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: November 11, 2015
UBS Group AG
Commission File Number: 1-36764
UBS AG
Commission File Number: 1-15060
(Registrants' Names)
Bahnhofstrasse 45, Zurich, Switzerland, and
Aeschenvorstadt 1, Basel, Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20‑F or Form 40-F.
Form 20-F x Form 40-F o
This Form 6-K consists of the Basel III Pillar 3 disclosure for composition of capital of UBS Group, updated as of 30 September 2015, which appears immediately following this page.
UBS Group – Basel III Pillar 3 disclosure for balance
sheet reconciliation and composition of capital updated as of
30 September 2015
This document provides a reconciliation of the IFRS balance sheet to the balance sheet according to the regulatory scope of consolidation as well as information about the composition of our capital as of 30 September 2015. Information is provided on a phase-in basis. Refer to our UBS Group Basel III Pillar 3 First Half 2015 Report for more information on this disclosure as of 30 June 2015.
Balance sheet reconciliation and composition of capital
The Basel Committee on Banking Supervision and FINMA require banks to publish their capital positions according to common templates. The following tables provide the required information.
1
Table 33: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation |
|||||
The table below provides a reconciliation of the IFRS balance sheet to the balance sheet according to the regulatory scope of consolidation as defined by BIS and FINMA. Lines in the balance sheet under the regulatory scope of consolidation are expanded and referenced where relevant to display all components that are used in “Table 34: Composition of capital.” |
|||||
|
Balance sheet in accordance with IFRS scope of consolidation |
Effect of deconsolidated entities for regulatory consolidation |
Effect of additional consolidated entities for regulatory consolidation |
Balance sheet in accordance with regulatory scope of consolidation |
References 1 |
|
|
|
|
|
|
CHF million |
30.9.15 |
|
|
|
|
Assets |
|
|
|
|
|
Cash and balances with central banks |
96,535 |
|
|
96,535 |
|
Due from banks |
13,222 |
(286) |
|
12,936 |
|
Cash collateral on securities borrowed |
28,568 |
|
|
28,568 |
|
Reverse repurchase agreements |
73,382 |
|
|
73,382 |
|
Trading portfolio assets |
127,177 |
(17,077) |
|
110,100 |
|
Positive replacement values |
186,014 |
24 |
|
186,038 |
|
Cash collateral receivables on derivative instruments |
27,032 |
|
|
27,032 |
|
Financial assets designated at fair value |
5,230 |
|
|
5,230 |
|
Loans |
312,321 |
107 |
|
312,429 |
|
Financial investments available-for-sale |
61,677 |
(80) |
|
61,596 |
|
Consolidated participations |
0 |
202 |
|
202 |
|
Investments in associates |
1,010 |
|
|
1,010 |
|
of which: goodwill |
358 |
|
|
358 |
4 |
Property, equipment and software |
7,358 |
(88) |
|
7,271 |
|
Goodwill and intangible assets |
6,441 |
|
|
6,441 |
|
of which: goodwill |
6,097 |
|
|
6,097 |
4 |
of which: intangible assets |
344 |
|
|
344 |
5 |
Deferred tax assets |
11,669 |
(1) |
|
11,668 |
|
of which: deferred tax assets recognized for tax loss carry-forwards |
6,315 |
(1) |
|
6,314 |
9 |
of which: deferred tax assets on temporary differences |
5,354 |
|
|
5,354 |
12 |
Other assets |
22,109 |
(188) |
1 |
21,883 |
|
of which: goodwill related to assets of disposal group held for sale |
27 |
|
|
27 |
4 |
Total assets |
979,746 |
(17,425) |
1 |
962,322 |
|
Liabilities |
|
|
|
|
|
Due to banks |
11,202 |
(53) |
|
11,149 |
|
Cash collateral on securities lent |
7,381 |
|
|
7,381 |
|
Repurchase agreements |
17,373 |
|
|
17,373 |
|
Trading portfolio liabilities |
35,184 |
|
|
35,184 |
|
Negative replacement values |
179,657 |
99 |
|
179,756 |
|
Cash collateral payables on derivative instruments |
40,791 |
0 |
|
40,791 |
|
Financial liabilities designated at fair value |
62,081 |
23 |
|
62,104 |
|
Due to customers |
385,808 |
38 |
|
385,846 |
|
Debt issued |
102,731 |
(16) |
|
102,715 |
|
of which: amount eligible for high-trigger loss-absorbing additional tier 1 capital 2 |
2,795 |
|
|
2,795 |
13 |
of which: amount eligible for low-trigger loss-absorbing additional tier 1 capital 2 |
2,308 |
|
|
2,308 |
13 |
of which: amount eligible for low-trigger loss-absorbing tier 2 capital 3 |
10,198 |
|
|
10,198 |
7 |
of which: amount eligible for capital instruments subject to phase-out from tier 2 capital 4 |
1,667 |
|
|
1,667 |
8 |
Provisions |
4,097 |
(1) |
