6kubsgroupfunding

 



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

 

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

Date: March 15, 2019

 

UBS Group AG

Commission File Number: 1-36764

 

UBS AG

Commission File Number: 1-15060

 

 

(Registrants' Name)

 

Bahnhofstrasse 45, Zurich, Switzerland and
Aeschenvorstadt 1, Basel, Switzerland

(Address of principal executive offices)

 

Indicate by check mark whether the registrants file or will file annual reports under cover of Form 20‑F or Form 40-F.

 

Form 20-F                         Form 40-F 

 


 

This Form 6-K consists of the UBS Group Funding (Switzerland) AG audited standalone financial statements for the year ended 31 December 2018, which appear immediately following this page.

  

 


 

 

UBS Group Funding (Switzerland) AG

Standalone financial statements as of 31 December 2018.

 


 

Table of contents

 

1

 

UBS Group Funding (Switzerland) AG standalone financial statements (audited)

 

 

 

1

 

Income statement

1

 

Balance sheet

2

 

Reconciliation of equity

2

 

Statement of appropriation of total profit / (loss) carried forward

 

 

 

 

 

 

3

1

Corporate information

3

2

Accounting policies

 

 

 

5

 

Income statement notes

5

3

Financial income

5

4

Other operating expenses

5

5

Financial expenses

 

 

 

6

 

Balance sheet notes

6

6

Liquid assets

6

7

Accrued income and prepaid expenses

6

8

Financial assets

6

9

Other non-current assets

6

10

Other current liabilities

6

11

Accrued expenses and deferred income

7

12

Long-term interest-bearing liabilities

9

13

Other long-term liabilities

9

14

Share capital

9

15

Contingent liabilities

 

 

 

10

 

Additional information

10

16

Related parties

10

17

Currency translation rates

 

 

 

  

 


 

UBS Group Funding (Switzerland) AG standalone financial statements (audited)

Income statement

 

 

 

 

 

 

 

 

 

 

 

 

USD million

 

CHF million

 

 

 

 

For the year ended

 

For the year ended

 

 

Note

 

31.12.18

31.12.17

 

31.12.18

31.12.17

Financial income

 

 3 

 

 1,525 

 508 

 

 1,503 

 495 

Operating income

 

 

 

 1,525 

 508 

 

 1,503 

 495 

Other operating expenses

 

 4 

 

 0 

 0 

 

 0 

 0 

Financial expenses

 

 5 

 

 1,517 

 504 

 

 1,495 

 491 

Operating expenses

 

 

 

 1,517 

 504 

 

 1,495 

 491 

Profit / (loss) before income taxes

 

 

 

 8 

 4 

 

 8 

 4 

Tax expense / (benefit)

 

 

 

 2 

 1 

 

 2 

 1 

Net profit / (loss)

 

 

 

 6 

 3 

 

 6 

 3 

 

UBS Group Funding (Switzerland) AG was incorporated on 14 November 2016. The income statement and corresponding Notes presented for the period ended on 31 December 2017 include income and expenses for the period from 14 November 2016 to 31 December 2017.

 

Balance sheet

 

 

 

 

 

 

 

 

USD million

 

CHF million

 

 

Note

 

31.12.18

31.12.17

 

31.12.18

31.12.17

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Liquid assets

 

 6 

 

 115 

 20 

 

 113 

 19 

Accrued income and prepaid expenses

 

 7 

 

 1,017 

 481 

 

 1,000 

 469 

Total current assets

 

 

 

 1,133 

 501 

 

 1,114 

 488 

Financial assets

 

 8 

 

 41,784 

 28,424 

 

 41,083 

 27,708 

Other non-current assets

 

 9 

 

 33 

 0 

 

 33 

 0 

Total non-current assets

 

 

 

 41,817 

 28,424 

 

 41,116 

 27,708 

Total assets

 

 

 

 42,950 

 28,925 

 

 42,230 

 28,196 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Other current liabilities

 

 10 

 

 42 

 29 

 

 42 

 29 

Accrued expenses and deferred income

 

 11 

 

 728 

 197 

 

 715 

 192 

Total short-term liabilities

 

 

 

 770 

 227 

 

 757 

 221 

Long-term interest-bearing liabilities

 

 12 

 

 42,019 

 28,555 

 

 41,314 

 27,835 

Other long-term liabilities

 

 13 

 

 145 

 130 

 

 142 

 127 

Total long-term liabilities

 

