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Changes in organization and acquisitions and disposals of subsidiaries and businesses
 12 Months Ended
Dec. 31, 2021
Entity [Table]  
Disclosure of changes in organisation and disposals [text block]
Note 30
 
Changes in organization and acquisitions and disposals of subsidiaries and businesses
Strategic partnership with Sumitomo Mitsui Trust Holdings
In
 
2019,
 
UBS
 
entered
 
into
 
a
 
strategic
 
wealth
 
management
partnership
 
in
 
Japan
 
with
 
Sumitomo
 
Mitsui Trust
 
Holdings, Inc.
(SuMi
 
Trust
 
Holdings).
 
In
 
January
 
2020,
 
the
 
first
 
phase
 
was
launched, with
 
operations commencing in
 
the joint
 
venture that
was established
 
to promote
 
the respective
 
services. At
 
the time,
UBS and
 
SuMi Trust
 
Holdings also
 
started offering
 
each other’s
products and services to their respective clients.
In
 
the
 
third
 
quarter
 
of
 
2021,
 
the
 
second
 
phase
 
of
 
the
partnership was completed, with the
 
launch of a new operational
partnership
 
entity,
 
UBS
 
SuMi
 
TRUST
 
Wealth
 
Management
 
Co.,
Ltd., which is
51
%-owned and controlled by
 
UBS, requiring UBS
to consolidate
 
this entity.
 
The new
 
entity offers
 
global securities
and wealth management
 
capabilities, together with the
 
custody,
real
 
estate,
 
inheritance
 
and
 
wealth
 
transfer
 
expertise
 
of
 
a
Japanese
 
trust
 
banking
 
group.
 
Upon
 
completion
 
of
 
this
transaction in
 
the third
 
quarter of
 
2021, shareholders’
 
equity of
the Group increased by USD
155
 
million, with no effect on profit
or loss.
Disposals of subsidiaries and businesses
Sale of remaining investment in Clearstream Fund Centre AG
In
 
the
 
second quarter
 
of
 
2021, UBS
 
sold its
 
remaining
 
minority
investment in Clearstream Fund Centre
 
AG to Deutsche Börse
 
AG
for
 
CHF
390
 
million.
 
The
 
transaction
 
followed
 
the
 
sale
 
of
 
a
majority
 
investment
 
and
 
successful
 
transfer
 
of
 
control
 
of
Fondcenter
 
AG
 
to
 
Deutsche
 
Börse
 
AG
 
in
 
2020,
 
when
 
UBS
recognized
 
a
 
post-tax gain
 
on sale
 
of
 
USD
631
 
million
 
in
Other
income
. The sale of
 
the remaining
48.8
% investment resulted
 
in
a post-tax gain of USD
37
 
million in 2021, which was recognized
in
Other income
, with no
 
associated net tax
 
expense. Long-term
commercial
 
cooperation
 
arrangements
 
remain
 
in
 
place
 
for
 
the
provision
 
of
 
services
 
by
 
Clearstream
 
to
 
UBS,
 
including
 
jointly
servicing banks and insurance companies.
Sale of wealth management business in Austria
In
 
the
 
third
 
quarter
 
of
 
2021,
 
UBS
 
completed
 
the
 
sale
 
of
 
its
domestic wealth management
 
business in Austria
 
to LGT. The sale
resulted
 
in
 
a
 
pre-tax
 
gain
 
of
 
USD
100
 
million,
 
which
 
was
recognized
 
in
Other
 
income
,
 
and
 
an
 
associated
 
tax
 
expense
 
of
USD
25
 
million.
Sale of wealth management business in Spain in 2022
In
 
October 2021,
 
UBS signed
 
an agreement
 
to sell
 
its
 
domestic
wealth
 
management
 
business
 
in
 
Spain
 
to
 
Singular
 
Bank.
 
The
agreement
 
includes
 
the
 
transition
 
of
 
employees,
 
client
relationships,
 
products
 
and services
 
of
 
the
 
wealth management
business of UBS in Spain. The
 
transaction is subject to customary
closing conditions and is expected to close in the third quarter of
2022.
As
 
of
 
31 December
 
2021,
 
the
 
assets
 
and
 
liabilities
 
of
 
the
business
 
were
 
presented
 
in
 
Global
 
Wealth
 
Management
 
as
 
a
disposal group held for sale within
Other non-financial assets
 
and
Other non-financial
 
liabilities
 
and amounted
 
to USD
647
 
million
and
 
USD
 
823
 
million,
 
respectively.
 
Upon
 
the
 
closing
 
of
 
the
transaction, UBS expects
 
to record a
 
pre-tax gain of
 
approximately
USD
0.2
 
billion.
Sale of UBS Swiss Financial Advisers AG in 2022
In
 
December
 
2021,
 
UBS
 
signed
 
an
 
agreement
 
to
 
sell
 
its
 
wholly
owned
 
subsidiary
 
UBS
 
Swiss
 
Financial
 
Advisers
 
AG
 
(SFA)
 
to
Vontobel.
 
