UBS 1Q adjusted profit before tax CHF 1.4 billion

Net profit attributable to UBS Group AG shareholders CHF 707 million; diluted earnings per share CHF 0.18

Fully applied CET1 capital ratio 14.0%; Swiss SRB fully applied leverage ratio 5.4%

UBS raises record USD 471 million Oncology Impact Fund to develop cancer treatments

ZURICH & BASEL, Switzerland--(BUSINESS WIRE)-- Regulatory News:

UBS (NYSE: UBS) (SWX: UBSN):

In the first quarter of 2016, heightened economic and geopolitical uncertainty, as well as global market volatility, led to more pronounced client risk aversion. For the industry this translated into abnormally low transaction volumes for a first quarter, and particularly for UBS when compared with the exceptional first quarter of 2015. Despite this challenging environment, the Group delivered an adjusted1 profit before tax of CHF 1,366 million, with positive contributions from all business divisions and regions. Net profit attributable to UBS Group AG shareholders was CHF 707 million, with diluted earnings per share of CHF 0.18. Group annualized adjusted1 return on tangible equity was 8.5%. UBS's combined wealth management businesses attracted strong net new money totaling CHF 29 billion, the highest since 2008. These net inflows were achieved while staying focused on delivering sustainable profitability. Personal & Corporate Banking saw very strong net new business volume growth in personal banking at almost 5.0%, and attracted record net new domestic clients for a first quarter.

UBS maintained its strong capital position, with a fully applied CET1 capital ratio of 14.0%, and a fully applied Swiss SRB leverage ratio of 5.4%. In March, UBS successfully issued CHF 1.4 billion of AT1 contingent capital, the first such offering across the industry in 2016, and CHF 1.3 billion of TLAC-eligible bonds. UBS remains well positioned to meet the proposed new requirements for Swiss systemically relevant banks.

As of March 2016, the Group achieved CHF 1.2 billion of total cost savings compared with full-year 2013, and is on course to achieve its target of CHF 2.1 billion net cost reductions by year-end 2017. In addition, UBS continues to take responsible measures to save costs across the firm in light of the current challenging revenue environment.

As previously announced, UBS's Board of Directors proposed to shareholders to pay an ordinary dividend of CHF 0.60 per share, as well as a special dividend of CHF 0.25 per share, for the year 2015. The UBS Annual General Meeting takes place on 10 May.

"The resilient results we delivered in challenging market conditions reflect our discipline and focus, as well as our diversified business model. In view of exceptionally low client activity levels, we continued to manage our resources effectively while making progress on costs." Sergio P. Ermotti, Group Chief Executive Officer

Information in this release is presented for UBS Group AG on a consolidated basis unless otherwise specified. Financial information for UBS AG (consolidated) does not differ materially from UBS Group AG and a comparison between UBS Group AG (consolidated) and UBS AG (consolidated) is provided at the end of this news release. UBS AG first quarter 2016 report will be available from 6 May 2016 in "Quarterly reporting" at www.ubs.com/investors.

First quarter: Divisional and Corporate Center performance overview

Wealth Management delivered an adjusted1 profit before tax of CHF 636 million up CHF 131 million from the prior quarter, despite the lowest transaction volumes recorded for a first quarter, and reflecting lower net expenses for provisions for litigation, regulatory and similar matters. Wealth Management attracted very strong net new money of CHF 15.5 billion, driven by net inflows from all regions, particularly Asia Pacific, and the ultra high net worth segment, while remaining focused on sustainable profitability. The adjusted1 net margin on invested assets increased by 5 basis points to 27 basis points. Mandate penetration increased 60 basis points to 27.0% of invested assets. In line with its ambition to grow in China's domestic wealth management market, UBS opened a new Shanghai branch.

Wealth Management Americas recorded an adjusted1 profit before tax of USD 245 million compared with USD 63 million in the previous quarter, reflecting lower net expenses for provisions for litigation, regulatory and similar matters. Net new money was strong at USD 13.6 billion and reflected net inflows predominantly from newly recruited advisors as well as from financial advisors employed with UBS for more than one year. WMA financial advisors continued to be the most productive among peers with an average USD 147 million of invested assets and USD 1.1 million revenue per advisor.