 

 

 42,163 

 28,685 

 

 41,456 

 27,962 

Total liabilities

 

 

 

 42,933 

 28,912 

 

 42,213 

 28,183 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 14 

 

 0 

 0 

 

 0 

 0 

General reserves

 

 

 

 10 

 10 

 

 10 

 10 

of which: statutory capital reserve

 

 

 

 10 

 10 

 

 10 

 10 

of which: capital contribution reserve

 

 

 

 10 

 10 

 

 10 

 10 

Net profit / (loss)

 

 

 

 6 

 3 

 

 6 

 3 

Equity attributable to shareholders

 

 

 

 16 

 14 

 

 16 

 13 

Total liabilities and equity

 

 

 

 42,950 

 28,925 

 

 42,230 

 28,196 

1 


UBS Group Funding (Switzerland) AG standalone financial statements (audited)

 

Reconciliation of equity

A reconciliation of equity for the year ended 31 December 2018 from the former Swiss franc presentation currency to the new US dollar presentation currency is provided in the table below.

In million

 

Share capital

 

General reserves

 

 

Net profit / (loss)

 

Total equity

 

 

 

 

 

 

 

 

 

 

Balance as of 1 January 2018, CHF

 

 0 

 

 10 

 

 

 3 

 

 13 

Dividend distribution

 

 

 

 

 

 

 (3) 

 

 (3) 

Net profit / (loss) for the period before conversion, CHF

 

 

 

 

 

 

 4 

 

 4 

CHF equity at conversion date 1 October 20181

 

 0 

 

 10 

 

 

 4 

 

 14 

USD equity opening balance at conversion date 1 October 2018

 

 0 

 

 10 

 

 

 4 

 

 14 

Net profit / (loss) for the period after conversion, USD

 

 

 

 

 

 

 3 

 

 3 

Balance as of 31 December 2018, USD

 

 0 

 

 10 

 

 

 6 

 

 16 

1 Conversion date rate as of 1 October 2018 represents the closing exchange rate as of 30 September 2018 (CHF / USD 1.02).

 

Statement of appropriation of total profit / (loss) carried forward

The Board of Directors proposes that the Annual General Meeting of Shareholders (AGM) on 7 March 2019 approve an ordinary dividend distribution of USD 6 million. Dividends are declared and paid in US dollars. The total amount of the dividends will be capped at CHF 8 million (Cap). To the extent that the CHF dividend calculated based on USD 6 million would exceed the Cap on the day of the AGM, due to the exchange rate determined by the Board of Directors in its reasonable opinion, the USD amount of the dividend will be reduced on a pro-rata basis so that the total CHF amount does not exceed
the Cap.

The Board of Directors proposes that the AGM on 7 March 2019 approve the following appropriation of total profit / (loss) carried forward and dividend distribution.

Proposed appropriation of total profit / (loss) carried forward if the Cap is not triggered

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.18

 

31.12.18

Net profit for the period

 

 6 

 

 6 

Profit / (loss) carried forward

 

 0 

 

 0 

Total profit / (loss) carried forward available for appropriation

 

 6 

 

 6 

 

 

 

 

 

Appropriation of total profit / (loss) carried forward

 

 

 

 

Dividend distribution

 

 (6) 

 

 (6)1

Profit / (loss) carried forward

 

 0 

 

 0 

1 Translated at closing exchange rate as of 31 December 2018 (CHF / USD 1.02).

 

 

 

 

Proposed appropriation of total profit / (loss) carried forward and proposed dividend distribution out of capital contribution reserve if the Cap is triggered

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.18

 

31.12.18

Appropriation of total profit / (loss) carried forward

 

 

 

 

Dividend distribution

 

 (6) 

 

 (6) 

Profit / (loss) carried forward

 

 0 

 

 0 

 

 

 

 

 

Proposed dividend distribution out of capital contribution reserve

 

 

 

 

Total capital contribution reserve before distribution

 

 10 

 

 10 

Dividend distribution

 

 0 

 

 (2) 

Total capital contribution reserve after distribution

 

 10 

 

 8 

 

 

 

 

 

The total CHF dividend is capped at CHF 8 million. The USD amount (6 million) will be reduced to CHF 8 million multiplied by the exchange rate determined by the Board of Directors on the day of the AGM.

