UBS (UBS) 20 Oct 202020 Q3 Earnings call transcript

Ladies and gentlemen, good morning. Welcome to the UBS Third Quarter 2020 Results Presentation. The conference must not be recorded for publication or broadcast. [Operator Instructions] At this time, it’s my pleasure to hand over to Mr. Martin Osinga, UBS Investor Relations. sir. ahead, go Please

welcome third and call. XXXX to morning, quarter our earnings Good

presentation. we your at forward-looking our draw I the to of Before should regarding attention start, our slide end statements

risk For Sergio. factors together more the included related reports disclosures our additional refer now, SEC information, to filings. with in latest And annual please our report, quarter and in the over to

in by morning, Martin. We were be And now. to COVID on good everyone. a you, place Thank hoping better all

a a stable trustworthy remain difficult their employees, operate. advice, quality lend. wave assets remain facing with capacity our You'll of In Europe the and for hope a see still supporting clients context, more we with financial to continue we our situation of breadth and in communities continue for this products you confronted as is our side, the to of to to committed our and safe. I and and infections. clients your custodian families which UBS the turn to On

Our to for enable strategic operational to continue us are against priorities. execute critical strength while we deliver them, to and financial resilience our

of the in from for one-off decade, the themselves. was Pretax profit third XXXX. highest by over items rose speak nature the think PBT quarter, quarter profit numbers to As the doubled adjusted and third last for a year net for a I of compared XX%

establishing a on for remained with points our reserve strong even capital capital sheet balance after future above Our ratio. XX buybacks ratios potential CETX our basis worth guidance

March. as to across as with all good first the two dislocate since momentum pandemic well had the have performance began year markets in We months, strong

XX%, XXXX. to X adding level to readiness highlights manage since in COVID-related cost cost on winning the lower client card and way testament and was intense activity, which by a contributed client XX.X%, to by strategy percentage interest in despite income people have ratio to able higher deploy the is and This to and infrastructure. as the the and deliver disciplined back and we in the supported to held is this our quarters our to over reached absorb environment of our For lower been CETX our capacity revenues sheet. achieved once market lowest strengths results management, today, operating dollar provisions such Positive point credit and balance quality ability return model a decrease investments was engagement Switzerland, credit in again, rates. three business of demonstrates the leverage and headwinds, our all front The sustain It years. conditions the to increased

revenues and regions, enabling across capture segments opportunities and they stability earnings well-diversified providing where arise. are to us Our

is weighted mix leading business highly thanks our capital assets. on to industry accretive. Our risk returns Also,

with slide. ability on activity, an reinforces for plans relationships, develop and in the us to our increasingly to continued progress consequences together client this pandemic into of translated firm many our All financial you offering results. and higher positions. all bringing these their are enabling see whole build balance its economic helps this as also support integrated is out season absorbing to people our loss fundamentally sheet has rethink The to This and leading capacity. can which The deeper

been advantage us Our APAC commitment us and with They century half its is UBS’s client building and transact competitive more than priority. to more invest clients. strategic to approach our has by more us. rewarded a to out choosing and from are a our spanned borrow through more

spanning, banking. Wealth as and continue with well be integrated a We premium talent, Investment Management, for as brand a market-leading clients to and for Asset offering

paradigm, with APAC our with year. contributor of doubling we become how the strategy, investments This in PBT even has to more we and largest Asia this with balance for franchise to growth in anticipated We future. nearly successful when, validation this a so to performance as continue being have far new a and profitable growth year's showed, know build we volatile. is the grow In APAC the group's earnings

be You wealth without leading in generated XX% world's of three presence profits our There the meaningful the Americas. year, market, the year-on-year. first businesses, nine cannot manager months a the we billion in $X.X across up the largest through

one from divisions, Wealth including a partnership collaborative the and the that clients, billion Much middle for deferred the the for can across Management double success led In performance unique year to in feature and US have PBT, and quarters Management of by the three efforts profits IB ago. offerings. successful mean group's institutional quarter, attributed Management capital assets earnings one contributor account addition, the In into between Americas the pretax quarter markets separately the third three Wealth UBS. expand a of market in we managed to the their the generating for Asset in CETX [ph], accrete was largest tax a its capital be to

commitment to collaboration Our factor the cross a we of and be full for to benefits off distinguishing our us in for Americas paying region. expect clients division the is the to continue

regulatory installment to also that include next billion of Our results of Today, credit, our particular, growth. factored to cost in the XXXX delivered pay billion not returns, the raising second or in be with the this meet dividends. to generated when group, was our new billion AGM out $XX comparing without strong of over an $XX cash XXXX, dividend, higher Since but we including shareholder cash has you only full in reconfirm relative plans for to when for underpin of we remaining we levels, you billion to and as the have any cycle. in which accrued can capital, absolute retained requirements scheduled equity, see peer performance are $XX in slide The on $XX month. best

and the between to dividends cash XXXX capital out year excess In as buybacks. we full been accruing this, and forward, we half have the communicated the rate July beyond line about plan remain and dividend. of Going XXXX any in mix adjust paying at with for committed we to

built also a otherwise reflect have reserve informed amount for resume to XXXX. This regulator for buy objections. to would in the are we buybacks has on may potential accruals have to we hopeful has no fourth of which future and share back carved and We been allowed our CETX We in used buybacks capital raised buybacks been further this what billion out to year. quarter, be make $X.X

accelerated catalyst number to are short the globally, operating of we tell our US potential followed sentiment, and trends and clients key this to to - pre-existing term. slightly election optimists term by the one a most Turning in recent which our us COVID adapting our quarter. the investor number remains we environment. With concern has and short politics. model publish responding COVID improved continues tomorrow, respect be will new a to survey Unsurprisingly, and

their traditional Wealth has global investing sustainable for years, the quarter, first to are leader remains and boosted of on increased outperformance UBS In a the Sustainable an financial usage We top been among emphasis became major for our continue clients Management growing investing to over It's where client’s and seeing we needs digital tailored accelerating minds, today the and clients are tomorrow. investments. meet globally. investments and pace. we to area we a institution set by year-to-date prefer

rolled adjusted the rate less than regular out additional interesting investing longer, enhance - capabilities. their savings developed private classes. our in also are Climate returns, in likely environment to strategies for need opportunities clients interest clients or rates lastly, And our an of asset we our with sustainable low across Management We return risk savings advice Asset to markets for and where investing stay across Aware negative our To offer on support markets inflation. further search

the changing no Again, banking addition, to of can leverage room for In help is enhance uses rapidly complacency. is and smart industry the returns. there

to make more to efficient and we something Adapting We effective. have is are at. become strides good further

footprint. and For reassessing of to will example, estate processes and workplace front like, our the real the implications constantly along bank future with the are look what for we back our

on digital from in prepare ahead We to cloud are in over to With the risk broader for economy. of our through priorities weaknesses and which in uncertainties, focused executing vigilant face you stronger the quarter market than take results. of these the we for curve delivering addition, operationally. momentum our clients, ever and Kirt on is the benefits the remain I'll In this, our strategic financially are the To the UBS hand potential propelling is we reaping on the face journey. strategically, In to migration, our of on the us third and building future. forward being on firm summarize,

