$UBS. UBS AG Hong Kong Branch. Key Financial Information Disclosure Statement As at 30 June (Incorporated in Switzerland with Limited Liability)

Transcription

1 $UBS UBS AG Hong Kong Branch (Incorporated in Switzerland with Limited Liability) Key Financial Information Disclosure Statement As at 30 June 2014

2 KEY FINANCIAL INFORMATION DISCLOSURE STATEMENT CONTENTS Ch ief Executive's declaration Statement of comprehensive income Statement of financial position Notes to the financial statements Off balance sheet exposures and liquidity information Group consolidated financial information Pages

3 KEY FINANCIAL INFORMATION DISCLOSURE STATEMENT 30 June 2014 Chief Executive's Declaration The key fmancial information disclosure statement as at 30 June 2014 is set out on pages 2 to 11. Information is disclosed in accordance w ith the Banking (Disclosure) Rules and the guidance notes for overseas incorporated authorized institutions issued by the Hong Kong Monetary Authority on 30 May This disclosure complies with the Hong Kong Monetary Authority's recommendations and is not false or misleading in any material aspects.

4 STATEMENT OF COMPREHENSIVE INCOME For the period ended 30 June 2014 Notes 6 months ended 6 months ended 30 Jun 2013 Interest income Interest expense Net interest income Other operating income ,524 Total operating income 7,064 9,037 Operating expenses 2 5, Impairment losses and provisions for impaired loans and receivables Gain less losses from the disposal of property, plant and equipment and investment properties Profit before taxation 2,022 4,567 Tax expense Profit after taxation ,942 2

5 STATEMENT OF FINANCIAL POSITION As at 30 June Dec 2013 Notes ASSETS Cash and balances with banks (except those included in amount due from overseas offices) 4,023 3,222 Placements with banks w1th residual maturity of more than 1 month but not more than 12 months (except those included in amount due from overseas offices) Amount due from overseas offices 39,981 49,619 Trade bills Certificates of deposit held 2,91 7 1,270 Securities held for trading purposes 7,831 8,800 Loans and receivables 3 106,663 96,103 Investment securities Other investments 1,079 1,380 Property, plant and equipment and investment properties Total assets 163, ,851 LIABILITIES Deposits and balances from banks (except those included in amount due to overseas offices) Deposits from customers 7 95, ,282 Amount due to overseas offices 59,002 43,368 Certificates of deposit issued Issued debt securities Other liabilities 7,594 10,606 Provisions 7 7 Total liabilities 163, ,851 3

6 NOTES TO THE FINANCIAL STATEMENTS 1 Other operating income 6 months ended 6 months ended 30 Jun 2013 Notes Net trading income Profit on dealing in foreign currencies Loss on trading secunt1es (17) (6) Profit from other trad1ng activities Net fee and commission 1ncome Fee and commission 1ncome 3,290 3,691 Less: Fee and commission expenses (1,019) (1,269) 2,271 2,422 Other income 4,050 5,884 6,434 8,524 2 Operating expenses 6 months ended 6 months ended 30 Jun Staff costs 3,279 3, 154 Rental expenses Net service fee to other UBS entities Other operating expenses ,042 4,470 3 Loans and receivables 31 Dec Loans and advances to customers 4 100,572 88,948 Accrued interest and other receivables 6,091 7,155 Less: Collective provisions Specific provisions 106,663 96, ,663 96,103 4

