UBS: 1Q19 Net Profit USD 1.1bn

Reported PBT at USD 1.5bn and adjusted¹ at USD 1.6bn

Diluted EPS USD 0.30; reported RoCET1² 13.3%

CET1 capital ratio 13.0% and CET1 leverage ratio 3.8%; tier 1 leverage ratio³ 5.4%

Strong GWM net new money growth with invested assets up 8% or USD 172bn QoQ, record APAC invested assets above USD 400bn

UBS included in Climate A List, CDP's highest ranking, for third year running

Regulatory News:

UBS (NYSE:UBS) (SWX:UBSN) delivered resilient first-quarter 2019 results compared with a very strong prior-year quarter, which also benefitted from a USD 241m pension credit. Reported profit before tax (PBT) was down 26% year over year (YoY) to USD 1,546m and adjusted PBT decreased 21% to USD 1,577m. The Group's adjusted cost/income ratio was 77.9%, with 9% lower operating expenses and a 12% reduction in operating income due to the challenging market environment and a very strong prior-year performance. Net profit attributable to shareholders was USD 1,141m, down 27% YoY. Reported return on CET1 capital² (RoCET1) was 13.3%.

Global Wealth Management (GWM) adjusted PBT was USD 873m and net new money inflows were USD 22bn, with a record USD 16bn in APAC contributing to invested assets in the region rising above USD 400bn for the first time. Personal Corporate Banking adjusted PBT rose 3% to USD 391m (+8% YoY in CHF) with record net new business volume growth of 8% in personal banking. Asset Management adjusted PBT increased by 2% to USD 109m, benefitting from cost actions taken in 2018. The Investment Bank delivered adjusted PBT of USD 221m and an adjusted return on attributed equity of 7%. Corporate Center adjusted loss before tax was USD 17m.

UBS's capital position remains strong, with a CET1 capital ratio of 13.0%, a CET1 leverage ratio of 3.8%, a fully applied tier 1 leverage ratio³ of 5.4%, and total loss-absorbing capacity of USD 87bn. UBS intends to resume share buy-backs in the second quarter of 2019.

"The first quarter of 2019 was characterized by challenging market conditions, which improved towards the end of the quarter and into April. We're on track with the strategic initiatives we announced at our Investor Update last October, as well as the measures we put in place to mitigate market headwinds. Benefits from these measures should come in the second half of the year, supporting our attractive capital return plan for the year."

Sergio P. Ermotti, Group Chief Executive Officer

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¹ Adjusted results are non-GAAP financial measures defined by SEC regulations. Refer to the "Performance of our business divisions and Corporate Center reported and adjusted" table in this news release.

Outlook

The overall pace of growth has decreased as a result of a synchronized global slowdown. Economic growth and markets are expected to continue to recover and stabilize at different speeds across regions and asset classes.

We are likely to benefit from this environment as a result of our regional and business diversification. Higher invested assets are expected to lead to an increase in recurring revenues in Global Wealth Management and Asset Management, compared with the first quarter of 2019. Further momentum would require a sustained improvement in market activity and client sentiment across our businesses.

We will continue to execute our strategy with discipline, focusing on balancing efficiency and investments for growth, to deliver on our capital return objectives and to create sustainable long-term value for our shareholders.

First quarter 2019 performance overview

UBS's first quarter adjusted¹ PBT was USD 1,577m, and reported PBT was USD 1,546m. Adjusted figures this quarter exclude USD 31m of restructuring expenses. The adjusted cost/income ratio was 77.9%, with a 9% reduction in operating expenses partially offsetting a 12% reduction in operating income. Net profit attributable to shareholders was USD 1,141m, with diluted earnings per share of USD 0.30. Reported return on CET1 capital² was 13.3%.

Global Wealth Management (GWM) adjusted PBT USD 873m, (21%) YoY

Recurring net fee income decreased on lower average invested assets, while transaction-based revenues declined on lower client activity, particularly in APAC, and net interest income decreased slightly. Mandate penetration increased to 33.9% of invested assets, with invested assets under mandate increasing YoY. Loans decreased less than USD 1bn sequentially, mostly due to currency effects. Adjusted operating expenses decreased mainly due to lower personnel expenses. The adjusted cost/income ratio was 78%. Net new money was USD 22.3bn (4% annualized growth rate), while invested assets increased by USD 172bn (+8%) during the quarter. APAC invested assets reached a new high of USD 405bn, with record net new money of USD 16bn. Net margin was 15bps.

