ubsag6k1q22

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

First quarter 2022 report

UBS AG consolidated key figures

UBS AG consolidated key figures
	As of or for the quarter ended
USD million, except where indicated	31.3.22	31.12.21	31.3.21
Results
Operating income	9,475	8,846	8,836
Operating expenses	6,916	7,227	6,684
Operating profit / (loss) before tax	2,559	1,619	2,151
Net profit / (loss) attributable to shareholders	2,004	1,255	1,710
Profitability and growth
Return on equity (%)	13.8	8.7	11.9
Return on tangible equity (%)	15.5	9.8	13.4
Return on common equity tier 1 capital (%)	19.3	12.1	17.8
Return on risk-weighted assets, gross (%)	12.5	11.8	12.3
Return on leverage ratio denominator, gross (%)	3.5	3.3	3.4
Cost / income ratio (%)	72.8	81.9	75.9
Net profit growth (%)	17.2	(19.7)	20.3
Resources
Total assets	1,139,876	1,116,145	1,109,234
Equity attributable to shareholders	57,962	58,102	57,446
Common equity tier 1 capital¹	41,577	41,594	38,826
Risk-weighted assets¹	309,374	299,005	285,119
Common equity tier 1 capital ratio (%)¹	13.4	13.9	13.6
Going concern capital ratio (%)¹	18.1	18.5	18.7
Total loss-absorbing capacity ratio (%)¹	33.1	33.3	34.2
Leverage ratio denominator¹	1,072,766	1,067,679	1,039,736
Common equity tier 1 leverage ratio (%)¹	3.88	3.90	3.73
Going concern leverage ratio (%)¹	5.2	5.2	5.1
Total loss-absorbing capacity leverage ratio (%)¹	9.6	9.3	9.4
Other
Invested assets (USD billion)²	4,380	4,596	4,306
Personnel (full-time equivalents)	47,139	47,067	47,592
1 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the “Capital management” section of this report for more information. 2 Consists of invested assets for Global Wealth Management, Asset Management and Personal & Corporate Banking. Refer to “Note 32 Invested assets and net new money” in the “Consolidated financial statements” section of our Annual Report 2021 for more information.

Alternative performance measures

An alternative performance measure (an APM) is a financial measure of historical or future financial performance, financial position or cash flows other than a financial measure defined or specified in the applicable recognized accounting standards or in other applicable regulations. We report a number of APMs in our external reports (annual, quarterly and other reports). We use APMs to provide a more complete picture of our operating performance and to reflect management’s view of the fundamental drivers of our business results. A definition of each APM, the method used to calculate it and the information content are presented under “Alternative performance measures” in the appendix to this report. Our APMs may qualify as non-GAAP measures as defined by US Securities and Exchange Commission (SEC) regulations.

Introduction

Overview

UBS Group AG is the holding company for the UBS Group and the parent company of UBS AG. UBS Group AG holds 100% of the issued shares in UBS AG. Financial information for UBS AG consolidated does not differ materially from that for UBS Group AG consolidated.

This report includes risk and capital management information for UBS AG consolidated and the interim consolidated financial statements for the quarter ended 31 March 2022. Regulatory information for UBS AG standalone is provided in the 31 March 2022 Pillar 3 report, available under “Pillar 3 disclosures” at ubs.com/investors.

› Refer to the UBS Group first quarter 2022 report, available under “Quarterly reporting” at ubs.com/investors, for more information

Comparison between UBS Group AG consolidated and UBS AG consolidated

The table on the following page contains a comparison of selected financial and capital information between UBS Group AG consolidated and UBS AG consolidated.

The accounting policies applied under International Financial Reporting Standards (IFRS) to both the UBS Group AG and the UBS AG consolidated financial statements are identical. However, there are certain scope and presentation differences as noted below.

– Assets, liabilities, operating income, operating expenses and tax expenses / (benefits) relating to UBS Group AG and its directly held subsidiaries, including UBS Business Solutions AG, are reflected in the consolidated financial statements of UBS Group AG but not of UBS AG. UBS AG’s assets, liabilities, operating income and operating expenses related to transactions with UBS Group AG and its directly held subsidiaries, including UBS Business Solutions AG and other shared services subsidiaries, are not subject to elimination in the UBS AG consolidated financial statements, but are eliminated in the UBS Group AG consolidated financial statements.

– Differences in net profit between UBS Group AG consolidated and UBS AG consolidated mainly arise as UBS Business Solutions AG and other shared services subsidiaries of UBS Group AG charge other legal entities within the UBS AG consolidation scope for services provided, including a markup on costs incurred. In addition, and to a lesser extent, differences arise as a result of certain compensation-related matters, including pensions.

– The equity of UBS Group AG consolidated was USD 0.9 billion higher than the equity of UBS AG consolidated as of 31 March 2022. This difference was mainly driven by higher dividends paid by UBS AG to UBS Group AG compared with the dividend distributions of UBS Group AG, as well as higher retained earnings in the UBS Group AG consolidated financial statements, largely related to the aforementioned markup charged by shared services subsidiaries of UBS Group AG to other legal entities in the UBS AG scope of consolidation. In addition, UBS Group AG is the grantor of the majority of the compensation plans of the Group and recognizes share premium for equity-settled awards granted. These effects were partly offset by treasury shares acquired as part of our share repurchase programs and those held to hedge share delivery obligations associated with Group compensation plans, as well as additional share premium recognized at the UBS AG consolidated level related to the establishment of UBS Group AG and UBS Business Solutions AG, a wholly owned subsidiary of UBS Group AG.