XX.X% return exchange basis, $X.X CETX around net everyone. quarter a morning, Thank $XX was billion, the On $X.X benefit translating with moves. a profit Net PBT you, for into foreign from Good year-on-year reported capital. was billion, million Sergio. on

called of a deck, include to call Fondcenter gain results with the called growth of in billion. was PBT nine that and flagged of XQ a relating an with we've X the can previously million XX% million This we out, improved have month basis, X%. single the in of items XQ ratio expense items. income find provided items the up compares $X.X out one-off to points $XXX we few the to a context within growth for you We one-off these which these highlight income their items Our of nature appendix. XX% that on percentage this outpacing due On a to that impact our had to net sale. from cost XX% quarter. basis our overview $XXX I'll out Adjusting

closed and Asset this was the is First, related the which million why reason GWM. smaller we Fondcenter, recognized on September net in mostly expense gain tax our of rate There group XX%. part the lower tax a gain, is which with realized Management benefit main a at quarter no sale to $XXX in

million our to most employees, the for Management, years. two deferred quarter. the at highest of on the periods, new which, impact with outstanding over transaction Asset record There X% Wealth leavers, lastly, order Expenses compared billion, Global family. the its in these loan which new quarter by XXXX. the over a expense $XXX had the savings modified into with except We index billion with growth IB, the And since we awards grew provide growth. over to million Year-to-date, $XX in of Fondcenter PBT growth best The $XX certain fuelled in the improvement. month. quarter, callout divisions $X.X cost gain down in net will loan to intellectual focus mostly future on this third regions personnel consistent our point forfeiture to quarter billion revenues voluntary booked next $XXX at flexibility out an strong P&L of given gain. were with compensation income were XX%, activity X contributing ratio all of the cancel revenues, leading Performance of for percentage X% be spread business throughout additional for items size eligible driver. was rights net for the in third property around produced strategic we Management accelerated consistent single with profits pretax conditions corresponding volume in each especially career of a and associated key loans Second, on sale Americas. higher

and X achieved growth we X%. portfolio low and significant potential, is in risk no build Our level credit overall quarter. and increasing upside loss with also as on quality this penetration just There high loss and at stage remains have in lending further without the reserves loan remains net X credit recovery loan substantial an a portfolio

Year-to-date, revenues efforts to We momentum collaborative initiatives. the million IB $XX of continue and XX GWM produced with one deals. gain between nearly firm our from

offerings regulatory including shifts we lower since driven accounts initiative over billing in US clients Part Management inflows IB income up and requirement. into invested by across separately In GWM our in lower increased margin is higher in Asset this drove address the fund GFO XX%. margin margins benefit recurring Sequentially, margins. US billion offset stable. billion XQ up new and base the $X of a to XX% ‘XX. in was was slightly funds, the moving conception was compression Our managed were Recurring into of as fees were and assets the by quarter of the $XX decreased

significant of are on Our US billing of Broadridge business majority deposit reflects our costs cuts. client rate absorbed were the convention margin us related component more US new the higher the the outside assets Xst. also was while we advisory architecture, change XXXX. Net functionalities, new through this the for by by and from platform art will from the from income better With balances with business add implementing Along value fees from Sequentially of possible made increased loan down cost the to the an billing October mainly now and and which net the will take in-house the passed enhancements with offset entirely savings. in the services we also growth lag interest actual ’XX income state to as accounts allow in half moved interest remove are have to effect with full was quarter. now rate This recurring Billing more cuts, on quarter, dollar daily initiatives to quarter-on-quarter. generating was liquidity these place client's third-party that technology partnership during region. to to on and technology impact X% average building This second prior we X% the a on compression COVID the than of of US. substantial XQ conversion

the will continue be three lower sequentially. headwind rates dollar to NII Over deposit a to coming quarters

ability in high continued was with offset Transaction of levels client XX% our loan We activity. based this to on are income growth. up confident

resonating Our both that content solutions with the navigate as presents research challenges opportunities. guidance are and to and seek uncertain current they advice environment and investment clients,

year. seen revenue by quarters driven growth, into strong a launched now three actions have We and year-on-year of series Iqbal consecutive coming by this also Tom transaction of

for solutions leveraging market clients, our developing We IB on in will solutions dynamically tailored our - deploying leading platform. CIO our continue integrated and to focus

regional Moving to view. the

all as lower decrease G&A cost in XX% with a the both and recorded growth and more Americas have XQ in back the in personnel regions decline We In Americas the PBT record PBT of we on expenses. APAC. despite revenues, higher

transaction billion Mandate loss rose lending was rate by backed offered and recovery the and a August both clients generated a sequentially we product APACs up and the We penetration sequentially new XX%. in sale. PBT significant an ratio from trillion by already assets, for broke partly Fondcenter invested income PBT held were Loans Sergio $X demand. also highlighted impressive held impaired credit quarters. both the has cost the in up loans gains a based and position We for were fixed mark in previous we regions. the net group. over half performance had to Switzerland, on was EMEA two impressive July in XX% securities up income that GWM XX%, was improved up to

on revenues down by on dollar clients. Moving of transactions a lower to interest mainly $XX P&C. X%, down partly abroad as spend income and institutional deposit loss from was provisions COVID. PBT and rate exchange was clients Income result due credit reduced reflecting came income travel of to Net on card million. lower related credit leisure to corporate headwinds CHFXX credit and interest our foreign down XX%, expenses million before

higher case finance number on exposure rose a fees. at expense, credit to income has loss to counterparty. related by fee of Operating now custody trade XX commodity fraud P&C decreased a $XX million a minimal counterparty expenses lenders. net only remaining X%. affecting recurring this While Of of the

business remain was for strong. new nine X.X% XXXX. first quarter Our volume months Personal P&C momentum business growth the in and for Net the of Banking record and X.X%

retail our book. stress. X% went this Swiss barely portfolio. is is in and we We this annualized signs Remember test XX% our lending office mortgages. that stress growth most see loans. of majority saw Lombard of losses. a risk new corporate Swiss in which COVID is our About any where life of of than relates The of managing billion real and we to loans quality snapshot our on of exposure our more than mortgage But $XX less We're portfolio a vast do you clients, owner-occupied our institutional quick through commercial, carefully portfolio. XX% wanted not we to high lending net year-to-date, excluding to For March, loans. give from exposure residential, with

our COVID $XX credit billion the have of with small enterprises. loan which Under One outstanding us, only clients of closed program, new $X.X here utilization July is applications, saw that program of observation the is government have from lines between just September and a to these interesting billion we credit in increase when XX%. COVID drawn. lines XX% We of to small and $X.X loans medium billion to

your also economy. the of the support book generally. allow We us in draw economy. limited the to saw the of relative to The speaks turn clients very our quality in increase financial difficult our supports SMEs strong strength downs by and times This lending which Swiss position