Personal Corporate Banking (P&C) adjusted PBT CHF 389m, +8% YoY

All revenue lines increased. Net interest income was mainly driven by loan and deposit revenues. Despite continued investments in technology, adjusted operating expenses decreased slightly. The adjusted cost/income ratio was 59%. Net interest margin was 150bps. Business momentum remained strong and in Personal Banking, net new business volume growth was a record 8%.

Asset Management (AM) adjusted PBT USD 109m, +2% YoY

Lower adjusted operating expenses, down 6%, more than offset a decrease in operating income. Net management fees decreased, mainly reflecting lower average invested assets, largely due to lower market levels at the beginning of the quarter and continued pressure on margins. Performance fees rose by USD 12m. The adjusted cost/income ratio improved to 76%. Invested assets were USD 824bn, and net new money was 0.1bn; excluding money markets, net outflows were USD 2.3bn.

Investment Bank (IB) adjusted PBT USD 221m, (64%) YoY

Challenging market conditions, which were most pronounced in EMEA and APAC, affected both Corporate Client Solutions and Equities revenues. Partly offsetting this, FX, Rates Credit had a strong quarter, up 9% YoY. Adjustedoperating expenses decreased, mainly on lower personnel costs. The adjusted cost/income ratio was 86%. Risk-weighted assets (RWA) decreased by 1% from the prior quarter, driven by a USD 6bn reduction in market risk RWA, mostly offset by other increases. Adjusted return on attributed equity was 7%.

Corporate Center adjusted loss before tax was USD 17m, a substantial improvement from the prior-year quarter, which was driven by improved gains from accounting asymmetries, hedge accounting ineffectiveness, and other mark-to-market gains.

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¹ Adjusted results are non-GAAP financial measures defined by SEC regulations. Refer to the "Performance of our business divisions and Corporate Center reported and adjusted" table in this news release.

Commitment to sustainable performance

UBS is committed to creating long-term positive value for its clients, employees, investors and society. This is illustrated by the ongoing recognition UBS receives for its activities and capabilities related to sustainable investing, philanthropy, environmental and human rights policies governing client and supplier relationships, the firm's environmental footprint and community investment.

Confirmed leader in sustainability

For the third year in a row, CDP, which runs a global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts, has awarded UBS with the Climate A List, its highest ranking, as announced in January.

Also in January, Asset Management (AM) as part of a group of 415 investors representing USD 32trn in assets, signed the Global Investor Statement to Governments on Climate Change, urging all governments to implement the actions that are needed to achieve the goals of the Paris Agreement.

AM is well-positioned to contribute to the climate change conversation, given its climate aware rules-based strategy and commitment to sustainable investing. AM's stewardship approach aims to foster a healthy dialogue with management and enhance performance on a variety of ESG issues by monitoring and, where necessary, influencing corporate conduct on matters that affect the long-term value of investee companies. AM is currently engaging with 50 oil, gas and utilities companies based on their current carbon profile, energy sourcing, and ability to transition to a low carbon economy to reduce climate risk and take full advantage of opportunities in renewable energies.

UBS also decided to further tighten standards on coal financing transactions. The bank is committed to not providing project-level finance to new coal-fired power plants globally, to only supporting financing transactions of existing coal-fired operators (which are more than 30% reliant on coal) who have a transition strategy in place that aligns with a pathway under the Paris Agreement, or the transaction is related to renewable energy. UBS has already significantly reduced lending and capital raising to the coal mining sector and cut support to coal-mining companies engaged in mountain-top removal operations.

Information in this news release is presented for UBS Group AG on a consolidated basis unless otherwise specified. Financial information for UBS AG (consolidated) does not differ materially from UBS Group AG (consolidated) and a comparison between UBS Group AG (consolidated) and UBS AG (consolidated) is provided at the end of this news release.