– The going concern capital of UBS Group AG consolidated was USD 4.1 billion higher than the going concern capital of UBS AG consolidated as of 31 March 2022, reflecting higher common equity tier 1 (CET1) capital of USD 3.0 billion and going concern loss-absorbing additional tier 1 (AT1) capital of USD 1.1 billion.

– The CET1 capital of UBS Group AG consolidated was USD 3.0 billion higher than that of UBS AG consolidated as of 31 March 2022. The higher CET1 capital of UBS Group AG consolidated was primarily due to lower UBS Group AG accruals for dividends to shareholders and higher UBS Group AG consolidated IFRS equity of USD 0.9 billion. The aforementioned factors were partly offset by compensation-related regulatory capital accruals at the UBS Group AG level.

– The going concern loss-absorbing AT1 capital of UBS Group AG consolidated was USD 1.1 billion higher than that of UBS AG consolidated as of 31 March 2022, mainly reflecting deferred contingent capital plan awards granted at the Group level to eligible employees for the performance years 2017 to 2021, partly offset by four loss-absorbing AT1 capital instruments on-lent by UBS Group AG to UBS AG.

In April 2022, UBS AG distributed a dividend of USD 4.2 billion to UBS Group AG and UBS Group AG paid the 2021 dividend of USD 1.7 billion to its shareholders. These dividends reduced the equity of UBS AG and UBS Group AG in April 2022 by USD 4.2 billion and USD 1.7 billion, respectively, and had no impact on their CET1 capital.

› Refer to “Holding company and significant regulated subsidiaries and sub-groups” under “Complementary financial information” at ubs.com/investors for an illustration of the consolidation scope differences between UBS AG and UBS Group AG

› Refer to the “Capital management” section of this report for more information about differences in the loss-absorbing capacity between UBS Group AG consolidated and UBS AG consolidated

Introduction

Comparison between UBS Group AG consolidated and UBS AG consolidated
	As of or for the quarter ended 31.3.22			As of or for the quarter ended 31.12.21
USD million, except where indicated	UBS Group AG consolidated	UBS AG consolidated	Difference (absolute)	UBS Group AG consolidated	UBS AG consolidated	Difference (absolute)

Income statement
Operating income	9,363	9,475	(112)	8,732	8,846	(114)
Operating expenses	6,634	6,916	(282)	7,003	7,227	(224)
Operating profit / (loss) before tax	2,729	2,559	170	1,729	1,619	109
of which: Global Wealth Management	*1,310*	*1,283*	27	563	541	22
of which: Personal & Corporate Banking	*428*	*420*	8	365	362	3
of which: Asset Management	*174*	*176*	(2)	334	328	6
of which: Investment Bank	*929*	*908*	21	713	710	3
of which: Group Functions	*(112)*	*(227)*	115	(246)	(321)	75
Net profit / (loss)	2,144	2,012	132	1,359	1,266	93
of which: net profit / (loss) attributable to shareholders	*2,136*	*2,004*	132	1,348	1,255	93
of which: net profit / (loss) attributable to non-controlling interests	8	8	0	11	11	0

Statement of comprehensive income
Other comprehensive income	(2,216)	(2,134)	(82)	(181)	(197)	16
of which: attributable to shareholders	*(2,234)*	*(2,152)*	(82)	(177)	(194)	16
of which: attributable to non-controlling interests	18	18	0	(4)	(4)	0
Total comprehensive income	(72)	(121)	50	1,178	1,069	109
of which: attributable to shareholders	*(98)*	*(148)*	50	1,171	1,062	109
of which: attributable to non-controlling interests	26	26	0	7	7	0

Balance sheet
Total assets	1,139,922	1,139,876	46	1,117,182	1,116,145	1,037
Total liabilities	1,080,711	1,081,558	(847)	1,056,180	1,057,702	(1,522)
Total equity	59,212	58,319	893	61,002	58,442	2,559
of which: equity attributable to shareholders	*58,855*	*57,962*	893	60,662	58,102	2,559
of which: equity attributable to non-controlling interests	*356*	*356*	0	340	340	0

Capital information
Common equity tier 1 capital	44,593	41,577	3,016	45,281	41,594	3,687
Going concern capital	60,053	55,956	4,097	60,488	55,434	5,054
Risk-weighted assets	312,037	309,374	2,664	302,209	299,005	3,204
Common equity tier 1 capital ratio (%)	14.3	13.4	0.9	15.0	13.9	1.1
Going concern capital ratio (%)	19.2	18.1	1.2	20.0	18.5	1.5
Total loss-absorbing capacity ratio (%)	34.2	33.1	1.0	34.7	33.3	1.3
Leverage ratio denominator	1,072,953	1,072,766	186	1,068,862	1,067,679	1,183
Common equity tier 1 leverage ratio (%)	4.16	3.88	0.28	4.24	3.90	0.34
Going concern leverage ratio (%)	5.6	5.2	0.4	5.7	5.2	0.5
Total loss-absorbing capacity leverage ratio (%)	9.9	9.6	0.4	9.8	9.3	0.5