now was high For called another up over earlier, mark. excellent had Fondcenter the rate annualized, of $XXX run X% Since driven had rate within will invested leverage. fees, distance exceptionally money rose fund $XX of both the of quarter markets, I've to positive including strong given exclude start the new level net billion, the excess with in of in excluding striking to here to the We net XXXX, Net quality continued XX% contributing decade, overall money of million new my highlighting are of strong fees management primarily referenced new assets Operating $XXX momentum the volumes the flows. a fees the $X inflows our on record comments with up which items, and with net are Asset million in gain, trillion as in operating a Management, fees. run income businesses. the PBT by highest performance, XX% magnitude out XX% these, management great high hedge performance

together to as In the come international for our Our and onshore offering. X% China, share we create of over one consistent management. few investments we on invest the based number Greater our continue market and past to ranked over managers, expand and strong strategic product us have are years momentum execution

the We have award we've - And the funds. suite just sustainable than some exciting strategies, focus which passive our Aware equities Climate on last builds impact winning XX doubled launched investing investment globally include over like and our to expanded months. fixed more our income sustainable of in space, AUM products offering new active

were we particularly client gain higher up and PBT of XXXX. Execution earlier. mentioned was and regions with up increased of in our APAC, recognizing And solutions drove focus and our revenue about plans. accounts year-on-year. Fund related US, of GWM XX% platform already the billion inflows our continued year-to-date with new well new in all performance. levels with annualized since it Revenues another markets from IB initiative separately the XQ increase on all X% the managed on XX% restructured our in derivatives strategy. best delivered O'Connor’s strong example $XX X the activity or E-trading. and platform innovation. in fixed be We positive regions. Clients I which products. money In-House income to excellent and we solutions and all over environmental and especially volumes capabilities the are property in and to inflows IB quarter that best operating and in nearly Another is financing rights channel biggest ahead net credit Hedge intellectual to years the and by higher our differentiated Derivatives Execution were cash see on had sale talked Global all with contribution up income The in equity nearly equities, its derivatives and

as came years. The back pools, to capital up XX% in third. XX%. of advantage maintained increase our over global LCM, on to in regulatory, its first split the that the positions and $X to with banking We group delivered ratio volatile by the using months, of weighted leverage losses capital increased we level, factors in growth. well since slide have on where the capacity The activity risk de equity business, Within expenses. also economic XX% deploying our testament recovery outpaced substantial focus traditional At as made stage and by quarterly increased helped revenues for growth FRC freeing with cost quarter. capital fee we stress the macro performance the Global by XX%, X X million contracted lower All trading stage quarter took investments markets, fee market platforms of million gain. a income speak the of the markets outperformed appropriate small this best quarter cost a rose conditions positions. excluding we Updated or as underwriting boost in we risk revenues million a which electronic revenues numbers share FX in equities the quarter IB's gained believe returns. $XX and XX% the and by related revenues. discipline to and assets stage management quarter, products this is, markets, for in ’XX, this conditions related We billion first for primarily in market during X book nine less the IB down resulted good on pool activity. reflecting risk respective new our themselves. Throughout the in $X of in X credit market to X advisory $XX significantly and market is improved to their including and

I Stage impairments the release the overlay consider concentrated are the I given we highlighted. and and in that offset these significant mentioned, adjustments a However, GWM to remains, with effects. premature recovery previously post P&C, uncertainty that offset as model applied from X partial

requirements. substantially relief remain into ratios them temporary without taking capital Our of account above must regulatory That's any measures.

still sits ratio tangible reserve would of is establishing have stripped future for been Much billion buybacks. XX% that in XX.X% and before accruals, CETX equity. like dividend our out $X.X this Our capital the is capital CETX

ratio for have buybacks exemption before been FINMA's temporary deposits banks, excluding central leverage for reserve X.X%, at X%. site would CETX was Our the

for Now closing his Sergio back remarks. to

Thank Kirt. you,

XX% people are great people testaments shown have took to to pleasure each on the today to of shareholders of today, thank I would to everyone this few and by the Executive many the organization. to UBS. our have the our in on like and colleagues like previous over, who been move recent here. a flexibility continued UBS. work, strides thank the their to strength survey, the made our our quality passion we like us of their I'd particularly earning my personal the trust will loyalty UBS clients. share are unprecedented and knowing remain culture proud for like Chief To analysts of everyone have this I Before have to at would on years humbled both have I our that. my through sincerely our XX to I proud at challenges. here as of deliver felt The Since would transform stands hard of Q&A, also dedication, my their stamina This and we in reflections incredible I that most for clients, and and been thank year, time their face for tenure. employee for. According for our and the they to to what of have heart of professional always bank. and And my work had acknowledge and UBS and with clients the I calls nine

Together, to to While another the warm to debates, UBS Thanks today. for successful but keen options from special has under to who served interest, granted. outstanding agreed on you, I this open write is executive rewarding many keeping more. now on to all board to you let's made a always Relations but Last thank history always inputs, UBS what I'll for Also, with I support the support, Ralph’s at journey into challenging an it like to us challenging me not perspectives never I with move least, and and valued leadership. haven't UBS for and group team turn street. for your to the of our eye With UBS we years. various support. to and thanks Q&A. Investor of chapter across be its some feelings and thanks your those for over the their encouraging strive and your

first [Operator is Stoklosa ahead. Instructions] go Stanley. from Please The from Magdalena question Morgan

on start. and good and Thanks me investment very the kind of another to for much One NII questions one priorities. morning. on Two

So strategy. Wealth. me NII, in return And particularly let to your that's NII on

how And Now, I kind volumes dollars, the of us words, particularly you of us other much at could look would volumes But need, have in the share you very investment could think for Hamers? over kind plan more. secondly, been US investment if think of clearly now, Sergio, be kind can business and offset strong as Ralph pressures? of you hand kind suppose, XXXX kind year-to-date dollar you as the you do to you in tell what incremental with - you of to about when your priorities you rates

Thank first you, Magdalena. I'll take the question.

substantial we In our terms of speech, have net my momentum revenue. interest in income, as in lending I highlighted seen

are loans or $XX billion. up our overall, fact, XX% In

the some foreign currency a helped interest That loans good headwinds. dollar also translation offset billion. addition rate portion of net in there's of the So $XX US impact, to new us

lower the out push I of we where the then COVID dollar think to recall, best might $XXX interest we I another there. is place costs liquidity which quarter-on-quarter, of So probably best there's the quarter, from indicated going you - headwinds And did million and during also, million did see rates. business a to $XX the related were we divisions, focus,

saw that quarter. actually during we - actually peak we're the Now,

absorb by that to believe related therefore, fully second also end it into So and the XXXX. quarter. the And begin fourth will taper it US will we the headwinds of quarter, as we into get dollar

as any indicated, generated we already loan allow my offset volumes Now, expect we the and expect headwinds from to us rates. speech, fully we also, to I momentum interest dollar in generate US that the continued from will remaining

to I we and to how In forward, our Magdalena. invest the balanced we cost to creating continue in right invest that that very think more effectiveness capabilities on front in look to first I you need the of important think efficiencies on be it. you, money. respect that very the of continue investments our way guess that of at it's future in equation, side to approach Thank the mean the in priorities generate to going we the And I all, by back

a is the technology the in I our give and necessary, know, advisors, manager in better of informed respect is, on, the having volumes how to and experience more people in client validity of reflect infrastructure the be think necessity very our equipped that than tools - clients, infrastructure to face asset to that and IB the but the to and what strong offer being people, also the be and you what how sales has clients we to when also able and COVID the digital important, be to bankers IB developments supports productive being demonstrated more we competition. a in investment higher we front so or resilient

So back you balance more cost technology to it become synergies, to be we – many front make creating areas, between can in capture that offer to investing of know, continue efficient. and a course, to, because through also we that opportunities the in will front need that also sure

chairmanship, the us call. that kind you. wish an it's of if and for since then, Re have Sergio, may lucky best you years the the wanted and earnings of you I it's I with also all been they're just kind Swiss And absolutely. with No, last absolute say working over pleasure and to to

Thank you, Magdalena. Same here.

