#1UBS Second quarter 2021 results 20 July 2021 vanpo G950#2Important information Forward Looking Statements: This presentation contains statements that constitute "forward-looking statements," including but not limited to management's outlook for UBS's financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on UBS's business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking statements represent UBS's judgments, expectations and objectives 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. UBS's 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 2020. 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. Alternative Performance Measures: In addition to reporting results in accordance with International Financial Reporting Standards (IFRS), UBS reports certain measures that may qualify as Alternative Performance Measures as defined in the SIX Exchange Directive on Alternative Performance Measures, under the guidelines published the European Securities Market Authority (ESMA), or defined as Non-GAAP financial measures in regulations promulgated by the US Securities and Exchange Commission (SEC). Please refer to "Alternative Performance Measures" in the appendix of UBS's Quarterly Report for the second quarter of 2021 for a list of all measures UBS uses that may qualify as APMs. Disclaimer: This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a 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. No representation or warranty is made or implied concerning, and UBS assumes no responsibility for, the accuracy, completeness, reliability or comparability of the information contained herein relating to third parties, which is based solely on publicly available information. UBS undertakes no obligation to update the information contained herein. Available Information: UBS's Annual Report, Quarterly Reports, SEC filings on Form 20-F and Form 6-K, as well as investor presentations and other financial information are available at ubs.com/investors. UBS's Annual Report on Form 20-F, quarterly reports and other information furnished to or filed with the US Securities and Exchange Commission on Form 6-K are also available at the SEC's website: www.sec.gov Basel III RWA, LRD and capital: Basel III numbers are based on the BIS Basel III framework, as applicable for Swiss systemically relevant banks (SRB). Numbers in the presentation are based on the revised Swiss SRB rules as of 1.1.20 that became effective on 1.7.16, unless otherwise stated. Basel III risk-weighted assets in this presentation are calculated on the basis of Swiss SRB rules as of 1.1.20 unless otherwise stated. Our RWA under BIS Basel III are the same as under Swiss SRB Basel III. Leverage ratio and leverage ratio denominator in this presentation are calculated on the basis of Swiss SRB rules as of 1.1.20, unless otherwise stated. Refer to the "Capital management" section in the 2Q21 report for more information. Numbers presented in US dollars unless otherwise indicated. Currency translation of monthly income statement items of operations with a functional currency other than the US dollar are translated with month-end rates into US dollar. Definitions: "Earnings per share" refers to diluted earnings per share. "Litigation" refers to net additions/releases to provisions for litigation regulatory and similar matters reflected in the income statement for the relevant period. "Net profit" refers to net profit attributable to shareholders. Rounding: Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages and percent changes disclosed in text and tables are calculated on the basis of unrounded figures. Absolute changes between reporting periods disclosed in the text, which can be derived from numbers presented in related tables, are calculated on a rounded basis. Tables: Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be 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. Values which are zero on a rounded basis can be either negative or positive on an actual basis. OUBS 2021. