6-K 1 EDGARksecfilingubsgro.htm ubsgroupagstandalone6k

 

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 7, 2022

 

UBS Group AG

Commission File Number: 1-36764

UBS AG

Commission File Number: 1-15060

(Registrants' Names)

 

Bahnhofstrasse 45, Zurich, Switzerland, and

Aeschenvorstadt 1, Basel, Switzerland

(Address of principal executive offices)

 

Indicate by check mark whether the registrants file or will file annual reports under cover of Form 20‑F or Form 40-F.

 

Form 20-F                         Form 40-F 

 

 

 


 

This Form 6-K consists of the UBS Group AG audited standalone financial statements for the year ended 31 December 2021, as well as the consent of Ernst & Young Ltd. with respect thereto, which appear immediately following this page.

 


 

UBS Group AG

Standalone financial statements for the year ended 31 December 2021

 


 

  

 


 

Table of contents

 

2

UBS Group AG standalone financial statements

 

 

 

2

Income statement

3

Balance sheet

4

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

 

 

 

5

1

Corporate information

6

2

Accounting policies

 

 

 

8

Income statement notes

8

3

Dividend income from investments in subsidiaries

9

4

Other operating income

9

5

Financial income

8

6

Personnel expenses

9

7

Other operating expenses

9

8

Financial expenses

 

 

 

10

Balance sheet notes

10

9

Liquid assets

10

10

Marketable securities

10

11

Other short-term receivables

10

12

Accrued income and prepaid expenses

11

13

Investments in subsidiaries

11

14

Financial assets

12

15

Current interest-bearing liabilities

12

16

Accrued expenses and deferred income

13

17

Long-term interest-bearing liabilities

15

18

Compensation-related long-term liabilities

15

19

Share capital

16

20

Treasury shares

 

 

 

17

Additional information

17

21

Assets pledged to secure own liabilities

17

22

Contingent liabilities

17

23

Significant shareholders

18

24

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

19

25

Related parties

 

 

 

20

Report of the statutory auditor on the financial statements

 

  

 


UBS Group AG standalone financial statements 

UBS Group AG standalone financial statements

Audited |

Income statement

 

 

 

 

 

 

 

 

 

 

 

 

USD million

 

CHF million

 

 

 

 

For the year ended

 

For the year ended

 

 

Note

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Dividend income from investments in subsidiaries

 

 3 

 

 4,672 

 3,853 

 

 4,270 

 3,646 

Other operating income

 

 4 

 

 12 

 17 

 

 12 

 16 

Financial income

 

 5 

 

 1,806 

 1,836 

 

 1,653 

 1,714 

Operating income

 

 

 

 6,490 

 5,706 

 

 5,935 

 5,376 

Personnel expenses

 

 6 

 

 21 

 19 

 

 19 

 18 

Other operating expenses

 

 7 

 

 44 

 69 

 

 40 

 63 

Amortization of intangible assets

 

 

 

 4 

 4 

 

 4 

 4 

Financial expenses

 

 8 

 

 1,751 

 1,765 

 

 1,603 

 1,650 

Operating expenses

 

 

 

 1,819 

 1,858 

 

 1,665 

 1,735 

Profit / (loss) before income taxes

 

 

 

 4,671 

 3,848 

 

 4,270 

 3,641 

Tax expense / (benefit)

 

 

 

 7 

 6 

 

 6 

 6 

Net profit / (loss)

 

 

 

 4,664 

 3,841 

 

 4,264 

 3,635 

 

 

 

 

 

 

 

 

 

 

 

2 


 

Balance sheet

 

 

 

 

 

 

 

USD million

 

CHF million

 

 

Note

 

31.12.21

31.12.20

 

31.12.21

31.12.20

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Liquid assets

 

 9 

 

 1,901 

 2,198 

 

 1,733 

 1,946 

Marketable securities

 

 10 

 

 102 

 84 

 

 93 

 74 

Other short-term receivables

 

 11 

 

 4,942 

 5,555 

 

 4,505 

 4,919 

Accrued income and prepaid expenses

 

 12 

 

 927 

 947 

 

 845 

 839 

Total current assets

 

 

 

 7,872 

 8,784 

 

 7,177 

 7,779 

Investments in subsidiaries

 

 13 

 

 41,199 

 41,199 

 

 37,560 

 36,483 

of which: investment in UBS AG

 

 

 

 40,889 

 40,889 

 

 37,277 

 36,209 

Financial assets

 

 14 

 

 56,350 

 50,062 

 

 51,373 

 44,332 

Other intangible assets

 

 

 

 0 

 4 

 

 0 

 3 

Other non-current assets

 

 

 

 26 

 21 

 

 24 

 19 

Total non-current assets

 

 

 

 97,576 

 91,286 

 

 88,957 

 80,837 

Total assets

 

 

 

 105,448 

 100,071 

 

 96,133 

 88,616 

of which: amounts due from subsidiaries

 

 

 

 63,587 

 58,340 

 

 57,970 

 51,662 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current interest-bearing liabilities

 

 15 

 

 4,732 

 3,853 

 

 4,314 

 3,412 

Accrued expenses and deferred income

 

 16 

 

 1,846 

 2,097 

 

 1,683 

 1,857 

Total short-term liabilities

 

 

 

 6,578 

 5,950 

 

 5,997 

 5,269 

Long-term interest-bearing liabilities

 

 17 

 

 55,034 

 50,993 

 

 50,172 

 45,156 

Compensation-related long-term liabilities

 

 18 

 

 3,116 

 3,128 

 

 2,841 

 2,770 

Total long-term liabilities

 

 

 

 58,149 

 54,120 

 

 53,013 

 47,925 

Total liabilities

 

 

 

 64,727 

 60,071 

 

 59,010 

 53,194 

of which: amounts due to subsidiaries

 

 

 

 741 

 1,268 

 

 675 

 1,123 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 19 

 

 377 

 393 

 

 370 

 386 

General reserves

 

 

 

 26,161 

 27,048 

 

 25,682 

 26,506 

of which: statutory capital reserve

 

 

 

 26,161 

 27,048 

 

 25,682 

 26,506 

of which: capital contribution reserve

 

 

 

 26,161 

 27,048 

 

 25,682 

 26,506 

Voluntary earnings reserve

 

 

 

 14,146 

 12,738 

 

 11,153 

 8,812 

Treasury shares

 

 20 

 

 (4,629) 

 (4,020) 

 

 (4,345) 

 (3,917) 

    of which: against capital contribution reserve

 

 

 

 (1,242) 

 (180) 

 

 (1,145) 

 (174) 

