Investor Day 2005 Wealth Management & Business Banking

Transcription

1 Investor Day 2005 Wealth Management & Business Banking Friday 13 May, 2005 Marcel Rohner, Chairman & CEO You & Us

2 The Making of UBS-WM&BB Merger of two separate divisions into one powerful business group Universal Bank in Switzerland Global Wealth Management UBS Wealth Management & Business Banking ] H U W LQ D Ã0 K Ã7 W R R K 3 Capturing synergies and eliminating redundancy 1

3 Wealth Management

4 Wealth Management Position in 2000 Strengths Global leader in WM Longstanding client relationships Geographic breadth Product & services breadth Innovative e-services Weaknesses Reactive approach Inconsistent service Spillover from merger Limited European on-shore presence Under-developed Asia Pacific penetration USA void Minimal alternative exposure Limited NNM growth 3

5 Key strategic initiatives Four-step advisory experience Aggressively grow client advisor force globally European Wealth Management Initiative Asia expansion Bolt-on acquisitions Alternative product development and marketing Build-up WM product positioning framework E-banking strategy Development of a new IT platform 4

6 Wealth Management Results

7 Wealth Management - Invested assets Invested assets under management USD bn 1, Wealth Management USA UBS WM 1 Credit Suisse Citigroup Merrill Lynch HSBC Bank of America JP Morgan Morgan Stanley Wachovia Deutsche Bank Source: Wealth Partnership Review April 2005 and company reporting. 1 The survey is based on invested assets at private banks and fee-based assets at US brokerage houses, UBS WM includes UBS WM USA fee-based invested assets (USD 233 bn). 6

8 Wealth Management - Financial development A strong improvement in the NNM intake made up for the asset decrease due to the USD fall Net new money CHF bn Invested assets CHF bn Income Pre-tax profit & cost/income ratio CHF bn CHF bn % % Profit Cost / Income-ratio 7

9 Wealth Management Action Steps

10 Four-Step Advisory Experience Perfecting our client experience Intense client focus! 9

11 Business goals and business priorities All activities are geared to promote our key value drivers and hence support the achievement of our strategic goals Business Priorities Strategic Goals Value Drivers 1 Perfecting our client experience "Clients first" Return on Assets Total Invested assets Return on Assets bps Invested assets CHF918 bn Income CHF12.7 bn 4-Step advisory experience Net New Money Loans CHF181 bn Profit before Tax CHF5.5 bn Industry leadership in efficiency Loans Cost / Income Ratio Personnel expenses CHF4.5 bn Other expenses CHF2.7 bn Total expenses CHF7.2 bn 1 Numbers show WM&BB FY04 figures 2 Only WM 10

12 Wealth Management Client advisor growth Since 1999, we strongly invested into our client advisor force, while keeping non-client-facing functions very lean Headcount 7,000 6, % 6,350 5,000 4,000 3,744 3, % 2,000 1, Client Advisors (CA) Non-CA Headcount 11

13 Wealth Management - Client segmentation We have strongly increased our asset share in the highgrowth ultra-rich segment > CHF 10 m 34% < CHF 1 mn 19% > CHF 10 m 41% < CHF 1 m 18% 10% CHF 5-10 m 37% CHF 1-5 m 12% CHF 5-10 m 29% CHF 1-5 m 12

14 Product mix change supports gross margin The shift into value-added services has resulted in a gross margin increase Invested assets by asset classes Money Market 10% Fiduciary 12% 3% Others Money Market Fiduciary 13% 10% 12% Others Equities 26% 27% Equities 18% Bonds 22% Bonds 22% 25% Mutual Funds Mutual Funds Gross margin bps Recurring Non-recurring 13

15 Wealth Management Acquisitions The string of first-rate firms which we bought their wealth management operation shows our success in that business Total acquired assets: CHF 50 bn Etra SIM S.p.A Dresdner Latin America Julius Bär North America Sauerborn Trust Amex Luxembourg Scott Goodman Harris Laing & Cruickshank Merrill Lynch (Germany) Lloyds (France) Bank of Amercia (Int. PB) Standard Chartered (Int. PB) UBS Wealth Management