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved UBS 1#3Agenda 1 Key messages Ralph Hamers Group CEO UBS 2 Financial performance, divisional results and capital Kirt Gardner Group CFO 3 Q&A 2#4Key messages We are executing relentlessly for our clients UBS 25bn GWM NNFGA¹ 2Q21 9bn AM NNM excl. MM 2Q21 We are delivering on our strategic initiatives to drive growth and efficiency 8bn SI mandate flows² 1H21 1 Net new fee-generating assets; 2 Net inflows into GWM 100% SI multi-asset mandates >3x GWM NNFGA per advisor 1H21, YOY eⓇⓇ We are committed to driving higher returns by unlocking the power of UBS 2.0bn Net profit 2Q21 19.3% ROCET1 2Q21 3#5We are executing relentlessly for our clients GWM Fee-generating assets 1.1trn 1.4trn 30.6.20 30.6.21 25bn Net new fee- generating assets, 2Q21 UBS GWM Loans 189bn 228bn 30.6.20 30.6.21 7bn Net new loans, 2Q21 GWM Transaction-based income 824m 2Q20 953m 2Q21 +16% Transaction-based income YoY, 2Q21 AM Invested assets 0.9trn 1.2trn 30.6.20 30.6.21 9bn Net new money excl. MM, 2Q21 IB Global Banking income 881m il 2Q21 525m 2Q20 +68% Global Banking income YoY, 2Q21 P&C Investment products, Personal Banking, CHF 22bn il 30.6.20 30.6.21 18bn 1bn Net new investment products, CHF, 2Q21 4#6Delivering on the core elements of the ecosystem for investing Private markets Invested assets, GWM+AM 128bn 118bn ÏI 31.12.20 30.6.21 18bn Investments facilitated into private markets 1H21, GWM+AM+IB UBS 1 Separately Managed Accounts SMAS¹ Invested assets, AM 89bn 111bn 31.12.20 30.6.21 17bn Net new money from SMA initiative in the US 1H21, AM Sustainability Sustainability-focused invested assets, AM 97bn 129bn 31.12.20 30.6.21 8bn Net inflows into 100% SI multi-asset mandates, 1H21, GWM My Way Invested assets, GWM 1.5bn 4.2bn 31.12.20 30.6.21 2.6bn Net inflows into mandates through My Way, 1H21, GWM Scalability NNFGA per advisor, GWM 1.8m 1H20 6.4m 1H21 (+16% Average income per advisor YoY, 1H21, GWM сл#7All regions contributing to growth and efficiency As of or for the quarter ended 30.6.21, YOY Americas IA 2.0trn +24% Asia Pacific IA 0.8trn +27% Profit before tax 0.8bn +65% Cost / income ratio 78.8% (3.1) ppts Profit before tax 0.6bn +15% Cost / income ratio 62.2% (0.5) ppts Switzerland IA 0.8trn +23% EMEA IA 1.0trn +26% Profit before tax 0.8bn +57% Cost / income ratio 59.6% (3.2) ppts Profit before tax 0.5bn +45% Cost/income ratio 71.2% (3.5) ppts UBS 1 GWM, AM and P&C; includes 3bn invested assets from minor functions which are not included in the individual regions 30.6.20 +25% 4.5trn invested assets¹ 30.6.21 01 6#8Financial results overview Group GWM P&C AM IB UBS Return on CET1 capital Return on tangible equity Cost / income ratio Net profit attributable to shareholders CET1 capital ratio CET1 leverage ratio Tangible book value per share Profit before tax PBT growth Invested assets Net new fee-generating assets Profit before tax Return on attributed equity (CHF) Net new loans, Personal Banking Profit before tax Invested assets Net new money excl. money markets Profit before tax Return on attributed equity RWA and LRD vs. Group 2Q21 19.3% 15.4% 71.8% USD 2.0bn 14.5% 4.09% USD 15.05 USD 1.3bn 47% YoY USD 3.2trn USD 25bn CHF 0.5bn 22% CHF 0.6bn USD 0.3bn USD 1.2trn USD 9bn USD 0.7bn 21% 31% / 31% 1H21 18.8% 14.7% 72.8% USD 3.8bn 14.5% 4.09% USD 15.05 USD 2.7bn 29% YoY USD 3.2trn USD 61bn CHF 0.8bn 20% CHF 1.4bn USD 0.5bn USD 1.2trn USD 31bn USD 1.1bn 17% 31% / 31% Target: 12-15% Target: 75-78% Guidance: 13% Guidance: >3.7% Target: 10-15% over the cycle Guidance: up to 1/3 7#92Q21 net profit USD 2.0bn; 19.3% ROCET1 Profit before tax m 1,582 2Q20 Cost / income ratio¹ 75.8% 1,222 +64% 352 Operating income +21% +19% excl. FX Income Credit loss expense (4.1) ppts (563) Operating expenses +10% +6% excl. FX Operating expenses 2,593 2Q21 71.8% 2Q21 2,006m net profit +63% 19.3% return on CET1 capital 30.6.21 14.5% CET1 capital ratio 0.55 diluted EPS +65% 2.5bn CET1 capital accretion² 4.09% CET1 leverage ratio UBS 1 Defined as operating expenses divided by income, which excludes credit loss expenses / releases; 