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¹ Adjusted results are non-GAAP financial measures defined by SEC regulations. Refer to the "Performance of our business divisions and Corporate Center reported and adjusted" table in this news release.
² Return on CET1 capital. Net profit attributable to shareholders (annualized as applicable) divided by average common equity tier 1 capital.
³ Going concern ratio under Swiss SRB rules applicable as of 1 January 2020.

Performance of our business divisions and Corporate Center reported and adjusted1,2
		For the quarter ended 31.3.19
USD million		Global Wealth Management		Personal & Corporate Banking		Asset Manage- ment		Investment Bank		Corporate Center3		UBS
Operating income as reported		4,003		957		446		1,765		47		7,218
Operating income (adjusted)		4,003		957		446		1,765		47		7,218
Operating expenses as reported		3,140		570		343		1,558		62		5,672
of which: personnel-related restructuring expenses4		0		0		2		1		14		17
of which: non-personnel-related restructuring expenses4		0		0		2		2		10		14
of which: restructuring expenses allocated from Corporate Center4		10		4		2		11		(27)		0
Operating expenses (adjusted)		3,130		567		337		1,544		63		5,641
of which: net expenses for litigation, regulatory and similar matters5		0		0		0		(1)		(8)		(8)
Operating profit (loss) before tax as reported		863		387		103		207		(15)		1,546
Operating profit (loss) before tax (adjusted)		873		391		109		221		(17)		1,577
		For the quarter ended 31.3.18
USD million		Global Wealth Management		Personal & Corporate Banking		Asset Manage- ment		Investment Bank		Corporate Center3		UBS
Operating income as reported		4,409		981		466		2,415		(101)		8,168
Operating income (adjusted)		4,409		981		466		2,415		(101)		8,168
Operating expenses as reported		3,306		573		360		1,838		(9)		6,069
of which: personnel-related restructuring expenses4		3		1		1		12		50		68
of which: non-personnel-related restructuring expenses4		10		0		3		2		53		68
of which: restructuring expenses allocated from Corporate Center4		50		9		7		34		(99)		0
of which: gain related to changes to the Swiss pension plan6		(66)		(38)		(10)		(5)		(122)		(241)
Operating expenses (adjusted)		3,310		600		359		1,796		109		6,174
of which: net expenses for litigation, regulatory and similar matters5		32		0		0		(2)		(41)		(11)
Operating profit (loss) before tax as reported		1,102		408		105		576		(92)		2,100
Operating profit (loss) before tax (adjusted)		1,099		380		107		619		(211)		1,994
1 Adjusted results are non-GAAP financial measures as defined by SEC regulations. 2 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 the "Recent developments" section and "Note 1 Basis of accounting" in the "Consolidated financial statements" section of the UBS Group first quarter 2019 report for more information. Comparatives may additionally differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the reporting period. 3 Corporate Center operating expenses presented in this table are after service allocations to business divisions. 4 Reflects restructuring expenses related to legacy cost programs as well as expenses for new restructuring initiatives. 5 Reflects the net increase in (release of) provisions for litigation, regulatory and similar matters recognized in the income statement. Refer to "Note 16 Provisions and contingent liabilities" in the "Consolidated financial statements" section of the UBS Group first quarter 2019 report for more information. Also includes recoveries from third parties (first quarter of 2019: USD 7 million; first quarter of 2018: USD 17 million). 6 Changes to the Pension Fund of UBS in Switzerland in the first quarter of 2018 resulted in a reduction in the pension obligation recognized by UBS. As a consequence, a pre-tax gain of USD 241 million was recognized in the income statement in the first quarter of 2018, with no overall effect on total equity. Refer to "Note 5 Personnel expenses" in the "Consolidated financial statements" section of the first quarter 2018 report for more information.