|
4,096 |
|
Other liabilities |
77,407 |
(17,429) |
1 |
59,978 |
|
of which: amount eligible for high-trigger loss-absorbing capital (Deferred Contingent Capital Plan (DCCP))5 |
908 |
|
|
908 |
13 |
Total liabilities |
923,712 |
(17,340) |
1 |
906,374 |
|
Equity |
|
|
|
|
|
Share capital |
385 |
(1) |
1 |
385 |
1 |
Share premium |
31,004 |
|
0 |
31,004 |
1 |
Treasury shares |
(1,643) |
0 |
|
(1,643) |
3 |
Retained earnings |
28,353 |
(204) |
0 |
28,148 |
2 |
Other comprehensive income recognized directly in equity, net of tax |
(4,022) |
119 |
(1) |
(3,904) |
3 |
of which: unrealized gains / (losses) from cash flow hedges according to regulatory scope of consolidation |
2,056 |
|
|
2,056 |
11 |
Equity attributable to UBS Group AG shareholders |
54,077 |
(86) |
1 |
53,991 |
|
Equity attributable to non-controlling interests |
1,957 |
|
|
1,957 |
6 |
Total equity |
56,034 |
(86) |
1 |
55,949 |
|
Total liabilities and equity |
979,746 |
(17,425) |
1 |
962,322 |
|
1 References link respective lines of this table to the respective reference numbers provided in the column "References" in "Table 34: Composition of capital". 2 Represents IFRS book value. 3 IFRS book value is CHF 10,218 million. 4 IFRS book value is CHF 3,745 million. 5 IFRS book value is CHF 1,100 million. Refer to the "Compensation" section of our Annual Report 2014 for more information on the DCCP. |
2
Table 34: Composition of capital |
||||
The table below provides the “Composition of capital” as defined by BIS and FINMA. The naming convention does not always reflect UBS’s naming convention used in our external reports. Reference is made to items reconciling to the balance sheet under the regulatory scope of consolidation as disclosed in “Table 33: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation.” Where relevant, the effect of phase-in arrangements is disclosed as well. ➔Refer to the “Capital management” section of our third quarter 2015 report for more information on phase-in arrangements |
||||
|
|
Phase-in amounts |
Effect of the transition phase |
References 1 |
|
CHF million, except where indicated |
30.9.15 |
30.9.15 |
|
1 |
Directly issued qualifying common share (and equivalent for non-joint stock companies) capital plus related stock surplus |
31,389 |
|
1 |
2 |
Retained earnings |
28,148 |
|
2 |
3 |
Accumulated other comprehensive income (and other reserves) |
(5,547) |
|
3 |
4 |
Directly issued capital subject to phase-out from common equity tier 1 capital (only applicable to non-joint stock companies) |
|
|
|
5 |
Common share capital issued by subsidiaries and held by third parties (amount allowed in group common equity tier 1 capital) |
|
|
|
6 |
Common equity tier 1 capital before regulatory adjustments |
53,991 |
|
|
7 |
Prudential valuation adjustments |
(61) |
|
|
8 |
Goodwill, net of tax, less hybrid capital and additional tier 1 capital2 |
(2,573) |
(3,859) |
4 |
9 |
Intangible assets, net of tax2 |
(339) |
|
5 |
10 |
Deferred tax assets recognized for tax loss carry-forwards3 |
(2,602) |
(3,904) |
9 |
11 |
Unrealized (gains) / losses from cash flow hedges, net of tax |
(2,056) |
|
11 |
12 |
Expected losses on advanced internal ratings-based portfolio less general provisions |
(308) |
|
|
13 |
Securitization gain on sale |
|
|
|
14 |
Own credit related to financial liabilities designated at fair value and replacement values, net of tax |
(462) |
|
|
15 |
Defined benefit plans |
|
|
|
16 |
Compensation and own shares-related capital components (not recognized in net profit) |
(1,527) |
|
|
17 |
Reciprocal crossholdings in common equity |
|
|
|
17a |
Qualifying interest where a controlling influence is exercised together with other owners (CET instruments) |
|
|
|
17b |
Consolidated investments (CET1 instruments) |
|
|
|
18 |
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) |
|
|
|
19 |
Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) |
|
|
|
20 |
Mortgage servicing rights (amount above 10% threshold) |
|
|
|
21 |
Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) |
(667) |
(1,776) |
12 |
22 |
Amount exceeding the 15% threshold |
|
|
|
23 |
of which: significant investments in the common stock of financials |
|
|
|
24 |
of which: mortgage servicing rights |
|
|
|
25 |
of which: deferred tax assets arising from temporary differences |
|
|
|
26 |
Expected losses on equity investments treated according to the PD/LGD approach |
|
|
|
26a |
Other adjustments relating to the application of an internationally accepted accounting standard |