Reserve for own shares held by subsidiaries

 

 

 

 0 

 0 

 

 0 

 0 

Net profit / (loss)

 

 

 

 4,664 

 3,841 

 

 4,264 

 3,635 

Equity attributable to shareholders

 

 

 

 40,720 

 40,000 

 

 37,124 

 35,421 

Total liabilities and equity

 

 

 

 105,448 

 100,071 

 

 96,133 

 88,616 

 

3 


UBS Group AG standalone financial statements 

 

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

 

The Board of Directors proposes that the Annual General Meeting of Shareholders (AGM) on 6 April 2022 approve the appropriation of total profit and an ordinary dividend distribution of USD 0.50 (gross) in cash per share of CHF 0.10 nominal value under the terms set out below:

 

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.21

 

31.12.21

Net profit for the period

 

 4,664 

 

 4,264 

Profit / (loss) carried forward

 

 0 

 

 0 

Total profit available for appropriation

 

 4,664 

 

 4,264 

 

 

 

 

 

Appropriation of total profit

 

 

 

 

Appropriation to voluntary earnings reserve

 

 (3,739) 

 

 (3,423) 

Dividend distribution: USD 0.50 (gross) per dividend-bearing share, USD 0.25 of which out of total profit1

 

 (926) 

 

 (841)2

Profit / (loss) carried forward

 

 0 

 

 0 

1 Dividend-bearing shares are all shares issued except for treasury shares held by UBS Group AG as of the record date. The amount of USD 926 million presented is based on the total number of shares issued as of 31 December 2021. If the final total amount of the dividend is higher / lower, the difference will be balanced through the appropriation to the voluntary earnings reserve.    2 For illustrative purposes, converted at closing exchange rate as of 31 December 2021 (CHF / USD 1.10).

 

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.21

 

31.12.21

Total statutory capital reserve: capital contribution reserve before proposed distribution1

 

 26,161 

 

 25,682 

Dividend distribution: USD 0.50 (gross) per dividend-bearing share, USD 0.25 of which out of capital contribution reserve2

 

 (926) 

 

 (841)3

Total statutory capital reserve: capital contribution reserve after proposed distribution

 

 25,236 

 

 24,840 

1 The Swiss Federal Tax Administration’s current position is that, of the CHF 25.7 billion capital contribution reserve available as of 31 December 2021, an amount limited to CHF 11.0 billion is available from which dividends may be paid without a Swiss withholding tax deduction. This amount includes a reduction of capital contribution reserves of CHF 223 million in 2021 (based on the purchase price).    2 Dividend-bearing shares are all shares issued except for treasury shares held by UBS Group AG as of the record date. The amount of USD 926 million presented is based on the total number of shares issued as of 31 December 2021.    3 For illustrative purposes, converted at closing exchange rate as of 31 December 2021 (CHF / USD 1.10).

 

 

As set out above, half of the ordinary dividend distribution of USD 0.50 (gross) in cash per share is payable out of total profit and the other half is payable out of the capital contribution reserve. The portion of the dividend paid out of total profit will be subject to a 35% Swiss withholding tax.

The ordinary dividend distribution is declared in US dollars. Shareholders whose shares are held through SIX SIS AG will receive dividends in Swiss francs, based on a published exchange rate calculated up to five decimal places on the day prior to the ex-dividend date. Shareholders holding shares through DTC or directly registered in the US share register with Computershare will be paid dividends in US dollars. The total amount of the dividend distribution will be capped at CHF 3,400 million (the Cap). To the extent that the Swiss franc equivalent of the total dividend distribution would exceed the Cap on the day of the AGM, based on the exchange rate determined by the Board of Directors in its reasonable opinion, the US dollar per share amount of the dividend will be reduced on a pro rata basis so that the total Swiss franc amount does not exceed the Cap.

Provided that the proposed dividend distribution out of the total profit and the capital contribution reserve is approved, the payment of the dividend will be made on 14 April 2022 to holders of shares on the record date of 13 April 2022. The shares will be traded ex-dividend as of 12 April 2022 and, accordingly, the last day on which the shares may be traded with entitlement to receive the dividend will be 11 April 2022.

  

4 


 

Notes to the UBS Group AG standalone financial statements

Note 1  Corporate information

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

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

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

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

 

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


In 2021, as approved by the Annual General Meeting held on 8 April 2021, the cancellation of 156,632,400 shares, each with a nominal value of CHF 0.10, purchased under the 2018–2021 share repurchase program, was executed. The cancellation of shares resulted in reclassifications within equity but had no net effect on the total equity attributable to shareholders. Share capital was reduced by the nominal value of the repurchased shares upon cancellation, i.e., USD 16 million (CHF 16 million). Following the requirements of the Swiss tax law for Switzerland-domiciled companies with shares listed on a Swiss stock exchange, effective 1 January 2020, the capital contribution reserve was reduced by 50% of the total capital reduction amount exceeding the nominal value upon cancellation of the shares repurchased from 2020 onward, i.e., USD 236 million (CHF 224 million). The voluntary earnings reserve was reduced by the remaining portion of the total capital reduction amount exceeding the nominal value upon cancellation of the repurchased shares, i.e., USD 1,792 million (CHF 1,762 million).

As of 31 December 2021, UBS Group AGs distributable items for the purpose of AT1 capital instruments were USD 40.3 billion (CHF 36.7 billion) (31 December 2020: USD 39.5 billion (CHF 35.0 billion)). For this purpose, distributable items are defined in the terms and conditions of the relevant instruments as the aggregate of (i) net profits carried forward and (ii) freely distributable reserves, in each case less any amounts that must be contributed to legal reserves under applicable law.

 

 

5 


UBS Group AG standalone financial statements 

 

Note 2  Accounting policies

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

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

Presentation currencies

As the primary presentation currency of the standalone financial statements of UBS Group AG is the US dollar, amounts in Swiss francs are additionally presented for each component of the financial statements. UBS Group AG applies the modified closing rate method for converting US dollar amounts into Swiss francs: assets and liabilities are translated at the closing rate, equity positions at historic rates and income and expense items at the weighted average rate for the period. All resulting currency translation effects are recognized separately in Voluntary earnings reserve, amounting to a negative currency translation effect of CHF 2,808 million as of 31 December 2021 (31 December 2020: negative CHF 3,867 million).

