

Total of bank CET1-specific buffer requirements (%)

 

 2.51 

 

 2.51 

 

 2.51 

 

 2.51 

 

 2.51 

12

CET1 available after meeting the bank’s minimum capital requirements (%)

 

 6.91 

 

 6.70 

 

 6.68 

 

 6.44 

 

 6.43 

Basel III leverage ratio4

 

 

 

 

 

 

 

 

 

 

13

Total Basel III leverage ratio exposure measure

 

 335,251 

 

 327,113 

 

 323,068 

 

 317,071 

 

 302,304 

14

Basel III leverage ratio (%)

 

 5.19 

 

 5.10 

 

 5.10 

 

 5.09 

 

 5.16 

14a

Fully loaded ECL accounting model Basel III leverage ratio (%)1

 

 5.19 

 

 5.10 

 

 5.10 

 

 5.09 

 

 5.16 

Liquidity coverage ratio5

 

 

 

 

 

 

 

 

 

 

15

Total HQLA

 

 91,909 

 

 87,254 

 

 85,180 

 

 74,602 

 

 67,105 

16

Total net cash outflow

 

 62,074 

 

 59,930 

 

 61,847 

 

 53,059 

 

 51,561 

17

LCR (%)

 

 148 

 

 146 

 

 138 

 

 141 

 

 130 

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 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements.    3 Swiss SRB going and gone concern requirements and information for UBS Switzerland AG are provided on the next page.    4 Leverage ratio exposures and leverage ratios for the respective periods in 2020 do not reflect the effects of the temporary exemption that has been granted by FINMA in connection with COVID-19. Refer to the “Introduction and basis for preparation” section of the 31 December 2020 Pillar 3 report, available under “Pillar 3 disclosures” at ubs.com/investors, and to “Application of the temporary COVID-19-related FINMA exemption of central bank sight deposits” in this section for more information.    5 Calculated based on quarterly average. Refer to “Liquidity coverage ratio” in this section for more information.

p

 

30 


 

Swiss SRB going and gone concern requirements and information

Quarterly | UBS Switzerland AG is considered a systemically relevant bank (an SRB) under Swiss banking law and is subject to capital regulations on a standalone basis. As of 31 December 2020, the going concern capital and leverage ratio requirements for UBS Switzerland AG standalone were 13.95%, including a countercyclical buffer of 0.01%, and 4.875%, respectively. The gone concern requirements were 8.64% for the RWA-based requirement and 3.02% for the leverage ratio denominator (LRD)-based requirement. 

The Swiss SRB framework and requirements applicable to UBS Switzerland AG standalone are the same as those applicable to UBS Group AG consolidated, with the exception of a lower gone concern requirement effective from 1 January 2020, corresponding to 62% of the Group’s gone concern requirement (before applicable reductions).

 


In connection with COVID-19, the Swiss Financial Market Supervisory Authority (FINMA) has permitted banks to temporarily exclude central bank sight deposits from the LRD for the purpose of calculating going concern ratios. This exemption applied until 1 January 2021. Applicable dividends or similar distributions approved by shareholders after 25 March 2020 reduce the relief by the LRD equivalent of the capital distribution, except where dividends are paid to a regulated Swiss parent company or to an unregulated Swiss parent company that in turn pays no dividend. UBS Switzerland AG was eligible to reduce its LRD by USD 80 billion to USD 255 billion as of 31 December 2020.

   Refer to the “Introduction and basis for preparation” section of the 31 December 2020 Pillar 3 report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information about loss-absorbing capacity, leverage ratio requirements and gone concern rebate

   Refer to “Additional information” in the “Capital, liquidity and funding, and balance sheet” section of our Annual Report 2020 for more information about the joint liability of UBS AG and UBS Switzerland AG

 

 

 

31 


UBS Switzerland AG standalone regulatory information 

Quarterly |

Swiss SRB going and gone concern requirements and information

As of 31.12.20

 

RWA

 

LRD1

CHF million, except where indicated

 

in %

 

 

in %

 

Required going concern capital

 

 

 

 

 

 

Total going concern capital

 

 13.952

 14,961 

 

 4.882

 16,343 

Common equity tier 1 capital

 

 9.65 

 10,349 

 

 3.38 

 11,315 

of which: minimum capital

 