2


 

Note 1  Corporate information

UBS Group Funding (Switzerland) AG is incorporated and domiciled in Switzerland and its registered office is at Bahnhofstrasse 45, CH-8001 Zurich, Switzerland. UBS Group Funding (Switzerland) AG operates under article 620ff. of the Swiss Code of Obligations as an Aktiengesellschaft  (a corporation limited by shares).

Establishment of UBS Group Funding (Switzerland) AG

UBS Group Funding (Switzerland) AG was incorporated on 14 November 2016 as a wholly owned subsidiary of UBS Group AG. The company was established to issue UBS Group AG guaranteed perpetual capital notes that qualify as Basel III additional tier 1 (AT1) capital and senior unsecured debt that contributes to the total loss-absorbing capacity (TLAC) of UBS.

UBS Group Funding (Switzerland) AG was designated by FINMA as a significant group company according to article 2bis para. 1 lit. b of the Swiss Banking Act.

 

Issuance of AT1 capital instruments and TLAC-eligible senior unsecured debt

Throughout 2018 and 2017, UBS Group Funding (Switzerland) AG issued TLAC-eligible senior unsecured debt and perpetual AT1 capital notes. The proceeds from the issuances of those instruments were on-lent to UBS AG.

In May 2018, outstanding perpetual capital notes that qualify as Basel III AT1 capital issued by UBS Group AG were transferred to UBS Group Funding (Switzerland) AG at book value with
a retrospective effect as of 1 January 2018. In May 2017 outstanding TLAC-eligible senior unsecured debt issued by UBS Group Funding (Jersey) Limited was transferred to UBS Group Funding (Switzerland) AG. Both transfers were carried out by means of an issuer substitution pursuant to the voluntary substitution provisions provided in the terms and conditions of the relevant instruments. Following the transfers, the outstanding perpetual capital notes and TLAC-eligible senior unsecured debt continue to be guaranteed by UBS Group AG, and investors’ seniority of claims against UBS Group AG remains unchanged.

In December 2018, the Swiss Parliament approved changes to the tax treatment of too big to fail (TBTF) instruments issued by the holding companies of Swiss systemically important banks. The new law aims to eliminate the additional tax burden imposed on systemically important banks as a result of required issuances of TBTF instruments at the holding company level. The Swiss Federal Council will announce an effective date for the change after the referendum period closes in April 2019. No referendum has been called at this point. Once effective, new loss-absorbing additional tier 1 capital instruments and total loss-absorbing capacity (TLAC)-eligible senior unsecured debt will be issued directly out of UBS Group AG. It is also expected that UBS Group AG will  assume outstanding capital and debt instruments that were previously issued by UBS Group Funding (Switzerland) AG as a means of managing the aforementioned tax burden.

®   Refer to Note 12 for more information on the main terms and conditions of the perpetual capital notes and TLAC-eligible senior unsecured debt issued

 

 

Note 2  Accounting policies

The UBS Group Funding (Switzerland) AG standalone financial statements are prepared in accordance with the principles of the Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations).

The functional currency of UBS Group Funding (Switzerland) AG is the US dollar. The significant accounting and valuation principles applied are described below.

Change in functional and presentation currency

As of 1 October 2018 (the conversion date) UBS Group Funding (Switzerland) AG prospectively changed its functional currency from Swiss francs to US dollars.

UBS Group Funding (Switzerland) AG also prospectively changed the presentation currency of its standalone financial statements from Swiss francs to US dollars. The interim Swiss franc financial information of UBS Group Funding (Switzerland) AG as of 30 September 2018, including the balance sheet, year-to-date income statement and all related notes, was translated into US dollars at the closing rate on 30 September 2018 (the conversion date rate). This conversion had no impact on the income statement or equity.

As the primary presentation currency of the standalone financial statements of UBS Group Funding (Switzerland) AG is US dollars, amounts in Swiss francs are additionally presented for each component of the financial statements. UBS Group Funding (Switzerland) AG applies the modified closing rate method for translating the US dollar amounts into Swiss francs: assets and liabilities are translated at the closing rate, equity positions at historic rates and income and expense items at the weighted average rate for the period. All resulting currency translation effects are recognized separately in Voluntary earnings reserve, amounting to CHF 0 million as of 31 December 2018. Under Swiss Code of Obligations, prior period financial statements are not restated. All comparative prior-period information as of and for the year ended 31 December 2017 is translated at the closing rate as of 31 December 2017.

