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Segment reporting

12 Months Ended

Dec. 31, 2019

Disclosure Of Operating Segments [Line Items]

Disclosure Of Entitys Reportable Segments Explanatory

Note 2a Segment reporting

The operational structure of the Group as of 31 December 2019 was comprised of Corporate Center and four business divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management and the Investment Bank.

Refer to “Segment reporting” in Note 1a for more information

Global Wealth Management

Global Wealth Management provides investment advice and solutions to private clients, in particular in the ultra high net worth and high net worth segments. Clients benefit from Global Wealth Management’s comprehensive set of capabilities, including wealth planning, investing, lending, asset protection, philanthropy, corporate and banking services, as well as family office services in collaboration with the Investment Bank and Asset Management. Global Wealth Management has a global footprint, with the US representing its largest market. Clients are served through local offices and dedicated advisors. The ultra high net worth business is managed globally across the regions.

Personal & Corporate Banking

Personal & Corporate Banking provides comprehensive financial products and services to private, corporate and institutional clients and operates in Switzerland in the private and corporate loan market. Personal & Corporate Banking is central to UBS’s universal bank model in Switzerland and it works with Global Wealth Management, the Investment Bank and Asset Management to help clients receive the best products and solutions for their specific financial needs. While Personal & Corporate Banking operates primarily in its home market of Switzerland, it also provides capabilities to support the growth of the international business activities of UBS’s corporate and institutional clients through local hubs in Frankfurt, New York, Hong Kong and Singapore. The business is divided into Personal Banking and Corporate & Institutional Clients (CIC).

Asset Management

Asset Management is a large-scale and diversified global asset manager. It offers investment capabilities and styles across all major traditional and alternative asset classes, as well as advisory support to institutions, wholesale intermediaries and Global Wealth Management clients around the world. Asset Management offers clients a wide range of investment products and services in different asset classes in the form of segregated, pooled or advisory mandates, as well as registered investment funds in various jurisdictions. It covers the main asset management markets globally, and has a local presence in 22 markets, grouped in four regions: the Americas; Europe, Middle East and Africa; Switzerland; and Asia Pacific.

Investment Bank

The Investment Bank provides a range of services to institutional, corporate and wealth management clients to help them raise capital, grow their businesses, invest and manage risks. It is focused on its traditional strengths in advisory services, capital markets, equities and foreign exchange, complemented by a targeted rates and credit platform. The Investment Bank uses its research and technology capabilities to support its clients as they adapt to the evolving market structures and changes in the regulatory, technological, economic and competitive landscapes. The Investment Bank delivers solutions to clients, using its intellectual capital and electronic platforms. It also provides services to Global Wealth Management, Personal & Corporate Banking and Asset Management. It has a global reach, with a presence in more than 30 countries and principal offices in the major financial hubs.

Corporate Center

Corporate Center consists of the Group Chief Operating Officer area (Group Technology, Group Corporate Services, Group Human Resources and Group Operations), Group Treasury, Group Finance, Group Legal, Group Risk Control, Group Communications & Branding, Group Compliance, Regulatory & Governance, UBS in society, and Non-core and Legacy Portfolio (NCL). Over recent years, UBS has progressively aligned its support functions with the business divisions. The majority of these functions are either fully aligned or shared among business divisions, where they have full management responsibility.

Group Treasury manages the structural risk of UBS’s balance sheet, including interest rate risk, structural foreign exchange risk and collateral risk, as well as the risks associated with the Group’s liquidity and funding portfolios. Group Treasury serves all business divisions through two main risk management areas, and its risk management is fully integrated into the Group’s risk governance framework.

NCL manages legacy positions from businesses exited by the Investment Bank. It is overseen by a committee chaired by the Group Chief Risk Officer. The portfolio also includes positions relating to legal matters arising from businesses that were transferred to it at the time of its formation.

Beginning with the first quarter 2019 and in compliance with IFRS 8, Operating Segments, UBS provides results for total Corporate Center only and does not separately report Corporate Center – Services, Group Treasury and NCL.