(351) |
|
|
26b |
Other deductions |
(2,557) |
|
13 |
27 |
Regulatory adjustments applied to common equity tier 1 due to insufficient additional tier 1 and tier 2 to cover deductions |
|
|
|
28 |
Total regulatory adjustments to common equity tier 1 |
(13,503) |
(9,540) |
|
29 |
Common equity tier 1 capital (CET1) |
40,488 |
(9,540) |
|
30 |
Directly issued qualifying additional tier 1 instruments plus related stock surplus |
5,578 |
|
|
31 |
of which: classified as equity under applicable accounting standards |
|
|
|
32 |
of which: classified as liabilities under applicable accounting standards5 |
5,578 |
|
13 |
33 |
Directly issued capital instruments subject to phase-out from additional tier 1 |
|
|
|
34 |
Additional tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group additional tier 1) |
1,919 |
(1,919) |
6 |
35 |
of which: instruments issued by subsidiaries subject to phase-out |
1,919 |
(1,919) |
|
36 |
Additional tier 1 capital before regulatory adjustments |
7,497 |
(1,919) |
|
37 |
Investments in own additional tier 1 instruments |
|
|
|
38 |
Reciprocal crossholdings in additional tier 1 instruments |
|
|
|
38a |
Qualifying interest where a controlling influence is exercised together with other owners (AT1 instruments) |
|
|
|
38b |
Holdings in companies which are to be consolidated (additional tier1 instruments) |
|
|
|
39 |
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold) |
|
|
|
40 |
Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) |
|
|
|
41 |
National specific regulatory adjustments |
(3,859) |
3,859 |
|
42 |
Regulatory adjustments applied to additional tier 1 due to insufficient tier 2 to cover deductions |
|
|
|
|
Tier 1 adjustments on impact of transitional arrangements |
(3,859) |
3,859 |
|
|
of which: prudential valuation adjustment |
|
|
|
|
of which: own CET1 instruments |
|
|
|
|
of which: goodwill net of tax, offset against hybrid capital and loss-absorbing capital |
(3,859) |
3,859 |
|
|
of which: intangible assets (net of related tax liabilities) |
|
|
|
|
of which: gains from the calculation of cash flow hedges |
|
|
|
|
of which: IRB shortfall of provisions to expected losses |
|
|
|
|
of which: gains on sales related to securitization transactions |
|
|
|
|
of which: gains/losses in connection with own credit risk |
|
|
|
|
of which: investments |
|
|
|
|
of which: expected loss amount for equity exposures under the PD/LGD approach |
|
|
|
|
of which: mortgage servicing rights |
|
|
|
42a |
Excess of the adjustments which are allocated to the common equity tier 1 capital |
|
|
|
43 |
Total regulatory adjustments to additional tier 1 capital |
(3,859) |
3,859 |
|
44 |
Additional tier 1 capital (AT1) |
3,638 |
1,940 |
|
45 |
Tier 1 capital (T1 = CET1 + AT1) |
44,125 |
(7,599) |
|
3
Table 34: Composition of capital - continued |
||||
|
|
Numbers phase-in |
Effect of the transition phase |
References 1 |
46 |
Directly issued qualifying tier 2 instruments plus related stock surplus4 |
11,124 |
|
7 |
47 |
Directly issued capital instruments subject to phase-out from tier 2 |
1,674 |
(1,674) |
8 |
48 |
Tier 2 instruments (and CET1 and additional tier 1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount allowed in group tier 2) |
|
|
|
49 |
of which: instruments issued by subsidiaries subject to phase-out |
|
|
|
50 |
Provisions |
|
|
|
51 |
Tier 2 capital before regulatory adjustments |
12,798 |
(1,674) |
|
52 |
Investments in own tier 2 instruments |
(17) |
8 |
7,8 |
53 |
Reciprocal cross holdings in tier 2 instruments |
|
|
|
53a |
Qualifying interest where a controlling influence is exercised together with other owners (tier 2 instruments) |
|
|
|
53b |
Investments to be consolidated (tier 2 instruments) |
|
|
|
54 |
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold) |
|
|
|
55 |
Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) |
|
|
|
56 |
National specific regulatory adjustments |
|
|
|
56a |
Excess of the adjustments which are allocated to the additional tier 1 capital |
|
|
|
57 |
Total regulatory adjustments to tier 2 capital |
(17) |
8 |
|
58 |
Tier 2 capital (T2) |
12,781 |
(1,667) |
|
|
of which: high-trigger loss-absorbing capital5 |
916 |
|
13 |
|
of which: low-trigger loss-absorbing capital4 |
10,198 |
|
7 |
59 |
Total capital (TC = T1 + T2) |
56,906 |
(9,266) |
|
|
Amount with risk-weight pursuant the transitional arrangement (phase-in) |
|
(4,442) |
|
|
