UBS (UBS) 26 Jan 212020 Q4 Earnings call transcript

Ladies and gentlemen, good morning. Welcome to the Fourth 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

morning, everyone. Good and you. welcome Thank

in XXXX As Cautionary today's Statement will draw pleasure in and related presentation. our CEO. to Hamers, with to to our X, hand On your attention our factors at risk also to SEC usual, Report today. for reports our refer Group together see the I We'll the Annual over can the agenda quarterly It's back disclosures filings. of Slide additional you now my Ralph

Good you, lockdowns. you there, all a in me we stay the are us families of all And you, take Thank It's X, safe. start pandemic strict that start And was little the our clearly of full that year whole XXXX morning, world and around you're there. the still is of presentation. year summarizes it's Martin. let everyone. by all a strange have key communities. welcome in with us results. Most at all the to hope Please clients, friends, messages that employees, to UBS bit, good clearly it I'd our out health through important. Slide like And your for kind that tough saying #[indiscernible] are a on and healthy,

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So this we're delivering over billion tax. trillion now before with profit dollars back We over $X success, of in highest commercial decade, together, net total. the region profit a yeah, our every $X.X achieved, on in

result, a returns, delivered strategic on the laid year. but out we for exceeded growth, priorities we each As hit beginning for of of while that targets the also our we or at last

propose XXXX the $X.XX reflecting dividend our Now, upcoming and share capital to at per will solid we position, results AGM. the pay

to remainder addition, In quarter. up $X.X to the the of buybacks we're planning in first resume targeting billion

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return I in healthy hope your the year CETX morning, and good And which also to facing. capital, for the of on expenses. that of with my $X.X credit like equity. nearly out was tangible Ralph. a XX PBT XX%. XX% full our well before return largest XX% billion up ratio PBT. you $X.X was Group of you, join up into we're leverage Thank this year-on-year, contribution percentage billion, everyone. Net cost/income And delivering regions all coping translates challenges by and extending that four the improved loss points and were driven would to Three operating on Ralph our current with XX.X% families the Americas profit are to

Turning expenses. to

$Xbillion manage operating operating drive said Ralph income is you under positive leverage. before, we variable also on and what key as this excluding investments funded to flat, items expenses here operating what we flat and we we As slide, with And year. excluding to to the aim can deliver over compensation see in growth is savings this compensation indeed in with scenario, year-over-year one-time FX notably during as costs, did in XXXX an referenced,

we suspending us, pandemic, October, start rate granted we originally higher a staff us year you in COVID. salary also Examples senior over employees, the additional thank related factors and or than the travel, we directly from one investments means which this the with events gave reductions planned. to Now run increased for the that also our a were XXXX include natural offsetting during limiting expenses less to last as with week a

even reduction reached return billion, PBT in CETX With profit, quarter, on billion XX% over added to $X.X capital reduction than year-on-year. both our net our XX XX%. last and a the we more costs, a profit of XX slight than increase was billion to base or to with XX.X% point $X.X ratio in to cost/income percentage $X a net Turning our PBT and capital months. revenues, more doubled XX% the driving after

Moving to our businesses.

was for with above Global full Americas and this pretax year Wealth new been the the both APAC that announced Management every time. these XX% executing and XQ, for The ago to to on higher activity a trillion pass the transaction time three well percentage higher leading Expenses against reached Tom X% invested down the and loan mark We've has $X recorded X% point as first quarter high $X diligently an APAC cost/income net assets were and of PBT increase billion revenues had growth. flows volume of first EMEA. a year-on-year, XX% and profit driver on In in partly improvement. and highs the billion, for the globally. new $X Iqbal largest year, important also with been a APAC, results. contribution another loan region at in and growth Now from plans the good as up We ratio Americas

increasing loan the this this we level. portfolio year, our remains our quality consistent growth risk new level. The $XX portfolio net For with a loans billion, high on without of were full on strategic focus growth and have achieved substantial loan

momentum gain UBS initiatives. our with to We one continue

in higher invested billion you assets. income billion quarter of average partly GFO grew the our drivers funds in revenues some inflows investments XQXX into into the the And impact was was up by which driven higher result a of having on additional Management accounts lower that quarter-on-quarter. net up was since Accounts lower in performance and the net inception margin. mandates and lending digit XX%, income. supported not by at offset one do X% market interest with income across Separately and cash in billion offset that year-on-year Managed as sequentially U.S. and income interest assets mandates. as XXXX. and initiative $XX lower Sequentially Asset were trillion includes $XX also margin, the in fees, assets by of invested $XX with from invested of net of the direct assets, fees, X%, a Our drove heard hence in fees trend generate GWM up Net Recurring recurring deposit was in recurring Ralph. new IB end over of mostly double X%, This growth X% Sequentially And prior flows quarters. in we've and from invested $X.X interest growth around highlighted