Changes in Corporate Center cost and resource allocation to business divisions

In order to further align Group and divisional performance, UBS has adjusted its methodology for the allocation of Corporate Center funding costs and expenses to the business divisions. At the same time, it has updated its funds transfer pricing framework to better reflect the sources and usage of funding. Additionally, UBS has increased the allocation of balance sheet resources from Corporate Center to the business divisions. Prior periods have been restated and the effect on the respective reporting lines is outlined in the table below.

These changes had no effect on the reported results or financial position of the Group.

Upon adoption of IFRS 16, Leases, on 1 January 2019, UBS additionally allocated approximately USD 3.5 billion of newly recognized right-of-use assets and finance lease receivables to the business divisions.

Refer to Note 1b for more information

Segment reporting
USD million	Global Wealth Management	Personal & Corporate Banking	AssetManagement	Investment Bank	Corporate Center	UBS

For the year ended 31 December 2019¹
Net interest income²	3,947	1,992	(25)	(669)	(744)	4,501
Non-interest income²	12,426	1,744	1,962	7,968	367	24,467
Income	16,373	3,736	1,938	7,299	(378)	28,967
Credit loss (expense) / recovery	(20)	(21)	0	(30)	(7)	(78)
Total operating income	16,353	3,715	1,938	7,269	(385)	28,889
Personnel expenses	7,621	856	722	2,748	4,137	16,084
General and administrative expenses	1,217	224	197	688	2,962	5,288
Services (to) / from Corporate Center and other business divisions	4,056	1,181	486	2,926	(8,648)	0
of which: services from Corporate Center	3,922	1,294	531	2,980	(8,727)	0
Depreciation and impairment of property, equipment and software	5	13	1	8	1,738	1,765
Amortization and impairment of goodwill and intangible assets³	56	0	0	115	4	175
Total operating expenses	12,955	2,274	1,406	6,485	192	23,312
Operating profit / (loss) before tax	3,397	1,441	532	784	(577)	5,577
Tax expense / (benefit)						1,267
Net profit / (loss)						4,310
Additional information
Total assets	309,766	209,405	34,565	315,855	102,592	972,183
Additions to non-current assets⁴	68	10	0	1	5,217	5,297
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b. 2 Effective 1 January 2019, UBS refined the presentation of dividend income and expense, reclassifying dividends from financial instruments measured at fair value through profit or loss from Net interest income to Non-interest income. Prior-period information was restated accordingly, with virtually all of the effect on the Group arising from the Investment Bank. Refer to Note 1b for more information. 3 Refer to Note 16 for more information. 4 Upon adoption of IFRS 16 on 1 January 2019, UBS additionally allocated approximately USD 3.5 billion of newly recognized assets to the business divisions, of which USD 3.4 billion related to non-current assets. Refer to Note 1b for more information.

USD million	Global Wealth Management	Personal & Corporate Banking	AssetManagement	Investment Bank	Corporate Center	UBS

For the year ended 31 December 2018¹
Net interest income²	4,101	2,049	(29)	(459)	(613)	5,048
Non-interest income²	12,700	2,168	1,881	8,538	(4)	25,283
Income	16,800	4,217	1,852	8,079	(617)	30,330
Credit loss (expense) / recovery	(15)	(56)	0	(38)	(8)	(118)
Total operating income	16,785	4,161	1,852	8,041	(626)	30,213
Personnel expenses	7,683	803	703	2,941	4,002	16,132
General and administrative expenses	1,724	285	202	651	3,935	6,797
Services (to) / from Corporate Center and other business divisions	4,070	1,263	518	2,942	(8,793)	0
of which: services from Corporate Center	3,936	1,367	563	2,995	(8,861)	0
Depreciation and impairment of property, equipment and software	4	14	2	8	1,199	1,228
Amortization and impairment of goodwill and intangible assets³	50	0	1	12	2	65
Total operating expenses	13,531	2,365	1,426	6,554	346	24,222
Operating profit / (loss) before tax	3,254	1,796	426	1,486	(971)	5,991
Tax expense / (benefit)						1,468
Net profit / (loss)						4,522
Additional information
Total assets	313,737	200,703	28,140	302,253	113,656	958,489
Additions to non-current assets	196	23	1	89	1,666	1,975
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b. 2 Effective 1 January 2019, UBS refined the presentation of dividend income and expense, reclassifying dividends from financial instruments measured at fair value through profit or loss from Net interest income to Non-interest income. Prior-period information was restated accordingly, with virtually all of the effect on the Group arising from the Investment Bank. Refer to Note 1b for more information. 3 Refer to Note 16 for more information.