Personal & Corporate Banking posted an adjusted1 profit before tax of CHF 422 million compared with CHF 396 million in the prior quarter, despite continued challenges arising from negative interest rates and the slowdown in economic activity. The annualized net new business volume growth rate for the personal banking business increased to 4.9% from 0.6%, the highest growth rate since the first quarter of 2012. Personal & Corporate Banking continued to attract new domestic clients, with the highest first quarter net new domestic clients on record.

Asset Management delivered an adjusted1 profit before tax of CHF 110 million compared with CHF 153 million in the prior quarter, partly due to lower performance fees in Equities, Multi Asset & O'Connor. Excluding money market flows, net new money outflows were CHF 5.9 billion including a CHF 7.2 billion pricing-related outflow from one client, and CHF 3.8 billion of outflows driven by client liquidity needs, both from lower-margin passive products.

The Investment Bank posted an adjusted1 profit before tax of CHF 370 million compared with CHF 223 million in the prior quarter, maintaining prudent risk, cost and resource management. The annualized adjusted1 return on attributed equity was 19% for the quarter, with a resilient performance in Investor Client Services, while Corporate Client Solutions' revenues decreased, partly reflecting lower global fee pools. The Investment Bank's fully applied risk-weighted assets (RWA) were stable at CHF 63 billion and the fully applied Swiss SRB leverage ratio denominator (LRD) decreased by CHF 6 billion to CHF 262 billion as of quarter end.

Corporate Center – Services recorded an adjusted1 loss before tax of CHF 211 million, compared with a loss before tax of CHF 326 million in the prior quarter. Group Asset and Liability Management recorded an adjusted1 loss before tax of CHF 25 million compared with a profit before tax of CHF 51 million in the prior quarter. Non-core and Legacy Portfolio reported a loss before tax of CHF 183 million compared with a loss before tax of CHF 329 million in the prior quarter.

1 Refer to the "Adjusted results" paragraph at the end of this news release.

Awards and achievements

UBS retained its top position in the latest Asian Private Banker wealth management league table for the fourth consecutive year. At the Asiamoney awards, the Investment Bank received more than 200 accolades across fixed income, hedge fund services, prime broking and brokers' polls.

UBS dominated Euromoney's Private Banking Survey, claiming top spot in the main global "best private banking services overall" ranking for its services worldwide. It was also voted best in a host of other categories, including number one globally in the newly introduced "Innovative Technology" and "SRI/Social Impact Investing" categories.

UBS was named the world's number one investment banking house for 2015 by Global Finance in the publisher's 17th annual World's Best Investment Banks survey. In addition to taking the title as best overall bank, the Investment Bank ranked first in nine more categories for global, regional and sector-specific coverage – including 'Best Equity Bank' for Western Europe for the second year in a row.

Social Impact investments

UBS continued to strive for leadership in sustainable banking by developing innovative financial solutions that address societal issues. UBS's ongoing commitment to social impact investing found expression in a number of groundbreaking initiatives, most notably the closing of the USD 471 million UBS Oncology Impact Fund (OIF), the largest ever raised for an impact fund dedicated to a single specific cause. The OIF offered the opportunity to invest in the next generation of breakthrough cancer therapies. Other past impact investing initiatives previously launched by the firm included the first ever Development Impact Bond (DIB) to help enroll girls in school in India.

Outlook

Negative market performance, substantial volatility, as well as underlying macroeconomic and geopolitical uncertainty, led to more pronounced client risk aversion and abnormally low transaction volumes in the first quarter. Some of these factors have stabilized recently, but the underlying macroeconomic challenges and geopolitical risks highlighted previously continue to contribute to client risk aversion and are unlikely to be resolved in the foreseeable future. Low interest rates, and the relative strength of the Swiss franc, particularly against the euro, continue to present headwinds. In addition, the proposed changes to the Swiss and international regulatory framework for banks will result in increased capital requirements and costs. UBS continues to execute its strategy with discipline to mitigate these effects, and is well positioned to benefit from even a moderate improvement in conditions.