2 Includes 2.2bn increase in CET1 capital and 0.3bn increase in accruals for 2021 dividends 8#10Executing our cost strategy Operating expenses bn Cost/income ratio² 11.7 1H20 74.0% 0.1 Costs excluding variable and FA compensation, litigation, restructuring and FX 0.6 Variable and FA compensation 0.0 Litigation and restructuring¹ (1.2) ppts 0.4 FX 12.8 1H21 72.8% UBS 11H20 includes net restructuring costs of 107m and litigation expenses of 8m; 1H21 includes net restructuring costs of 90m (149m restructuring costs partly offset by 59m curtailment gains) and litigation expenses of 72m; 2 Defined as operating expenses divided by income, which excludes credit loss expenses / releases 9#11Delivering attractive returns and improving efficiency ROCET1 19.3% Net profit m 2Q12 2Q13 2Q14 2Q15 UBS 13.2% 9.7% 1,232 ROTE 15.4% 2,006 2Q16 2Q17 2Q18 2Q19 2020 2021 Profit before tax m 2Q12 2Q13 2014 2Q15 2Q16 2Q17 2Q18 2019 75.8% 1,582 C/I 71.8% 2,593 2Q20 2Q21 10#12Global Wealth Management Profit before tax m Operating income m Cost/income ratio Invested assets End of period, bn UBS Transaction-based income Net interest income Recurring net fee income Fee-generating assets 880 3,942 824 1,023 2,128 (64) 76% 2,590 1,057 Other income 1,104 2020 4,280 863 962 2,341 22 76% 2,754 1,163 3Q20 +47% 864 +21% 4,277 776 1,011 80% 2,468 2,629 3 7 Credit loss (expenses) /releases +25% 3,016 1,409 1,277 4Q20 4,848 1,183 997 71% 3,108 1,328 1Q21 1,294 4,774 953 1,026 2,774 14 73% 3,230 1,416 2Q21 PBT 1,294m, +47% with growth in all regions Operating income +21%, reflecting increases across all revenue lines Credit loss releases 14m vs. 64m credit loss expenses in 2Q20 Operating expenses +14% on higher revenues; 8th consecutive quarter of YoY positive operating leverage Net new loans 7bn with positive net new loans in all regions Invested assets 3.2trn, +25%; Fee-generating assets 1.4trn, +28% NNFGAS 25bn with net inflows in all regions; 8% annualized NNFGA growth 11#13Global Wealth Management Recurring net fee income m 2,128 2,341 +30% 2,468 2,629 2,774 2Q20 3Q20 4Q20 1Q21 2Q21 +30% YoY driven by higher FGA +5% QOQ supported by continued strong NNFGA momentum Net interest income m Loans / bn 189 Deposits/bn 315 201 1,023 321 213 348 219 337 +0% 962 1,011 997 228 344 UBS 1 Excluding a 75m fee related to the shift of 5bn in client assets and 1bn of loans from GWM to P&C in 4Q19 1,026 2Q20 3Q20 4Q20 1Q21 2Q21 Flat YoY as higher loan revenues were offset by the impact of lower rates +3% QOQ on higher loan volumes and USD deposit revenues Transaction-based income m 824 863 +16% 776 1,183 953 2Q20 3Q20 4Q20 1Q21 2Q21 +16% YoY driven by structured products and alternatives 9th consecutive quarter of YoY growth¹ 12#14Global Wealth Management Fee-generating assets¹ bn APAC 87 96 Switzerland 1,104 EMEA 263 Americas 656 1,163 93 102 277 690 2Q20 3Q20 Net new fee-generating assets / bn 5 12 Fee-generating asset margin²/ bps 87 85 +28% 1,277 103 111 306 757 4Q20 18 82 1,328 112 112 311 793 1Q21 36 86 1,416 119 123 329 845 2Q21 25 82 25bn NNFGA¹, 2021 Americas 14bn - - 84bn NNFGA¹, 8% growth last 12 months Americas 48bn, 7% growth - EMEA 5bn APAC 4bn Switzerland 3bn - EMEA 13bn, 5% growth APAC 18bn, 20% growth Switzerland 6bn, 6% growth 2Q21 FGA margin² 82bps, (4bps) YoY, primarily driven by flows into lower-margin mandates and funds³; (4bps) QoQ on seasonally lower transaction revenues FGA generate most of GWM's recurring net fee income (~90% in FY20), and a portion of transaction-based income (~30% in FY20) UBS 12021 includes 1.0bn FGA and 0.1bn in NNFGA outflows in minor functions which are not included in the four regions; 2 Calculated as revenues from FGA (annualized) divided by average FGA for the relevant mandate fee billing period. Refer to the 2Q21 report for more information; 3 E.g., sustainable investment mandates that exclude hedge fund allocations, zero-fee SMAS, funds with lower trailer fees 13#15Personal & Corporate Banking (CHF) Profit before tax m Operating income m Cost/income ratio UBS Transaction-based income