 4.50 

 4,826 

 

 1.50 

 5,029 

of which: buffer capital

 

 5.14 

 5,513 

 

 1.88 

 6,286 

of which: countercyclical buffer

 

 0.01 

 9 

 

 

 

Maximum additional tier 1 capital

 

 4.30 

 4,612 

 

 1.50 

 5,029 

of which: additional tier 1 capital

 

 3.50 

 3,754 

 

 1.50 

 5,029 

of which: additional tier 1 buffer capital

 

 0.80 

 858 

 

 

 

 

 

 

 

 

 

 

Eligible going concern capital

 

 

 

 

 

 

Total going concern capital

 

 16.23 

 17,410 

 

 5.19 

 17,410 

Common equity tier 1 capital

 

 11.41 

 12,234 

 

 3.65 

 12,234 

Total loss-absorbing additional tier 1 capital

 

 4.83 

 5,176 

 

 1.54 

 5,176 

of which: high-trigger loss-absorbing additional tier 1 capital

 

 4.83 

 5,176 

 

 1.54 

 5,176 

 

 

 

 

 

 

 

Required gone concern capital3

 

 

 

 

 

 

Total gone concern loss-absorbing capacity

 

 8.64 

 9,270 

 

 3.02 

 10,133 

of which: base requirement

 

 7.97 

 8,551 

 

 2.79 

 9,354 

of which: additional requirement for market share and LRD

 

 0.67 

 718 

 

 0.23 

 779 

 

 

 

 

 

 

 

Eligible gone concern capital

 

 

 

 

 

 

Total gone concern loss-absorbing capacity

 

 10.09 

 10,824 

 

 3.23 

 10,824 

TLAC-eligible senior unsecured debt

 

 10.09 

 10,824 

 

 3.23 

 10,824 

 

 

 

 

 

 

 

Total loss-absorbing capacity

 

 

 

 

 

 

Required total loss-absorbing capacity

 

 22.59 

 24,230 

 

 7.90 

 26,476 

Eligible total loss-absorbing capacity

 

 26.32 

 28,234 

 

 8.42 

 28,234 

 

 

 

 

 

 

 

Risk-weighted assets / leverage ratio denominator

Risk-weighted assets

 

 

 107,253 

 

 

 

Leverage ratio denominator

 

 

 

 

 

 335,251 

1 LRD-based requirements and the LRD presented in this table do not reflect the effects of the temporary exemption that has been granted by FINMA in connection with COVID-19. Refer to the “Introduction and basis for preparation” section of the 31 December 2020 Pillar 3 report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. The effects of the temporary exemption granted by FINMA in connection with COVID-19 are presented on the next page.    2 Includes applicable add-ons of 1.08% for RWA and 0.375% for LRD.    3 From 1 January 2020 onward, 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.

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32 


 

Application of the temporary COVID-19-related FINMA exemption of central bank sight deposits

The table below summarizes the effects of the temporary COVID-19-related FINMA exemption on our Swiss SRB going concern capital requirements and information. The FINMA exemption rules that applied until 1 January 2021 had no effect on our Swiss SRB gone concern capital requirements and ratios.


The LRD is the same under Swiss SRB and BCBS rules, therefore the LRD after the aforementioned temporary FINMA exemption under BCBS rules is identical to the Swiss SRB number presented in the table below. The BCBS Basel III leverage ratio was 6.83% after considering the temporary FINMA exemption.

  

Quarterly |

Swiss SRB going concern requirements and information including temporary FINMA exemption

As of 31.12.20

 

LRD

CHF million, except where indicated

 

in %

 

 

 

 

 

Leverage ratio denominator before temporary exemption

 

 

 335,251 

Effective relief

 

 

 (80,494) 

of which: central bank sight deposits eligible for relief

 

 

 (80,494) 

Leverage ratio denominator after temporary exemption

 

 

 254,757 

 

 

 

 

Required going concern capital

 

 

 

Total going concern capital

 

 4.88 

 12,419 

Common equity tier 1 capital

 

 3.38 

 8,598 

 

 

 

 

Eligible going concern capital

 

 

 

Total going concern capital

 

 6.83 

 17,410 

Common equity tier 1 capital

 