Performance by business division and Corporate Center unit – as reported
CHF million		Total operating income						Total operating expenses						Operating profit / (loss) before tax
For the quarter ended		31.3.16		31.12.15		% change		31.3.16		31.12.15		% change		31.3.16		31.12.15		% change
Wealth Management		1,885		1,869		1		1,327		1,526		(13)		557		344		62
Wealth Management Americas		1,889		1,885		0		1,678		1,871		(10)		211		14
Personal & Corporate Banking		963		915		5		564		560		1		399		355		12
Asset Management		468		568		(18)		378		397		(5)		90		171		(47)
Investment Bank		1,879		1,721		9		1,625		1,641		(1)		253		80		216
Corporate Center		(252)		(183)		38		282		546		(48)		(534)		(729)		(27)
of which: Services		(55)		(54)		2		148		291		(49)		(203)		(345)		(41)
of which: Group ALM		(150)		(59)		154		(2)		(3)		(33)		(148)		(56)		164
of which: Non-core and Legacy Portfolio		(47)		(71)		(34)		135		258		(48)		(183)		(329)		(44)
UBS		6,833		6,775		1		5,855		6,541		(10)		978		234		318

Performance by business division and Corporate Center unit – reported and adjusted¹,²
		For the quarter ended 31.3.16
CHF million		Wealth Manage- ment		Wealth Manage- ment Americas		Personal & Corporate Banking		Asset Manage- ment		Investment Bank		CC – Services³		CC – Group ALM		CC – Non- core and Legacy Portfolio		UBS
Operating income as reported		1,885		1,889		963		468		1,879		(55)		(150)		(47)		6,833
of which: net foreign currency translation losses⁴														(123)				(123)
Operating income (adjusted)		1,885		1,889		963		468		1,879		(55)		(27)		(47)		6,956
Operating expenses as reported		1,327		1,678		564		378		1,625		148		(2)		135		5,855
of which: personnel-related restructuring expenses⁵		2		0		0		1		17		107		0		1		128
of which: non-personnel-related restructuring expenses⁵		14		0		0		2		2		118		0		0		137
of which: restructuring expenses allocated from CC ­ Services⁵		62		33		23		17		97		(233)		0		1		0
Operating expenses (adjusted)		1,248		1,645		541		358		1,508		156		(2)		133		5,590
of which: expenses for provisions for litigation, regulatory and similar matters		0		18		(1)		0		(1)		0		0		23		39
Operating profit / (loss) before tax as reported		557		211		399		90		253		(203)		(148)		(183)		978
Operating profit / (loss) before tax (adjusted)		636		244		422		110		370		(211)		(25)		(181)		1,366
1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 Comparative figures in this table may differ from those originally published in quarterly and annual reports due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the reporting period. 3 Corporate Center ­ Services operating expenses presented in this table are after service allocations to business divisions and other Corporate Center units. 4 Related to the disposal or partial disposal of foreign subsidiaries and branches. 5 Refer to “Note 18 Changes in organization and disposals” in the “Consolidated financial statements” section of the UBS Group first quarter 2016 report for more information.