Capital management

Swiss SRB going and gone concern requirements and information
As of 31.3.22	RWA		LRD
USD million, except where indicated	in %		in %
Required going concern capital
Total going concern capital	14.32¹	44,310	5.00¹	53,638
Common equity tier 1 capital	10.02	31,007	3.50²	37,547
of which: minimum capital	4.50	13,922	1.50	16,091
of which: buffer capital	5.50	17,016	2.00	21,455
of which: countercyclical buffer	0.02	70
Maximum additional tier 1 capital	4.30	13,303	1.50	16,091
of which: additional tier 1 capital	3.50	10,828	1.50	16,091
of which: additional tier 1 buffer capital	0.80	2,475

Eligible going concern capital
Total going concern capital	18.09	55,956	5.22	55,956
Common equity tier 1 capital	13.44	41,577	3.88	41,577
Total loss-absorbing additional tier 1 capital	4.65	14,379	1.34	14,379
of which: high-trigger loss-absorbing additional tier 1 capital	4.25	13,145	1.23	13,145
of which: low-trigger loss-absorbing additional tier 1 capital³	0.40	1,234	0.12	1,234

Required gone concern capital
Total gone concern loss-absorbing capacity⁴	10.76	33,299	3.78	40,585
of which: base requirement⁵	12.86	39,785	4.50	48,274
of which: additional requirement for market share and LRD	1.44	4,455	0.50	5,364
of which: applicable reduction on requirements	(3.54)	(10,942)	(1.22)	(13,054)
of which: rebate granted	(3.14)	(9,699)	(1.10)	(11,800)
of which: reduction for usage of low-trigger tier 2 capital instruments	(0.40)	(1,243)	(0.12)	(1,253)

Eligible gone concern capital
Total gone concern loss-absorbing capacity	15.04	46,520	4.34	46,520
Total tier 2 capital	0.99	3,050	0.28	3,050
of which: low-trigger loss-absorbing tier 2 capital	0.81	2,507	0.23	2,507
of which: non-Basel III-compliant tier 2 capital	0.18	543	0.05	543
TLAC-eligible senior unsecured debt	14.05	43,470	4.05	43,470

Total loss-absorbing capacity
Required total loss-absorbing capacity	25.09	77,609	8.78	94,223
Eligible total loss-absorbing capacity	33.12	102,476	9.55	102,476

Risk-weighted assets / leverage ratio denominator
Risk-weighted assets		309,374
Leverage ratio denominator				1,072,766
1 Includes applicable add-ons of 1.44% for RWA and 0.50% for LRD. 2 Our minimum CET1 leverage ratio requirement of 3.5% consists of a 1.5% base requirement, a 1.5% base buffer capital requirement, a 0.25% LRD add-on requirement and a 0.25% market share add-on requirement based on our Swiss credit business. 3 Existing outstanding low-trigger AT1 capital instruments qualify as going concern capital at the UBS AG consolidated level, as agreed with FINMA, until their first call date. As of their first call date, these instruments are eligible to meet the gone concern requirements. 4 A maximum of 25% of the gone concern requirements can be met with instruments that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 5 The gone concern requirement after the application of the rebate for resolvability measures and the reduction for the use of higher quality capital instruments is floored at 10% and 3.75% for the RWA- and LRD-based requirements, respectively. This means that the combined reduction may not exceed 4.3 percentage points for the RWA-based requirement of 14.3% and 1.25 percentage points for the LRD-based requirement of 5.0%.

Swiss SRB going and gone concern information
USD million, except where indicated	31.3.22	31.12.21

Eligible going concern capital
Total going concern capital	55,956	55,434
Total tier 1 capital	55,956	55,434
Common equity tier 1 capital	41,577	41,594
Total loss-absorbing additional tier 1 capital	14,379	13,840
of which: high-trigger loss-absorbing additional tier 1 capital	*13,145*	11,414
of which: low-trigger loss-absorbing additional tier 1 capital	*1,234*	2,426

Eligible gone concern capital
Total gone concern loss-absorbing capacity	46,520	44,264
Total tier 2 capital	3,050	3,144
of which: low-trigger loss-absorbing tier 2 capital	*2,507*	2,596
of which: non-Basel III-compliant tier 2 capital	*543*	547
TLAC-eligible senior unsecured debt	43,470	41,120

Total loss-absorbing capacity
Total loss-absorbing capacity	102,476	99,698

Risk-weighted assets / leverage ratio denominator
Risk-weighted assets	309,374	299,005
Leverage ratio denominator	1,072,766	1,067,679

Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio	18.1	18.5
of which: common equity tier 1 capital ratio	*13.4*	13.9
Gone concern loss-absorbing capacity ratio	15.0	14.8
Total loss-absorbing capacity ratio	33.1	33.3

Leverage ratios (%)
Going concern leverage ratio	5.2	5.2
of which: common equity tier 1 leverage ratio	*3.88*	3.90
Gone concern leverage ratio	4.3	4.1
Total loss-absorbing capacity leverage ratio	9.6	9.3

Capital management

UBS Group AG vs UBS AG consolidated loss-absorbing capacity and leverage ratio information

Swiss SRB going and gone concern information (UBS Group AG vs UBS AG consolidated)
As of 31.3.22
USD million, except where indicated	UBS Group AG (consolidated)	UBS AG (consolidated)	Difference

Eligible going concern capital
Total going concern capital	60,053	55,956	4,097
Total tier 1 capital	60,053	55,956	4,097
Common equity tier 1 capital	44,593	41,577	3,016
Total loss-absorbing additional tier 1 capital	15,460	14,379	1,081
of which: high-trigger loss-absorbing additional tier 1 capital	*14,223*	*13,145*	*1,078*
of which: low-trigger loss-absorbing additional tier 1 capital	*1,236*	*1,234*	2