Foreign currency translation

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

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

Marketable securities

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

Financial assets

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

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

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

    Refer to Note 14 for more information

Derivative instruments

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

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

Investments in subsidiaries

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

    Refer to Note 13 for more information

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

 

6 


 

 

Note 2  Accounting policies (continued)

Long-term interest-bearing liabilities

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

    Refer to Note 17 for more information

Treasury shares

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

Upon disposal of treasury shares or settlement of related share-based awards, any realized gain or loss is recognized in Voluntary earnings reserve. Realized gains and losses from settlement of share-based awards represent the difference between the acquisition cost of the UBS Group AG shares and the grant date fair value of the share-based awards. For the year ended 31 December 2021, a net gain of USD 9 million (CHF 8 million) from settlement of share-based awards was recognized in Voluntary earnings reserve (2020 comparative period: net gain of USD  38 million (CHF 37 million)).

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

    Refer to Note 20 for more information

Share-based and other deferred compensation plans

Share-based compensation plans

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

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

Other deferred compensation plans

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

Recharge of compensation expenses

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

Dispensations in the standalone financial statements

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

 

  

7 


Income statement notes

Note 3  Dividend income from investments in subsidiaries

Dividend income from investments in subsidiaries in 2021 consisted of USD 4,539 million (CHF 4,149 million) received from UBS AG related to the financial year ended 31 December 2020, which was approved by the Annual General Meeting of the Shareholders of UBS AG on 7 April 2021, USD 133 million (CHF 122 million) received from UBS Business Solutions AG related to the financial year ended 31 December 2020, which was approved by the Annual General Meeting of Shareholders of UBS Business Solutions AG on 7 April 2021, and USD 0.2 million (CHF 0.2 million) net liquidation dividend received from UBS Group Funding (Switzerland) AG in Liquidation following liquidation of the entity in the course of 2020, which was approved by the Extraordinary General Meeting of the Shareholders of UBS Group Funding (Switzerland) AG in Liquidation held on 8 October 2020. In 2020, dividend income from investments in subsidiaries consisted of USD 3,848 million (CHF 3,641 million) received from UBS AG related to the financial year ended 31 December 2019, which was approved by the Annual General Meeting of the Shareholders of UBS AG on 27  April 2020 (USD 2,550 million (CHF 2,462 million)) and the Extraordinary General Meeting of the Shareholders of UBS AG on 19 November 2020 (USD 1,298 million (CHF 1,179 million)), and USD 5 million (CHF 5 million) net liquidation dividend received from UBS Group Funding (Switzerland) AG in Liquidation following liquidation of the entity in the course of 2020, which was approved by the Extraordinary General Meeting of the Shareholders of UBS Group Funding (Switzerland) AG in Liquidation held on 8 October 2020.

Note 4  Other operating income

Other operating income includes gains related to equity-settled and cash-settled awards.

Note 5  Financial income

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Interest income on onward lending to UBS AG1

 

 1,756 

 1,769 

 

 1,608 

 1,653 

Interest income on other interest-bearing assets

 

 21 

 14 

 

 19 

 13 

Fair value gains on investments in AIVs

 

 23 

 49 

 

 21 

 44 

Other

 

 6 

 4 

 

 6 

 4 

Total financial income

 

 1,806 

 1,836 

 

 1,653 

 1,714 

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

Note 6  Personnel expenses

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


UBS Group AG had no employees throughout 2021 and 2020. All employees of the UBS Group, including the members of the Group Executive Board (GEB) of UBS Group AG, were employed by subsidiaries of UBS Group AG. As of 31 December 2021, the UBS Group employed 71,385 personnel (31 December 2020: 71,551) on a full-time equivalent basis.

 


 

 

Note 7  Other operating expenses

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Fair value losses on AIV awards

 

 23 

 48 

 

 21 

 43 

Capital tax

 

 9 

 9 

 

 8 

 8 

Other

 

 11 

 12 

 

 10 

 12 

Total other operating expenses

 

 44 

 69 

 

 40 

 63 

 

Note 8  Financial expenses

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Interest expense on interest-bearing liabilities

 

 1,740 

 1,756 

 

 1,593 

 1,641 

Other

 

 11 

 10 

 

 10 

 9 

Total financial expenses

 

 1,751 

 1,765 

 

 1,603 

 1,650 

 

 

  

9 


UBS Group AG standalone financial statements 

Balance sheet notes

Note 9  Liquid assets

As of 31 December 2021, liquid assets consisted of USD 590 million (CHF 538 million) held on current accounts at UBS Switzerland AG and UBS AG and USD 1,311 million (CHF 1,195 million) of time deposits placed with UBS AG. As of 31 December 2020, liquid assets consisted of USD 987 million (CHF 874 million) held on current accounts at UBS Switzerland AG and UBS AG and USD 1,211 million (CHF 1,072 million) of time deposits placed with UBS AG.

 

Note 10  Marketable securities

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

 

Note 11  Other short-term receivables

 

 

USD million

 

CHF million

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Onward lending to UBS AG1

 

 4,252 

 4,987 

 

 3,876 

 4,416 

Receivables from employing entities related to compensation awards

 

 639 

 517 

 

 583 

 458 

Other

 

 51 

 51 

 

 46 

 45 

Total other short-term receivables

 

 4,942 

 5,555 

 

 4,505 

 4,919 

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

 

Note 12  Accrued income and prepaid expenses

 

 

USD million

 

CHF million

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Accrued interest income

 

 703 

 754 

 

 641 

 668 

Other accrued income and prepaid expenses

 

 224 

 193 

 

 204 

 171 

Total accrued income and prepaid expenses

 

 927 

 947 

 

 845 

 839 

 

10 


 

 

Note 13  Investments in subsidiaries

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

 

Individually significant subsidiaries of UBS Group AG as of 31 December 2021

 

 

 

Company

Registered office

 

Share capital in million

Equity interest accumulated in %

UBS AG

Zurich and Basel, Switzerland

 

CHF

 385.8 

 100.0 

UBS Business Solutions AG1

Zurich, Switzerland

 

CHF

 1.0 

 100.0 

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

 

 

 

 

 

 

Individually significant subsidiaries of UBS AG as of 31 December 20211

 

 

 

Company

Registered office

Primary business

Share capital in million

Equity interest accumulated in %

UBS Americas Holding LLC

Wilmington, Delaware, USA

Group Functions

USD

 4,150.02

 100.0 

UBS Americas Inc.

Wilmington, Delaware, USA

Group Functions

USD

 0.0 

 100.0 

UBS Asset Management AG

Zurich, Switzerland

Asset Management

CHF

 43.2 

 100.0 

UBS Bank USA

Salt Lake City, Utah, USA

Global Wealth Management

USD

 0.0 

 100.0 

UBS Europe SE

Frankfurt, Germany

Global Wealth Management

EUR

 446.0 

 100.0 

UBS Financial Services Inc.