UBS Group AG key figures
		As of or for the quarter ended
CHF million, except where indicated		31.3.16		31.12.15		31.3.15
Group results
Operating income		6,833		6,775		8,841
Operating expenses		5,855		6,541		6,134
Operating profit / (loss) before tax		978		234		2,708
Net profit / (loss) attributable to UBS Group AG shareholders		707		949		1,977
Diluted earnings per share (CHF)¹		0.18		0.25		0.53
Key performance indicators²
Profitability
Return on tangible equity (%)		6.0		8.1		17.8
Return on assets, gross (%)		2.9		2.8		3.4
Cost / income ratio (%)		85.7		95.7		69.2
Growth
Net profit growth (%)		(25.5)		(54.1)		130.4
Net new money growth for combined wealth management businesses (%)		5.9		2.9		3.8
Resources
Common equity tier 1 capital ratio (fully applied, %)³		14.0		14.5		13.7
Leverage ratio (phase-in, %)⁴		6.0		6.2		5.6
Additional information
Profitability
Return on equity (RoE) (%)		5.1		6.9		15.4
Return on risk-weighted assets, gross (%)⁵		13.0		12.9		16.4
Resources
Total assets		966,873		942,819		1,048,850
Equity attributable to UBS Group AG shareholders		54,845		55,313		52,359
Common equity tier 1 capital (fully applied)³		29,853		30,044		29,566
Common equity tier 1 capital (phase-in)³		36,580		40,378		40,779
Risk-weighted assets (fully applied)³		213,558		207,530		216,385
Common equity tier 1 capital ratio (phase-in, %)³		16.9		19.0		18.6
Total capital ratio (fully applied, %)³		22.7		22.9		20.6
Total capital ratio (phase-in, %)³		25.7		26.8		25.9
Leverage ratio (fully applied, %)⁴		5.4		5.3		4.6
Leverage ratio denominator (fully applied)⁴		905,801		897,607		976,934
Liquidity coverage ratio (%)⁶		134		124		116
Other
Invested assets (CHF billion)⁷		2,618		2,689		2,708
Personnel (full-time equivalents)		60,547		60,099		60,113
Market capitalization⁸		59,638		75,147		68,508
Total book value per share (CHF)⁸		14.74		14.75		14.33
Tangible book value per share (CHF)⁸		13.04		13.00		12.59
1 Refer to "Note 9 Earnings per share (EPS) and shares outstanding" in the "Consolidated financial statements" section of the UBS Group first quarter 2016 report for more information. 2 Refer to the "Measurement of performance" section of our Annual Report 2015 for the definitions of our key performance indicators. 3 Based on the Basel III framework as applicable for Swiss systemically relevant banks (SRBs). Refer to the "Capital management" section of the UBS Group first quarter 2016 report for more information. 4 Calculated in accordance with Swiss SRB rules. Refer to the "Capital management" section of the UBS Group first quarter 2016 report for more information. From 31 December 2015 onward, the leverage ratio denominator calculation is fully aligned with the Basel III rules. Figures for periods prior to 31 December 2015 are calculated in accordance with former Swiss SRB rules and are therefore not fully comparable. 5 Based on fully applied risk-weighted assets. 6 Refer to the "Liquidity and funding management" section of the UBS Group first quarter 2016 report for more information. Figures represent a 3-month average. The average first quarter 2015 liquidity coverage ratio was adjusted from 122% to 116%. 7 Includes invested assets for Personal & Corporate Banking. 8 Refer to the "UBS shares" section of the UBS Group first quarter 2016 report for more information.

Income statement
		For the quarter ended						% change from
CHF million		31.3.16		31.12.15		31.3.15		4Q15		1Q15
Net interest income		1,712		1,759		1,637		(3)		5
Credit loss (expense) / recovery		(3)		(59)		(16)		(95)		(81)
Net interest income after credit loss expense		1,709		1,700		1,621		1		5
Net fee and commission income		4,093		4,218		4,401		(3)		(7)
Net trading income		1,013		898		2,135		13		(53)
of which: net trading income excluding own credit		1,013		863		1,908		17		(47)
of which: own credit on financial liabilities designated at fair value				35		226
Other income		17		(41)		685				(98)
Total operating income		6,833		6,775		8,841		1		(23)
of which: net interest and trading income		2,725		2,657		3,772		3		(28)
Personnel expenses		3,924		3,843		4,172		2		(6)
General and administrative expenses		1,664		2,413		1,713		(31)		(3)
Depreciation and impairment of property, equipment and software		243		260		221		(7)		10
Amortization and impairment of intangible assets		23		24		28		(4)		(18)
Total operating expenses		5,855		6,541		6,134		(10)		(5)
Operating profit / (loss) before tax		978		234		2,708		318		(64)
Tax expense / (benefit)		270		(715)		670				(60)
Net profit / (loss)		708		950		2,038		(25)		(65)
Net profit / (loss) attributable to non-controlling interests		0		1		61		(100)		(100)
Net profit / (loss) attributable to UBS Group AG shareholders		707		949		1,977		(26)		(64)
Comprehensive income
Total comprehensive income		349		1,164		1,726		(70)		(80)
Total comprehensive income attributable to non-controlling interests		(50)		38		(81)				(38)
Total comprehensive income attributable to UBS Group AG shareholders		399		1,126		1,808		(65)		(78)