Net interest income Recurring net fee income 229 790 227 496 159 (104) Other income 63% 2Q20 305 850 264 472 170 (84) +100% 58% 3Q20 318 +31% 896 230 455 177 20 358 66% 4Q20 950 239 470 Credit loss (expenses) /releases 182 22 64% 1Q21 456 1,037 288 480 187 42 58% 2Q21 PBT 456m, +100% Operating income +31% driven by credit loss releases, higher transaction-based income, record recurring net fee income and a 26m gain from real estate sales Credit loss releases of 42m vs. 104m credit loss expenses in 2Q20 Operating expenses +4% driven by higher personnel expenses and investments in technology Net new investment products in Personal Banking +0.9bn, 16% annualized growth Net new loans in Personal Banking +0.6bn, 3% annualized growth 14#16Asset Management Profit before tax m Operating income m Cost / income ratio Invested assets End of period, bn Performance fees Net management fees 157 524 75 449 Gain from the sale of Fondcenter¹ 70% 739 928 169 2Q20 UBS 1 Subsequently renamed Clearstream Fund Centre 1,162 88 505 (2) Gain from the sale of Fondcenter¹ Credit loss (expense) / release 36% +62% 401 980 3Q20 +27% 774 255 518 48% +26% 1,092 4Q20 227 637 92 545 64% 1,121 1Q21 255 218 666 40*** 588 62% 1,174 2Q21 PBT 255m, +38% excluding 37m gain on sale of remaining investment in Fondcenter¹; 9th consecutive quarter of YoY PBT growth Operating income +27% Net management fees +31% benefitting from continued positive net new run rate fee generation Performance fees (46%) to more normalized levels Operating expenses +12% driven by higher personnel expenses Invested assets 1,174bn, +53bn QoQ NNM 9bn excl. money markets; 2bn incl. money markets; 87bn NNM excl. money markets over the last 12 months, 11% growth 15#17Investment Bank Profit before tax m Operating income m Cost / income ratio Global Banking Global Markets 612 2,268 525 1,821 (78) 632 71% 2Q20 2,485 651 215¹ 1,634 (15) +9% 74% 3Q20 529 +9% 2,011 669 1,433 Credit loss (expenses) /releases (91) 71% 4Q20 412 2,273 788 1,483 2 82% 1Q21 UBS 1215m gain on the sale of intellectual property rights associated with the Bloomberg Commodity Index family 668 2,470 881 1,567 21 74% 2Q21 ROAE 21%; PBT 668m, +9% Global Markets revenues (14%) Execution Services 443m, +5% driven by cash equities Derivatives & Solutions 773m, (18%) against. strong 2Q20 in rates, FX and credit, partially offset by higher revenues in equity derivatives Financing 352m, (22%) including an 87m loss related to the default of a prime brokerage client in 1Q21 Of which: - Equities 1,194m, +23% FRC 373m, (56%) Global Banking revenues +68% Advisory 300m, +223% driven by M&A Capital Markets 581m, +35% on elevated IPO and follow-on activity in ECM - Operating expenses +9% driven by currency effects, litigation and restructuring expenses RWA 92bn, (3%) QoQ; LRD 325bn, (1%) QoQ 16#18IFRS 9 credit loss (expenses) /releases Credit loss (expenses) / releases m 2Q21 Global Wealth Management. Personal & Corporate Banking Asset Management Investment Bank Group Functions Total Financial instruments in scope of ECL requirements¹ Stage 1 & 2 13 51 0 24 (1) 88 Stage 1: 793.5bn Stage 2: 27.2bn Stage 3 0 (5) 0 (3) 0 (8) 3.4bn Total 14 46 0 21 (1) 80 824.1bn Stage 1 & 2: 88m net credit loss releases Released 91m of post-model adjustment; 183m remaining Stage 3: 8m net credit loss expenses UBS Refer to the "Expected credit loss measurement" section of the 2Q21 report for more information; 1 Gross on- and off-balance sheet instruments 17#19Capital and leverage ratios Total loss-absorbing capacity (TLAC) Going concern capital UBS CET1 capital 104bn- 59bn -- ----43bn -- 45bn Gone concern loss-absorbing capacity 17bn AT1 43bn CET1 30.6.21 35.6% + 20.2% - 14.5% CET1 guidance: ~13% 15.4% 5.7% 14.5% 30.6.21 RWA 293bn CET1: 9.7% Going concern: 14.0% TLAC: 24.6% Requirements 10.03% - 5.69% + 4.09% - CET1 guidance: >3.7% 4.34% 1.60% 4.09% 30.6.21 LRD 1,040bn CET1: 3.38% Going concern: 4.88% TLAC: 8.63%- Requirements 18#20Why Client promise Personalized Relevant On-time Seamless UBS Purpose Reimagining the power of