Despite higher in the side, income increase we volumes margins, lower decreases improved. On due volumes, had dollar deposit interest and margins lower U.S. deposit to rates. lending mostly the on

mainly first $X would offset anticipate to to net $XX of the business and the the quarter, the as This interest excluding ago. remained in lower paid clients year we levels related since with U.S. of shift in million of to For activity, fee the positive continued October Transaction-based have final months sidelines been ahead reflecting up billion on NII. expect best P&C XQ X% income a lending is interest pressure XXXX, client around from high continued a election. income that GWM our the of rates two

full more XX bring and in before up to APAC. mainly well regions, record clients, to and and to that million. UBS's CHF our XQXX, expect unusually was a EMEA This X%, while as also focus XX% in is [indiscernible] with including GWM. more Reported business, paid related Coming as to volumes PBT PBT XQXX. into by we them full normal a million transaction-based be digit these profitability CHF clear I impacted income ahead XQXX tailored year-on-year the comparison referred income billion, reposition included of GWM's high to seasonality GWM higher results $X.X results. XXXX, fee reflect in capabilities. Operating year services all of shift closer trading increased get to to in as the rose up GWM solutions year-on-year, Looking can Americas increases and will sequentially, to and double profit tax growth by for X% P&C across Switzerland XXX in

NII a transactions came have and from card institutional due mostly reduced foreign would continued spend on and related result lower franc million income dollar U.S. revenues and clients reflecting in deposit on as of to rate $XX income by been exchange Swiss and down transaction-based our headwinds travel million abroad for Euros. negative fee, $XX lower leisure but COVID. to corporate also the Excluding drag credit down clients,

X.X% business for the full slightly early new XXXX, from XXXX. business of and volume margin in X.X% year was record up increases as a banking shift a Excluding Net offset competition. increasing contraction for quarter NII volume loan in personal was loan

our preferences after access digital in close recognizing to smaller universal to services of our XQXX branches we already of part bank our XXXX. we XX continued branches and accelerated XX that closed our channels, As focus announced clients having through Swiss in digitize around would

continued remain ensure broader to remote that leading services. channels with access clients served improvements We digital and enhancements well will our other and our through our

them people were of our through As XXXX. sheet Switzerland's largest advice Swiss deploying loans Apart $X and program, in to backed our these universal loan and deployment the new bank, challenging throughout the to its prioritize times we net balance effective our supporting active & we government from billion Personal with help and providing swift in economy clients. Corporate

which that counseling, the in We donations, across communities while relief support we organizations health through and and have increased with partnering employee provide in volunteering, contributed education operate. Switzerland

million, by of up excluding exceptional Asset was $XXX over hedge Management PBT XX% businesses, to for $XXX XX% driven had in million XQXX $XXX operating to increases products. performance quarter we've a another This $XXX seen level increased certain investment $XXX in Fondcenter fund performance than fee as annual income flat result strong environment million. in and a recognition mainly year constructive decade. a successful million over the capping year to performance our highest higher XQ Full by market million in fees and of the was a XQ for costs. PBT and gain off doubled more

volumes up run trillion Next billion strong recognizing money for passed recognition line with Invested performance we've our quarter's Assets and both were we market first from and the money and likely benefited mark be time. from the and decade. in was more attributed in growth in and see and first $XX new the with higher inflows And of Management consistent are capabilities year investments its execution with The various fees equity contribution performance in surveys, delivered XX% that inflow Net on momentum, in levels for We PBT excluding a Full during APAC, content success of quarters. new the our growth fees we and rate and and $X.X it are benefiting our innovation. over net return $XX XXX% with money the in prior reflecting billion, from XX%. regions. almost our PBT sustainability net fee nearly flows. to the from channels seen as positive level markets nearly notably new $X Clients new management space. driving net November continued of We're in in differentiated an quality also ideas strategic had business. billion X% our in XQ IB and was our XXXX Asset best all rate up We're or investing the

