OREANDA-NEWS. Following a fourth-quarter net profit attributable to shareholders of CHF 1 billion, UBS Group AG's net profit for 2014 increased 13% year over year to CHF 3.6 billion. Profit before tax for the year was CHF 2.9 billion on an adjusted basis and CHF 2.6 billion on a reported basis. All of UBS’s business divisions made significant progress in 2014. Wealth Management adjusted1 profit before tax increased 4% and the business attracted the highest net new money in Asia Pacific since 2007. Wealth Management Americas achieved another record adjusted1 profit before tax, which exceeded USD 1 billion. Retail & Corporate delivered on all its targets and adjusted1 profit before tax rose 4%. Global Asset Management achieved a significant turnaround in net new money, while the Investment Bank delivered a strong performance, with revenues up 8% in Corporate Client Solutions.

In 2014, UBS continued to reduce risk-weighted assets (RWA), improve its leverage ratio, and maintain the best fully applied Basel III CET 1 ratio in its peer group. These achievements, along with the 13% rise in net profit, enabled the firm to deliver attractive returns to its shareholders. Consequently, UBS intends to propose an ordinary dividend of CHF 0.50 per share for the financial year 2014, an increase of 100% on the prior year and a payout ratio of 53% of the Group's reported net profit.

Reflecting progress in the establishment of the new Group holding company, including the successful completion of the share-for-share exchange offer, UBS fully accrued a supplementary capital return of CHF 0.25 per share in the fourth quarter of 2014. Subject to shareholder approval, UBS Group AG intends to pay this one-time supplementary capital return upon successful completion of the squeeze-out procedure. UBS Group AG intends (subject to market conditions) to enter the capital markets with its initial offering of additional tier 1 (AT1) capital securities later this month.

Commenting on UBS’s full-year and fourth-quarter results, Group Chief Executive Officer Sergio P. Ermotti said, "I am pleased with what we have achieved in 2014. The results are strong, our capital is strong and we've completed our strategic transformation, preparing us well for the future. While it's premature to draw a conclusion about the quarter, we've had a solid start to the year. This gives us additional confidence to propose a significant capital return to our shareholders."