Our key figures
		As of or for the quarter ended
USD million, except where indicated		31.3.19		31.12.18		31.3.18
Group results
Operating income		7,218		6,972		8,168
Operating expenses		5,672		6,492		6,069
Operating profit (loss) before tax		1,546		481		2,100
Net profit (loss) attributable to shareholders		1,141		315		1,566
Diluted earnings per share (USD)1		0.30		0.08		0.41
Profitability and growth2
Return on equity (%)3		8.6		2.4		11.8
Return on tangible equity (%)4		9.8		2.7		13.5
Return on common equity tier 1 capital (%)5		13.3		3.7		18.3
Return on risk-weighted assets, gross (%)6		10.9		10.8		12.9
Return on leverage ratio denominator, gross (%)6		3.2		3.1		3.6
Cost income ratio (%)7		78.4		92.4		74.1
Adjusted cost income ratio (%)8		77.9		92.2		75.3
Net profit growth (%)9		(27.1)				25.1
Resources
Total assets		956,579		958,489		964,260
Equity attributable to shareholders		53,667		52,928		53,662
Common equity tier 1 capital10		34,658		34,119		34,774
Risk-weighted assets10		267,556		263,747		266,169
Common equity tier 1 capital ratio (%)10		13.0		12.9		13.1
Going concern capital ratio (%)10		18.5		17.5		17.3
Total loss-absorbing capacity ratio (%)10		32.7		31.7		31.2
Leverage ratio denominator10		910,993		904,598		925,651
Common equity tier 1 leverage ratio (%)10		3.80		3.77		3.76
Going concern leverage ratio (%)10		5.4		5.1		5.0
Total loss-absorbing capacity leverage ratio (%)10		9.6		9.3		9.0
Liquidity coverage ratio (%)11		153		136		136
Other
Invested assets (USD billion)12		3,318		3,101		3,309
Personnel (full-time equivalents)		67,481		66,888		62,537
Market capitalization13,14		45,009		45,907		66,261
Total book value per share (USD)13		14.45		14.35		14.27
Total book value per share (CHF)13,15		14.39		14.11		13.60
Tangible book value per share (USD)13		12.67		12.55		12.53
Tangible book value per share (CHF)13,15		12.62		12.33		11.94
1 Refer to "Note 9 Earnings per share (EPS) and shares outstanding" in the "Consolidated financial statements" section of the UBS Group first quarter 2019 report for more information. 2 Refer to the "Performance targets and measurement" section of our Annual Report 2018 for more information on our performance targets. 3 Calculated as net profit attributable to shareholders (annualized as applicable) average equity attributable to shareholders. 4 Calculated as net profit attributable to shareholders (annualized as applicable) average equity attributable to shareholders less average goodwill and intangible assets. The definition of the numerator for return on tangible equity has been revised to align with numerators for return on equity and return on CET1 capital; i.e., we no longer adjust for amortization and impairment of goodwill and intangible assets. Prior periods have been restated. 5 Calculated as net profit attributable to shareholders (annualized as applicable) average common equity tier 1 capital. 6 Calculated as operating income before credit loss expense or recovery (annualized as applicable) average risk-weighted assets and average leverage ratio denominator, respectively. 7 Calculated as operating expenses operating income before credit loss expense or recovery.8 Calculated as adjusted operating expenses adjusted operating income before credit loss expense or recovery. 9 Calculated as change in net profit attributable to shareholders from continuing operations between current and comparison periods net profit attributable to shareholders from continuing operations of comparison period. 10 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the "Capital management" section of the UBS Group first quarter 2019 report for more information. 11 Refer to the "Balance sheet, liquidity and funding management" section of the UBS Group first quarter 2019 report for more information. 12 Includes invested assets for Global Wealth Management, Asset Management and Personal Corporate Banking. 13 Refer to "UBS shares" in the "Capital management" section of the UBS Group first quarter 2019 report for more information. 14 Beginning with our Annual Report 2018, the calculation of market capitalization has been amended to reflect total shares outstanding multiplied by the share price at the end of the period. The calculation was previously based on total shares issued multiplied by the share price at the end of the period. Market capitalization has been reduced by USD 2.1 billion as of 31 December 2018 and by USD 1.7 billion as of 31 March 2018 as a result. 15 Total book value per share and tangible book value per share in Swiss francs are calculated based on a translation of equity under our US dollar presentation currency. As a consequence of the restatement to a US dollar presentation currency, amounts may differ from those originally published in our quarterly and annual reports.