USD million	Global Wealth Management	Personal & Corporate Banking	AssetManagement	Investment Bank	Corporate Center	UBS

For the year ended 31 December 2017¹
Net interest income²	3,880	2,044	(23)	234	(64)	6,070
Non-interest income²	12,265	1,814	2,100	7,508	(4)	23,683
Income³	16,144	3,859	2,077	7,742	(68)	29,754
Credit loss (expense) / recovery	(8)	(20)	0	(92)	(11)	(131)
Total operating income	16,136	3,839	2,077	7,650	(80)	29,622
Personnel expenses	7,674	852	731	3,006	3,935	16,199
General and administrative expenses	1,263	296	235	675	4,479	6,949
Services (to) / from Corporate Center and other business divisions	3,926	1,203	543	2,860	(8,532)	0
of which: services from Corporate Center	3,803	1,321	582	2,894	(8,601)	0
Depreciation and impairment of property, equipment and software	4	13	1	10	1,024	1,053
Amortization and impairment of goodwill and intangible assets⁴	49	0	3	12	7	71
Total operating expenses	12,917	2,364	1,514	6,563	913	24,272
Operating profit / (loss) before tax	3,219	1,475	563	1,087	(993)	5,351
Tax expense / (benefit)						4,305
Net profit / (loss)						1,046
Additional information
Total assets	297,631	197,258	17,968	311,359	115,064	939,279
Additions to non-current assets	120	15	1	3	1,607	1,746
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b. 2 Effective 1 January 2019, UBS refined the presentation of dividend income and expense, reclassifying dividends from financial instruments measured at fair value through profit or loss from Net interest income to Non-interest income. Prior-period information was restated accordingly, with virtually all of the effect on the Group arising from the Investment Bank. Refer to Note 1b for more information. 3 Includes impairments of financial assets classified at fair value through other comprehensive income (prior to 2018 classified as financial assets available for sale) for the year ended 31 December 2017 of USD 15 million, of which USD 12 million was recorded in Asset Management. 4 Refer to Note 16 for more information.

The operating regions shown in the table below correspond to the regional management structure of the Group. The allocation of operating income to these regions reflects, and is consistent with, the basis on which the business is managed and its performance is evaluated. These allocations involve assumptions and judgments that management considers to be reasonable, and may be refined to reflect changes in estimates or management structure. The main principles of the allocation methodology are that client revenues are attributed to the domicile of the client and trading and portfolio management revenues are attributed to the country where the risk is managed. This revenue attribution is consistent with the mandate of the regional Presidents. Certain revenues, such as those related to Non-core and Legacy Portfolio in Corporate Center, are managed at a Group level. These revenues are included in the Global line.

The geographic analysis of non-current assets is based on the location of the entity in which the assets are recorded.

For the year ended 31 December 2019
	Total operating income		Total non-current assets
	USD billion	Share %	USD billion	Share %
Americas	12.0	42	8.9	44
of which: USA	10.9	38	8.5	42
Asia Pacific	4.7	16	1.4	7
Europe, Middle East and Africa (excluding Switzerland)	5.8	20	3.0	15
Switzerland	6.7	23	7.1	35
Global	(0.4)	(1)	0.0	0
Total	28.9	100	20.3	100