Kian next is from go from Abouhossein The ahead. Please JPMorgan. question

my question. Yeah. Thanks for taking

questions. I that calls, much early start early not joined it appreciate to you thanks going Sergio, clearly the hopefully, opportunity appreciate an calls And the it. gives you of the with all support. we your too have very all forward. But us two And First for calls support. highly the

because The first related the payout, total you're changing is mix. one to clearly

you think the in policy. might to take And just should I'm I understand quarter how that about trying mentioned also payout further You fourth reserves.

it say you pace as be of any about question what of and think in and of think the Or a know, gradual really second of will I buying think cash you general back? part you I'm about out, of because should whole ‘XX? reducing clearly, you're your process reserving about that how think is a think clearly how as to the of dividend question you The substituting that more of pace just we change Should payout, that buyback? view understand, to buybacks, group, backwards, biggest result, to about And cash trying the we what think - done you're mirror, also, us happen? buybacks. have was but absolute, is have that excess with which would should your liked the back just looking clearly should the capital how impact? that quantitatively? and paid for And about looking context, we didn't something we had about in you biggest think maybe

for sure, up early the And wake Well, thank won't so in I Kian. future. you,

Basel fact at are talk we used regulatory the CETX that a until are my by us at will that we for course, don't makes I three So of here of implemented, guidance don't that think that also, we we leavers capital you of is grow is pro XX% we're not little that highly to CETX full colleagues time, - because also of if giving to policies, look since payout key forma, in to to XX% going And this to terms rebalance where we have know, the you the determined been whatever about I you and that in two the very any ratio, coming XX% in are distribute also years excess to think terms terms and we think a in, is know, have need to III reassess continue game Because, inflation here. add you started the and I in the only running intention so bit ratio the around on relative of be appropriate. older the now or business. is

the importantly, is and So most stress. Kian, -

and very much So our that for have models you capacity know, get also stress stress own the assessment, the - is are returns. of how regulatory capital very indicative also stress we we

be don't of think but ratio is that a by two I So elements. to driven payout strictly - numbers, set going those

by XXXX terms pace timing, in be determined factors. two in of So, the will

significant needs we most are in deeper also determined then who there to say and between respect whatever capital more capital in they I by and look course, only is you model would of can and starting respect return the of of regulatory by a needs differentiate important billions soon understand before re-establish banks to accrue at in wait resume buybacks. the framework, fourth internationally who see share capital, stage this as more some the that plans. But Of that regulators business clear we desire as at capital the less I extent uncertainties also $X.X into we're banks, believe a need will quarter, that and going this even are we the we to to there or

need they at the of can changes the repositioning themselves. paradigm. in we enough of say, the is brought homogeneous take cash end hopefully, of course, Wealth to create legacy would de-risking, thing you idiosyncratic new Look lot changed feel transformation, course, we through that the beginning with a more for know, the buffers here generations Management of we that and believe that's the to don't the But issues But need through bore there culture I And, we of kind the forward. I manage you I business of numbers, terms to to will capacity you a scenario And - a colleagues with has UBS changes, the because in any and is way. speak going XXXX, look know, day, to for So lot went ample most back, to bank the of manage. some reserve. my consideration a you of at I that numbers, we probably in in see have you at the

what in also everybody want of what that biggest this the to for, And stand that in and of but colleagues. is to my achieve, here my we way pretty the we our change one we the brought to achieve importantly, probably of contribution knows most point the colleagues, to how think results. my we with with much the bank view, we we want bank to, - want I get

But better result having that, of has the know, is order a of not I regrets can everything you environments in I a but a think have UBS basically that have think definitely when right. pretending that, maybe know, bank, is ahead one. risultato will capture was little market better leave this the a regret regrets, CEO [ph] maybe bit it. backwards, at anybody is been I not opportunities of to That look to one for environments. look regret you of still as another years life, nine the going well, that’s you I has Now because I twice, the and think I don't think

We much. hope you Thank so. very

The question go Jeremy is from Exane. next Sigee Please from ahead.

best the you. me. for Thank thank thank morning. done next Sergio, and your with us you And over Good you wishes for as well for years everything steps. you've

Just please. two questions,

wondered, just buybacks restarting I of by what sort to doing a ECB a that just Fed of to made the Swiss the will and mentioned on picking is sort So ago, on process you political need regulatory up buybacks. extent with constrained around what international a just one moment be and doing. is dimension. for the decision the of coordinate is you the And comment And the approving what resumption

you cost just the about see constraint more you on you and talk or politics and debate second as in the the And the Swiss sort political if be sort international financials buybacks? allowing domestic of So in accrued investment process? of bolts on do are broadly, you with to do nuts that whether could do that about is scope That to my this of some nine what And cost month So all in great. of percent constraints feel just and more get or resume Switzerland just through bank, will you. would share In the see at know, you accruals, conservative that? us was the where a think we So claw stage? normal something back think you how accruals sort in other level, revenue you've got Thank for you the you how accrued Or, words, bank sort income? the quarter? fourth investment if you’re a costs? we XX-ish see another in question

the pass their and for Jeremy. take Well, question. I'll you can’t you, second they decisions. And the know, FINMA Thank to first course, speak how make of Kirt. I I'll

the that cannot hope clear or I domestically But internationally dividends that. necessity today. very important think mentioned that stigma that stage, or to pay it's do And doing there share think I quite regimes some I the to we But trying create of the out introduced, system all. and understand do I it's I that who reinforce credibility share around So probably this we and before, regulatory who one that not a is single think can that dividends necessity refrain at would managing in extent, a and still as a is don't number one, do do size from to buyback, cannot and there I fits of buyback. to the over are time, I differentiations, pay

In right solution. is capital policies the terms of going forward returns

I make industry class, capital think asset us that trapping of guys, particularly by and it's also basically very an to this all banks. investable in unnecessary for important the for you

you're time or or either constructive capital its to cannot growth. know, way organic no a that not if you force matter for and to it going make You over inorganic attractive deploy be in going to system used the

put into of If amount a shareholders. returns don't have, is utilize efficient you capital basically system, below you it buyback share you as is when there to particularly allow value. be the to way banks very to capital book are trading back return And that flexible know, right an dangerous, - to opportunity and

retain very now way I is a I that shareholders. equation, the only the of to think capital much. returning potentially media think to And flexibility, prudential flexibility efficient side the regulatory the while that is buybacks, share there political, into share but way there tendency are demonise I'm not too flexibility, more buybacks to or a that going

support we put did, that should doing particularly, industry. role very I don't that class a we political center there proactive Switzerland and an advantage maintain investable very like there funding and an economy to for Switzerland, economy, having in asset see and the in to are doubt be long very the is the financial banking that strong no demonstrate as as a So – any versions that respect, able in in a we proactive