investing. Connecting people for a better world. Vision Convene THE global ecosystem for investing where thought leadership is impactful, people and ideas are connected, and opportunities are brought to life. Strategic imperatives 888 BA Clients, Connections, Contributors Focus Technology Simplification & Efficiency Culture 19#21Appendix UBS 20#22Group results USDm unless otherwise indicated Total operating income of which: credit loss (expense) / release Total operating expenses¹ Operating profit/ (loss) before tax Tax expense / (benefit) of which: current tax expenses Net profit/ (loss) attributable to shareholders Diluted EPS (USD) Effective tax rate Return on CET1 capital Return on tangible equity Cost / income ratio Total book value per share (USD) Tangible book value per share (USD) 2Q20 7,403 (272) 5,821 1,582 347 343 1,232 0.33 21.9% 13.2% 9.7% 75.8% 15.89 14.10 3Q20 8,935 (89) 6,357 2,578 485 349 2,093 0.56 18.8% 21.9% 16.2% 70.4% 16.57 14.78 4Q20 UBS 12021 includes 63m net litigation expenses/ (releases), of which GWM 9m, P&C (11m), AM (0m), IB 64m and Group Functions 1m 8,117 (66) 6,132 1,985 341 317 1,636 0.44 17.2% 16.8% 12.4% 74.9% 16.74 14.91 1Q21 8,705 28 6,407 2,298 471 406 1,824 0.49 20.5% 18.2% 14.0% 73.8% 16.47 14.65 2Q21 8,976 80 6,384 2,593 581 362 2,006 0.55 22.4% 19.3% 15.4% 71.8% 16.90 15.05 21#232Q21 Group results by region Profit before tax Operating income Operating expenses Americas Cost / income ratio -65% 0.5bn 0.8bn 2020 2021 Switzerland 57%- 3.6bn +23% 2.8bn +15% 78.8% (3.1) ppts 0.5bn 0.8bn 2020 2021 EMEA -45% 0.4bn 0.5bn 2020 2021 Asia Pacific 1.8bn +17% 1.3bn +9% 71.2% (3.5) ppts 15% 2.0bn +22% 1.1bn +5% 59.6% (3.2) ppts Excludes (0.0bn) revenues, 0.1bn expenses and (0.2bn) in PBT from items managed at the Group level, such as the Non-core and Legacy Portfolio, certain litigation expenses and other items. The allocation of P&L to these regions reflects, and is consistent with, the basis on which the business is managed and its performance evaluated. These allocations involve assumptions and judgments that management UBS considers reasonable and may be refined to reflect changes in estimates or management structure. The main principles of the allocation methodology are that client revenues are attributed to the domicile of the client, and trading and portfolio management revenues are attributed to the country where the risk is managed. Expenses are allocated in line with revenues 0.5bn 1 0.6bn 2020 2021 1.6bn +11% 1.0bn +8% 62.2% (0.5) ppts 22#242Q21 Global Wealth Management results by region Profit before tax Cost/income ratio Invested assets Net new fee- generating assets Net new loans UBS Americas +122% 227m ↓ 505m 2020 2021 80.9% (5.6) ppts 1,722bn +26% 13.5bn 5.3bn Switzerland +37% 149m 204m 2020 2021 57.5% (3.5) ppts 290bn +23% 2.8bn 0.7bn EMEA +15% 267m 308m 2020 2021 68.5% (0.3) ppts 632bn +19% 4.9bn 1.1bn Asia Pacific +22% 233m 283m 2020 2021 60.2% (4.4) ppts 583bn +30% 3.8bn 0.2bn 23#25Common equity tier 1 capital CET1 capital bn 40.4 31.3.21 2.6 Profit before tax (0.4) Current tax expense 0.3 Foreign currency translation effects 0.4 Fondcenter¹ (0.4) Compensation and own-share related capital components (0.3) Other² 42.6 30.6.21 UBS 10.4bn CET1 capital increase following the sale of our remaining minority investment in Clearstream Fund Centre (previously Fondcenter AG) to Deutsche Börse AG due to the effect of goodwill associated with the investment; 2 Includes (0.3bn) from increase in accruals for 2021 dividends, +0.2bn higher eligible deferred tax assets on temporary differences and other items 24#26RWA and LRD RWA bn UBS +5.4bn of which: +1.8bn due to FX 287.8 75.8 10.4 22.8 178.9 31.3.21 293.3 75.8 7.8 23.3 186.4 30.6.21 Operational risk Market risk Non-counterparty- related risk Credit and counterparty credit risk LRD bn +1.7bn of which: +8.7bn due to FX 1,038.2 31.2 123.2 106.2 790.2 (12.6) 31.3.21 777 1,039.9 31.1 121.5 97.7 801.5 (12.0) 30.6.21 Off-balance sheet items Securities financing transactions Derivative exposures On-balance sheet