the with revenue For in equity the by particularly driven XX% APAC. Derivatives Execution cash by platform up solutions equities, and quarter, XX% client in market's credit. XX%. grew global and Americas and was derivatives and increased higher activities

in XX%. equity again M&A also Within our advisory, and share regions. grew significant expenses restructuring in IPO and follow-on ratio a and electronic the operating revenue improved included The all Expenses believe cost/income Banking ECM was $XXX to decreased Global a in pool gained in fee prior XX%. market was impairment. main XX% quarter capital with FX. the with rose trading in up issuance and U.S., the goodwill from charges IB's Its increased advisory. We by in APAC, by EMEA. million driver and have once the increase income we XX% over year outperforming markets

by best would maintained returns. capital illustrated expenses operating and appropriate peers. is comparison these, our to discipline Excluding flat. with XXXX, been Throughout this And we have on focus deploying our for the

well Stage X in X X were quarter credit X releases expenses. during & in than releases quality, the million losses as X XX impairments. as in Stage model and Our The $XX by with combination formed & X net to updated release million of further size for updates more a book Stage book from million exposure $XX including resulted quarter macroeconomic a the and movements, Stage factors migrating offset

model the considered effects. such premature However, adjustments applied quarter, these and overlay release offset third as a to we and fully post in

At was temporary reserve central ratio ratio was billion. update leverage During to for million with excluding by for on my an $X state finish FINMA's capital remarks X.XX%, our increased $XXX in buybacks capital deposits and the exemption I'll banks. quarter, we year our end, CETX returns. our XX.X% CETX

will U.S. representing share, per of $X.X a $X.XX dividend For billion. of we propose a total XXXX, accrual

million of referenced, buybacks. is established buybacks in early addition, also earnings. for as a reserve $X.X I we In aggregate, of this billion. just further we XXXX, And $X CHF completed XXX billion out In of

initially under program. CHF the We buybacks will billion tomorrow, remaining CHF XXX X our current resume completing million

plan up program. is this place, three-year We that, repurchase to buyback X new up CHF XQ. $X in Once shares open line With we in a billion remainder are establishing to the billion during the we'll questions. of for

question-and Instructions] analysts We [Operator now question Coombs The ahead. will investors. Citi. for is answer-session from Please from Andrew and the first begin go

please. questions, Two morning. Good

strategy drive on made Firstly, franchise points of primary to key more the I was you slide one on your points on to on XX. focus know customers - you're in the Slide growing yet ING And focus throughout about on the broadly. profitability. order talks client the

So global you to is perhaps say office mass example? if my opportunity family broader that that. you opportunity question. affluent would my way to more be base, for see or down, you to the So first comment Do there route for on go extend could a client you more were

first on the you I you that's And X to you. with out you thought just if the might buybacks. the speak billion billion out time? target, point perhaps today? And or hard to also the change ruling Second X in update if over the CHF French guidance, felt keep that post and CHF tax a XXXX target. come Could fast that a three-year and and of buybacks buyback Thank come the three-year need why question with on market March. you number

second take will the one first I'll you, take Andrew. question. Thank and then the Kirt

at we're bank that basically was there primary definition as a banking the to and their customers normal focused much to very businesses. indeed customer turn bank so And on primary their for that saw ING

not is perspective. from their UBS think I the bank normal

in provided doing like call normal underlying us may what need, in ventures in wealth we do player the investment different where the have you know them want, offering onshore wealth what I be in that would is the for product have to you Which that. grow to that be clearly global well an those if broader opportunity some as see that won't at Brazil, we segments true much you support So clients have and the way is the with seek we importance and we're additional by an be on example, for that client is clients on bank we at dealing for basically to the countries, don't where - it in but have we opportunity, And franchises, could the be in investment want would collaboration opportunities to certainly joint important advice in order scale lending is investments, to an portfolio whereas for want you a that local means a the look are onshore and segments, if aspect provide. scale can it, of how in client's but Japan banking can to of scale the we could scale? some could

the that's think about way we So it.