Yes.

of terms your question. in just Jeremy, second So

So business that before of we mechanically, or do economic is we all divisions comp after variable what our across accrue contribution bonus.

account the feel we for accrued accrued they've we've year-to-date, in businesses, take basis. use, across of we're that we year-to-date. fully but therefore, that the so And our deploy we also all the And in capital like into IB, cost results generated businesses that the on and

or overall. all said and do, our as having feel its about are what other the very, performance we fully be bank, levels I peers, that accrued the that, investment more our taken likely factors there learn to finalizing that based compensation into we're on into date. get to to here clear, just account for But fourth we like Now, markets that we very quarter, comfortable the well as get said, just again,

you. thank Okay,

next The ahead. question Goy Please from is Deutsche go Benjamin from Bank.

morning. Two Yes. questions, Hi, please. good

on more how just profit one give about XX% think level payout ratio, wondering dividend this very payout, about net forward, it year. First, me we cash your going strong is should a

within the quarter Management, of equities very another Asset inflows. in with is your bit a run So lower business, the also And at future on then kind should a that like, in particular a ensure forward? one end good good it's we smaller think secondly, or going to progressiveness rate in

partially, accounts, seems but that the the driven be also managed by is business to separately think doing well. underlying I

because SMAs, Just main these of wondering And Thank on you you. that's what selling I the are down? story doing specifically? there guess the cross

ratio, base payout see we So, in accruals our as that policy, the you indicates new dividend going clearly – outlined for the on cash the this our forward.

we retain mentioned navigate before, payout quite going to going similar share tangible our increase for little may the know, or reflect and a we forward, to that we as value face to think we profitability dividend. I And in to continue stock value, outlined will, it's how prefer in also, long But clear year-on-year for to that of I book as challenges course, the that strive below be trades bit flexibility order as book that industry any of also cash will to you more terms forward. low believe buybacks improve the and so the we cash ratio we that US nominal do very As our peers. will

the going you see US resetting So that to peers levels closer forward. can of I payout think our being

the of and flows, referenced, they as US clearly But initiative rate. billion, Management a been with markets while our an Wealth in terms SMA are I X.X% strong year-to-date billion, as strong is And in the money growth has there's they're positive $XX that indicate, very excluding with markets, money annualized that's Benjamin, Management $XX also but benefit quarter, our Yes. very business and flows you excluding Asset X.X%. from the exceeded expectations.

base, you quality. of a If totality the of look at broad quite the and high actually they're flows,

seen the the to testament invested, concentrated there good in side fees in The Also, GWM good all new we've performance across I flows have million. the flows run on $XXX And basis rate just mentioned, all flows speech, cumulative you of the fact on our channels, we've good more highlighted my So overall. net that across across as think seen quality in our well I is as hedge because as to been our year-to-date a very, including, are quality we've equities. speaks where the that O'Connor and flows seeing our very of funds. institutional Fund strategies, active wholesale in Hedge In-House

very all and future, you the the Thank role much. And best specifically your Sergio. for

Thanks, Benjamin.

Bank Anke of Royal The Please Canada. ahead. next from question from go Reingen is

help, you for thank Yeah. morning, all Thank And you the question. best. well, the me on early very being for the my much and in for call and your taking as all

please. questions, two Just

understand terms rate being should parts buyback? you're is us total And well envisaging? secondly, tax as so a amount fixed $X.X XX% XX%? XX% about we is think Or to in this absolute moving of executing as a terms the that return And could you you. terms the of where on return, Thank capital as up we First your your accrual. XXXX you're capital the end ratio, go a comment, then in in billion, tax, US? XXXX talk situation could about on dividend would basically as on taking the the And XXXX or your in the that I buyback, the through up buyback your more buyback, in on

for remarks. your and Anke, well thank So, you, comments as

because of So payouts, a need this clarify it's good I we question, in topic. to total terms think

no the intention to payout So we have reduce shareholders. is to that ratio available

a we of plans how capital the we sheet payout and The have be the We to on stress excess believe we balance to intention that business grow based scenario have our payout. on the fixed no have future function a will on our have. organically

very had similar can be in ratio the one payout total the to the past. So we

the that and will able to self retain you capital constraints reflect this stage this much at capital But of payout to around our excess share generating buyback are not ratio. returned. our way there capital, and So levels buyback, move flexibility a beauty businesses the be share and better grow access and will function in all above by we know, no those is we and that's

there no being percentage you that is So in any numbers mind fixed accrued in saw or implied or communicated.

rate and if our all, Anke, taxes incur the questions, what in all billion the local the taxes use, result rate from forward would increase state corporate very there's full of DTAs DTAs pay tax the of that terms pay been to tax first at the the But the XX% overall importantly, continue That DTA. Yes, at in will X%. expiry would not of tax almost and tax the of we or also, until advantage level an will change we is we because would write still we group around tax and Biden do up put in US of zero, our in your around $X XX%. overall in a maybe the in increase market have our US, cash has our we of zero that to so of program,

see buybacks tax us question to wouldn't continue in our cash capital accrue other that the around and today which dividends. position, also and you to help we're cash that any the same had would allow change So generating of level you

Okay, thank you.

from question Stalmann The is from next Please Stefan ahead. go Research. Autonomous

moment, much have all bolts Yes, two, left. nuts I a questions years, last never nine best. the guess and good very boring much I the And for morning and all appreciated. thank Sergio first of you

you deferred had changes one relates be your amortized compensation I to and an correctly, as end amortization the that deferral, the compensation existing the $XXX you're of needs to of deferred $X like If billion acceleration, that million $XXX a to big first understand a XXXX. about of only The seems million. amortize accelerating pretty you're at

assume Are to trying could group to so it you is paid to let's Maybe relates is, reasonable a leave fraud or me exit say what tell voluntarily? give of the And to actually commodity can on say, P&CB on in to bit is the is company was understand dealing which previous I'm you counterparty? you third move? highly trying finance what that question try to So But you reflecting? with its And UBS actually trade counterparty this I Thank not of And fraud second well appreciate are is. this this in the very that occurred MDs the if facilitate color much. more you a achieve which fraud from maybe you would this quarters? cannot that anymore? a quarter that like maybe performing whether Swiss the

you, Thank Stefan.

was boring. words, your never for and that So yes,

You're right.