Income statement
		For the quarter ended						% change from
USD million		31.3.19		31.12.18		31.3.18		4Q18		1Q18
Net interest income		1,123		1,226		1,435		(8)		(22)
Other net income from financial instruments measured at fair value through profit or loss		1,935		1,297		1,973		49		(2)
Credit loss (expense) recovery		(20)		(53)		(26)		(62)		(22)
Fee and commission income		4,541		4,700		5,178		(3)		(12)
Fee and commission expense		(409)		(439)		(433)		(7)		(6)
Net fee and commission income		4,132		4,261		4,744		(3)		(13)
Other income		49		241		42		(80)		15
Total operating income		7,218		6,972		8,168		4		(12)
Personnel expenses		4,043		3,839		4,254		5		(5)
General and administrative expenses		1,187		2,293		1,510		(48)		(21)
Depreciation and impairment of property, equipment and software		427		343		288		24		48
Amortization and impairment of intangible assets		16		17		16		(8)		(5)
Total operating expenses		5,672		6,492		6,069		(13)		(7)
Operating profit (loss) before tax		1,546		481		2,100		222		(26)
Tax expense (benefit)		407		165		533		146		(24)
Net profit (loss)		1,139		315		1,567		261		(27)
Net profit (loss) attributable to non-controlling interests		(2)		1		2
Net profit (loss) attributable to shareholders		1,141		315		1,566		263		(27)
Comprehensive income
Total comprehensive income		1,039		1,208		1,854		(14)		(44)
Total comprehensive income attributable to non-controlling interests		2		2		3		0		(33)
Total comprehensive income attributable to shareholders		1,037		1,207		1,850		(14)		(44)

Comparison UBS Group AG consolidated versus UBS AG consolidated
		As of or for the quarter ended 31.3.19						As of or for the quarter ended 31.12.18
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		7,218		7,343		(125)		6,972		7,083		(111)
Operating expenses		5,672		5,890		(217)		6,492		6,667		(176)
Operating profit (loss) before tax		1,546		1,454		92		481		416		65
of which: Global Wealth Management		863		848		16		327		316		11
of which: Personal Corporate Banking		387		386		1		644		645		(1)
of which: Asset Management		103		103		0		106		105		1
of which: Investment Bank		207		187		20		(78)		(79)		1
of which: Corporate Center		(15)		(71)		56		(518)		(571)		53
Net profit (loss)		1,139		1,067		72		315		273		42
of which: net profit (loss) attributable to shareholders		1,141		1,069		72		315		272		42
of which: net profit (loss) attributable to non-controlling interests		(2)		(2)		0		1		1		0
Statement of comprehensive income
Other comprehensive income		(100)		(90)		(10)		893		895		(2)
of which: attributable to shareholders		(104)		(94)		(10)		892		894		(2)
of which: attributable to non-controlling interests		4		4		0		1		1		0
Total comprehensive income		1,039		977		62		1,208		1,168		41
of which: attributable to shareholders		1,037		974		62		1,207		1,166		41
of which: attributable to non-controlling interests		2		2		0		2		2		0
Balance sheet
Total assets		956,579		956,737		(158)		958,489		958,055		434
Total liabilities		902,739		903,348		(609)		905,386		905,624		(238)
Total equity		53,840		53,389		451		53,103		52,432		671
of which: equity attributable to shareholders		53,667		53,216		451		52,928		52,256		671
of which: equity attributable to non-controlling interests		173		173		0		176		176		0
Capital information
Common equity tier 1 capital		34,658		34,933		(275)		34,119		34,608		(489)
Going concern capital		49,436		45,368		4,068		46,279		42,413		3,865
Risk-weighted assets		267,556		266,581		976		263,747		262,840		907
Common equity tier 1 capital ratio (%)		13.0		13.1		(0.2)		12.9		13.2		(0.2)
Going concern capital ratio (%)		18.5		17.0		1.5		17.5		16.1		1.4
Total loss-absorbing capacity ratio (%)		32.7		32.2		0.5		31.7		31.3		0.5
Leverage ratio denominator		910,993		911,410		(417)		904,598		904,458		140
Common equity tier 1 leverage ratio (%)		3.80		3.83		(0.03)		3.77		3.83		(0.05)
Going concern leverage ratio (%)		5.4		5.0		0.4		5.1		4.7		0.4
Total loss-absorbing capacity leverage ratio (%)		9.6		9.4		0.2		9.3		9.1		0.2