For the year ended 31 December 2018¹
	Total operating income		Total non-current assets
	USD billion	Share %	USD billion	Share %
Americas	12.6	42	7.4	43
of which: USA	11.5	38	7.0	41
Asia Pacific	4.9	16	0.9	5
Europe, Middle East and Africa (excluding Switzerland)	6.2	21	2.0	12
Switzerland	7.2	24	6.8	40
Global	(0.7)	(2)	0.0	0
Total	30.2	100	17.1	100

For the year ended 31 December 2017¹
	Total operating income		Total non-current assets
	USD billion	Share %	USD billion	Share %
Americas	12.0	41	7.4	44
of which: USA	11.2	38	6.9	41
Asia Pacific	4.8	16	0.8	5
Europe, Middle East and Africa (excluding Switzerland)	6.1	21	2.0	12
Switzerland	6.9	23	6.5	40
Global	(0.2)	(1)	0.0	0
Total	29.6	100	16.7	100
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b.

UBS AG

Disclosure Of Operating Segments [Line Items]

Disclosure Of Entitys Reportable Segments Explanatory

Note 2a Segment reporting

The operational structure of UBS AG as of 31 December 2019 was comprised of Corporate Center and four business divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management and the Investment Bank.

Refer to “Segment reporting” in Note 1a for more information

Global Wealth Management

Personal & Corporate Banking

Personal & Corporate Banking provides comprehensive financial products and services to private, corporate and institutional clients and operates in Switzerland in the private and corporate loan market. Personal & Corporate Banking is central to UBS’s universal bank model in Switzerland and it works with Global Wealth Management, the Investment Bank and Asset Management to help clients receive the best products and solutions for their specific financial needs. While Personal & Corporate Banking operates primarily in its home market of Switzerland, it also provides capabilities to support the growth of the international business activities of UBS AG’s corporate and institutional clients through local hubs in Frankfurt, New York, Hong Kong and Singapore. The business is divided into Personal Banking and Corporate & Institutional Clients (CIC).

Asset Management

Investment Bank

Corporate Center

Group Treasury manages the structural risk of UBS AG’s balance sheet, including interest rate risk, structural foreign exchange risk and collateral risk, as well as the risks associated with UBS AG’s liquidity and funding portfolios. Group Treasury serves all business divisions through two main risk management areas, and its risk management is fully integrated into UBS AG’s risk governance framework.

Beginning with the first quarter 2019 and in compliance with IFRS 8, Operating Segments, UBS AG provides results for total Corporate Center only and does not separately report Corporate Center – Services, Group Treasury and NCL.

Changes in Corporate Center cost and resource allocation to business divisions

In order to further align Group and divisional performance, UBS AG has adjusted its methodology for the allocation of Corporate Center funding costs and expenses to the business divisions. At the same time, it has updated its funds transfer pricing framework to better reflect the sources and usage of funding. Additionally, UBS AG has increased the allocation of balance sheet resources from Corporate Center to the business divisions. Prior periods have been restated and the effect on the respective reporting lines is outlined in the table below.

These changes had no effect on the reported results or financial position of UBS AG.

Upon adoption of IFRS 16, Leases, on 1 January 2019, UBS AG additionally allocated approximately USD 3.4 billion of newly recognized right-of-use assets and finance lease receivables to the business divisions.

Refer to Note 1b for more information

Effects of changes in Corporate Center cost and resource allocation to business divisions on prior-period information
USD million increase / (reduction)	Global Wealth Management	Personal & Corporate Banking	Asset Management	Investment Bank	Corporate Center	UBS AG

For the year ended 31 December 2018
Operating profit / (loss) before tax	(374)	(116)	(25)	(163)	677	0
Total assets	113,702	61,894	3,769	43,562	(222,927)	0
For the year ended 31 December 2017
Operating profit / (loss) before tax	(351)	(133)	(24)	(180)	689	0
Total assets	102,641	58,196	3,329	41,628	(205,795)	0

Segment reporting
USD million	Global Wealth Management	Personal & Corporate Banking	AssetManagement	Investment Bank	Corporate Center	UBS AG