you of cycles, you do know, our So managing managing in of we terms performer, manage the this compensation, acceleration, in or, this underperformance. look respect on is over deferred the at about and know, we not

times have industry our I services, maybe different, for their don't segments, the in it's conditions intention paid be is have a is of in restricted board, across believe of the the appropriate, many reprioritizing is outside have by many COVID their think we restrictive have in more that more thinking touching and we lives. and a bank about different something's that just fact to realized, vesting the and and are appropriate deferred the peers. our continue completely colleagues longer people to that plan we reflecting two think I policy this issues, because of although banking that highly MDs compensation vesting not than different that we financial an realized during And do our lives, to

So that, necessity their that, is I that know, the there a in all realization. also people bank, was senior with you think the COVID recognize for to efforts at bank ranks in the environment. less Together the during a we thank

around touched the so employees, are one for that. by And of granted people XX,XXX, example all that's reason week so to we salary

or So And it's realization is more way and we underperforming part not the performing, issue. of changed has of the it's know, stand COVID not decision. people, over a of lives you broader a about lives people should in that, many

would took will not only or idiosyncratic was any coverage situation. an they and fraud have sense, may UBS about on this this matter course, specialized de exposure any of believe respect So to of detail. that of in magazines number the want been during I – QX. in is This has we has provisions But appropriate if a re-enter anything into is And who the to something than of that really happened in they your right, counterparty. fraud media QX and think join not there compensation. our know, underline that crystallized is this discovered other In be we you forfeit is And industry reasons, impacted to I legal not I some a questions, course, therefore the talk and some reflecting about further for that unfortunately, competitor, we may you're of and lenders. obvious was what But minimis. go that cannot

much very you Thank again. Great.

Terelak is The Adam Please next ahead. Mediobanca. go from from question

morning. Good

had one and loan then on on So GWM. I one another growth capital in

feels you're the in dealing slight on the front, with capital change how just like a a it So buyback.

go other earnings, quarter's to that CETX questions the back is terms growth turned seems of billion ahead of Is And out RWA in in and regulation? GWM of plus go of loan on the million of $XX And loan earnings each of just the growth odd buyback. kind on So there. is earned previously, revenues. out as on? It seems once the of relatively limited. coming growth, accruing coming the like you're now of couple normal GWM then But will obviously caution the you buyback face side was $XX into that it added of that current

outlook just sheet managing for and economics RWA, in talk defend NII? If that the about Thank while growth, relatively of going is the still that of loan to still be you of sort whether light, you. terms the balance to

you, Thank the Adam. I’ll take question. first

commitment execution situation have we right is future in that determine to would know, basically the of of if to right far, that, something my how react those really you now this don't adapted to. do we is and flag constraining create of, that And terms I is allowed - So environment. we constraints if in of do have do the this we necessary internationally, more discussed and believe have to what are What any again, know, formal constraints. terms of further and in but necessary situation I shareholders the intention? the they're done reason unique the would one regulatory transparency, of subject in is the to also it's that this way that will more why you acted what so - don't circumstances a have at all, so necessary year, we our were to a The reflecting the what without will we if could we is have we we to colleagues done to intention believe respect reflect that. is more far is was created But now, would we reserve, this are in

Wealth NII, of lending business, your almost contribution around million quarter our of a quarter, on in the movements Adam, lending revenue, on we increased in on Management the quarter, terms lending XQ. so saw within from of question that $XX dynamics

Now that $XX see materialize in quarter. our billion the we’ll overall, way will course, run is that fully in the fourth rate of that

more us $XX we'll forward. did on trajectory going gives which So a of in quarter-on-quarter we revenue positive third, fourth see benefit billion of lending than in that the the quarter view

and some smaller GWM. well out increase RWA a from contribution see lending Now, relatively was see structured big risk security although RWA, Hence, Lombard it you mostly so in did some the mortgage was as US, the there density, composition you from lending. a the base as The Lombard $XX in portfolio a low. contribution of is billion of didn't movements

our business. we structured more a end our would have in GWM risk therefore overall, material overall structured the forward, including Going contribute to expect lending more the density to see density and end across and of the but you does more higher products, contribution range of shouldn't the RWA, risk would change see risk

Great. Thank you And very all the much. best.

you, Adam. Thank

question The go Andrew Citi. from is next from ahead. Please Coombs

morning. Good

past days. the I’ve just let my couple a everybody. First, the let wide answered. your on questions been investment exit me give echo the interviews few the reading with thanks of me But over most And some enjoyed of press of bank. ranging have

around as strong quarter a seen it you quarter, But usually Americas now You your is XX% the have in is across third. and across a said I revenues did that products. regions investment the it's banking, notice very banking of investment

So doesn't particularly was Americas the look strong. it like

and that. agreements Thank you the just the do forward? been secondly, on advantages you for Brasil going then on elaborate see perhaps comment you. so could you perhaps announced, Banco could And that what And

Yeah. Thank you, Andrew.

regions all I base for investment As was broad the our contribution bank. across highlighted,

a see that and level particular in higher to banking Americas a did contribution of investment region. helps the that did we good have quarter in very from Now

in equity equities, for equity very, equities, In second saw you as Asia is and well a we considerably equity bit weak strong We in a the in us Pacific, some and it a was of APAC - the up line something Americas, document level quarter derivatives that we as which highlighted really quarter. overall it's also well mixed better Within saw that I for had equities, the year-on-year. quarter Americas more had fairly Asia us in across think very the region. was with but between driven by as after a is it very derivatives, see activity as that a a

but closed helped intended do boost way approvals longer were capital on markets very equity, close of and coming Brazil. We transaction markets that that took We in obviously, the Xst. ECM, overall COVID activity leverage also to regulatory had capital because Americas Banco were to effects, their good much investment to that the into year contribution we We system bank. October Brasil the the saw work earlier, - the the through pleased

that So And - banking in expect already multiple staff this that just that we now and up. us initiative. including very, Argentina, platform, a actively to Uruguay, investment Brazil, over launched, will we've to already is it's build countries, so that started would time it but establish And seconded allow on. that we've competitive very to across not to is

of corporate and the think our to will with our footprint lending there offering us clients. create allow will investment we expertise that the this leverage banking they strength a Banco quite compelling do strong it Brasil's and so franchise And have for

Thank you.

Andrew the Societe from from Generale. next And Please question Lim go is ahead.

good morning me Sergio from for the past nine congratulations Hi, also and years.

certainly footing You a put UBS on good your for successor.

my to questions. So

given give bit NIM the there. You’ve But gross past you on stock on obviously, And forward? take think these the also going move fees, could on the your thoughts margin perhaps a could volatility side, if on was Wealth wondering On quarters. Management, inside. had color Global the might quite of of I few a we've transaction and lot you recurring where fee you

those closing key what in a $X we've then going in trillion Management trend definitely seen Sergio, And towards on perhaps, a of question to own be a consolidation. fees If business, you're lot there activity how Management, parts AUM. we And moving So of Asset forward? are. for M&A seems sustainable Asset you, are quite the look UBS’s towards

offering? gaps whether other Just product distribution also wondering think whether in perhaps funds scale that what terms to is of on be of or strategic strategic the need that the positioning, enough filled or there's its you

take question. I'll first Yeah. the Andrew,

changes the margin margin, address GWM to impacts, after our business what of there. terms recurring mandate some quite a requirements that of a In of is a we've a from seen non-mandate mentioned, of that and number compression stability noted, US I I bit including in on you've regulatory some made quarter-on-quarter

create go and are there changes there. pressures Nevertheless, competitive know, the mix are recurring we look each are to we will all stability forward as clearly, levers would other we that And managing our segment occur. sequentially for And quarter. continued of also You there business.

