UBS Mergers and Acquisitions Presentation Deck
Litigation, regulatory and other similar matters; other
USD bn
Litigation, regulatory
and similar matters
Other
-
Adjustment
IFRS 3 recognition of possible outflows
Subtotal
Debt issued measured at amortized cost
o/w: Impact of UBS's own credit spread
o/w: Impact of interest rates into amortized cost securities not hedge accounted
Debt issued designated at fair value
o/w: Reversal of own credit gain recognized on fair value debt
o/w: Impact of UBS's own credit spread
Estimated acquisition-related costs
o/w: Incurred by UBS
o/w: Incurred by Credit Suisse
Intercompany elimination adjustments
Expected credit losses under IFRS 9
Subtotal
Litigation, regulatory and other similar matters
IFRS 3 requires us to recognize all contingent liabilities included in the scope of the
acquisition at fair value upon closing, even if it is not probable that they will result
in an outflow of resources.
UBS
The additional 4. Obn in provisions reflects the possible outflows from litigation,
regulatory and similar matters.
Assets Liabilities
4.0
4.0
(0.2)
1.0
(1.2)
5.3
5.1
0.2
0.2
0.1
0.1
(4.1)
0.2
1.4
(4.1)
(0.3)
(4.4)
Equity
(4.0)
-
(5.8)
CET1
impact
(4)
Other adjustments
1
Comments
Assumed to be CET1 neutral, subject to regulator review and approval
Existing Credit Suisse CET1 adjustments as of 31.12.22
Assumed to be CET1 neutral, subject to regulator review and approval
Does not impact negative goodwill
Does not impact negative goodwill or CET1
(5.1bn) net equity impact from Debt issued, including own credit which is assumed
to be CET1 neutral.
Calculated using UBS funding spreads as at 31.3.23 to give an estimate of the
impacts at the merger closure date, given the significant movement in funding
spreads across 1Q23
(0.5bn) net equity impact from expected credit losses (ECL) under IFRS 9, whic do
not impact negative goodwill or CET1 capital (as the Basel 3 expected losses exceed
IFRS 9 ECL).
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