Eligible gone concern capital
Total gone concern loss-absorbing capacity	46,520	46,520	0
Total tier 2 capital	3,050	3,050	0
of which: low-trigger loss-absorbing tier 2 capital	*2,507*	*2,507*	0
of which: non-Basel III-compliant tier 2 capital	*543*	*543*	0
TLAC-eligible senior unsecured debt	43,470	43,470	0

Total loss-absorbing capacity
Total loss-absorbing capacity	106,573	102,476	4,097

Risk-weighted assets / leverage ratio denominator
Risk-weighted assets	312,037	309,374	2,664
Leverage ratio denominator	1,072,953	1,072,766	186

Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio	19.2	18.1	1.2
of which: common equity tier 1 capital ratio	*14.3*	*13.4*	*0.9*
Gone concern loss-absorbing capacity ratio	14.9	15.0	(0.1)
Total loss-absorbing capacity ratio	34.2	33.1	1.0

Leverage ratios (%)
Going concern leverage ratio	5.6	5.2	0.4
of which: common equity tier 1 leverage ratio	*4.16*	*3.88*	*0.28*
Gone concern leverage ratio	4.3	4.3	0.0
Total loss-absorbing capacity leverage ratio	9.9	9.6	0.4

Reconciliation of IFRS equity to Swiss SRB common equity tier 1 capital (UBS Group AG vs UBS AG consolidated)
As of 31.3.22
USD million	UBS Group AG (consolidated)	UBS AG (consolidated)	Difference
Total IFRS equity	59,212	58,319	893
Equity attributable to non-controlling interests	(356)	(356)
Defined benefit plans, net of tax	(446)	(446)
Deferred tax assets recognized for tax loss carry-forwards	(4,520)	(4,520)
Deferred tax assets on temporary differences, excess over threshold	(81)	(324)	243
Goodwill, net of tax	(5,822)	(5,822)
Intangible assets, net of tax	(191)	(191)
Compensation-related components (not recognized in net profit)	(1,744)		(1,744)
Expected losses on advanced internal ratings-based portfolio less provisions	(518)	(518)
Unrealized (gains) / losses from cash flow hedges, net of tax	1,556	1,556
Own credit related to gains / losses on financial liabilities measured at fair value that existed at the balance sheet date	(114)	(114)
Own credit related to gains / losses on derivative financial instruments that existed at the balance sheet date	(84)	(84)
Unrealized gains related to financial assets at fair value through OCI, net of tax	(1)	(1)
Prudential valuation adjustments	(183)	(183)
Accruals for dividends to shareholders for 2021	(1,668)	(4,200)	2,532
Other¹	(448)	(1,539)	1,091
Total common equity tier 1 capital	44,593	41,577	3,016
1 Includes dividend accruals for the current year and other items.

UBS Group AG vs UBS AG consolidated loss-absorbing capacity and leverage ratio information

The going concern capital of UBS AG consolidated was USD 4.1 billion lower than the going concern capital of UBS Group AG consolidated as of 31 March 2022, reflecting lower common equity tier 1 (CET1) capital of USD 3.0 billion and lower going concern loss-absorbing additional tier 1 (AT1) capital of USD 1.1 billion.

The aforementioned difference in CET1 capital was primarily due to higher UBS Group AG consolidated IFRS equity of USD 0.9 billion and lower UBS Group AG dividend accruals, partly offset by compensation-related regulatory capital accruals at the UBS Group AG level.

The going concern loss-absorbing AT1 capital of UBS AG consolidated was USD 1.1 billion lower than that of UBS Group AG consolidated as of 31 March 2022, mainly reflecting deferred contingent capital plan awards granted at the Group level to eligible employees for the performance years 2017 to 2021, partly offset by four loss-absorbing AT1 capital instruments on-lent by UBS Group AG to UBS AG.

Differences in capital between UBS Group AG consolidated and UBS AG consolidated related to employee compensation plans will reverse to the extent underlying services are performed by employees of, and are consequently charged to, UBS AG and its subsidiaries. Such reversal generally occurs over the service period of the employee compensation plans.

The leverage ratio framework for UBS AG consolidated is consistent with that of UBS Group AG consolidated. As of 31 March 2022, the going concern leverage ratio of UBS AG consolidated was 0.4 percentage points lower than that of UBS Group AG consolidated, mainly because the going concern capital of UBS AG consolidated was USD 4.1 billion lower.

› Refer to the “Capital management” section of the UBS Group first quarter 2022 report, available under “Quarterly reporting” at ubs.com/investors, for information about the developments of loss-absorbing capacity, RWA and LRD for UBS Group AG consolidated

› Refer to the “Introduction” section of this report for more information about the differences in equity between UBS AG consolidated and UBS Group AG consolidated

UBS AG i nterim consolidated
financial statements (unaudited)