Wilmington, Delaware, USA

Global Wealth Management

USD

 0.0 

 100.0 

UBS Securities LLC

Wilmington, Delaware, USA

Investment Bank

USD

 1,283.13

 100.0 

UBS Switzerland AG

Zurich, Switzerland

Personal & Corporate Banking

CHF

 10.0 

 100.0 

1 Includes direct and indirect subsidiaries of UBS AG.    2 Consists of common share capital of USD 1,000 and non-voting preferred share capital of USD 4,150,000,000.    3 Consists of common share capital of USD 100,000 and non-voting preferred share capital of USD 1,283,000,000.

 

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

    Refer to Note 29 in the “Consolidated financial statements” section of this report for more information

 

Note 14  Financial assets

 

 

USD million

 

CHF million

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Long-term receivables from UBS AG

 

 55,763 

 49,554 

 

 50,837 

 43,882 

of which: onward lending1

 

 54,781 

 48,598 

 

 49,942 

 43,035 

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

 

 332 

 248 

 

 303 

 219 

Investments in alternative investment vehicles at cost less impairment

 

 2 

 2 

 

 2 

 2 

Other

 

 253 

 258 

 

 230 

 229 

Total financial assets

 

 56,350 

 50,062 

 

 51,373 

 44,332 

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

 

11 


UBS Group AG standalone financial statements 

 

Note 15  Current interest-bearing liabilities

As of 31 December 2021, current interest-bearing liabilities totaled USD 4,732 million (CHF 4,314 million) comprising TLAC-eligible senior unsecured debt instruments of USD 4,252 million (CHF 3,876 million) and loans from UBS AG and UBS Switzerland AG  of  USD  480  million (CHF 437 million). As  of  31  December
2020, current interest-bearing liabilities totaled USD 3,853 million (CHF 3,412 million) comprising TLAC-eligible senior unsecured debt instruments of USD 2,850 million (CHF 2,524 million) and loans from UBS AG and UBS Switzerland AG of USD 1,003 million (CHF 889 million).

 

 

Notes issued, overview by amount, maturity and coupon

 

31.12.21

 

31.12.20

 

 

 

 

 

Carrying amount

 

Carrying amount

In million, except where indicated

Contractual maturity

First optional call date

Coupon1

 

in transaction

currency

in USD

in CHF

 

in transaction

currency

in USD

in CHF

US dollar-denominated TLAC-eligible senior unsecured notes

14.4.21

n/a

3M USD LIBOR + 178 bps

 

 0 

 0 

 0 

 

 1,000 

 1,000 

 886 

US dollar-denominated TLAC-eligible senior unsecured notes

15.4.21

n/a

3%

 

 0 

 0 

 0 

 

 1,850 

 1,850 

 1,638 

US dollar-denominated TLAC-eligible senior unsecured notes

1.2.22

n/a

3M USD LIBOR + 153 bps

 

 500 

 500 

 456 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

1.2.22

n/a

2.65%

 

 2,000 

 2,000 

 1,823 

 

 0 

 0 

 0 

Swiss franc-denominated TLAC-eligible senior unsecured notes

22.2.22

n/a

0.75%

 

 300 

 329 

 300 

 

 0 

 0 

 0 

Euro-denominated TLAC-eligible senior unsecured notes

16.11.22

n/a

1.75%

 

 1,250 

 1,423 

 1,297 

 

 0 

 0 

 0 

Total notes issued

 

 

 

 

 

 4,252 

 3,876 

 

 

 2,850 

 2,524 

1 For TLAC-eligible senior unsecured notes, the disclosed coupon rate refers to the contractual coupon rate applied from the issue date up to the contractual maturity date or, if applicable, to the first optional call date.

 

 

Note 16  Accrued expenses and deferred income

 

 

USD million

 

CHF million

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Short-term portion of compensation liabilities

 

 1,157 

 1,312 

 

 1,054 

 1,162 

of which: Deferred Contingent Capital Plan

 

 384 

 518 

 

 350 

 458 

of which: other deferred compensation plans

 

 773 

 794 

 

 705 

 703 

Accrued interest expense

 

 664 

 728 

 

 606 

 644 

Other

 

 25 

 57 

 

 23 

 51 

Total accrued expenses and deferred income

 

 1,846 

 2,097 

 

 1,683 

 1,857 

 

12 


 

 

Note 17  Long-term interest-bearing liabilities

As of 31 December 2021, long-term interest-bearing liabilities totaled USD 55,034 million (CHF 50,172 million) comprising loss-absorbing AT1 perpetual capital notes and TLAC-eligible senior unsecured debt instruments of USD 54,781 million (CHF 49,942 million) and fixed-term loans from UBS AG of USD 253 million (CHF 230 million). As of 31 December 2020, long-term interest-bearing liabilities totaled USD 50,993 million (CHF 45,156 million) comprising loss-absorbing AT1 perpetual capital notes and TLAC-eligible senior unsecured debt instruments of USD 50,735 million (CHF 44,927 million) and fixed-term loans from UBS AG of USD  258 million (CHF 229 million).

 

Notes issued, overview by amount, maturity and coupon

 

31.12.21

 

31.12.20

 

 

 

 

Carrying amount

 

Carrying amount

In million, except where indicated

Contractual maturity

First optional call date

Coupon1

 

in transaction

currency

in USD

in CHF

 

in transaction

currency

in USD

in CHF

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

Perpetual

22.3.21

6.875%

 

 0 

 0 

 0 

 

 1,500 

 1,500 

 1,328 

US dollar-denominated high-trigger loss-absorbing additional tier 1 perpetual capital notes3

Perpetual

10.8.21

7.125%

 

 0 

 0 

 0 

 

 1,100 

 1,100 

 974 

Euro-denominated TLAC-eligible senior unsecured notes4

20.9.22

20.9.21

3M EUR LIBOR + 70 bps

 

 0 

 0 

 0 

 

 1,750 

 2,137 

 1,892 

US dollar-denominated TLAC-eligible senior unsecured notes

1.2.22

n/a

3M USD LIBOR + 153 bps

 

 0 

 0 

 0 

 

 500 

 500 

 443 

US dollar-denominated TLAC-eligible senior unsecured notes

1.2.22

n/a

2.65%

 

 0 

 0 

 0 

 

 2,000 

 2,000 

 1,771 

Swiss franc-denominated TLAC-eligible senior unsecured notes

22.2.22

n/a

0.75%

 

 0 

 0 

 0 

 

 300 

 339 

 300 

Euro-denominated TLAC-eligible senior unsecured notes

16.11.22

n/a

1.75%

 

 0 

 0 

 0 

 