 4.80 

 12,234 

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33 


UBS Switzerland AG standalone regulatory information 

Swiss SRB loss-absorbing capacity

Quarterly |

Swiss SRB going and gone concern information

CHF million, except where indicated

 

31.12.20

 

30.9.20

31.12.19

 

 

 

 

 

 

Eligible going concern capital

 

 

 

 

 

Total going concern capital

 

 17,410 

 

 16,683 

 15,606 

Total tier 1 capital

 

 17,410 

 

 16,683 

 15,606 

Common equity tier 1 capital

 

 12,234 

 

 11,992 

 10,895 

Total loss-absorbing additional tier 1 capital

 

 5,176 

 

 4,692 

 4,711 

of which: high-trigger loss-absorbing additional tier 1 capital

 

 5,176 

 

 4,692 

 4,711 

 

 

 

 

 

 

Eligible gone concern capital

 

 

 

 

 

Total gone concern loss-absorbing capacity

 

 10,824 

 

 10,863 

 10,915 

TLAC-eligible senior unsecured debt

 

 10,824 

 

 10,863 

 10,915 

 

 

 

 

 

 

Total loss-absorbing capacity

 

 

 

 

 

Total loss-absorbing capacity

 

 28,234 

 

 27,547 

 26,521 

 

 

 

 

 

 

Risk-weighted assets / leverage ratio denominator

 

 

 

 

 

Risk-weighted assets

 

 107,253 

 

 107,066 

 99,667 

Leverage ratio denominator1

 

 335,251 

 

 327,113 

 302,304 

 

 

 

 

 

 

Capital and loss-absorbing capacity ratios (%)

 

 

 

 

 

Going concern capital ratio

 

 16.2 

 

 15.6 

 15.7 

of which: common equity tier 1 capital ratio

 

 11.4 

 

 11.2 

 10.9 

Gone concern loss-absorbing capacity ratio

 

 10.1 

 

 10.1 

 11.0 

Total loss-absorbing capacity ratio

 

 26.3 

 

 25.7 

 26.6 

 

 

 

 

 

 

Leverage ratios (%)1

 

 

 

 

 

Going concern leverage ratio

 

 5.2 

 

 5.1 

 5.2 

of which: common equity tier 1 leverage ratio

 

 3.6 

 

 3.7 

 3.6 

Gone concern leverage ratio

 

 3.2 

 

 3.3 

 3.6 

Total loss-absorbing capacity leverage ratio

 

 8.4 

 

 8.4 

 8.8 

1 Leverage ratio denominators (LRDs) and leverage ratios in this table do not reflect the effects of the temporary exemption that has been granted by FINMA in connection with COVID-19. Refer to the “Introduction and basis for preparation” section of the 31 December 2020 Pillar 3 report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. The effects of the temporary exemption granted by FINMA in connection with COVID-19 are presented in the preceding table.

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34 


 

Leverage ratio information

Quarterly |

Swiss SRB leverage ratio denominator1

 

 

 

 

CHF billion

 

31.12.20

30.9.20

31.12.19

Leverage ratio denominator

 

 

 

 

Swiss GAAP total assets

 

 316.8 

 307.9 

 285.0 

Difference between Swiss GAAP and IFRS total assets

 

 4.5 

 4.3 

 3.6 

Less: derivative exposures and SFTs2

 

 (10.6) 

 (9.5) 

 (17.3) 

On-balance sheet exposures (excluding derivative exposures and SFTs)

 

 310.7 

 302.8 

 271.3 

Derivative exposures

 

 5.7 

 6.2 

 4.4 

Securities financing transactions

 

 3.8 

 3.0 

 12.7 

Off-balance sheet items

 

 15.2 

 15.3 

 14.2 

Items deducted from Swiss SRB tier 1 capital

 

 (0.2) 

 (0.2) 

 (0.3) 

Total exposures (leverage ratio denominator)

 

 335.3 

 327.1 

 302.3 

1 This table does not reflect the effects of the temporary exemption granted by FINMA in connection with COVID-19. Refer to the “Introduction and basis for preparation” section of the 31 December 2020 Pillar 3 report, available under “Pillar 3 disclosures” at ubs.com/investors, and to “Application of the temporary COVID-19-related FINMA exemption of central bank sight deposits” in this section for more information.    2 Consists of derivative financial instruments, cash collateral receivables on derivative instruments, receivables from securities financing transactions, and margin loans, as well as prime brokerage receivables and financial assets at fair value not held for trading, both related to securities financing transactions, in accordance with the regulatory scope of consolidation, which are presented separately under Derivative exposures and Securities financing transactions in this table.