7 NOTES TO THE FINANCIAL STATEMENTS 4 Analysis of gross amounts of loans and advances to customers a. Loans and advances to customers - by industry sectors The analysis of gross loans and advances to customers and the percentage of secured loans and advances by industry sectors are based on the categones and def1mtions used by the Hong Kong Monetary Authority. Loans and advances for use m Hong Kong lndustnal, commercial and fmancial Property investment Financial concerns Stockbrokers Gross loans and advances 9, ,2 53 Collateral or other security * 0% 99% Individuals For the purchase of other residential properties -- 19,251 19,251 Loans and advances for use outside Hong Kong 72,068 Total loans and advances to customers 100,572 = Loans and advances for use in Hong Kong Industrial, commercial and financial Property investment Financial concerns Stockbrokers Gross loans and advances 749 5, , Dec 2013 Collateral or other security * 0% 95% Individuals For the purchase of other residential properties Loans and advances for use outside Hong Kong Total loans and advances to customers ,343 15,787 66, ,948 99% 99% * Where collateral values are greater than gross loans and advances, only the amount of collateral up to the gross loans and advances was included. 5

8 NOTES TO THE FINANCIAL STATEM ENTS 4 Analysis of gross amounts of loans and advances to customers (Cont'd) b. Loans and advances to customers- by geographical areas f he gross amounts of loans and advances to customers by geographical areas are classif1ed according to the location of the counterpart1es after taking into account the transfer of risk. In general, risk transfer applies when a loan or advance is guaranteed by a party 1n a country which is different from that of the counterparty. l oans and advances Overdue I Impaired loans to customers and advances to customers Hong Kong British Virg1n Islands 28,504 45,996 26, ,572 Loans and advances to customers 31 Dec 2013 Overdue I Impaired loans and advances to customers Hong Kong British Virgin Islands ,219 22,246 88,948 5 Impaired loans and advances There were no impaired advances to customers, banks and other financial institutions as at 30 June 2014 and and 31 December 2013, nor were there any specific provision made for them on these two respective dates. Country provision, if required, is booked at head office level. UBS may establish and maintain Collective Loan Loss Provisions for country risk in case an event (or various events) in one or several countries has been identified that is likely to cause an impairment of assets. while there is not sufficient information as to which counterparties are actually affected, thus preventing the establishment of individual counterparty provisions or allowances in a timely fashion. 6 Overdue, rescheduled and repossessed assets There were no overdue, rescheduled, or repossessed assets to customers, banks and other financial institutions as at 30 June 2014 and 31 December Deposits from customers 31 Dec 2013 Demand deposits and current accounts 43,509 42,546 Savings deposits ,952 Time, call and notice deposits 49, ,

9 NOTES TO THE FINANCIAL STATEMENTS 8 Cross-border claims Cross-border claims are classified by the types and the locattons of the counterparties after taktng tnto account the transfer of nsk In general, such transfer of nsk takes place tf the claims are guaranteed by a party tn a country which IS different from that of the counterparty or if the claims are agatnst an overseas branch of a bank whose head offtce is located in another country Clatms aristng between head office. branches and subsidtanes and claims on a counterparty tn Hong Kong (except to the extent that such claims are guaranteed by a person outside Hong Kong) are excluded Banks Public Sector Enttttes Total International organtsattons Asia Pacific excluding Hong Kong China 2,150 2, ,161 10,550 9, ,681 North and South America 523 7, 137 7,660 Middle East and Africa Europe British Virgin Islands 7, ,014 1,207 46,014 9,053 12, ,252 85, Dec 2013 Banks Public Sector Entities Total International organisations Asia Pacific excluding Hong Kong China 1,447 1,336 6,397 9,63 1 7,844 10,967 North and South America 1,205 4,921 6,126 Middle East and Africa Europe British Virgin Islands 5,069 44, ,368 44,237 8,396 9, ,711 78,500 7

10 NOTES TO THE FINANCIAL STATEMENTS 9 Non-bank Mainland exposures The total direct non-bank Ma1nland exposures and the spec1f1c provision were as follow. HKD mill1on Off-balance On-balance sheet exposures sheet exposures ~ Spec1f1c oroy1sion State, provincial or municipal government owned entities and their subsid1anes Other counterparties the exposures to w hom are considered to be non-bank Mainland exposures ,323 8, , Dec2013 HKD m illion Off-balance On-balance sheet exposures shee t exposures IQlg! Specific orovision State, provincial o r municipal government owned entities and their subsidiaries Other counterparties the exposures to w hom are considered to be non-bank Mainland exposures 7, ,243 7, ,243 8