SFA
 
is
 
an
 
SEC-registered
 
investment
 
advisor
 
and
FINMA-licensed
 
securities
 
firm
 
that
 
offers
 
US
 
clients
 
tailored
investment
 
solutions
 
in
 
a
 
Switzerland-based
 
environment.
 
The
transaction
 
is
 
subject
 
to
 
customary
 
closing
 
conditions
 
and
regulatory approvals and is
 
expected to close in the
 
third quarter
of 2022.
As
 
of
 
31 December
 
2021,
 
the
 
assets
 
and
 
liabilities
 
that
 
are
subject
 
to
 
the
 
transaction
were
 
presented
 
in
 
Global
 
Wealth
Management as a disposal group held for sale within
Other non-
financial assets
 
and
Other non-financial
 
liabilities
 
and amounted
to USD
446
 
million and
 
USD
475
 
million, respectively.
 
Upon the
closing of the
 
transaction, UBS does not
 
expect a material
 
effect
on profit or loss or shareholders’ equity of the Group.
Acquisitions of subsidiaries and businesses in 2022
Acquisition of Wealthfront in 2022
In
 
January
 
2022,
 
UBS
 
entered
 
into
 
an
 
agreement
 
to
 
acquire
Wealthfront,
 
an
 
industry-leading
 
digital
 
wealth
 
management
provider,
 
for
 
a
 
cash
 
consideration
 
of
 
USD
1.4
 
billion.
 
The
acquisition is aligned with UBS’s growth strategy
 
in the Americas,
will broaden
 
our reach
 
among affluent
 
investors and
 
will add
 
a
new
 
digital-first
 
offering
 
increasing
 
our
 
distribution
 
capabilities.
The
 
transaction
 
is
 
subject
 
to
 
customary
 
closing
 
conditions,
including
 
regulatory
 
approvals,
 
and
 
is
 
expected
 
to
 
close
 
in
 
the
second
 
half
 
of
 
2022.
 
Upon
 
the
 
closing
 
of
 
the
 
transaction,
Wealthfront
 
will become
 
a wholly
 
owned subsidiary
 
of UBS
 
and
UBS expects to
 
recognize additional goodwill
 
and other intangible
assets of approximately USD
1.2
 
billion.
UBS AG  
Entity [Table]  
Disclosure of changes in organisation and disposals [text block]
Note 30
 
Changes in organization and acquisitions and disposals of subsidiaries and businesses
Strategic partnership with Sumitomo Mitsui Trust Holdings
In
 
2019,
 
UBS
 
AG
 
entered
 
into
 
a
 
strategic
 
wealth
 
management
partnership
 
in
 
Japan
 
with
 
Sumitomo
 
Mitsui Trust
 
Holdings, Inc.
(SuMi
 
Trust
 
Holdings).
 
In
 
January
 
2020,
 
the
 
first
 
phase
 
was
launched, with
 
operations commencing in
 
the joint
 
venture that
was established
 
to promote
 
the respective
 
services. At
 
the time,
UBS
 
AG
 
and
 
SuMi
 
Trust
 
Holdings
 
also
 
started
 
offering
 
each
other’s products and services to their respective clients.
In
 
the
 
third
 
quarter
 
of
 
2021,
 
the
 
second
 
phase
 
of
 
the
partnership was completed, with the
 
launch of a new operational
partnership
 
entity,
 
UBS
 
SuMi
 
TRUST
 
Wealth
 
Management
 
Co.,
Ltd., which
 
is
51
%-owned and
 
controlled by
 
UBS AG,
 
requiring
UBS
 
AG
 
to
 
consolidate
 
this
 
entity.
 
The
 
new
 
entity
 
offers
 
global
securities and wealth management capabilities,
 
together with the
custody, real
 
estate, inheritance
 
and wealth
 
transfer expertise of
a
 
Japanese
 
trust
 
banking
 
group.
 
Upon
 
completion
 
of
 
this
transaction in
 
the third
 
quarter of
 
2021, shareholders’
 
equity of
UBS AG increased by USD
155
 
million, with no effect on profit or
loss.
Disposals of subsidiaries and businesses
Sale of remaining investment in Clearstream Fund Centre AG
In the second
 
quarter of 2021,
 
UBS AG sold
 
its remaining minority
investment in Clearstream Fund Centre
 
AG to Deutsche Börse
 
AG
for
 
CHF
390
 
million.
 