16 Wealth Management - Build-up European presence In the last four years we almost trebled the number of European domestic locations Locations 2000: 15 Locations 2004: 42 France UK France +7 Italy +5 Paris Germany Berlin Düsseldorf Frankfurt Hamburg München Offenbach Stuttgart London Bordeaux Cannes Lille Lyon Marseille Nantes Strasbourg Germany +3 Brescia Firenze Napoli Padova Torino Spain +2 Sevilla Valencia Italy Bologna Milano Roma Spain Barcelona Madrid Marbella Locations in 2000 New locations Bad Homburg Bielefeld Köln Light Versions +2 Austria (Vienna) Belgium (Brussels) UK +8 Birmingham Bury St Edmunds Eastbourne Edinburgh Manchester Newcastle Taunton Worthing 15

17 European Wealth Management Development Since 2000, we have continued to hire qualified client advisers, which lead to a sustainable, significantly increased asset base Client advisors 1, CAGR 1 : 47% 838 Net new money CHF bn 15 Total: CHF 38 bn na Invested assets CHF bn CAGR: 65% 82 Income CHF m CAGR: 46% CAGR = Compound Annual Growth Rate 2 EWM was launched in spring na

18 Asia Pacific Wealth Management Development In Asia Pacific, we have achieved the market leader position in wealth management UBS' Asia Pacific WM Locations Client advisors CAGR: 23% Invested assets bn CAGR: 10% CAGR: 21% Onshore booking Japan (Tokyo) China (Beijing) Taiwan (Taipei) Hong Kong Singapore Australia (Sydney & Melbourne) CHF USD 17

19 Wealth Management Vision 2010

20 Wealth Management Asset development The global wealth management market is expected to strongly grow in the next years Invested assets - Global wealth management market 1 60,000 CHF bn CAGR's 61,000 43,000 MEA: 5.0% 40,000 Americas: 6.0% 20,000 APAC: 5.7% Europe: 6.1% Europe Asia Pacific Americas Middle East / Africa 1 Source: UBS internal estimate 19

21 Wealth Management Capturing growth Optimal Client Segmentation Exploit growth opportunities in selected client segments Focusing on customised solutions Geographic Expansion Asia Pacific Europe Existing Franchise Market share Share of wallet Growth DH/CA Product Innovation Market development Client needs 20

22 Wealth Management Way forward to 2010 Given WM's operating leverage, it is important to focus on growing revenues Hire and retain top client advisors Growth in Asia Pacific Further growth in Europe Refine product mix Use synergies through one-firm approach Continued cost discipline 21

23 Business Banking Switzerland

24 Business Banking - Position in 2000 Business Banking is the market leader in Swiss retail and commercial banking Strengths Service provider to all divisions in Switzerland Comprehensive multi-channel offering New client-oriented structure Successful revenue enhancement initiatives Weaknesses Redundancy in IT, business and logistic processes Expensive physical distribution network Saturated market, limited potential to grow above GDP Market leader in Switzerland with 25-35% market share 23

25 Business Banking Improved credit portfolio The share of mortgages in our credit portfolio has been strongly increased over the last years Commercial Credits 15% Recovery Portfolio 10% Commercial Credits 16% Recovery Portfolio 3% 75% Mortgages 81% Mortgages 24

26 Business Banking Improved credit portfolio Credit exposure of recovery portfolio has been reduced consistently over the last seven years CHF bn 30 Inflow into Recovery 20-85% and before 25

27 Business Banking Development Reductions in the branch network and headcount led to a strongly improved cost / income ratio CHF bn % CAGR: 11% % Profit Cost / income ratio 50 26

28 Business Banking Way forward to 2010 Cost discipline Strict focus - growth in home market, no geographic expansion Keep market share of 25-35% and increase for certain areas 27

29 Excellence takes place when people are committed Wherever in the world clients will enter a UBS office... You & Us they will be offered a completely consistent, high quality and truly differentiated UBS client experience 28

30 Investor Day 2005 Wealth Management & Business Banking Friday 13 May, 2005 Marcel Rohner, Chairman & CEO You & Us