Comparison UBS Group AG (consolidated) versus UBS AG (consolidated)
		As of or for the quarter ended 31.3.16								As of or for the quarter ended 31.12.15
CHF million, except where indicated		UBS Group AG (consolidated)		UBS AG (consolidated)		Difference (absolute)		Difference (%)		UBS Group AG (consolidated)		UBS AG (consolidated)		Difference (absolute)		Difference (%)
Income statement
Operating income		6,833		6,855		(22)		0		6,775		6,771		4		0
Operating expenses		5,855		5,876		(21)		0		6,541		6,543		(2)		0
Operating profit / (loss) before tax		978		979		(1)		0		234		228		6		3
of which: Wealth Management		557		552		5		1		344		342		2		1
of which: Wealth Management Americas		211		204		7		3		14		8		6		75
of which: Personal & Corporate Banking		399		399		0		0		355		356		(1)		0
of which: Asset Management		90		90		0		0		171		171		0		0
of which: Investment Bank		253		236		17		7		80		83		(3)		(4)
of which: Corporate Center		(534)		(502)		(32)		6		(729)		(732)		3		0
of which: Services		(203)		(193)		(10)		5		(345)		(349)		4		(1)
of which: Group ALM		(148)		(127)		(21)		17		(56)		(54)		(2)		4
of which: Non-core and Legacy Portfolio		(183)		(182)		(1)		1		(329)		(329)		0		0
Net profit / (loss)		708		713		(5)		(1)		950		951		(1)		0
of which: net profit / (loss) attributable to shareholders		707		713		(6)		(1)		949		950		(1)		0
of which: net profit / (loss) attributable to preferred noteholders				0		0						0		0
of which: net profit / (loss) attributable to non-controlling interests		0		0		0				1		1		0		0
Statement of comprehensive income
Other comprehensive income		(358)		(358)		0		0		214		214		0		0
of which: attributable to shareholders		(308)		(308)		0		0		177		177		0		0
of which: attributable to preferred noteholders				(50)		50						35		(35)		(100)
of which: attributable to non-controlling interests		(50)		(1)		(49)				37		2		35
Total comprehensive income		349		355		(6)		(2)		1,164		1,165		(1)		0
of which: attributable to shareholders		399		405		(6)		(1)		1,126		1,126		0		0
of which: attributable to preferred noteholders				(50)		50						35		(35)		(100)
of which: attributable to non-controlling interests		(50)		(1)		(49)				38		3		35
Balance sheet
Total assets		966,873		968,158		(1,285)		0		942,819		943,256		(437)		0
Total liabilities		910,088		910,557		(469)		0		885,511		886,013		(502)		0
Total equity		56,786		57,601		(815)		(1)		57,308		57,243		65		0
of which: equity attributable to shareholders		54,845		55,660		(815)		(1)		55,313		55,248		65		0
of which: equity attributable to preferred noteholders				1,905		(1,905)						1,954		(1,954)		(100)
of which: equity attributable to non-controlling interests		1,941		36		1,905				1,995		41		1,954
Capital information
Common equity tier 1 capital (fully applied)		29,853		32,118		(2,265)		(7)		30,044		32,042		(1,998)		(6)
Common equity tier 1 capital (phase-in)		36,580		38,762		(2,182)		(6)		40,378		41,516		(1,138)		(3)
Additional tier 1 capital (fully applied)		7,585		2,643		4,942				6,154		1,252		4,902
Tier 2 capital (fully applied)		11,112		10,217		895		9		11,237		10,325		912		9
Total capital (fully applied)		48,551		44,978		3,573		8		47,435		43,619		3,816		9
Risk-weighted assets (fully applied)		213,558		214,973		(1,415)		(1)		207,530		208,186		(656)		0
Common equity tier 1 capital ratio (fully applied, %)		14.0		14.9		(0.9)				14.5		15.4		(0.9)
Common equity tier 1 capital ratio (phase-in, %)		16.9		17.8		(0.9)				19.0		19.5		(0.5)
Total capital ratio (fully applied, %)		22.7		20.9		1.8				22.9		21.0		1.9
Leverage ratio denominator (fully applied)		905,801		907,277		(1,476)		0		897,607		898,251		(644)		0
Leverage ratio (fully applied, %)		5.4		5.0		0.4				5.3		4.9		0.4

UBS’s first quarter 2016 report, media release and slide presentation will be available from 06:45 CEST on Tuesday, 3 May 2016 at www.ubs.com/quarterlyreporting.

UBS will hold a presentation of its first quarter 2016 results on Tuesday, 3 May 2016. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Kirt Gardner, Group Chief Financial Officer, Caroline Stewart, Global Head of Investor Relations, and Hubertus Kuelps, Group Head of Communications & Branding.