3 


UBS Group Funding (Switzerland) AG standalone financial statements (audited)

 

Note 2  Accounting policies (continued)

Foreign currency translation

Transactions denominated in foreign currency are translated into US dollars at the spot exchange rate on the date of the transaction. At the balance sheet date, all assets and liabilities that are denominated in a foreign currency are translated into US dollars using the closing exchange rate. Where the asset mirrors the terms of a corresponding liability or the asset and liability otherwise form an economic hedge relationship, the asset and liability are treated as one unit of account for foreign currency translation purposes, with offsetting unrealized foreign currency translation gains and losses based on the closing exchange rate presented net in the income statement. All currency translation effects are recognized in the income statement.

®   Refer to Note 17 for information on the main currency translation rates used

Financial assets

Financial assets include loans granted to UBS AG that substantially mirror the terms of the AT1 perpetual capital notes and the TLAC eligible senior unsecured debt instruments issued. These loans qualify as Basel III AT1 capital and gone concern loss absorbing capacity, respectively, at the UBS AG consolidated level. They are measured at nominal value.

®   Refer to Note 8 for more information


Long-term interest-bearing liabilities

Long-term interest-bearing liabilities include perpetual capital notes that qualify as Basel III AT1 capital and TLAC-eligible senior unsecured debt instruments. They are measured at nominal value. Any difference to nominal value, e.g., premium, discount or external costs that are directly related to the issue, is deferred as Accrued income and prepaid expenses or Accrued expenses and deferred income and amortized to Financial expenses or Financial income over the maturity of the instrument, or until the first call date or optional redemption date, where applicable.

®   Refer to Note 12 for more information

 

Dispensations in the standalone financial statements

As UBS Group AG, the holding company of UBS Group Funding (Switzerland) AG, prepares consolidated financial statements in accordance with IFRS, UBS Group Funding (Switzerland) AG is exempt from various disclosures in the standalone financial statements. The dispensations include the management report and the statement of cash flows, as well as certain note disclosures.

4


 

Income statement notes

Note 3  Financial income

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.18

31.12.17

 

31.12.18

31.12.17

Interest income on liquid assets

 

 1 

 0 

 

 1 

 0 

Interest income on long-term receivables from UBS AG

 

 1,524 

 508 

 

 1,502 

 495 

Foreign currency translation gains

 

 0 

 0 

 

 0 

 0 

Total financial income

 

 1,525 

 508 

 

 1,503 

 495 

 

 

Note 4  Other operating expenses

UBS Group Funding (Switzerland) AG had no employees throughout the period from incorporation on 14 November 2016 to 31 December 2018. Other operating expenses mainly consist of paying agency fees, audit fees and capital tax expenses.

 

 

Note 5  Financial expenses

Financial expenses comprise interest expense on interest-bearing liabilities.

  

5 


UBS Group Funding (Switzerland) AG standalone financial statements (audited)

Balance sheet notes

Note 6  Liquid assets

Liquid assets comprise current accounts held at UBS AG.

 

 

Note 7  Accrued income and prepaid expenses

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.18

31.12.17

 

31.12.18

31.12.17

Accrued interest income

 

 625 

 199 

 

 615 

 194 

Prepaid expenses

 

 392 

 282 

 

 386 

 275 

Total accrued income and prepaid expenses

 

 1,017 

 481 

 

 1,000 

 469 

 

 

Note 8  Financial assets

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.18

31.12.17

 

31.12.18

31.12.17

Onward lending to UBS AG1

 

 41,782 

 28,422 

 

 41,081 

 27,706 

Other long-term receivables from UBS AG

 

 2 

 2 

 

 2 

 2 

Total financial assets

 

 41,784 

 28,424 

 

 41,083 

 27,708 

1 Long-term receivables from the onward lending of the proceeds from the issuances of TLAC-eligible senior unsecured debt and loss-absorbing additional tier 1 perpetual capital notes to UBS AG.

 

Note 9  Other non-current assets

Other non-current assets are comprised of incentive fee receivables from UBS Group AG due after 12 months after the balance sheet date.

 

Note 10  Other current liabilities 

Other current liabilities are comprised of guarantee fee payables to UBS Group AG due within 12 months after the balance sheet date.