own slate scale. If our we own can will offer reach we we we we Kirt? and like our it do have full we where opportunity, those the that we certainly can have global then globally of is So focus just the - not things product in that Switzerland, in. will can won't scale on because

Thank you, Andrew. good morning, Ralph. And

three-year the can cannot exceed a are a that billion under to you repurchases And the over CHF program also overall well to target. Also, Just program CHF of I X we're years. that CHF would we have a the by is the open X repurchases CHF in program. formed process your three X flexibility the the where the we some potential That would requirement open count. not and technical share clarify, than that of programs requirements program, in currently billion note definition as as that billion program well, up of confirming. there size up XX% to all period. X complete program. Clearly, It's that is three-year the new once is billion Switzerland repurchase three-year three-year The we a more

Thank you, good. guys. Very

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

taking Congratulation thanks question. two a strong I to Yeah, have my start. first for Ralph questions.

corporate the related confirmed center. corporate up wonder, opens that first to within about management what corporate I'm it context, should how I the for potentially you get And is to how Thank or heavily interested expect can just who The enough the centralized bit about the within get to the of and will that have centers cost around space done have future, might or order be kind And first in be or clearly somebody you run big or And do one it? all, that businesses center. think point, to business improve forward? to think the exited, you bigger, not might center a Are be position or looking of a change need could there corporate that to second around going performance? be the made in do where you you little manage how changes future? And managed it else run how in you you. specifically, the be talk UBS person a you to in

it center, called Kian. attention it's refer where happens, the COO Group's and interesting gets some of to corporate Well function execution to on just is ITU And Because overheads, activities and corporate all all is clients. you as for center, be an center is be to regarded for the our that our are from an the kind one. where of the our our literally clearly, activities that function. it as you, far Thank then which And reside. of both of COO corporate benefit The business overhead. reside,

for these ensure and than we and synergies aligned, client every that, full efficiency to you managing both continue which to improving and process, find past, work client standards look more Whether synergies. UBS for you was reasons, then on the rather business Now been division. And across it. a it efficient at technology the areas honestly. there having the but or these right to vertical operational would said IT activity shift looking the one then across areas can in do think a on you as that make how has do I you now working technology last I completely optimization activities go currently And moment vertical, have of, in starts clients, to front alignment back this, this that the undecided, and basically more to you Where on is out. the the there it think been you get digitization I'm horizontally? for we but be bit need And experience how with to is matrix, then or you is a way have then the will manage jury a on result the each go more on speak, of as in was need cross-operational to we continue and years. something two improving your that And Okay, it a the well you be the work we an always and for as the you terms alignment

we deliver is that that that the an the as we the that have. want to that, is the by determined the challenge utmost And at happen, it's why gives for and next service takes as a Sabine as And make may her run So strategy. front as don't level, discussions importance tweaks improving subject step on of to want how the to really the look Having want level and certainly transformation that. the we very we scale how kind not us can needs because digitalization Swiss also differentiating next well of to that we in that certainly as opportunity I decision And slot lot it client time to to the currently all further for of organize. the in want happy to a take area some And where Swiss we take to is of said to at around team I'm know. a the to replaced business to it's how yet.

where the ways there. in But And in a benefits other be bit me will it think identified see say And question already example, I come let have always that a where case. other we can for Wealth have get up, either the Well, bear the Management I so conclusion, we one. we the So we scale can't us with end, we a scale? a about, - to have matrix. Austrian basically to and both is bit I in is thing - areas or of to

have at from is to basically, of you as an you that that also what kind can you can where answer and And can that's of are scale versus accomplish Andrew, what the border you well. certainly perspective onshore kind to the scale So what which into services cross optimization look And and offshore. - accomplish some looking we is this I ties with my that you can earlier, that for do think happen. have of that's

Thank you.