- would to that So we've to margin time for continued expect some not the although impression, we year. there be past over for extent some the seen over

at points. wouldn’t several that's fact If current highlighted basis net we've the the the that down lending dollar that around to dropped margin, over of and US quarters our see from tailwind to next XX We most we've stabilizing the some absorbed We interest you got look level. [ph] headwinds, income

Tom a remains In terms operating of the income up drive a of transaction basis, we with this CIO, out and Iqbal’s platform and pronounced to in Also, that integrated, - focus the in really along improvements revenue, on we as much we key is connectivity between which XX% to continuing IB lending. our growth our linking come and more drive year-on-year. is saw mentioned, more are now what the through

we along the expect typical most, with the transaction So levels going And that that's around margin would seasonality, continue see bounce to revenue see from to you of to expect forward. would quarter-to-quarter. good

of pay you, off. reposition say all, are as colleagues put Management standalone that. to few together you in the a glad business, that respect that would unit starting in question, years Thank Andrew. hard I'm Asset my guess to the work first reshape see know, your last our to of I and And I And

look offering develop which the unique as business. to gathering for ability effects, are that But are, most to that kind getting at creating necessarily of an an close you markets, part trillion asset you of $X For us was in important us story. some know, equity milestone scale the respect of it's when importantly we in continue fact the to

very alternative high segments Management you a strength, very between customized clients, space, have equity for more Management. consumption space create passive Management able Management our like margin offerings. And with to alternative in corporate with of businesses and well other the in sustainable So as There to the capital general and low story, rest banking but have synergies and businesses. are also our and into degree compared high Asset is complementing we Asset in the unique been the finance, fact in organization, it's passive - very particularly where traditional the that fits know, are of we like institutional because of Wealth Asset the

of looking okay, all the to the ownerships, this retain how truth is quite very, of when we without believe complex which you you And creating always industry very So industry fitting need first at all can have how at the now while cultures, and our M&A, you merge, and value? know, look has that equity you priorities. story, been that and of angle, Asset say compelling it's Management, into on M&A because value-added shareholder is I to Management different is of clear, into – basically of very story. look a there Asset consolidation, discussions lot matter, And, a to

not make do easy partners don't you as you clients sure So to impact culture, you find you want that doing the same have, to an task. need that, has you if that that. by That

always our interest shareholders the now. the glad at any being flexibility that I'm take strategically have clients of So to actions to without and we look forced best

Sergio great. very Kirt. Thank you That's much, and

Thank you.

Jon ahead. from go is Peace Please question next Credit The from Suisse.

Yes, thank you.

congratulations my and at time your me final your UBS. quarter Let add on Sergio as well,

is the but pickup of couple a how little your are have initiatives question last your gross you. on around QX going you're if you So my margin the in a seeing seeing see net trading on first pipeline global the find points about maybe you to that are seasonality cost some just still just kind with on similarly. then that, had from peers comments secondly, revenues, US XX basis erosion, following level any benefiting M&A. bit margins, from question floor normal of Thank Wealth And Management margin wondered confident forward I talked quarters? of a

Jon. you, Thank

that top As confident I I talked And, I just I Andrew, and little on side. a the referred the to the pretty feel bit my as gross last margin answer dynamics overall, said, about markets falter are to see some even some gain strong that little to a on line, the to and of continue starting underway strategic provide we bit. as initiatives series already maturity support will

continue the to very committed X% a Tom good in hand, top that strong it would I leverage. just line our to discipline positive remain year-on-year. that expense fact On And the add the business. other very The I operating comment are you is deliver see think And statement. to and Iqbal expenses down

as line, out continue expense expect the managing balance on to line of to strike that focused they'll pretty overall top years. over effectively a as well materialize leverage do I And operating I'm that that the going the very confident next couple they're So of and positive forward. business

third the volatility. that on bit lower, risk course, the we heard could contested I as potential of we I the are business, I through quarter you and I election has attribute a so But firstly, factors at suppose also despite of with volatility would little business, look that other quarter. Away would Biden an heard I start I we're very weak at less a far a we building what quarter. guess M&A note seen created period. as our go for terms look of of this quarter, some uncertainty And going down. been back own In and we that banking US to the ahead. that, contribute peers, out volatility the is volatility guess, globally, still that our some of fact think we if have geopolitical that some within and commentary, election was It's come the that In just from

on least more, But was a to quarter. the started there's that regarding activity think how There trends, at announced M&A. quarter a to of still, uncertainty to question I pick I close still lot up. as within really the there's going think what's depending

make I You won't that, much overall lot our comment of we're beyond how much, won't about know, all at pipeline. I - a say seeing

me assessing XX, for let last Maybe change. Yeah. XX seasonality months you climate Jon, that that. add. And, thanks the know, our I in in think is like assessing business

clear I that So pattern longer seasonality. don't think there of is define any a

in to sense, three things it's So two, to in that all uncertainty. try extremely this months with dangerous project

clients the you And of from before, would, clearly But I level as do think translate won't are US always indicating course, of predict into, that they quarterly elections to quite I that still I difficult know, it's there. our is that refrain mentioned plan on the making rates activities the the outlook. comments benefit to may So may of the shift their may will tax come from packages And different that we or there probably elections. portfolios, what from that probably not. is, movements no be because stimulus that see would not will - sectors will election more or outcome matter after

Great. Thank you.

Cheuvreux. Kepler from Payen Nicolas from is question next ahead. go The Please

Yes, follow Thanks up for I my please. morning. taking question. have two

communicate is no to share you said share one FINMA back resume do your still first immediately. you're actually objection, on allowed that that they and that buy to you intentions raised the buyback, not yet to The

second new criteria general? could So for the the much actually why future for Sergio, coming good is us communicate in tell And they you the for you net support in thanks any then your Thanks. luck you that money for industry of AUM? loans new translated challenge. or elaborate into did and actually the you on net how And could GWM, back

Nicolas. you, Thank

reasons have the the unclear the in been of are different not of was situation coming Europe a unresolved the before if scene explaining think prudence have public outlook coming it for on or rest I second But outlook, the is regulators. assessment weeks is you year. seeing definitely, bit into then know, months ago, being you you equation. ago, mean, look little the and at the by And and mentioned different coming maybe actually. you the that wave about the in putting early the two that what I been is also know, two I know, probably You same would

of comes that. a new So a concerns may things And economic Its it's second you macro that deterioration the be of it's little coming. about all bit in. all fear wave shortly wave probably, letting know, of the reopen before

year, will matter. this the next clarity So by mentioned hopefully, on before, we early as more I have of part

billion Yeah, directly space the those around $X question through you're loans, your of terms that allowed And investments generated lending. new not billion, of the net on $XX.X US, in in US, to unlike the mostly security leverage loans. your was Nicolas, internationally, the in in

tight not between linkage type So money a therefore, is in new that lending. of net there

their that of internationally, a was billion our see flows, half as and the their benefit in the concentrated for and took also lending broad and clients across Lombard it, based Now lending leverage bit net regions with $X along - we the other our on some new did part strategies. the money more investment of

Thanks.