 

 

Note 11  Accrued expenses and deferred income

 

 

USD million

 

CHF million

 

 

For the year ended

 

For the year ended

 

 

31.12.18

31.12.17

 

31.12.18

31.12.17

Accrued interest expense

 

 678 

 193 

 

 667 

 188 

Other

 

 49 

 5 

 

 49 

 4 

Total accrued expenses and deferred income

 

 728 

 197 

 

 715 

 192 


6


 

Note 12  Long-term interest-bearing liabilities

Long-term interest-bearing liabilities totaled USD 42,019
million (CHF 41,314 million) as of 31 December 2018 (31 December 2017: USD 28,555 million (CHF 27,835 million)), comprising USD 41,782 million (CHF 41,081 million) of debt issued (31 December 2017: USD 28,422 million (CHF 27,706 million)) and USD 237 million (CHF 233 million) of fixed-term loans (31 December 2017: USD 132 million (CHF 129 million)). In May 2018, outstanding perpetual capital notes that qualify as Basel III AT1 capital issued by UBS Group AG were transferred to UBS Group Funding (Switzerland) AG at book value by means of an issuer substitution with a retrospective effect as of 1 January 2018.

 

Notes issued, overview by amount, maturity and coupon

 

31.12.18

 

 

 

 

31.12.17

In million, except where indicated

 

Carrying value

in transaction

currency

Carrying value

in USD

 

Maturity1, 2

Coupon1, 2

 

Carrying value

in transaction

currency

Carrying value

in USD

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,750 

 2,005 

 

20.09.21

3M EUR LIBOR + 70 bps

 

 1,750 

 2,100 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 2,000 

 

23.05.22

3.491%

 

 2,000 

 2,000 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,000 

 1,000 

 

23.05.22

3M USD LIBOR + 122 bps

 

 1,000 

 1,000 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 2,000 

 

23.03.27

4.253%

 

 2,000 

 2,000 

Swiss franc-denominated TLAC-eligible senior unsecured notes

 

 400 

 407 

 

18.05.23

0.625%

 

 400 

 410 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,432 

 

16.11.22

1.75%

 

 1,250 

 1,500 

Swiss franc-denominated TLAC-eligible senior unsecured notes

 

 300 

 305 

 

22.02.22

0.75%

 

 300 

 308 

Swiss franc-denominated TLAC-eligible senior unsecured notes

 

 150 

 153 

 

23.02.26

1.25%

 

 150 

 154 

Euro-denominated TLAC-eligible senior unsecured notes

 

 750 

 859 

 

04.03.24

2.125%

 

 750 

 900 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,500 

 1,500 

 

24.09.20

2.95%

 

 1,500 

 1,500 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,500 

 2,500 

 

24.09.25

4.125%

 

 2,500 

 2,500 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 300 

 300 

 

24.09.20

3M USD LIBOR + 144 bps

 

 300 

 300 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 2,000 

 

15.04.21

3%

 

 2,000 

 2,000 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,000 

 1,000 

 

14.04.21

3M USD LIBOR + 178 bps

 

 1,000 

 1,000 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 2,000 

 

15.04.26

4.125%

 

 2,000 

 2,000 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 2,000 

 

01.02.22

2.65%

 

 2,000 

 2,000 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 500 

 500 

 

01.02.22

3M USD LIBOR + 153 bps

 

 500 

 500 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,432 

 

01.09.26

1.25%

 

 1,250 

 1,500 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,432 

 

30.11.23

1.5%

 

 1,250 

 1,500 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,250 

 

15.08.22

3M USD LIBOR + 95 bps

 

 1,250 

 1,250 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 2,000 

 

15.08.22

2.859%

 

 2,000 

 2,000 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,750 

 2,005 

 

17.04.24

1.25%

 

 

 

Yen-denominated TLAC-eligible senior unsecured notes

 

 130,000 

 1,186 

 

08.11.23

0.719%

 

 

 

Yen-denominated TLAC-eligible senior unsecured notes

 

 20,000 

 182 

 

09.11.27

0.973%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 2,000 

 2,000 

 

31.01.23

5%

 

 

 

Euro-denominated low-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,000 

 1,146 

 

19.02.22

5.75%

 

 

 

US dollar-denominated low-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,250 

 1,250 

 

19.02.25

7%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,250 

 1,250 

 

19.02.20

7.125%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,575 

 1,575 

 

07.08.25

6.875%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,500 

 1,500 

 

22.03.21

6.875%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,100 

 1,100 

 

10.08.21

7.125%

 

 

 

Singapore dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 700 

 514 

 

28.11.23

5.875%

 

 

 

Total notes issued

 

 

 41,782 

 

 

 

 

 

 28,422 

1 For the TLAC-eligible senior unsecured notes disclosed maturity refers to the contractual maturity date or, if applicable, to the earlier optional redemption date of the respective issuance. The disclosed coupon rate refers to the contractual coupon rate applied from the issue date up to the contractual maturity date or, if applicable, to the earlier optional redemption date.    2 For the loss-absorbing additional tier 1 perpetual capital notes disclosed maturity refers to the first call date and the disclosed coupon rate refers to the contractual fixed coupon rate from the issue date up to, but excluding, the first call date.