11 NOTES TO 'I HE FINANCIAL STATEMENTS 10 Currency Risk () The net position in a particular foreign currency is disclosed if the net position (in absolute terms) constitutes 10% or more of the total net position 1n all foreign currencies. USD CHF ZAR Total Spot assets 63, , ,339 Spot liabilities (61.496) (1.897) (172) {63,583) (127,148) Forward purchases 72,552 5,662 1,275 80, Forward sales (74,509) (5,662) (1,128) (78,361) (159,660) Net options position Net long I (short) position ,205 Net structural position 31 Dec 2013 USD CHF ZAR* Total Spot assets 71,312 1, , ,168 Spot liabilities (70,474) (1,087) (160) (49,050) ( ) Forward purchases 94, ,365 98, ,812 Forward sales (94,853) (6.062) (1.365) (98,532) (200,812) Net options position Net long I (short) position ,397 Net structural position The above represent the Hong Kong dollar equivalent values of the individual cu rrencies. * The currency constitutes less than 10% of the total net position in all foreign currencies is presen ted for comparative purpose only. 9

12 OFF BALANCE SHEET EXPOSURES AND LIQUIDITY INFORMATION As at 30 June 2014 Contingent liabilities and commitments {contractual amounts) HKD mtlhon 31 Dec 2013 D1rect credit substitutes 6,273 5,888 2 Derivatives transactions (HKD mill1on) Fair value Positive Negative Total Notional Amount 31 Dec 2013 Fair value Posit1ve Negative To tal Notional Amount Exchange rate-related derivative contracts (excluding forward foreign 1,235 1, ,736 2,849 2, ,687 exchange contracts arising from swap deposit arrangements) Interest rate derivative contracts , ,333 Equity derivative contracts ,523 1, ' ,536 Precious metals other than gold contracts At branch level, the above exposures do not take into account the effects of bilateral netting agreements. Such netting is effected at UBS AG group level. 3 Liquidity ratio Average liquidity ratio for the period 6 months ended 81.4% 6 months ended 30 Jun % The average liquidity ratio for the period is the simple average of each calendar month's average liquidity ratio, w hich is computed as required by the Hong Kong M onetary Authority for its regulatory purposes, and is in accordance with the Fourth Schedule to the Hong Kong Banking Ordinance. 10

13 UBS AG GROUP CONSOLIDATED FINANCIAL INFORMATION As at 30 June Dec 2013 CHF m1lhon CHF milhon Total shareholders' equity attributable to UBS shareholders Swiss SRB Basel Ill common equ1ty tter 1 capital rat1o (phase-in) (Note 1) Swiss SRB Basel ill common equity t1er 1 cap1tal ratio (fully applied) (Note 1) Swtss SRB Basel ill total capt tal ratio (phase-in) (Note 1) Swiss SRB Basel ill total capital ratio (fully applied) (Note 1) Other financial information Statement of financial position: Total assets Total liabilities Total loans and advances Total customer deposits 49,532 48, % 18 5% 13.5% 12 8% 23 9% 22.2% 18.1% 15.4% 982,605 1,018, , , , , , ,825 Statement of comprehensive income: 6 months ended 6 months ended 30 Jun Jun 2013 CHF million CHF million Pre-tax profit 2,611 2,467 Notes : ( 1) The Basel Ill fra mework came into effect in Switzerland on 1 January As part of the transitional arrangements, prudential filters are being phased in between 2014 and 2018 for the calculation of our capital. As UBS is considered a systemically relevant bank (SRB) under Swiss banking law, the capital disclosures focus on Swiss SRB Basel Ill capital information. (2) For further details on UBS AG Group financial information, plea se re fer to the UBS AG Group Annual Report and press release issued on 29 July 2014 for June 2014 half-year results w hich m ay be viewed on our website: ww w.ubs.com. 11