Fourth-quarter net profit CHF 949 million; quarterly diluted earnings per share CHF 0.25; full-year diluted earnings per share CHF 1.64
Ordinary dividend CHF 0.60 per share and special dividend CHF 0.25 per share for 2015 to be proposed to shareholders
Full-year adjusted1 return on tangible equity 13.7%, above FY15 target of around 10%
Strong capital position with fully applied Swiss SRB Basel III CET1 capital ratio 14.5% and fully applied Swiss SRB leverage ratio2 at 5.3%
UBS strengthens climate change commitment in fourth quarter
Zurich/Basel, 2 February 2016 – UBS Group net profit for 2015 increased 79% year on year to CHF 6.2 billion.3 Adjusted1 Group profit before tax for the year was CHF 5.6 billion (reported CHF 5.5 billion). Despite very challenging market conditions, UBS’s business divisions delivered strong results in 2015, while prudently managing resources and risk.
Wealth Management’s adjusted1 profit before tax increased 13% to CHF 2.8 billion (reported CHF 2.7 billion), its best annual pre-tax profit since 2008. Wealth Management Americas’ adjusted1 profit before tax was USD 874 million (reported USD 754 million), with record operating income and solid net new money of USD 21.4 billion. Personal & Corporate Banking posted its best adjusted1 profit before tax since 2010 with CHF 1.7 billion (reported CHF 1.6 billion) and attracted a record number of new clients. Asset Management’s adjusted1 profit before tax of CHF 610 million (reported CHF 584 million) was up 20% year on year, making progress towards its medium-term profit target. The Investment Bank delivered a strong performance, with an adjusted1 profit before tax of CHF 2.3 billion (reported CHF 1.9 billion), and achieved an adjusted1 return on attributed equity of 31% for the full year.
”Despite a very challenging environment, we had an excellent year, both in terms of shareholder returns and strengthened client relationships. Going forward, we will continue with the disciplined execution of our strategy while investing for profitable and sustainable growth.” Sergio P. Ermotti, Group Chief Executive Officer
In 2015, UBS continued to improve its Swiss SRB leverage ratio and strengthen its fully applied Swiss SRB Basel III CET1 ratio. These achievements, along with the 79% rise in net profit, allow UBS to deliver on its shareholder return commitment and to offer attractive capital returns. UBS’s Board of Directors intends to propose a total dividend of CHF 0.85 to shareholders at the AGM 2016. It consists of an ordinary dividend of CHF 0.60 per share, reflecting profit for the financial year 2015, and a special dividend of CHF 0.25 per share, reflecting a significant net upward revaluation of deferred tax assets in 2015. The total dividend will be paid out of capital contribution reserves and, subject to shareholder approval, will be payable on 17 May 2016 to shareholders of record on 13 May 2016.4

The fourth quarter was characterized by very low levels of client activity and pronounced risk aversion. UBS’s fourth-quarter net profit attributable to shareholders was CHF 949 million. It included a net tax benefit of CHF 715 million, mainly relating to a net upward revaluation of deferred tax assets, and provisions for litigation, regulatory and similar matters totaling CHF 365 million. As previously announced, the quarter also included a charge of CHF 257 million for a debt buyback. Adjusted1 return on tangible equity was 11.4% for the quarter.
Wealth Management delivered adjusted1 profit before tax of CHF 505 million (reported CHF 344 million) amid very low levels of client activity. Net new money outflows amounted to CHF 3.4 billion for the quarter, reflecting significant client deleveraging, cross-border outflows and disciplined balance sheet management. Wealth Management Americas’ operating performance was strong. Reported results, however, were affected by substantial charges for litigation, regulatory and similar matters. Adjusted1 profit before tax was USD 63 million (reported USD 13 million). Net new money was very strong at USD 16.8 billion, with significant inflows from newly recruited advisors, as well as USD 4.9 billion from advisors who have been with the firm for more than one year. Personal & Corporate Banking posted an adjusted1 profit before tax of CHF 396 million (reported CHF 355 million), its best fourth quarter since 2011, despite continued negative interest rates. Asset Management’s adjusted1 profit before tax of CHF 153 million (reported CHF 171 million) increased by 12%. The Investment Bank posted adjusted1 profit before tax of CHF 223 million (reported CHF 80 million), as revenue declines in Equities and Corporate Client Solutions were partly offset by strong year-on-year performance in Foreign Exchange, Rates and Credit.
“The fourth quarter is a good demonstration of our discipline. We were not tempted to take more risks or buy unprofitable net new money to offset seasonal effects and challenging market conditions.” Sergio P. Ermotti, Group Chief Executive Officer
Full-year business division and Corporate Center highlights
• Wealth Management delivered adjusted1 profit before tax of CHF 2.8 billion (reported CHF 2.7 billion) the best since 2008; adjusted net new money at CHF 22.8 billion. The business achieved solid mandate growth, with penetration up 200 bps year on year to 26.4% of invested assets.
• Wealth Management Americas recorded adjusted1 profit before tax of USD 874 million (reported USD 754 million) and record operating income, with industry-leading productivity per advisor for revenue and invested assets. Net new money was USD 21.4 billion.
• Personal & Corporate Banking posted its best adjusted1 profit before tax since 2010 at CHF 1.7 billion (reported CHF 1.6 billion), and attracted a record number of net new clients, solidifying its position as the number one universal bank in Switzerland.
• Asset Management delivered adjusted1 profit before tax of CHF 610 million (reported CHF 584 million), up 20% year on year.
• Investment Bank posted adjusted1 profit before tax of CHF 2.3 billion (reported CHF 1.9 billion) and adjusted1 return on attributed equity of 31.3%, substantially above the target of greater than 15%. Resource utilization continued to be efficient and disciplined.
• Corporate Center achieved a net cost reduction of CHF 1.1 billion based on the December 2015 annualized exit rate versus full year 2013, and a further substantial reduction in the Non-core and Legacy Portfolio leverage ratio denominator.