 

7 


UBS Group Funding (Switzerland) AG standalone financial statements (audited)

Note 12  Long-term interest-bearing liabilities (continued)

 

Notes issued, overview by amount, maturity and coupon

 

31.12.18

 

 

 

 

31.12.17

In million, except where indicated

 

Carrying value

in transaction

currency

Carrying value

in CHF

 

Maturity1, 2

Coupon1, 2

 

Carrying value

in transaction

currency

Carrying value

in CHF

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,750 

 1,971 

 

20.09.21

3M EUR LIBOR + 70 bps

 

 1,750 

 2,047 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 1,966 

 

23.05.22

3.491%

 

 2,000 

 1,950 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,000 

 983 

 

23.05.22

3M USD LIBOR + 122 bps

 

 1,000 

 975 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 1,966 

 

23.03.27

4.253%

 

 2,000 

 1,950 

Swiss franc-denominated TLAC-eligible senior unsecured notes

 

 400 

 400 

 

18.05.23

0.625%

 

 400 

 400 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,408 

 

16.11.22

1.75%

 

 1,250 

 1,462 

Swiss franc-denominated TLAC-eligible senior unsecured notes

 

 300 

 300 

 

22.02.22

0.75%

 

 300 

 300 

Swiss franc-denominated TLAC-eligible senior unsecured notes

 

 150 

 150 

 

23.02.26

1.25%

 

 150 

 150 

Euro-denominated TLAC-eligible senior unsecured notes

 

 750 

 845 

 

04.03.24

2.125%

 

 750 

 877 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,500 

 1,475 

 

24.09.20

2.95%

 

 1,500 

 1,462 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,500 

 2,458 

 

24.09.25

4.125%

 

 2,500 

 2,437 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 300 

 295 

 

24.09.20

3M USD LIBOR + 144 bps

 

 300 

 292 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 1,966 

 

15.04.21

3%

 

 2,000 

 1,950 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,000 

 983 

 

14.04.21

3M USD LIBOR + 178 bps

 

 1,000 

 975 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 1,966 

 

15.04.26

4.125%

 

 2,000 

 1,950 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 1,966 

 

01.02.22

2.65%

 

 2,000 

 1,950 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 500 

 492 

 

01.02.22

3M USD LIBOR + 153 bps

 

 500 

 487 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,408 

 

01.09.26

1.25%

 

 1,250 

 1,462 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,408 

 

30.11.23

1.5%

 

 1,250 

 1,462 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 1,250 

 1,229 

 

15.08.22

3M USD LIBOR + 95 bps

 

 1,250 

 1,218 

US dollar-denominated TLAC-eligible senior unsecured notes

 

 2,000 

 1,966 

 

15.08.22

2.859%

 

 2,000 

 1,950 

Euro-denominated TLAC-eligible senior unsecured notes

 

 1,750 

 1,971 

 

17.04.24

1.25%

 

 

 

Yen-denominated TLAC-eligible senior unsecured notes

 

 130,000 

 1,166 

 

08.11.23

0.719%

 

 

 

Yen-denominated TLAC-eligible senior unsecured notes

 

 20,000 

 179 

 

09.11.27

0.973%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 2,000 

 1,966 

 

31.01.23

5%

 

 

 

Euro-denominated low-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,000 

 1,126 

 

19.02.22

5.75%

 

 

 

US dollar-denominated low-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,250 

 1,229 

 

19.02.25

7%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,250 

 1,229 

 

19.02.20

7.125%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,575 

 1,549 

 

07.08.25

6.875%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,500 

 1,475 

 

22.03.21

6.875%

 

 

 

US dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 1,100 

 1,082 

 

10.08.21

7.125%

 

 

 

Singapore dollar-denominated high-trigger loss-absorbing additional tier 1

perpetual capital notes

 

 700 

 505 

 

28.11.23

5.875%

 

 

 

Total notes issued

 

 

 41,081 

 

 

 

 

 

 27,706 

1 For the TLAC-eligible senior unsecured notes disclosed maturity refers to the contractual maturity date or, if applicable, to the earlier optional redemption date of the respective issuance. The disclosed coupon rate refers to the contractual coupon rate applied from the issue date up to the contractual maturity date or, if applicable, to the earlier optional redemption date.    2 For the loss-absorbing additional tier 1 perpetual capital notes disclosed maturity refers to the first call date and the disclosed coupon rate refers to the contractual fixed coupon rate from the issue date up to, but excluding, the first call date.