The
 
transaction
 
followed
 
the
 
sale
 
of
 
a
majority
 
investment
 
and
 
successful
 
transfer
 
of
 
control
 
of
Fondcenter
 
AG
 
to
 
Deutsche
 
Börse
 
AG
 
in
 
2020,
 
when
 
UBS
 
AG
recognized
 
a
 
post-tax gain
 
on sale
 
of
 
USD
631
 
million
 
in
Other
income
. The sale of
 
the remaining
48.8
% investment resulted
 
in
a post-tax gain of USD
37
 
million in 2021, which was recognized
in
Other income
, with no
 
associated net tax
 
expense. Long-term
commercial
 
cooperation
 
arrangements
 
remain
 
in
 
place
 
for
 
the
provision
 
of
 
services
 
by
 
Clearstream
 
to
 
UBS,
 
including
 
jointly
servicing banks and insurance companies.
Sale of wealth management business in Austria
In
 
the third
 
quarter
 
of 2021,
 
UBS AG
 
completed the
 
sale of
 
its
domestic wealth management
 
business in Austria
 
to LGT. The sale
resulted
 
in
 
a
 
pre-tax
 
gain
 
of
 
USD
100
 
million,
 
which
 
was
recognized
 
in
Other
 
income
,
 
and
 
an
 
associated
 
tax
 
expense
 
of
USD
25
 
million.
Sale of wealth management business in Spain in 2022
In October 2021,
 
UBS AG signed
 
an agreement to
 
sell its
 
domestic
wealth
 
management
 
business
 
in
 
Spain
 
to
 
Singular
 
Bank.
 
The
agreement
 
includes
 
the
 
transition
 
of
 
employees,
 
client
relationships,
 
products
 
and services
 
of
 
the
 
wealth management
business
 
of
 
UBS
 
AG
 
in
 
Spain.
 
The
 
transaction
 
is
 
subject
 
to
customary closing conditions and is expected to close in the third
quarter of 2022.
As
 
of
 
31 December
 
2021,
 
the
 
assets
 
and
 
liabilities
 
of
 
the
business
 
were
 
presented
 
in
 
Global
 
Wealth
 
Management
 
as
 
a
disposal group held for sale within
Other non-financial assets
 
and
Other non-financial
 
liabilities
 
and amounted
 
to USD
647
 
million
and
 
USD
 
823
 
million,
 
respectively.
 
Upon
 
the
 
closing
 
of
 
the
transaction,
 
UBS
AG
expects
 
to
 
record
 
a
 
pre
-
tax
 
gain
 
of
approximately USD
0.2
 
billion.
Sale of UBS Swiss Financial Advisers AG in 2022
In December 2021,
 
UBS AG signed
 
an agreement to sell
 
its wholly
owned
 
subsidiary
 
UBS
 
Swiss
 
Financial
 
Advisers
 
AG
 
(SFA)
 
to
Vontobel.
 
SFA
 
is
 
an
 
SEC-registered
 
investment
 
advisor
 
and
FINMA-licensed
 
securities
 
firm
 
that
 
offers
 
US
 
clients
 
tailored
investment
 
solutions
 
in
 
a
 
Switzerland-based
 
environment.
 
The
transaction
 
is
 
subject
 
to
 
customary
 
closing
 
conditions
 
and
regulatory approvals and is
 
expected to close in the
 
third quarter
of 2022.
As
 
of
 
31 December
 
2021,
 
the
 
assets
 
and
 
liabilities
 
that
 
are
subject
 
to
 
the
 
transaction
were
 
presented
 
in
 
Global
 
Wealth
Management as a disposal group held for sale within
Other non-
financial assets
 
and
Other non-financial
 
liabilities
 
and amounted
to USD
446
 
million and
 
USD
475
 
million, respectively.
 
Upon the
closing
 
of
 
the
 
transaction,
 
UBS
 
AG
 
does
 
not
 
expect
 
a
 
material
effect on profit or loss or shareholders’ equity.
Acquisitions of subsidiaries and businesses in 2022
Acquisition of Wealthfront in 2022
In January
 
2022, UBS
 
AG entered
 
into an
 
agreement to
 
acquire
Wealthfront,
 
an
 
industry-leading
 
digital
 
wealth
 
management
provider,
 
for
 
a
 
cash
 
consideration
 
of
 
USD
1.4
 
billion.
 
The
acquisition is aligned with UBS’s growth strategy
 
in the Americas,
will broaden
 
our reach
 
among affluent
 
investors and
 
will add
 
a
new
 
digital-first
 
offering
 
increasing
 
our
 
distribution
 
capabilities.
The
 
transaction
 
is
 
subject
 
to
 
customary
 
closing
 
conditions,
including
 
regulatory
 
approvals,
 
and
 
is
 
expected
 
to
 
close
 
in
 
the
second
 
half
 
of
 
2022.
 
Upon
 
the
 
closing
 
of
 
the
 
transaction,
Wealthfront
 
will become
 
a wholly
 
owned subsidiary
 
of UBS
 
AG
and UBS
 
AG expects
 
to recognize
 
additional goodwill
 
and other
intangible assets of approximately USD
1.2
 
billion.