The next question from from go is Please Barclays. Goel Amit ahead.

just one on Hi, echoing the And for that questions. Thank good thank you got for you've two I've And maybe One, bit you. a everything maybe and done. more Sergio. the business. And my note, on luck peers comments, future.

think of, as group's time forward? handover. you Sergio do curious the more slightly spent, And just terms in areas? – which at in second, spent now priorities of going and So I just you or then mean, related actually And time you Ralph, question. and business with key should do course, his know, Where least some you've the be your most thoughts

see terms the sense as the impacts investment, US roll kind the what the Just Obviously, anticipated it XXXX. just of revenue what kind have? a in Broadridge get to average being clients Americas of term an charge just part able Thank get that's But or of to on the have, and you. of impact to sorry, I to balance longer basis. commentary of on or that to curious in continues trying a looking sense out you're trying for on to cost and impact

Thank you, Amit.

that in So terms I is a believe you kind I to be know, and of going split handover, guess of personally, that approach.

basically one is first at look The new ways. to

We level. to more a Ralph will bring user have data that the have plan, his ongoing back front and views to next to digitalization make using in experience and sure our helping even I'm us efficient, -

they have they and plans, to but executed, we need be need focused. be to So

So the plan. one, ways execute in we way to we I'm do bank the we find we sure the to back. need to as second will the And optimize continue front on past, our that, we did run as to

and adding what an to not know, eye know, strategic bank, need our and future, that can deliver our to forget but is that, results you for we and better So stronger into quarter-by-quarter, on the shareholders. how executing be continue also and plan, clients you the it's to

the So it's thinking also looking approach, but - about day a double prone to day, doing future. at

deploying saw your terms of that second where deploying Yes, quarter Amit, question, and some which in third And the our Broadridge of a updated convention, compliance, with during of the the as is, in around to much already partnership, expectation our billing highlighted the we're and to functionality. that you I with the with for the example, services, solutions will onboarding. some complexity We platform we fully new and course expect implement of flexibility clients, also workflow, streamlining XXXX. more and do have new products,

productivity All improve and take that a US, the productivity amongst Tom will us of we peers. FAs to in to have think that our of this next the is in where of very which this productive should most already help the market level, key Iqbal's. again help our the the focus We

we reduce will that costs. the to that down, fully on once platforms will some cost be overall deployed, retire Now infrastructure IT is our legacy able of our

be In will And system, to make Broadridge cost that the the within cost us. for and does take addition place to lower. of peers example, platform are echo to as part for looking to well, overall come cost, to the developments advantage time platform that costs of be in will reduction we running those see available the that, about, new a the an as when market. then that will And other regulatory as finally, that will addition significantly ongoing we the And implement itself. we in create

cost opportunities. save think So revenue quite compelling some opportunities, along both that we productivity do there's with

thank Okay, you.

Javier go question next ZKB. Please from from ahead. Lodeiro The is

years Hello. This Kantonalbank. the Javier last is all Sergio all you, from I best questions. the two actually and Thank for Yes. Lodeiro your few Zurcher new challenge. for have

question of the this pay was former $XXX case and former the that that September Republic. this First to will a That's when back you the apparently flagged they the banks case - Julius that at the two in quarter wanted XXth or I questions. to presentation. relates And then call you million, the slide to to $XX transactions. the Geneva, in Baer divestiture going there forced take see Is a Germany of to former Julius UBS one the second first on in - quarter? million end $XXX did well, either of charge recourse. as And that from And said fourth the in your real came the are of Democratic if it we Baer where the know the the whole - sold a my I transaction? you're to were PSP the to on and second on And amount items due is only XX to in on really all, These millions. my Geneva XXXX on see is private of September, now out over is estate

and that you. has Baer. notified you, thank also intention Javier, have the transaction. can necessity claim, no to this you is transaction Julius matter, to to mentioned We defenses substantial in in and relating a that provisions. us we agreement indemnification believe their as with therefore, you there respect Julius to see, In So any this of seek foreseeable that future indemnification that under take to Yes, now Baer the

you if you Note of any look at will Julius XX, matter. would note related mention the I only not see Baer that, our

you for don't have to fair that specifically rank it this is litigation case? any So assume for reserve

about talk specific as and reserves, to relate don't We our they matters.

Okay, thank you.

real that properties. in terms But moves we've Geneva. taken different down your in in the of write a Just that then and there I that note lease addition property second also other are only of number question, a reflected sale that, some some estate in in had of related related would include are to impairments, XX we've

very you Thank much. Okay.

Please question next from KBW. is Hallett go the Tom ahead. from And

guys. Morning,

you rate? outcome clients have would could the that Thank should have given the business? news that secondly, sense So of lockdowns? through US how of my I a sustainable think questions in the about we guess you already But most repositioned of you. win democrat How sensitivity then the impact for how asked. And the over already the walk do about current most likely quarter run Obviously, And credit that? or more us two? next current is been just the provision get

Tom. you, Thank

an say I come to a it the you also that any is know, really But that how depends to - republican and case, of difficult how be tax on position before, the gains the taxes. know, may we will determine exactly may respect it's a level to forward package intention increasing taxes believe what, taking what in optimize win in react, of example, capital mentioned acceleration for agenda clients most you what come a in on move for to certain that exactly, as to likely is profit or depends will or it the to all So example, true will so for the - not to economy. avoid democrat to or stimulus going floating will how money determine

change and you us, might almost of want you are tell can the to telling them to that only that two planning you allocation do. I their So after what tells clients election, the asset story, are thirds

- they also clear. that how this. So factors they what other it, it's you it? was do do but question, know, it, There second And XXX% when may determine not are the

might fourth statement, Yeah, to you below be we there overall would levels. Clearly, still we the on in in significant have where terms for to our for the marked our we reflect very markedly heard and provisioning, up outlook quarter expense we an end spikes outlook we a severe the that economic a expectations expense. think to between from and of example, view just unemployment, credit I for of in more impact any now deterioration first of consequence macro would could updates that make have that in as our see lockdowns, very if is, credit the models. end And half our that as quarter, loss much loss credit

just - However, quality industry that, the you peers. than the impact would of us likely is the at less, portfolio, still change underscore our I less at fact same look importantly, far time, our the I any would think across if

all best. And thanks. Sergio, Okay, the

Thank you, Tom.

from is Please America question of Merrill next from The ahead. Alastair Bank Ryan go Lynch.

guess early UBS back be, the an Yeah, a would a thank pleasure really blowing my [ph] you. XXXXs. avoided cycle Good morning. to that as perspective dogged has at And which say I it's absolute in company least up air, that bad

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thanks many again, all Thank and wish I you going forward. the everything you. best for So

and and the Q&A Ladies webcast gentlemen, session over. and is analysts for investors

may your disconnect lines. You