8


 

Note 13  Other long-term liabilities 

Other long-term liabilities are comprised of guarantee fee payables to UBS Group AG due after 12 months after the balance sheet date.

 

 

Note 14  Share capital

As of 31 December 2018 and 31 December 2017, the issued share capital consisted of 1,000,000 registered shares at a par value of CHF 0.10 each.

 

 

Note 15  Contingent liabilities

UBS Group Funding (Switzerland) AG is jointly and severally liable for the combined value added tax (VAT) liability of UBS entities that belong to the VAT group of UBS in Switzerland.

  

9 


UBS Group Funding (Switzerland) AG standalone financial statements (audited)

Additional information

Note 16  Related parties

 

 

31.12.18

 

31.12.17

USD million

 

Amounts due from

Amounts due to

 

Amounts due from

Amounts due to

Qualified shareholders1

 

 45 

 187 

 

 

 159 

Affiliated entities2

 

 42,524 

 239 

 

 28,643 

 133 

External auditors

 

 

 0 

 

 

 0 

1 Qualified shareholder of UBS Group Funding (Switzerland) AG is UBS Group AG.    2 Affiliated entities of UBS Group Funding (Switzerland) AG include UBS AG, which is a direct subsidiary of UBS Group AG.   

 

 

 

 

 

 

 

 

 

31.12.18

 

31.12.17

CHF million

 

Amounts due from

Amounts due to

 

Amounts due from

Amounts due to

Qualified shareholders1

 

 44 

 184 

 

 

 155 

Affiliated entities2

 

 41,811 

 235 

 

 27,921 

 130 

External auditors

 

 

 0 

 

 

 0 

1 Qualified shareholder of UBS Group Funding (Switzerland) AG is UBS Group AG.    2 Affiliated entities of UBS Group Funding (Switzerland) AG include UBS AG, which is a direct subsidiary of UBS Group AG.   

 

 

Note 17  Currency translation rates

The following table shows the currency rates used to translate the transactions in foreign currencies into US dollars in 2018 and into Swiss francs in 2017.

 

 

 

Against USD

 

Against CHF

 

 

Closing exchange rate

Average rate

 

Closing exchange rate

Average rate

 

 

As of

For the year ended

 

As of

For the year ended

 

 

31.12.18

31.12.18

 

31.12.17

31.12.17

1 CHF

 

 1.02 

 1.02 

 

 1.00 

 1.00 

1 EUR

 

 1.15 

 1.18 

 

 1.17 

 1.12 

100 JPY

 

 0.91 

 0.91 

 

 

 

1 SGD

 

 0.73 

 0.74 

 

 

 

1 USD

 

 1.00 

 1.00 

 

 0.97 

 0.98 

 

 

  

10


 

11 


 

12


 

  

13 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notice to investors | This document and the information contained herein are provided solely for information purposes, and are not to be construed as solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this document. Refer to UBS’s Annual Report 2018 for additional information. This report is available at www.ubs.com/investors

 

Rounding | Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Starting in 2018, 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.

 

 

  

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UBS Group AG

P.O. Box

CH-8098 Zurich 

 

www.ubs.com 

 

 

 

 

 

 

  

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

 

 

UBS Group AG

 

 

 

By: _/s/ Todd Tuckner___________ 

      Name: Todd Tuckner

      Title: Group Controller and

            Chief Accounting Officer

 

 

By: _/s/ David Kelly _____________

Name:  David Kelly

Title:    Managing Director

 

 

 

UBS AG

 

 

 

By: _/s/ Todd Tuckner___________ 

      Name: Todd Tuckner

      Title: Group Controller and

            Chief Accounting Officer

 

 

By: _/s/ David Kelly _____________

Name:  David Kelly

Title:    Managing Director

 

 

 

 

 

Date:  March 15, 2019