Income statement
		For the quarter ended
USD million	Note	31.3.22	31.12.21	31.3.21
Interest income from financial instruments measured at amortized cost and fair value through other comprehensive income	3	2,145	2,152	2,098
Interest expense from financial instruments measured at amortized cost	3	(809)	(794)	(859)
Net interest income from financial instruments measured at fair value through profit or loss	3	410	388	351
Net interest income	3	1,746	1,746	1,589
Other net income from financial instruments measured at fair value through profit or loss		2,225	1,364	1,314
Credit loss (expense) / release	8	(18)	27	28
Fee and commission income	4	5,868	6,054	6,197
Fee and commission expense	4	(485)	(513)	(478)
Net fee and commission income	4	5,384	5,541	5,719
Other income		139	169	185
Total operating income		9,475	8,846	8,836
Personnel expenses	5	4,233	3,552	4,086
General and administrative expenses	6	2,233	3,164	2,141
Depreciation, amortization and impairment of non-financial assets		449	511	457
Total operating expenses		6,916	7,227	6,684
Operating profit / (loss) before tax		2,559	1,619	2,151
Tax expense / (benefit)	7	547	353	439
Net profit / (loss)		2,012	1,266	1,713
Net profit / (loss) attributable to non-controlling interests		8	11	3
Net profit / (loss) attributable to shareholders		2,004	1,255	1,710

UBS AG interim consolidated financial statements (unaudited)

Statement of comprehensive income
	For the quarter ended
USD million	31.3.22	31.12.21	31.3.21

Comprehensive income attributable to shareholders
Net profit / (loss)	2,004	1,255	1,710
Other comprehensive income that may be reclassified to the income statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax	(465)	296	(1,407)
Effective portion of changes in fair value of hedging instruments designated as net investment hedges, before tax	212	(184)	705
Foreign currency translation differences on foreign operations reclassified to the income statement	0	0	1
Effective portion of changes in fair value of hedging instruments designated as net investment hedges reclassified to the income statement	0	3	0
Income tax relating to foreign currency translations, including the impact of net investment hedges	2	(24)	10
Subtotal foreign currency translation, net of tax	(251)	91	(691)
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax	(439)	(49)	(131)
Net realized gains / (losses) reclassified to the income statement from equity	0	0	(6)
Income tax relating to net unrealized gains / (losses)	112	13	35
Subtotal financial assets measured at fair value through other comprehensive income, net of tax	(327)	(37)	(102)
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated as cash flow hedges, before tax	(2,465)¹	(250)	(1,172)
Net (gains) / losses reclassified to the income statement from equity	(237)	(269)	(254)
Income tax relating to cash flow hedges	518	98	266
Subtotal cash flow hedges, net of tax	(2,184)	(421)	(1,160)
Cost of hedging
Cost of hedging, before tax	77	(14)	(6)
Income tax relating to cost of hedging	0	6	0
Subtotal cost of hedging, net of tax	77	(8)	(6)
Total other comprehensive income that may be reclassified to the income statement, net of tax	(2,685)	(375)	(1,958)

Other comprehensive income that will not be reclassified to the income statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax	128	153	(35)
Income tax relating to defined benefit plans	(17)	(26)	3
Subtotal defined benefit plans, net of tax	110	127	(32)
Own credit on financial liabilities designated at fair value²
Gains / (losses) from own credit on financial liabilities designated at fair value, before tax	423	55	(29)
Income tax relating to own credit on financial liabilities designated at fair value	0	0	0
Subtotal own credit on financial liabilities designated at fair value, net of tax	423	55	(29)
Total other comprehensive income that will not be reclassified to the income statement, net of tax	533	182	(61)

Total other comprehensive income	(2,152)	(194)	(2,019)
Total comprehensive income attributable to shareholders	(148)	1,062	(309)

Comprehensive income attributable to non-controlling interests
Net profit / (loss)	8	11	3
Total other comprehensive income that will not be reclassified to the income statement, net of tax	18	(4)	(12)
Total comprehensive income attributable to non-controlling interests	26	7	(9)

Total comprehensive income
Net profit / (loss)	2,012	1,266	1,713
Other comprehensive income	(2,134)	(197)	(2,032)
of which: other comprehensive income that may be reclassified to the income statement	*(2,685)*	(375)	(1,958)
of which: other comprehensive income that will not be reclassified to the income statement	*551*	178	(73)
Total comprehensive income	(121)	1,069	(319)
1 Mainly reflects net unrealized losses on US dollar hedging derivatives resulting from significant increases in the relevant US dollar long-term interest rates. 2 Refer to Note 9 for more information.

Balance sheet
USD million	Note	31.3.22	31.12.21

Assets
Cash and balances at central banks		206,773	192,817
Loans and advances to banks		17,781	15,360
Receivables from securities financing transactions		69,452	75,012
Cash collateral receivables on derivative instruments	10	39,254	30,514
Loans and advances to customers	8	393,960	398,693
Other financial assets measured at amortized cost	11	28,766	26,236
Total financial assets measured at amortized cost		755,987	738,632
Financial assets at fair value held for trading	9	114,995	131,033
of which: assets pledged as collateral that may be sold or repledged by counterparties		*40,217*	43,397
Derivative financial instruments	9,10	140,311	118,145
Brokerage receivables	9	20,762	21,839
Financial assets at fair value not held for trading	9	60,575	59,642
Total financial assets measured at fair value through profit or loss		336,643	330,659
Financial assets measured at fair value through other comprehensive income	9	9,093	8,844
Investments in associates		1,150	1,243
Property, equipment and software		11,365	11,712
Goodwill and intangible assets		6,383	6,378
Deferred tax assets		9,097	8,839
Other non-financial assets	11	10,158	9,836
Total assets		1,139,876	1,116,145