Fourth-quarter business division highlights
• Wealth Management delivered adjusted1 profit before tax of CHF 505 million (reported CHF 344 million). Net new money outflows were CHF 3.4 billion, with inflows from Asia Pacific and Switzerland being more than offset by outflows in emerging markets and Europe.
• Wealth Management Americas posted adjusted1 profit before tax of USD 63 million (reported USD 13 million). Net new money was very strong at USD 16.8 billion.
• Personal & Corporate Banking delivered adjusted1 profit before tax of CHF 396 million (reported CHF 355 million), its best fourth-quarter profit before tax since 2011. Net new client assets were positive while net new loans were slightly negative, in line with UBS’s strategy to grow high-quality loans moderately and selectively.
• Asset Management recorded adjusted1 profit before tax of CHF 153 million up 12% (reported CHF 171 million). Net new money outflows excluding money markets were CHF 8.9 billion. Outflows were largely from lower-margin passive products, driven by client liquidity needs.
• Investment Bank posted adjusted1 profit before tax of CHF 223 million (reported CHF 80 million), including the annual UK bank levy of CHF 98 million, as revenue declines in Equities and Corporate Client Solutions were partly offset by strong year-on-year performance in Foreign Exchange, Rates and Credit.
Awards and achievements
UBS was honored with several international industry awards in the fourth quarter, including “Best Global Private Bank” by The Banker/PWM for the third year running as well as “Best Private Bank in Asia” for the fourth year in a row, reflecting UBS's market-leading franchise and position as the world's leading wealth manager. UBS Investment Bank was awarded “2015 Bank of the Year” by the International Financing Review for the first time, underlining the success of its client-centric model. UBS Asset Management beat all major index players to claim top spot for the 2015 “Index Manager of the Year Award” at the Professional Pensions Investment Awards. UBS Switzerland consolidated its position as the country’s premier universal bank winning the 2015 Euromoney prize for “Best Bank in Switzerland” for the fourth year running.
In the fourth quarter, UBS strengthened its commitment to limit the effects of climate change and enable the transition to a low-carbon economy. UBS supports its clients in preparing for success in an increasingly carbon-constrained world. Its climate change strategy is focused on risk management, investments, financing, research and its own operations. Its key commitments include: supporting renewable energy and clean-tech transactions; only supporting transactions by companies operating coal-fired power plants if they have a strategy to reduce dependence on coal, or if they adhere strictly to greenhouse gas emission standards, as recommended by leading international agencies. In addition, UBS does not support certain coal-mining companies and limits its lending and capital raising to the sector. UBS is committed to securing 100% of its electricity from renewable sources by 2020, reducing its own greenhouse gas footprint by 75% compared to 2004 levels.

Outlook
Many of the underlying macroeconomic challenges and geopolitical risks that have been highlighted in previous reporting remain and are unlikely to be resolved in the foreseeable future. Negative market performance and substantial market volatility since the start of 2016, low interest rates, and the relative strength of the Swiss franc, particularly against the euro, continue to present headwinds. In addition, the proposed changes to the Swiss too big to fail framework will cause substantial ongoing interest costs. Further changes to the international regulatory framework for banks will likely impose additional costs. We will continue to execute the measures we announced to mitigate these effects as we work toward our financial targets. We remain committed to our strategy and its disciplined execution in order to deliver sustainable returns to our shareholders.

1 Refer to the “Group performance” section of this earnings release for more information on adjusted results.
2 From 31 December 2015 onwards, the Swiss SRB leverage ratio denominator calculation is fully aligned with the BIS Basel III rules. Prior-period figures are calculated in accordance with former Swiss SRB rules and are therefore not fully comparable. Refer to the “Capital management” section of this earnings release for more information.
3 Refer to the “Basis of presentation” section on page 43 of this earnings release.
4 UBS expects that dividends will be paid out of capital contribution reserves for the foreseeable future. Dividends paid out of capital contribution reserves are not subject to the deduction of Swiss withholding tax. For US federal income tax purposes, we expect that the dividend will be paid out of current or accumulated profits.

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