For the year ended 31 December 2019¹
Net interest income²	3,947	1,993	(25)	(669)	(831)	4,415
Non-interest income²	12,426	1,745	1,962	7,967	869	24,970
Income	16,373	3,737	1,938	7,298	38	29,385
Credit loss (expense) / recovery	(20)	(21)	0	(30)	(7)	(78)
Total operating income	16,353	3,717	1,938	7,268	31	29,307
Personnel expenses	7,618	852	720	2,732	1,879	13,801
General and administrative expenses	1,283	229	201	738	6,135	8,586
Services (to) / from Corporate Center and other business divisions	4,055	1,179	485	2,922	(8,642)	0
of which: services from Corporate Center	3,922	1,293	530	2,976	(8,721)	0
Depreciation and impairment of property, equipment and software	5	13	1	8	1,549	1,576
Amortization and impairment of goodwill and intangible assets³	56	0	0	115	4	175
Total operating expenses	13,018	2,274	1,407	6,515	925	24,138
Operating profit / (loss) before tax	3,335	1,443	531	753	(893)	5,169
Tax expense / (benefit)						1,198
Net profit / (loss)						3,971
Additional information
Total assets	309,766	209,512	34,565	316,058	102,017	971,916
Additions to non-current assets⁴	68	10	0	1	4,935	5,014
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b. 2 Effective 1 January 2019, UBS refined the presentation of dividend income and expense, reclassifying dividends from financial instruments measured at fair value through profit or loss from Net interest income to Non-interest income. Prior-period information was restated accordingly, with virtually all of the effect on UBS AG arising from the Investment Bank. Refer to Note 1b for more information. 3 Refer to Note 16 for more information. 4 Upon adoption of IFRS 16 on 1 January 2019, UBS AG additionally allocated approximately USD 3.4 billion of newly recognized assets to the business divisions, of which USD 3.3 billion related to non-current assets. Refer to Note 1b for more information.

USD million	Global Wealth Management	Personal & Corporate Banking	AssetManagement	Investment Bank	Corporate Center	UBS AG

For the year ended 31 December 2018¹
Net interest income²	4,101	2,049	(29)	(459)	(690)	4,971
Non-interest income²	12,700	2,169	1,881	8,539	499	25,788
Income	16,801	4,218	1,852	8,080	(191)	30,759
Credit loss (expense) / recovery	(15)	(56)	0	(38)	(8)	(117)
Total operating income	16,786	4,162	1,852	8,042	(199)	30,642
Personnel expenses	7,680	799	702	2,936	1,875	13,992
General and administrative expenses	1,771	289	206	706	7,104	10,075
Services (to) / from Corporate Center and other business divisions	4,069	1,261	516	2,938	(8,784)	0
of which: services from Corporate Center	3,935	1,365	561	2,991	(8,852)	0
Depreciation and impairment of property, equipment and software	4	14	2	8	1,023	1,052
Amortization and impairment of goodwill and intangible assets³	50	0	1	12	2	65
Total operating expenses	13,574	2,363	1,427	6,600	1,220	25,184
Operating profit / (loss) before tax	3,212	1,799	425	1,442	(1,419)	5,458
Tax expense / (benefit)						1,345
Net profit / (loss)						4,113
Additional information
Total assets	313,737	200,767	28,140	302,434	112,977	958,055
Additions to non-current assets	196	23	1	89	1,449	1,757
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b. 2 Effective 1 January 2019, UBS refined the presentation of dividend income and expense, reclassifying dividends from financial instruments measured at fair value through profit or loss from Net interest income to Non-interest income. Prior-period information was restated accordingly, with virtually all of the effect on UBS AG arising from the Investment Bank. Refer to Note 1b for more information. 3 Refer to Note 16 for more information.