 1,250 

 1,526 

 1,352 

US dollar-denominated TLAC-eligible senior unsecured notes

23.5.23

23.5.22

3.491%

 

 2,000 

 2,000 

 1,823 

 

 2,000 

 2,000 

 1,771 

US dollar-denominated TLAC-eligible senior unsecured notes

23.5.23

23.5.22

3M USD LIBOR + 122 bps

 

 1,000 

 1,000 

 912 

 

 1,000 

 1,000 

 886 

US dollar-denominated TLAC-eligible senior unsecured notes

15.8.23

15.8.22

3M USD LIBOR + 95 bps

 

 1,250 

 1,250 

 1,140 

 

 1,250 

 1,250 

 1,107 

US dollar-denominated TLAC-eligible senior unsecured notes

15.8.23

15.8.22

2.859%

 

 2,000 

 2,000 

 1,823 

 

 2,000 

 2,000 

 1,771 

Euro-denominated TLAC-eligible senior unsecured notes

4.3.24

n/a

2.125%

 

 750 

 854 

 778 

 

 750 

 916 

 811 

Swiss franc-denominated TLAC-eligible senior unsecured notes

18.5.24

18.5.23

0.625%

 

 400 

 439 

 400 

 

 400 

 452 

 400 

US dollar-denominated TLAC-eligible senior unsecured notes

30.7.24

30.7.23

1.008%

 

 1,300 

 1,300 

 1,185 

 

 1,300 

 1,300 

 1,151 

Yen-denominated TLAC-eligible senior unsecured notes

8.11.24

8.11.23

0.719%

 

 130,000 

 1,130 

 1,030 

 

 130,000 

 1,259 

 1,115 

Euro-denominated TLAC-eligible senior unsecured notes

30.11.24

30.11.23

1.5%

 

 1,250 

 1,423 

 1,297 

 

 1,250 

 1,526 

 1,352 

Swiss franc-denominated TLAC-eligible senior unsecured notes

30.1.25

30.1.24

0.875%

 

 400 

 439 

 400 

 

 400 

 452 

 400 

Euro-denominated TLAC-eligible senior unsecured notes

17.4.25

17.4.24

1.25%

 

 1,750 

 1,992 

 1,816 

 

 1,750 

 2,137 

 1,892 

US dollar-denominated TLAC-eligible senior unsecured notes

24.9.25

n/a

4.125%

 

 2,500 

 2,500 

 2,279 

 

 2,500 

 2,500 

 2,214 

Euro-denominated TLAC-eligible senior unsecured notes

29.1.26

29.1.25

0.25%

 

 1,500 

 1,708 

 1,557 

 

 1,500 

 1,832 

 1,622 

Swiss franc-denominated TLAC-eligible senior unsecured notes

23.2.26

n/a

1.25%

 

 150 

 165 

 150 

 

 150 

 169 

 150 

US dollar-denominated TLAC-eligible senior unsecured notes

15.4.26

n/a

4.125%

 

 2,000 

 2,000 

 1,823 

 

 2,000 

 2,000 

 1,771 

Euro-denominated TLAC-eligible senior unsecured notes

1.9.26

n/a

1.25%

 

 1,250 

 1,423 

 1,297 

 

 1,250 

 1,526 

 1,352 

Euro-denominated TLAC-eligible senior unsecured notes

3.11.26

3.11.25

0.25%

 

 1,250 

 1,423 

 1,297 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

30.1.27

30.1.26

1.364%

 

 1,300 

 1,300 

 1,185 

 

 1,300 

 1,300 

 1,151 

US dollar-denominated TLAC-eligible senior unsecured notes

10.8.27

10.8.26

1.494%

 

 2,000 

 2,000 

 1,823 

 

 0 

 0 

 0 

 

13 


UBS Group AG standalone financial statements 

 

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

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

 

31.12.21

 

31.12.20

 

 

 

 

Carrying amount

 

Carrying amount

In million, except where indicated

Contractual maturity

First optional call date

Coupon1

 

in transaction

currency

in USD

in CHF

 

in transaction

currency

in USD

in CHF

Euro-denominated TLAC-eligible senior unsecured notes

24.2.28

n/a

0.25%

 

 1,000 

 1,138 

 1,038 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

23.3.28

23.3.27

4.253%

 

 2,000 

 2,000 

 1,823 

 

 2,000 

 2,000 

 1,771 

Euro-denominated TLAC-eligible senior unsecured notes

5.11.28

5.11.27

0.25%

 

 1,500 

 1,708 

 1,557 

 

 1,500 

 1,832 

 1,622 

Yen-denominated TLAC-eligible senior unsecured notes

9.11.28

9.11.27

0.973%

 

 20,000 

 174 

 158 

 

 20,000 

 194 

 171 

Swiss franc-denominated TLAC-eligible senior unsecured notes

9.11.28

9.11.27

0.435%

 

 440 

 483 

 440 

 

 0 

 0 

 0 

Swiss franc-denominated TLAC-eligible senior unsecured notes

24.8.29

24.8.28

0.375%

 

 360 

 395 

 360 

 

 0 

 0 

 0 

GB pound-denominated TLAC-eligible senior unsecured notes

3.11.29

3.11.28

1.875%

 

 400 

 541 

 494 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

13.8.30

13.8.29

3.126%

 

 1,500 

 1,500 

 1,368 

 

 1,500 

 1,500 

 1,328 

Euro-denominated TLAC-eligible senior unsecured notes

3.11.31

n/a

0.875%

 

 1,250 

 1,423 

 1,297 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

11.2.32

11.2.31

2.095%

 

 2,000 

 2,000 

 1,823 

 

 0 

 0 

 0 

Euro-denominated TLAC-eligible senior unsecured notes

24.2.33

n/a

0.625%

 

 1,250 

 1,423 

 1,297 

 

 0 

 0 

 0 

Australian dollar-denominated TLAC-eligible senior unsecured notes

18.8.35

18.8.30

Zero coupon accreting (annual yield of 2.5%)

 

 37 

 27 

 25 

 

 36 

 28 

 25 

US dollar-denominated TLAC-eligible senior unsecured notes

24.11.35

24.11.23

2.21%

 

 40 

 40 

 36 

 

 40 

 40 

 35 

Australian dollar-denominated TLAC-eligible senior unsecured notes

3.12.35

3.12.23

2.3%

 

 45 

 33 

 30 

 

 45 

 35 

 31 

US dollar-denominated TLAC-eligible senior unsecured notes

25.2.36

25.2.24

2.37%

 

 25 

 25 

 23 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

4.3.36

4.3.24

2.49%

 