Time

• 09:00–11.00 (CEST)

• 08:00–10.00 (BST)

• 03:00–05.00 (US EDT)

Audio webcast

The presentation for analysts can be followed live on www.ubs.com/quarterlyreporting with a simultaneous slide show.

Webcast playback

An audio playback of the results presentation will be made available at www.ubs.com/investors later in the day.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance and statements relating to the anticipated effect of transactions and strategic initiatives on UBS’s business and future development. While these forward-looking statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. These factors include, but are not limited to: (i) the degree to which UBS is successful in executing its announced strategic plans, including its cost reduction and efficiency initiatives and its targets for risk-weighted assets (RWA) and leverage ratio denominator (LRD), and the degree to which UBS is successful in implementing changes to its wealth management businesses to meet changing market, regulatory and other conditions; (ii) the continuing low or negative interest rate environment, developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, and currency exchange rates, and the effect of economic conditions and market developments on the financial position or creditworthiness of UBS’s clients and counterparties; (iii) changes in the availability of capital and funding, including any changes in UBS’s credit spreads and ratings, as well as availability and cost of funding to meet requirements for debt that will be eligible for total loss-absorbing capacity (TLAC) requirements, or loss-absorbing capital; (iv) changes in or the implementation of financial legislation and regulation in Switzerland, the US, the UK and other financial centers that may impose, or result in, more stringent capital, TLAC, leverage ratio, liquidity and funding requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration or other measures, and the effect this would have on UBS’s business activities; (v) uncertainty as to when and to what degree the Swiss Financial Market Supervisory Authority (FINMA) will approve a limited reduction of capital or gone concern requirements due to measures to reduce resolvability risk; (vi) the degree to which UBS is successful in implementing further changes to its legal structure to improve its resolvability and meet related regulatory requirements, including changes in legal structure and reporting required to implement US enhanced prudential standards, implementing a service company model, the transfer of the Asset Management business to a holding company, and the potential need to make further changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements relating to capital requirements, resolvability requirements and proposals in Switzerland and other countries for mandatory structural reform of banks and the extent to which such changes have the intended effects; (vii) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS’s ability to compete in certain lines of business; (viii) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including proposed measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (ix) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses or loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational component of our RWA; (x) the effects on UBS’s cross-border banking business of tax or regulatory developments and of possible changes in UBS’s policies and practices relating to this business; (xi) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors including differences in compensation practices; (xii) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xiii) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xiv) whether UBS will be successful in keeping pace with competitors in updating its technology, particularly in trading businesses; (xv) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyber-attacks, and systems failures; (xvi) restrictions on the ability of UBS Group AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA of its broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xvii) the degree to which changes in regulation, capital or legal structure, financial results or other factors, including methodology, assumptions and stress scenarios, may affect UBS’s ability to maintain its stated capital return objective; and (xviii) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including UBS’s Annual Report on Form 20-F for the year ended 31 December 2015. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Adjusted results

In addition to reporting our results in accordance with International Financial Reporting Standards (IFRS), we report adjusted results that exclude items that management believes are not representative of the underlying performance of our businesses. Such adjusted results are non-GAAP financial measures as defined by SEC regulations. Unless otherwise indicated, first quarter of 2016 "adjusted" figures exclude each of the following items, to the extent applicable, on a Group and business division level: net foreign currency translation losses of CHF 123 million and net restructuring expenses of CHF 265 million. For the fourth quarter of 2015, we excluded net losses of CHF 257 million related to the buyback of debt in a tender offer, a net foreign currency translation gain of CHF 115 million, an own credit gain of CHF 35 million, net gains of CHF 28 million on the sale of subsidiaries and businesses as well as net restructuring expenses of CHF 441 million. Refer to the "Group performance" section of UBS's first quarter 2016 report for more information on adjusted results.

Rounding

Numbers presented throughout this news release may not add up precisely to the totals provided in the tables and text. Percentages, percent changes and absolute variances are calculated on the basis of rounded figures displayed in the tables and text and may not precisely reflect the percentages, percent changes and absolute variances that would be calculated on the basis of figures that are not rounded.

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160502006352/en/

UBS Group AG and UBS AG
Investor contact
Switzerland: +41-44-234 41 00
or
Media contact
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 57
APAC: +852-297-1 82 00
www.ubs.com

Source: UBS

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