exposures Deduction items By currency %, as of 30.6.21 293.3 7% 3% 8% 22% 59% RWA 1,039.9 12% 4% 10% 31% 43% LRD Other GBP EUR CHF USD 25#27Cautionary statement regarding forward-looking statements This presentation contains statements that constitute "forward-looking statements," including but not limited to management's outlook for UBS's financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on UBS's business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking statements represent UBS's judgments, expectations and objectives 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. The outbreak of COVID-19 and the measures taken in response to the pandemic have had and may continue to have a significant adverse effect on global economic activity, and an adverse effect on the credit profile of some of our clients and other market participants, which has resulted in and may continue to increase credit loss expense and credit impairments. In addition, we face heightened operational risks due to remote working arrangements, including risks to supervisory and surveillance controls, as well as increased fraud and data security risks. The unprecedented scale of the measures taken to respond to the pandemic as well as the uncertainty surrounding vaccine supply, distribution, and efficacy against mutated virus strains create significantly greater uncertainty about forward-looking statements. Factors that may affect our performance and ability to achieve our plans, outlook and other objectives also 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), liquidity coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) the continuing low or negative interest rate environment in Switzerland and other jurisdictions; (iv) developments (including as a result of the COVID-19 pandemic) 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, and changes to national trade policies on the financial position or creditworthiness of UBS's clients and counterparties as well as on client sentiment and levels of activity; (v) 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); (vi) 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, net stable funding ratio, liquidity and funding requirements, heightened operational resilience 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; (vii) UBS's ability to successfully implement resolvability and 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; (viii) 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; (ix) the uncertainty arising from the UK's exit from the EU; (x) 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; (xi) changes in the standards of conduct applicable to our businesses that may result from new regulations or new enforcement of existing standards, including measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (xii) 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; (xiii) 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; (xiv) 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; (xv) 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; (xvi) 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; (xvii) limitations on the effectiveness of UBS's internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xviii) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks and systems failures, the risk of which is increased while COVID-19 control measures require large portions of the staff of both UBS and its service providers to work remotely; (xix) 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; (xx) 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; (xxi) uncertainty over the scope of actions that may be required by UBS, governments and others to achieve goals relating to climate, environmental and social matters as well as the evolving nature of underlying science and industry and governmental standards, and (xxii) 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 2020. 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. O UBS 2021. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved UBS 26