 40 

 40 

 36 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

4.11.49

4.11.22

Zero coupon accreting (annual yield of 3.8%)

 

 152 

 152 

 138 

 

 146 

 146 

 129 

US dollar-denominated TLAC-eligible senior unsecured notes

4.3.50

4.3.25

Zero coupon accreting (annual yield of 3.6%)

 

 128 

 128 

 117 

 

 124 

 124 

 109 

US dollar-denominated TLAC-eligible senior unsecured notes

14.4.50

14.4.25

Zero coupon accreting (annual yield of 4%)

 

 214 

 214 

 195 

 

 206 

 206 

 182 

US dollar-denominated TLAC-eligible senior unsecured notes

22.5.50

22.5.25

Zero coupon accreting (annual yield of 3.5%)

 

 106 

 106 

 96 

 

 102 

 102 

 90 

US dollar-denominated TLAC-eligible senior unsecured notes

27.5.50

27.5.25

Zero coupon accreting (annual yield of 3.5%)

 

 528 

 528 

 482 

 

 510 

 510 

 452 

US dollar-denominated TLAC-eligible senior unsecured notes

22.9.50

22.9.23

Zero coupon accreting (annual yield of 2.8%)

 

 57 

 57 

 52 

 

 55 

 55 

 49 

US dollar-denominated TLAC-eligible senior unsecured notes

12.1.51

12.1.26

Zero coupon accreting (annual yield of 2.7%)

 

 103 

 103 

 94 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

29.1.51

29.1.26

Zero coupon accreting (annual yield of 2.8%)

 

 338 

 338 

 309 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

26.2.51

26.2.26

Zero coupon accreting (annual yield of 3%)

 

 174 

 174 

 159 

 

 0 

 0 

 0 

Australian dollar-denominated TLAC-eligible senior unsecured notes

26.2.51

26.2.26

Zero coupon accreting (annual yield of 3.01%)

 

 92 

 67 

 61 

 

 0 

 0 

 0 

US dollar-denominated TLAC-eligible senior unsecured notes

26.5.51

26.5.26

Zero coupon accreting (annual yield of 3.5%)

 

 271 

 271 

 247 

 

 0 

 0 

 0 

Euro-denominated low-trigger loss-absorbing additional tier 1 perpetual capital notes5

Perpetual

19.2.22

5.75%

 

 1,000 

 1,138 

 1,038 

 

 1,000 

 1,221 

 1,081 

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

Perpetual

31.1.23

5%

 

 2,000 

 2,000 

 1,823 

 

 2,000 

 2,000 

 1,771 

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

Perpetual

28.11.23

5.875%

 

 700 

 519 

 473 

 

 700 

 529 

 469 

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

Perpetual

31.1.24

7%

 

 2,500 

 2,500 

 2,279 

 

 2,500 

 2,500 

 2,214 

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

Perpetual

27.8.24

4.375%

 

 700 

 509 

 464 

 

 700 

 540 

 478 

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

Perpetual

4.9.24

4.85%

 

 750 

 556 

 507 

 

 750 

 567 

 502 

 

14 


 

 

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

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

 

31.12.21

 

31.12.20

 

 

 

 

Carrying amount

 

Carrying amount

In million, except where indicated

Contractual maturity

First optional call date

Coupon1

 

in transaction

currency

in USD

in CHF

 

in transaction

currency

in USD

in CHF

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

Perpetual

19.2.25

7%

 

 1,250 

 1,250 

 1,140 

 

 1,250 

 1,250 

 1,107 

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

Perpetual

7.8.25

6.875%

 

 1,575 

 1,575 

 1,436 

 

 1,575 

 1,575 

 1,395 

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

Perpetual

13.11.25

3%

 

 275 

 302 

 275 

 

 275 

 311 

 275 

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

Perpetual

2.6.26

3.875%

 

 750 

 750 

 684 

 

 0 

 0 

 0 

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

Perpetual

29.7.26

5.125%

 

 750 

 750 

 684 

 

 750 

 750 

 664 

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

Perpetual

10.2.31

4.375%

 

 1,500 

 1,500 

 1,368 

 

 0 

 0 

 0 

Total notes issued

 

 

 

 

 

 54,781 

 49,942 

 

 

 50,735 

 44,927 

1 For TLAC-eligible senior unsecured notes, the disclosed coupon rate refers to the contractual coupon rate applied from the issue date up to the contractual maturity date or, if applicable, to the first optional call date. For the loss-absorbing additional tier 1 perpetual capital notes, the disclosed coupon rate refers to the contractual fixed coupon rate from the issue date up to the first optional call date.    2 Instrument was redeemed on 22 March 2021.    3 Instrument was redeemed on 10 August 2021.    4 Instrument was redeemed on 20 September 2021.    5 Instrument was called on 13 January 2022.

 

 

Note 18  Compensation-related long-term liabilities

 

 

USD million

 

CHF million

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Long-term portion of compensation liabilities

 

 3,116 

 3,128 

 

 2,841 

 2,770 

of which: Deferred Contingent Capital Plan

 

 1,231 

 1,326 

 

 1,122 

 1,174 

of which: other deferred compensation plans

 

 1,885 

 1,802 

 

 1,719 

 1,595 

Total compensation-related long-term liabilities

 

 3,116 

 3,128 

 

 2,841 

 2,770 

 

Note 19  Share capital

As of 31 December 2021, the issued share capital consisted of 3,702,422,995 (31 December 2020: 3,859,055,395) registered shares with a nominal value of CHF 0.10 each. In 2021, as approved by the Annual General Meeting held on 8 April 2021, the cancellation of 156,632,400 shares, each with a nominal value  of  CHF  0.10,  purchased   under   the   2018–2021  share
repurchase program, was executed. Share capital has been reduced by the nominal value of the repurchased shares upon cancellation, i.e., USD 16 million (CHF 16 million).

