21 July 2020
2Q20 PBT USD1.6bn, (10%) YoY or +5% excluding CLE2Q20 net profit (11%) YoY; return on CET1 capital1 13.2%; cost/income ratio 75.8%; diluted EPS USD 0.33 1H20 PBT USD 3.6bn, +9% YoY or +24% excluding CLE1H20 net profit USD 2.8bn, +12% YoY; return on CET1 capital115.4%; cost/income ratio 74.0%; diluted EPS USD 0.76Strong capital position with CET1 capital ratio 13.3%; CET1 leverage ratio2 3.9%; tier 1 leverage ratio2,3 5.5%, all excluding any temporary regulatory relief
Zurich, 21 July 2020 – UBS’s strong second quarter 2020 results reflected operational resilience and active client engagement, as well as the benefits of a well-diversified business model and broad regional mix. Profit before tax (PBT) was USD 1,582m, down 10% year-over-year (YoY), or +5% excluding credit loss expenses (CLE), while the Group’s cost/income ratio improved 1 percentage point to 75.8%. Net profit attributable to shareholders was USD 1,232m, down 11% YoY. Return on CET1 capital1 (RoCET1) was 13.2%.Operating income (including CLE) declined by 2% YoY. As previously guided, CLE remained elevated at USD 272m, of which USD 127m resulted from an update to macroeconomic assumptions, USD 75m resulted mostly from overlays and re-measurements including stage migrations, and USD 70m resulted from credit-impaired positions spread across our businesses. Income before CLE increased by 2% YoY, and operating expenses increased by 1%.
The strength, resilience, and diversification of our integrated business model have once again been confirmed by the strong second quarter results and the excellent first half. As we continue to face a challenging environment, we are adapting and accelerating the pace of change, supporting our clients, employees, and the economies in which we operate, while remaining focused on our strategic priorities.”Sergio P. Ermotti, Group Chief Executive Officer
Group Functions loss before tax was USD 305m; including approximately USD 90m costs related to higher liquidity in relation to COVID-19 market stress