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Liquidity coverage ratio

Quarterly | In the fourth quarter of 2020, the liquidity coverage ratio (LCR) of UBS Switzerland AG, which is a Swiss SRB, was 148%, remaining above the prudential requirement communicated by FINMA in connection with the Swiss Emergency Plan.

 

Quarterly |

Liquidity coverage ratio

 

 

 

 

 

Weighted value1

CHF billion, except where indicated

 

Average 4Q202

Average 4Q192

High-quality liquid assets

 

 92 

 67 

Total net cash outflows

 

 62 

 52 

of which: cash outflows

 

 89 

 84 

of which: cash inflows

 

 27 

 33 

Liquidity coverage ratio (%)

 

 148 

 130 

1 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows.    2 Calculated based on an average of 63 data points in the fourth quarter of 2020 and 64 data points in the fourth quarter of 2019.

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35 


UBS Switzerland AG standalone regulatory information 

Capital instruments

Quarterly |

Capital instruments of UBS Switzerland AG – key features

 

 

 

 

Presented according to issuance date.

 

 

 

 

 

Share capital

 

Additional tier 1 capital

1

Issuer

 

UBS Switzerland AG, Switzerland

 

UBS Switzerland AG, Switzerland

UBS Switzerland AG, Switzerland

UBS Switzerland AG, Switzerland

UBS Switzerland AG, Switzerland

UBS Switzerland AG, Switzerland

UBS Switzerland AG, Switzerland

UBS Switzerland AG, Switzerland

1a

Instrument number

 

1

 

 2 

 3 

 4 

5

6

7

8

2

Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for private placement)

 

 

3

Governing law(s) of the instrument

 

Swiss

 

Swiss

3a

Means by which enforceability requirement of Section 13 of the TLAC Term Sheet is achieved (for other TLAC-eligible instruments governed by foreign law)

 

n/a

 

n/a

 

Regulatory treatment

 

 

 

 

 

 

 

 

 

 

4

Transitional Basel III rules1

 

CET1 – Going concern capital

 

Additional tier 1 capital

5

Post-transitional Basel III rules2

 

CET1 – Going concern capital

 

Additional tier 1 capital

6

Eligible at solo / group / group and solo

 

UBS Switzerland AG consolidated and standalone

 

UBS Switzerland AG consolidated and standalone

7

Instrument type (types to be specified by each jurisdiction)

 

Ordinary shares

 

Loan3

8

Amount recognized in regulatory capital (currency in millions, as of most recent reporting date)1

 

CHF 10.0

 

CHF 1,500

CHF 500

CHF 1,000

CHF 825

USD 425

CHF 475

CHF 500

9

Par value of instrument

 

CHF 10.0

 

CHF 1,500

CHF 500

CHF 1,000

CHF 825

USD 425

CHF 475

CHF 500

10

Accounting classification4

 

Equity attributable to UBS Switzerland AG shareholders

 

Due to banks held at amortized cost

11

Original date of issuance

 

 

1 April 2015

11 March 2016

18 December 2017

12 December 2018

12 December 2018

11 December 2019

29 October 2020

12

Perpetual or dated

 

 

Perpetual

13

Original maturity date

 

 

14

Issuer call subject to prior supervisory approval

 

 

Yes

15

Optional call date, contingent call dates and redemption amount

 

 

First optional repayment date:

1 April 2020

First optional repayment date:

11 March 2021

First optional repayment date:

18 December 2022

First optional repayment date:

12 December 2023

First optional repayment date:

12 December 2023

First optional repayment date:

11 December 2024

First optional repayment date:

29 October 2025

 

Repayable at any time after the first optional repayment date.

Repayment subject to FINMA approval. Optional repayment amount: principal amount, together with any accrued and unpaid interest thereon

16

Subsequent call dates, if applicable

 

 

Early repayment possible due to a tax or regulatory event. Repayment due to tax event subject to FINMA approval.