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

 

 

15 


UBS Group AG standalone financial statements 

Note 20  Treasury shares

 

Number of registered shares

Average price in USD

Average price in CHF

Balance as of 31 December 2019

 243,021,296 

 13.57 

 13.35 

of which: treasury shares held by UBS Group AG

 242,930,084 

 13.57 

 13.35 

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

 91,212 

 12.65 

 12.75 

Acquisitions

 128,372,257 

 12.27 

 11.53 

Disposals

 (10,188,059) 

 11.12 

 9.85 

Delivery of shares to settle equity-settled awards

 (53,728,492) 

 13.40 

 12.85 

Balance as of 31 December 2020

 307,477,002 

 13.14 

 12.80 

of which: treasury shares held by UBS Group AG1

 306,114,513 

 13.13 

 12.80 

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

 1,362,490 

 14.13 

 12.62 

Acquisitions

 214,650,175 

 16.34 

 15.06 

Disposals

 (4,015,711) 

 14.95 

 13.63 

Cancellation2

 (156,632,400) 

 13.05 

 12.78 

Delivery of shares to settle equity-settled awards

 (58,283,738) 

 13.55 

 12.75 

Balance as of 31 December 2021

 303,195,328 

 15.35 

 14.41 

of which: treasury shares held by UBS Group AG1

 301,812,111 

 15.34 

 14.40 

of which: treasury shares held by UBS AG

 1,383,217 

 17.87 

 16.03 

1 Treasury shares held by UBS Group AG had a carrying value of USD 4,629 million (CHF 4,345 million) as of 31 December 2021 (31 December 2020: USD 4,020 million (CHF 3,917 million)). Shares repurchased under our 2021 share repurchase program are expected to be canceled by means of a capital reduction, whereby the capital contribution reserve within the statutory capital reserve is expected to be reduced by USD 1,242 million (CHF 1,139 million, based on purchase price). Refer to “UBS shares” in the “Capital, liquidity and funding, and balance sheet” section of this report for more information.    2 In 2021, as approved by the Annual General Meeting held on 8 April 2021, the cancellation of 156,632,400 shares, each with a nominal value of CHF 0.10, purchased under the 2018–2021 share repurchase program, was executed. Refer to Note 1 for more information.

 

  

16 


 

Additional information

Note 21  Assets pledged to secure own liabilities

As of 31 December 2021, total pledged assets of UBS Group AG amounted to USD 3,476 million (CHF 3,169 million). These assets consisted of certain liquid assets, marketable securities and financial assets and were pledged to UBS AG. As of 31 December 2020, total pledged assets of UBS Group AG amounted to USD 2,623 million (CHF 2,323 million). The associated liabilities secured by these pledged assets were USD 676 million (CHF 617 million) and USD 1,208 million (CHF 1,070 million) as of 31 December 2021 and 31 December 2020, respectively.

 

Note 22  Contingent liabilities

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

 

Note 23  Significant shareholders

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

% of share capital

31.12.21

31.12.20

Chase Nominees Ltd., London2

 8.89 

 10.39 

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

 5.78 

 4.99 

Nortrust Nominees Ltd., London2

 4.80 

 5.15 

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

 

General rules

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

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

Shareholders subject to FMIA disclosure notifications

According to the mandatory FMIA disclosure notifications filed with UBS Group AG and SIX, as of 31 December 2021, the following entities held more than 3% of the total share capital of UBS Group AG: Massachusetts Financial Services Company, Boston, which disclosed a holding of 3.01% on 22 June 2021; Artisan Partners Limited Partnership, Milwaukee, which disclosed a holding of 3.15% on 18 November 2020; BlackRock Inc., New York, which disclosed a holding of 4.70% on 26 May 2020; and Norges Bank, Oslo, which disclosed a holding of 3.01% on 24 July 2019. As registration in the UBS share register is optional, shareholders crossing the aforementioned thresholds requiring SIX notification under the FMIA do not necessarily appear in the table above.

On 24 January 2022, Dodge & Cox International Stock Fund, San Francisco, disclosed a holding of 3.02% of the total share capital of UBS Group AG. No new disclosures of significant shareholdings have been made since that date.

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

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

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

As a supplement to the mandatory disclosure requirements according to the SIX Swiss Exchange Corporate Governance Directive, the shareholders (acting in their own name or in their capacity as nominees for other investors or beneficial owners) that were registered in the UBS share register with 3% or more of the total share capital of UBS Group AG as of 31 December 2021 or as of 31 December 2020 are listed in the table above.

Cross-shareholdings

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

17 


UBS Group AG standalone financial statements 

 

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

Shares awarded

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended 31.12.21

 

For the year ended 31.12.20

 

 

Number of shares

 

Value of shares in USD million1

Value of shares in CHF million1

 

Number of shares

 

Value of shares in USD million1

Value of shares in CHF million1

Awarded to members of the BoD

 

 361,853 

 

 5 

 5 

 

 457,362 

 

 7 

 6 

Awarded to members of the GEB

 

 5,194,307 

 

 76 

 69 

 

 5,192,391 

 

 56 

 50 

Awarded to other UBS Group employees

 

 63,527,242 

 

 928 

 846 

 

 67,057,766 

 

 723 

 640 

Total

 

 69,083,402 

 

 1,010 

 921 

 

 72,707,519 

 

 786 

 696 

1 Shares awarded to members of the BoD were valued at CHF 13.81 for the year ended 31 December 2021 and CHF 12.92 for the year ended 31 December 2020 (average closing price of UBS shares over the last 10 trading days leading up to and including the grant date). Shares awarded to members of the GEB and other UBS Group employees were valued at weighted average grant date fair value (USD 14.61 for the year ended 31 December 2021 and USD 10.79 for the year ended 31 December 2020). Prior period has been amended to ensure comparability. For illustrative purposes, the value of the shares was converted at closing exchange rate as of 31 December 2021 (CHF / USD 1.10) and 31 December 2020 (CHF / USD 1.13), accordingly.

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

 

 

Number of shares of BoD members1

Name, function

on 31 December

Number of shares held

Voting rights in %

Axel A. Weber, Chairman

2021

 1,148,369 

 0.071 

2020

 1,046,994 

 0.062 

Jeremy Anderson, Vice Chairman and Senior Independent Director

2021

 97,518 

 0.006 

2020

 66,744 

 0.004 

Claudia Böckstiegel, member2

2021

 0 

 0.000 

2020

-

-

William C. Dudley, member

2021

 49,714 

 0.003 

2020

 26,181 

 0.002 

Patrick Firmenich, member2

2021

 0 

 0.000 

2020

-

-

Reto Francioni, member

2021

 139,609 

 0.009 

2020

 154,086 

 0.009 

Fred Hu, member

2021

 74,481 

 0.005 

2020

 42,428 

 0.003 

Mark Hughes, member

2021

 30,263 

 0.002 

2020

 4,920 

 0.000 

Nathalie Rachou, member

2021

 18,102 

 0.001 

2020

 0 

 0.000 

Julie G. Richardson, member

2021

 117,365 

 0.007 

2020

 88,401 

 0.005 

Beatrice Weder di Mauro, former member2

2021

-

-

2020

 198,578 

 0.012 

Dieter Wemmer, member

2021

 114,086 

 0.007 

2020

 88,743 

 0.005 

Jeanette Wong, member

2021

 68,452 

 0.004 

2020

 33,722 

 0.002 

Total

2021

 1,857,959 

 0.116 

2020

 1,750,797 

 0.104 

1 Includes blocked and unblocked shares held by BoD members, including those held by related parties. No options were granted in 2021 and 2020.    2 At the 2021 AGM, Claudia Böckstiegel and Patrick Firmenich were newly elected and Beatrice Weder di Mauro did not stand for re-election.