of which: DTA on temporary differences, excess over threshold |
|
(4,442) |
|
60 |
Total risk-weighted assets |
220,755 |
(4,442) |
|
|
Capital ratios and buffers |
|
|
|
61 |
Common equity tier 1 (as a percentage of risk-weighted assets) |
18.3 |
|
|
62 |
Tier 1 (Pos 45 as a percentage of risk-weighted assets) |
20.0 |
|
|
63 |
Total capital (pos 59 as a percentage of risk-weighted assets) |
25.8 |
|
|
64 |
CET1 requirement (base capital, buffer capital and countercyclical buffer requirements) plus G-SIB buffer requirement, expressed as a percentage of risk-weighted assets |
7.5 |
|
|
65 |
of which: capital buffer requirement |
2.9 |
|
|
66 |
of which: bank-specific countercyclical buffer requirement |
0.2 |
|
|
67 |
of which: G-SIB buffer requirement |
|
|
|
68 |
Common equity tier 1 available to meet buffers (as a percentage of risk-weighted assets) |
18.0 |
|
|
68a-f |
Not applicable for systemically relevant banks according to FINMA RS 11/2 |
|
|
|
72 |
Non significant investments in the capital of other financials |
1,074 |
|
|
73 |
Significant investments in the common stock of financials |
848 |
|
|
74 |
Mortgage servicing rights (net of related tax liability) |
|
|
|
75 |
Deferred tax assets arising from temporary differences (net of related tax liability) |
5,782 |
|
|
|
Applicable caps on the inclusion of provisions in tier 2 |
|
|
|
76 |
Provisions eligible for inclusion in tier 2 in respect of exposures subject to standardised approach (prior to application of cap) |
|
|
|
77 |
Cap on inclusion of provisions in tier 2 under standardized approach |
|
|
|
78 |
Provisions eligible for inclusion in tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) |
|
|
|
79 |
Cap for inclusion of provisions in tier 2 under internal ratings-based approach |
|
|
|
1 References link respective lines of this table to the respective reference numbers provided in the column "References" in "Table 33: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation". 2 The CHF 6,432 million (CHF 2,573 million and CHF 3,859 million) reported in line 8 includes goodwill on investments in associates of CHF 358 million, DTL on goodwill of CHF 51 million and goodwill related to assets of disposal group held for sale of CHF 27 million reported in "Other assets" in Table 33. The CHF 339 million reported in line 9 includes DTL on intangibles of CHF 5 million. 3 The CHF 6,506 million (CHF 2,602 million and CHF 3,904 million) deferred tax assets recognized for tax loss carry-forwards reported in line 10 differ from the CHF 6,315 million deferred tax assets shown in the line "Deferred tax assets" in Table 33 because the latter figure is shown after the offset of deferred tax liabilities for cash flow hedge gains and other temporary differences, which are adjusted out in line 11 and other lines of this table respectively. 4 The CHF 11,124 million in the line 46 includes CHF 10,208 million low-trigger loss-absorbing tier 2 capital recognized in line "Debt issued" in table 33, which is shown net of CHF 10 million investments in own tier 2 instruments reported in the line 52 of this table and high-trigger loss-absorbing capital of CHF 916 million reported in line 58. 5 CHF 5,578 million and CHF 916 million reported in line 32 and 58 of this table, respectively, includes the following positions: CHF 2,795 million and CHF 2,308 million recognized in the line "Debt issued" in Table 33, CHF 908 million DCCP recognized in the line "Other liabilities" in Table 33 and CHF 482 million recognized in DCCP-related charge for regulatory capital purposes in the line 26b "Other deductions" of this table. |
4
This Form 6-K is hereby incorporated by reference into (1) each of the registration statements of UBS AG on Form F-3 (Registration Number 333-204908) and of UBS Group AG on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; and 333-200665) and into each prospectus outstanding under any of the foregoing registration statements, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that incorporates by reference any Form 6-K’s of UBS AG that are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS Group AG
By: _/s/ David Kelly______________
Name: David Kelly
Title: Managing Director
By: _/s/ Sarah M. Starkweather______
Name: Sarah M. Starkweather
Title: Executive Director
UBS AG
By: _/s/ David Kelly______________
Name: David Kelly
Title: Managing Director
By: _/s/ Sarah M. Starkweather______
Name: Sarah M. Starkweather
Title: Executive Director
Date: November 11, 2015