Repayment amount: principal amount, together with accrued and unpaid interest

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36 


 

Quarterly |

Capital instruments of UBS Switzerland AG – key features (continued)

 

 

 

 

 

Coupons

 

 

 

 

 

 

 

 

 

 

17

Fixed or floating dividend / coupon

 

 

Floating

18

Coupon rate and any related index

 

 

6-month CHF LIBOR

+ 370 bps

per annum

semi-annually

3-month CHF LIBOR

+ 459 bps

per annum quarterly

3-month CHF LIBOR

+ 250 bps

per annum quarterly

3-month CHF LIBOR

+ 489 bps

per annum quarterly

3-month USD LIBOR

+ 547 bps

per annum quarterly

3-month CHF LIBOR

+ 433 bps

per annum quarterly

3-month CHF SARON

+ 397 bps

per annum quarterly

19

Existence of a dividend stopper

 

 

No

20

Fully discretionary, partially discretionary or mandatory

 

Fully discretionary

 

Fully discretionary

21

Existence of step-up or other incentive to redeem

 

 

No

22

Non-cumulative or cumulative

 

Non-cumulative

 

Non-cumulative

23

Convertible or non-convertible

 

 

Non-convertible

24

If convertible, conversion trigger(s)

 

 

25

If convertible, fully or partially

 

 

26

If convertible, conversion rate

 

 

27

If convertible, mandatory or optional conversion

 

 

28

If convertible, specify instrument type convertible into

 

 

29

If convertible, specify issuer of instrument it converts into

 

 

30

Write-down feature

 

 

Yes

31

If write-down, write-down trigger(s)

 

 

Trigger: CET1 ratio is less than 7%

 

 

FINMA determines a write-down necessary to ensure UBS Switzerland AG’s viability; or UBS Switzerland AG receives a commitment of governmental support that FINMA determines necessary to ensure UBS Switzerland AG‘s viability.

Subject to applicable conditions

32

If write-down, fully or partially

 

 

Fully 

33

If write-down, permanent or temporary

 

 

Permanent

34

If temporary write-down, description of write-up mechanism

 

 

34a

Type of subordination

 

Statutory

 

Contractual

35

Position in subordination hierarchy in liquidation (specify instrument type immediately

senior to instrument in the insolvency creditor hierarchy of the legal entity concerned)

 

Unless otherwise stated in the articles of association, once debts are paid back, the assets of the liquidated company are divided between the shareholders pro rata based on their contributions and considering the preferences attached to certain categories of shares (Art. 745, Swiss Code of Obligations)

 

Subject to any obligations that are mandatorily preferred by law, all obligations of UBS Switzerland AG that are unsubordinated or that are subordinated and do not rank junior, such as all classes of share capital, or at par, such as tier 1 instruments

36

Non-compliant transitioned features

 

 

37

If yes, specify non-compliant features

 

 

1 Based on Swiss SRB (including transitional arrangement) requirements.    2 Based on Swiss SRB requirements applicable as of 1 January 2020.    3 Loans granted by UBS AG, Switzerland.    4 As applied in UBS Switzerland AG‘s financial statements under Swiss GAAP.

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37 


UBS Switzerland AG standalone regulatory information 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notice to investors | This report and the information contained herein are provided solely for information purposes, and are not to be construed as solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s Annual Report 2020, available at ubs.com/investors, for additional information.

Rounding | Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages and percent changes are calculated on the basis of unrounded figures. Information about absolute changes between reporting periods, which is provided in text and which can be derived from figures displayed in the tables, is calculated on a rounded basis.

Tables | Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented as a mathematical calculation of the change between periods.

 

 

38 


 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UBS Group AG

P.O. Box

CH-8098 Zurich 

 

ubs.com

 

 

 

 

 

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

 

 

UBS Group AG

 

 

 

By: _/s/ Todd Tuckner___________ 

      Name: Todd Tuckner

      Title: Group Controller and

            Chief Accounting Officer

 

 

By: _/s/ David Kelly _____________ 

      Name:  David Kelly

Title:    Managing Director

 

 

 

UBS AG

 

 

 

By: _/s/ Todd Tuckner___________ 

      Name: Todd Tuckner

      Title: Group Controller and

            Chief Accounting Officer

 

 

By: _/s/ David Kelly _____________ 

Name:  David Kelly

Title:    Managing Director

 

 

 

 

 

 

 

 

Date:  March 5, 2021