 

18 


 

 

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

Share ownership / entitlements of GEB members1

Name, function

on

31 December

Number of

unvested

shares / at risk2

Number of

vested shares

Total number of shares

Potentially

conferred

voting

rights in %

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

2021

 122,453 

 2,673 

 125,126 

 0.008 

2020

 14,841 

 0 

 14,841 

 0.001 

Christian Bluhm, Group Chief Risk Officer

2021

 654,579 

 226 

 654,805 

 0.041 

2020

 582,787 

 218 

 583,005 

 0.035 

Mike Dargan, Group Chief Digital and Information Officer

2021

 240,343 

 82,743 

 323,086 

 0.020 

2020

-

-

-

-

Markus U. Diethelm, former Group General Counsel

2021

-

-

-

-

2020

 706,845 

 617,858 

 1,324,703 

 0.079 

Kirt Gardner, Group Chief Financial Officer

2021

 780,640 

 236,421 

 1,017,061 

 0.063 

2020

 696,500 

 165,223 

 861,723 

 0.051 

Suni Harford, President Asset Management

2021

 636,122 

 22,199 

 658,321 

 0.041 

2020

 352,329 

 0 

 352,329 

 0.021 

Robert Karofsky, President Investment Bank

2021

 851,520 

 357,064 

 1,208,584 

 0.075 

2020

 627,748 

 357,621 

 985,369 

 0.059 

Sabine Keller-Busse, President Personal & Corporate Banking and President UBS Switzerland

2021

 798,457 

 421,491 

 1,219,948 

 0.076 

2020

 639,087 

 349,834 

 988,921 

 0.059 

Iqbal Khan, Co-President Global Wealth Management and President EMEA

2021

 898,111 

 113,715 

 1,011,826 

 0.063 

2020

 742,546 

 68,253 

 810,799 

 0.048 

Edmund Koh, President Asia Pacific

2021

 501,322 

 493,977 

 995,299 

 0.062 

2020

 421,930 

 337,062 

 758,992 

 0.045 

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

2021

-

-

-

-

2020

 690,537 

 331,677 

 1,022,214 

 0.061 

Barbara Levi, Group General Counsel

2021

 430,732 

 0 

 430,732 

 0.027 

2020

-

-

-

-

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

2021

 1,374,044 

 950,682 

 2,324,726 

 0.145 

2020

 1,383,854 

 770,780 

 2,154,634 

 0.128 

Piero Novelli, former Co-President Investment Bank

2021

-

-

-

-

2020

 660,240 

 408,897 

 1,069,137 

 0.064 

Markus Ronner, Group Chief Compliance and Governance Officer

2021

 418,452 

 57,856 

 476,308 

 0.030 

2020

 302,584 

 130,097 

 432,681 

 0.026 

Total

2021

 7,706,776 

 2,739,047 

 10,445,823 

 0.650 

2020

 7,821,828 

 3,537,520 

 11,359,348 

 0.675 

1 Includes all vested and unvested shares of GEB members, including those held by related parties. No options were held in 2021 and 2020 by any GEB member or any of its related parties. Refer to “Note 28 Employee benefits: variable compensation” in the “Consolidated financial statements” section of our Annual Report 2021 for more information.    2 Includes shares granted under variable compensation plans with forfeiture provisions. LTIP values reflect the fair value awarded at grant. The actual number of shares vesting in the future will be calculated under the terms of the plans. Refer to the “Group compensation” section of this report for more information about the plans.

 

Note 25  Related parties

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

 

 

 

USD million

 

CHF million

 

 

31.12.21

31.12.20

 

31.12.21

31.12.20

Payables due to the members of the GEB

 

 129 

 155 

 

 118 

 138 

of which: Deferred Contingent Capital Plan

 

 57 

 69 

 

 52 

 62 

of which: other deferred compensation plans

 

 72 

 86 

 

 66 

 76 

Payables due to external auditors

 

 0 

 0 

 

 0 

 0 

 

 

 

 

 

 

 

p

  

19 


 

20 


 

21 


 

 

 

 

 

Zurich, 07 March 2022

 

 

 

Consent of Independent Registered Public Accounting Firm

 

We consent to the incorporation by reference in each of the following registration statements of UBS Group AG, UBS AG and their affiliates:

 

(1)     on Form F-3 (Registration Number 333-253432), and each related prospectus currently outstanding under such registration statement,

(2)     on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; 333-200665; 333-215254; 333-215255; 333-228653; 333-230312; 333-249143), and each related prospectus currently outstanding under any of the aforementioned registration statements,

(3)     the base prospectus of Corporate Asset Backed Corporation (CABCO) dated 23 June 2004 (Registration Number 333-111572),

(4)     the Form 8-K of CABCO dated 23 June 2004 (SEC File Number 001-13444), and

(5)     the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated 10 May 2004 (Registration Number 033-91744) and 17 May 2004 (Registration Number 033-91744-05),   

 

of our report dated 04 March 2022, with respect to the standalone financial statements of UBS Group AG for the year ended 31 December 2021 included in this Report of Foreign Private Issuer (Form 6-K) dated 07 March 2022, filed with the Securities and Exchange Commission.

 

 

 

 

 

 

 

 

 

/s/ Ernst & Young Ltd

 

 

 

 

 

 

 

 

 

22 


 

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 333-253432), and of UBS Group AG on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641; 333-200665; 333-215254; 333-215255; 333-228653; 333-230312; and 333-249143), and into each prospectus outstanding under any of the foregoing registration statements, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that incorporates by reference any Form 6-K’s of UBS AG that are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and 033-91744-05). 

 


 

SIGNATURES

 

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

 

 

UBS Group AG

 

 

By: _/s/ Christopher Castello_______ 

      Name: Christopher Castello

      Title: Group Controller and

            Chief Accounting Officer

 

 

By: _/s/ David Kelly _____________

Name:  David Kelly

Title:    Managing Director

 

 

 

UBS AG

 

 

 

By: _/s/ Christopher Castello_______ 

      Name: Christopher Castello

      Title:   Controller and Chief

                 Accounting Officer

 

 

By: _/s/ David Kelly _____________

Name:  David Kelly

Title:    Managing Director

 

 

Date:  March 7, 2022