Liabilities
Amounts due to banks		16,649	13,101
Payables from securities financing transactions		7,110	5,533
Cash collateral payables on derivative instruments	10	39,609	31,801
Customer deposits		542,984	544,834
Funding from UBS Group AG		57,520	57,295
Debt issued measured at amortized cost	13	75,013	82,432
Other financial liabilities measured at amortized cost	11	10,167	9,765
Total financial liabilities measured at amortized cost		749,052	744,762
Financial liabilities at fair value held for trading	9	34,687	31,688
Derivative financial instruments	9,10	138,444	121,309
Brokerage payables designated at fair value	9	48,015	44,045
Debt issued designated at fair value	9,12	69,421	71,460
Other financial liabilities designated at fair value	9,11	32,374	32,414
Total financial liabilities measured at fair value through profit or loss		322,941	300,916
Provisions	15	3,413	3,452
Other non-financial liabilities	11	6,152	8,572
Total liabilities		1,081,558	1,057,702

Equity
Share capital		338	338
Share premium		24,660	24,653
Retained earnings		30,450	27,912
Other comprehensive income recognized directly in equity, net of tax		2,514	5,200
Equity attributable to shareholders		57,962	58,102
Equity attributable to non-controlling interests		356	340
Total equity		58,319	58,442
Total liabilities and equity		1,139,876	1,116,145

UBS AG interim consolidated financial statements (unaudited)

Statement of changes in equity
USD million	Share capital	Share premium	Retained earnings
Balance as of 1 January 2021	338	24,580	25,251
Tax (expense) / benefit		1
Dividends
Translation effects recognized directly in retained earnings			23
Share of changes in retained earnings of associates and joint ventures			2
New consolidations / (deconsolidations) and other increases / (decreases)		(1)
Total comprehensive income for the period			1,649
of which: net profit / (loss)			1,710
of which: OCI, net of tax			(61)
Balance as of 31 March 2021	338	24,579	26,926

Balance as of 1 January 2022	338	24,653	27,912
Tax (expense) / benefit		3
Dividends
Translation effects recognized directly in retained earnings			1
Share of changes in retained earnings of associates and joint ventures			0
New consolidations / (deconsolidations) and other increases / (decreases)		5
Total comprehensive income for the period			2,537
of which: net profit / (loss)			*2,004*
of which: OCI, net of tax			*533*
Balance as of 31 March 2022	338	24,660	30,450
1 Excludes other comprehensive income related to defined benefit plans and own credit that is recorded directly in Retained earnings.


Other comprehensive income recognized directly in equity, net of tax¹	of which: foreign currency translation	of which: financial assets measured at fair value through OCI	of which: cash flow hedges	of which: cost of hedging	Total equity attributable to shareholders	Non-controlling interests	Total equity
7,585	5,126	151	2,321	(13)	57,754	319	58,073
					1		1
					0	(3)	(3)
(23)		0	(23)	0	0		0
					2		2
					(1)	0	(1)
(1,958)	(691)	(102)	(1,160)	(6)	(309)	(9)	(319)
					1,710	3	1,713
(1,958)	(691)	(102)	(1,160)	(6)	(2,019)	(12)	(2,032)
5,603	4,436	49	1,138	(19)	57,446	307	57,753

5,200	*4,617*	*(7)*	*628*	*(39)*	58,102	340	58,442
					3		3
					0	(3)	(3)
(1)		0	*(1)*	0	0		0
					0		0
					5	(7)	(3)
(2,685)	*(251)*	*(327)*	*(2,184)*	77	(148)	26	(121)
					*2,004*	8	*2,012*
*(2,685)*	*(251)*	*(327)*	*(2,184)*	77	*(2,152)*	18	*(2,134)*
2,514	*4,366*	*(334)*	*(1,556)*	38	57,962	356	58,319

UBS AG interim consolidated financial statements (unaudited)

Statement of cash flows
	Year-to-date
USD million	31.3.22	31.3.21

Cash flow from / (used in) operating activities
Net profit / (loss)	2,012	1,713
Non-cash items included in net profit and other adjustments:
Depreciation, amortization and impairment of non-financial assets	449	457
Credit loss expense / (release)	0	(28)
Share of net (profit) / loss of associates and joint ventures and impairment related to associates	4	(53)
Deferred tax expense / (benefit)	212	61
Net loss / (gain) from investing activities	19	(146)
Net loss / (gain) from financing activities	(4,599)	(1,570)
Other net adjustments	1,920	6,619
Net change in operating assets and liabilities:
Loans and advances to banks and amounts due to banks	3,869	1,995
Securities financing transactions	7,011	(8,614)
Cash collateral on derivative instruments	(959)	(3,068)
Loans and advances to customers	791	(12,847)
Customer deposits	3,002	(2,661)
Financial assets and liabilities at fair value held for trading and derivative financial instruments	8,197	1,705
Brokerage receivables and payables	5,081	7,329
Financial assets at fair value not held for trading and other financial assets and liabilities	(52)	8,948
Provisions and other non-financial assets and liabilities	(1,415)	(961)
Income taxes paid, net of refunds	(644)	(201)
Net cash flow from / (used in) operating activities	24,899	(1,322)