UBS's first quarter 2019 report, news release and slide presentation will be available from 06:45 CEST on Thursday, 25 April 2019, at www.ubs.com/quarterlyreporting

UBS will hold a presentation of its first quarter 2019 results on Thursday, 25 April 2019. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Kirt Gardner, Group Chief Financial Officer, Martin Osinga, Head Investor Relations ad interim, and Hubertus Kuelps, Group Head Communications Branding.

Time

09:00-11:00 CEST

08:00-10:00 BST

03:00-05:00 US EDT

Audio webcast

The presentation for analysts can be followed live on www.ubs.com/quarterlyreporting with a simultaneous slide show.

Webcast playback

An audio playback of the results presentation will be made available at www.ubs.com/investors later in the day.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements," including but not limited to management's outlook for UBS's financial performance and statements relating to the anticipated effect of transactions and strategic initiatives on UBS's business and future development. While these forward-looking statements represent UBS's judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS's expectations. These factors include, but are not limited to: (i) the degree to which UBS is successful in the ongoing execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), including to counteract regulatory-driven increases, liquidity coverage ratio and other financial resources, and the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (ii) the continuing low or negative interest rate environment in Switzerland and other jurisdictions, developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, and currency exchange rates, and the effects of economic conditions, market developments, and geopolitical tensions on the financial position or creditworthiness of UBS's clients and counterparties as well as on client sentiment and levels of activity; (iii) changes in the availability of capital and funding, including any changes in UBS's credit spreads and ratings, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (iv) changes in or the implementation of financial legislation and regulation in Switzerland, the US, the UK, the European Union and other financial centers that have imposed, or resulted in, or may do so in the future, more stringent or entity-specific capital, TLAC, leverage ratio, liquidity and funding requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints on transfers of capital and liquidity and sharing of operational costs across the Group or other measures, and the effect these will or would have on UBS's business activities; (v) the degree to which UBS is successful in implementing further changes to its legal structure to improve its resolvability and meet related regulatory requirements and the potential need to make further changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements, proposals in Switzerland and other jurisdictions for mandatory structural reform of banks or systemically important institutions or to other external developments, and the extent to which such changes will have the intended effects; (vi) UBS's ability to maintain and improve its systems and controls for the detection and prevention of money laundering and compliance with sanctions to meet evolving regulatory requirements and expectations, in particular in the US; (vii) the uncertainty arising from the timing and nature of the UK exit from the EU; (viii) changes in UBS's competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS's ability to compete in certain lines of business; (ix) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including recently enacted and proposed measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (x) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses, potentially large fines or monetary penalties, or the loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of our RWA as well as the amount of capital available for return to shareholders; (xi) the effects on UBS's cross-border banking business of tax or regulatory developments and of possible changes in UBS's policies and practices relating to this business; (xii) UBS's ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors; (xiii) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xiv) UBS's ability to implement new technologies and business methods, including digital services and technologies and ability to successfully compete with both existing and new financial service providers, some of which may not be regulated to the same extent; (xv) limitations on the effectiveness of UBS's internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xvi) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks, and systems failures; (xvii) restrictions on the ability of UBS Group AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS's operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xviii) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS's ability to maintain its stated capital return objective; and (xix) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including UBS's Annual Report on Form 20-F for the year ended 31 December 2018. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Rounding

Numbers presented throughout this news release may not add up precisely to the totals provided in the tables and text. Percentages, percent changes, and adjusted results are calculated on the basis of unrounded figures. Information on absolute changes between reporting periods, which is provided in text and that can be derived from figures displayed in the tables, is calculated on a rounded basis.

Tables

Within tables, blank fields generally indicate that the field is not applicable or not meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Percentage changes are presented as a mathematical calculation of the change between periods.

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