USD million	Global Wealth Management	Personal & Corporate Banking	AssetManagement	Investment Bank	Corporate Center	UBS AG

For the year ended 31 December 2017¹
Net interest income²	3,880	2,044	(23)	234	(114)	6,021
Non-interest income²	12,265	1,815	2,100	7,508	466	24,155
Income³	16,145	3,859	2,077	7,742	352	30,176
Credit loss (expense) / recovery	(8)	(20)	0	(92)	(11)	(131)
Total operating income	16,137	3,839	2,077	7,651	341	30,044
Personnel expenses	7,679	849	731	3,007	2,686	14,952
General and administrative expenses	1,308	300	238	728	6,426	9,001
Services (to) / from Corporate Center and other business divisions	3,926	1,200	541	2,858	(8,525)	0
of which: services from Corporate Center	3,803	1,318	580	2,892	(8,593)	0
Depreciation and impairment of property, equipment and software	4	13	1	10	916	945
Amortization and impairment of goodwill and intangible assets⁴	49	0	3	12	7	71
Total operating expenses	12,966	2,363	1,515	6,614	1,510	24,969
Operating profit / (loss) before tax	3,171	1,476	562	1,036	(1,169)	5,076
Tax expense / (benefit)						4,242
Net profit / (loss)						834
Additional information
Total assets	297,631	197,290	17,968	311,477	115,654	940,020
Additions to non-current assets	120	15	1	3	1,509	1,648
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b. 2 Effective 1 January 2019, UBS refined the presentation of dividend income and expense, reclassifying dividends from financial instruments measured at fair value through profit or loss from Net interest income to Non-interest income. Prior-period information was restated accordingly, with virtually all of the effect on UBS AG arising from the Investment Bank. Refer to Note 1b for more information. 3 Includes impairments of financial assets classified at fair value through other comprehensive income (prior to 2018 classified as financial assets available for sale) for the year ended 31 December 2017 of USD 15 million, of which USD 12 million was recorded in Asset Management. 4 Refer to Note 16 for more information.

The operating regions shown in the table below correspond to the regional management structure of UBS AG. The allocation of operating income to these regions reflects, and is consistent with, the basis on which the business is managed and its performance is evaluated. These allocations involve assumptions and judgments that management considers to be reasonable, and may be refined to reflect changes in estimates or management structure. The main principles of the allocation methodology are that client revenues are attributed to the domicile of the client and trading and portfolio management revenues are attributed to the country where the risk is managed. This revenue attribution is consistent with the mandate of the regional Presidents. Certain revenues, such as those related to Non-core and Legacy Portfolio in Corporate Center, are managed at a Group level. These revenues are included in the Global line.

The geographic analysis of non-current assets is based on the location of the entity in which the assets are recorded.

For the year ended 31 December 2019
	Total operating income		Total non-current assets
	USD billion	Share %	USD billion	Share %
Americas	12.0	41	8.9	46
of which: USA	10.9	37	8.5	44
Asia Pacific	4.7	16	1.3	7
Europe, Middle East and Africa (excluding Switzerland)	5.8	20	2.6	13
Switzerland	6.7	23	6.5	34
Global	0.0	0	0.0	0
Total	29.3	100	19.3	100

For the year ended 31 December 2018¹
	Total operating income		Total non-current assets
	USD billion	Share %	USD billion	Share %
Americas	12.6	41	7.4	46
of which: USA	11.5	37	7.0	43
Asia Pacific	4.9	16	0.8	5
Europe, Middle East and Africa (excluding Switzerland)	6.2	20	1.8	11
Switzerland	7.2	23	6.2	38
Global	(0.3)	(1)	0.0	0
Total	30.6	100	16.2	100

For the year ended 31 December 2017¹
	Total operating income		Total non-current assets
	USD billion	Share %	USD billion	Share %
Americas	12.0	40	7.4	47
of which: USA	11.2	37	6.9	44
Asia Pacific	4.8	16	0.8	5
Europe, Middle East and Africa (excluding Switzerland)	6.1	20	1.7	10
Switzerland	6.9	23	6.0	38
Global	0.2	1	0.0	0
Total	30.0	100	15.8	100
1 Comparative figures in this table have been restated for the changes in Corporate Center cost and resource allocation to the business divisions and the changes in the equity attribution framework. Refer to further discussion in this note and in Note 1b.