Cash flow from / (used in) investing activities
Purchase of subsidiaries, associates and intangible assets	0	(1)
Purchase of property, equipment and software	(371)	(368)
Purchase of financial assets measured at fair value through other comprehensive income	(1,645)	(1,376)
Disposal and redemption of financial assets measured at fair value through other comprehensive income	1,092	1,412
Net (purchase) / redemption of debt securities measured at amortized cost	(2,547)	4
Net cash flow from / (used in) investing activities	(3,472)	(329)

Statement of cash flows (continued)
	Year-to-date
USD million	31.3.22	31.3.21

Cash flow from / (used in) financing activities
Net short-term debt issued / (repaid)	(5,188)	1,054
Issuance of debt designated at fair value and long-term debt measured at amortized cost¹	24,824	36,336
Repayment of debt designated at fair value and long-term debt measured at amortized cost¹	(21,201)	(22,965)
Net cash flows from other financing activities	(219)	(150)
Net cash flow from / (used in) financing activities	(1,784)	14,275

Total cash flow
Cash and cash equivalents at the beginning of the period	207,755	173,430
Net cash flow from / (used in) operating, investing and financing activities	19,644	12,624
Effects of exchange rate differences on cash and cash equivalents	(2,729)	(7,983)
Cash and cash equivalents at the end of the period²	224,669	178,071
of which: cash and balances at central banks³	*206,666*	158,769
of which: loans and advances to banks	*16,485*	17,050
of which: money market paper	*1,518*	2,252

Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash	2,889	2,758
Interest paid in cash	1,428	1,679
Dividends on equity investments, investment funds and associates received in cash	456	624
1 Includes funding from UBS Group AG measured at amortized cost (recognized in Funding from UBS Group AG on the balance sheet) and measured at fair value (recognized in Other financial liabilities designated at fair value on the balance sheet). 2 USD 4,359 million and USD 4,064 million of cash and cash equivalents (mainly reflected in Loans and advances to banks) were restricted as of 31 March 2022 and 31 March 2021, respectively. Refer to “Note 23 Restricted and transferred financial assets” in the “Consolidated financial statements” section of the Annual Report 2021 for more information. 3 Includes only balances with an original maturity of three months or less.

Note 2 Segment reporting

UBS AG’s businesses are organized globally into four business divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management and the Investment Bank. All four business divisions are supported by Group Functions and qualify as reportable segments for the purpose of segment reporting. Together with Group Functions they reflect the management structure of UBS AG.

› Refer to “Note 2 Segment reporting” in the “Consolidated financial statements” section of the Annual Report 2021 for more information about UBS AG’s reporting segments

USD million	Global Wealth Management	Personal & Corporate Banking	Asset Management	Investment Bank	Group Functions	UBS AG

For the quarter ended 31 March 2022
Net interest income	1,141	535	(4)	133	(60)	1,746
Non-interest income	3,763	552	582	2,777	74	7,748
Income	4,904	1,087	578	2,910	14	9,494
Credit loss (expense) / release	7	(23)	0	(4)	0	(18)
Total operating income	4,912	1,064	578	2,907	15	9,475
Total operating expenses	3,629	644	402	1,999	242	6,916
Operating profit / (loss) before tax	1,283	420	176	908	(227)	2,559
Tax expense / (benefit)						547
Net profit / (loss)						2,012

As of 31 March 2022
Total assets¹	407,861	231,993	22,579	381,574	95,869	1,139,876

USD million	Global Wealth Management	Personal & Corporate Banking	Asset Management	Investment Bank	Group Functions	UBS AG

For the quarter ended 31 March 2021
Net interest income	997	513	(4)	114	(31)	1,589
Non-interest income	3,848	500	641	2,161	68	7,218
Income	4,845	1,013	637	2,274	37	8,807
Credit loss (expense) / release	3	23	0	2	0	28
Total operating income	4,848	1,037	637	2,276	37	8,836
Total operating expenses	3,457	647	410	1,882	288	6,684
Operating profit / (loss) before tax	1,391	390	227	394	(251)	2,151
Tax expense / (benefit)						439
Net profit / (loss)						1,713

As of 31 December 2021
Total assets	395,235	225,425	25,202	346,641	123,641	1,116,145
1 In the first quarter of 2022, UBS AG refined the methodology applied to allocate balance sheet resources from Group Functions to the business divisions, with prospective effect. If the new methodology had been applied as of 31 December 2021, balance sheet assets allocated to business divisions would have been USD 17 billion higher, of which USD 14 billion related to the Investment Bank.

Notes to the UBS AG interim consolidated financial statements (unaudited)

Note 3 Net interest income

	For the quarter ended
USD million	31.3.22	31.12.21	31.3.21
Net interest income from financial instruments measured at amortized cost and fair value through other comprehensive income
Interest income from loans and deposits¹	1,661	1,647	1,586
Interest income from securities financing transactions²	118	120	135
Interest income from other financial instruments measured at amortized cost	72	71	73
Interest income from debt instruments measured at fair value through other comprehensive income	41	31	35
Interest income from derivative instruments designated as cash flow hedges	253	284	268
Total interest income from financial instruments measured at amortized cost and fair value through other comprehensive income	2,145	2,152	2,098
Interest expense on loans and deposits³	429	393	439
Interest expense on securities financing transactions⁴	224	252	258
Interest expense on debt issued	135	126	137
Interest expense on lease liabilities	22	23	26
Total interest expense from financial instruments measured at amortized cost	809	794	859
Total net interest income from financial instruments measured at amortized cost and fair value through other comprehensive income	1,336	1,358	1,239
Net interest income from financial instruments measured at fair value through profit or loss	410	388	351
Total net interest income	1,746	1,746	1,589
1 Consists of interest income from cash and balances at central banks, loans and advances to banks and customers, and cash collateral receivables on derivative instruments, as well as negative interest on amounts due to banks, customer deposits, and cash collateral payables on derivative instruments. 2 Includes interest income on receivables from securities financing transactions and negative interest, including fees, on payables from securities financing transactions. 3 Consists of interest expense on amounts due to banks, cash collateral payables on derivative instruments, customer deposits, and funding from UBS Group AG, as well as negative interest on cash and balances at central banks, loans and advances to banks, and cash collateral receivables on derivative instruments. 4 Includes interest expense on payables from securities financing transactions and negative interest, including fees, on receivables from securities financing transactions.

Note 4 Net fee and commission income

	For the quarter ended
USD million	31.3.22	31.12.21	31.3.21
Underwriting fees	203	346	420
M&A and corporate finance fees	237	218	238
Brokerage fees	1,078	971	1,358
Investment fund fees	1,388	1,520	1,437
Portfolio management and related services	2,463	2,535	2,284
Other	501	462	461
Total fee and commission income¹	5,868	6,054	6,197
of which: recurring	*3,860*	4,015	3,621
of which: transaction-based	*1,989*	1,940	2,482
of which: performance-based	19	99	94
Fee and commission expense	485	513	478
Net fee and commission income	5,384	5,541	5,719
1 Reflects third-party fee and commission income for the first quarter of 2022 of USD 3,637 million for Global Wealth Management (fourth quarter of 2021: USD 3,624 million; first quarter of 2021: USD 3,673 million), USD 447 million for Personal & Corporate Banking (fourth quarter of 2021: USD 427 million; first quarter of 2021: USD 389 million), USD 762 million for Asset Management (fourth quarter of 2021: USD 902 million; first quarter of 2021: USD 815 million), USD 1,018 million for the Investment Bank (fourth quarter of 2021: USD 1,095 million; first quarter of 2021: USD 1,305 million) and USD 4 million for Group Functions (fourth quarter of 2021: USD 6 million; first quarter of 2021: USD 15 million).

Note 5 Personnel expenses

	For the quarter ended
USD million	31.3.22	31.12.21	31.3.21
Salaries and variable compensation	2,465	1,822	2,370
Financial advisor compensation¹	1,220	1,269	1,170
Contractors	28	35	36
Social security	228	159	211
Post-employment benefit plans	182	124	194
Other personnel expenses	109	144	105
Total personnel expenses	4,233	3,552	4,086
1 Financial advisor compensation consists of formulaic compensation based directly on compensable revenues generated by financial advisors and supplemental compensation calculated on the basis of financial advisor productivity, firm tenure, new assets and other variables. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.

Note 6 General and administrative expenses

	For the quarter ended
USD million	31.3.22	31.12.21	31.3.21
Outsourcing costs	106	130	89
IT expenses	122	127	125
Consulting, legal and audit fees	104	155	84
Real estate and logistics costs	124	140	127
Market data services	93	96	89
Marketing and communication	31	69	32
Travel and entertainment	19	29	8
Litigation, regulatory and similar matters¹	57	826	9
Other	1,577	1,592	1,578
of which: shared services costs charged by UBS Group AG or its subsidiaries	*1,390*	1,365	1,375
of which: UK and German bank levies	33	38	41
Total general and administrative expenses	2,233	3,164	2,141
1 Reflects the net increase in provisions for litigation, regulatory and similar matters recognized in the income statement. Refer to Note 15b for more information.

Note 7 Income taxes

Income tax expenses of USD 547 million were recognized for the first quarter of 2022, representing an effective tax rate of 21.4%, compared with USD 439 million for the first quarter of 2021 and an effective tax rate of 20.4%.

Current tax expenses were USD 335 million, compared with USD 377 million, and related to taxable profits of UBS Switzerland AG and other entities.

Net deferred tax expenses were USD 212 million, compared with USD 61 million, and primarily related to the amortization of deferred tax assets that were previous

Corporate calendar UBS AG Publication of the second quarter 2022 report: Friday, 29 July 2022 Publication of the third quarter 2022 report: Friday, 28 October 2022 Publication dates of future quarterly and annual reports and results are made available as part calendar of UBS AG at ubs.com/investors
	3	Introduction

	1.	Risk and capital management
	6	Risk management and control
	7	Capital management

	2.	Consolidated financial statements
	15	UBS AG interim consolidated financial statements (unaudited)

		Appendix
	52	Alternative performance measures
	55	Abbreviations frequently used in our financial reports
	57	Information sources
	58	Cautionary statement

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	UBS AG interim consolidated financial statements (unaudited)

15	Income statement
16	Statement of comprehensive income
17	Balance sheet
18	Statement of changes in equity
20	Statement of cash flows

22	1 Basis of accounting
23	2 Segment reporting
24	3 Net interest income
24	4 Net fee and commission income
24	5 Personnel expenses
25	6 General and administrative expenses
25	7 Income taxes
25	8 Expected credit loss measurement
30	9 Fair value measurement
39	10 Derivative instruments
40	11 Other assets and liabilities
41	12 Debt issued designated at fair value
42	13 Debt issued measured at amortized cost
42	14 Interest rate benchmark reform
43	15 Provisions and contingent liabilities
49	16 Currency translation rates
49	17 Events after the reporting period