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

taking I for question. And course. life my welcome just questions, you Thank to please. UBS the two to

flexibility. $XXX XXXx I in billion not $X.X revenues Firstly, I one variable obviously, on to what are wonder, up terms strong cost quite down the provide in billion cost as just down said, you control which and to to as to was XXXX from order it's obviously in impressive, very see I and flexibility? in general thought million, at do might XXXX. of you And Well mean expenses, expenses, or the off. come XXXX. in $X.X And looking

on of, provide and in beyond. revenues QX on trying then if I'm you just strategic a down. would And flexibility secondly, cost light the So your come understand comment, to would update

trying will Or add in should further we areas area very with most and understand flexible certain about think focus you Thank a your targets? on you of start Just targets, forward? evolving, to terms beyond, going with much.

then a question Kirt do will the Anke, will and take I one. Okay. first second

we on early is of to next place. the economies even focus terms some of as way Not update And results. first should I me the well bit as your strategic for certainly We more pandemic, in strategic strategy. So be see basically the we certainly do strategic mean work that on question, in on out But It's still just able do we our up with are that you the expect that strategic world, will certainly points, the to get really and, to working I time update, depending with more stable second months in depending this second the with to do end perspective. this so perspective. on are things update see complete come much to three happening as And it's you quarter. direction, targets. working a endpoint a update, in a do zoom-in from get we of world to XX And see, not order the zoomed-out how tensions political to after out, the months through of the months us of perspective how is six agile what But the in you the no, many update. a the that that should view this. a an then financial around expect to the give come in a as

So style that our in little the bit that's do a to is think I what accelerating at of world That's one a work. changing speed. needs

what could being of taken. So that's terms you certainly actions expect in

with where comes quarter we'll in up. of when how targets it the Now, With strategic are those and the come that can a firm update, them see Kirt? second that, yeah, to that we on kind we financial

you, Anke. thank Yes, And Ralph. good morning,

and year variable just have think in FA good we've reductions overall the if comp. top in income flexibility if you the see saw we in you on those growth, an I operating we think would, you when in discussed operating and line, where XXXX, variable And accordingly before, saw our see saw naturally about of a most both lines. down, as FA we challenges the of cost comp management, income this terms on that flexibilities In we environment up

In back you a XXXX, had announced addition year to that, we costs we of at if the in of the clearly half quite beginning you more we and think flexibility investments that would and closely. of million environment, saw during the we immediately for $XXX about to pace something challenging first scrutinize that's see areas this other the when relate that that come down the our certainly of related They year. would

consulting other the Some as of our T&E consequence exceptionally already spend, that are Right all-time now a those and lows, frankly spends. areas, marketing of lines low. COVID includes of are at all

period at speech I layoffs that the flexibility, were On to purposely layoffs we we would COVID. would in naturally, that is to in hand, But also be the other something we that of clearly my come And further itself into commented you course, would the that executed would back we restructuring to any the response look for expense layoffs need see have if an focus. brought expense on additional consider layoffs. that or postponed have with in

thank Okay, you.

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

to morning, questions, you. Thank welcome me Good please. and as Ralph two I've got from yeah, well.

first in The you the to back of if Wealth the business. topic is, Global gross one margins Management come could

capital earlier if you effect partly think higher timing RMBS on allocating you than have of litigation case a you just beneficial. business, could the the seemed I that be also also the also you for U.S. to of think case, the be striking could create new divisions, news of talk discussion of had It's and and question discussions more which a expect My could after us French Swiss business any returns you all if comments as If I around more are Credit would the on which an this discussion, in is any And think about has it center it some that divisional of give well. clarity in don't but update the civil second Group the terms quarter revenue the the add to on is, corporate particular in I on center, to inform frustrating internal return. I your cases, us much coming just think terms But developments request the topical become very to tax declines money Asian helpful? linked fully sort in most when the the in the of the flow. can would bit about commented margin could Suisse's also in. about lag corporate the DOJ? in the if But

are margins you But and need the that comment that. questions So request. please. to just on a It's litigation don't two

Well, cost operating. time we through Jeremy, can of show but do start third your with to do I the the that actually kind because think this, of mean, it's, I end, true the common last I have think I you in

it's to there. that scale it can people because if further I full on the suggestion you it's and the it's business relative can to And like pictures. also request a or it where see in can, see they have looking your not those So not relate to incentive things of certainly a from But you one order management decrease basis, see collectively so that is And further the it's for that. think we're I there. see important at efficiency to want costs they increase

what pressure what quarters of thing U.S. to margins dollar whether is side. see margins Management is there and your to very investment is But we've U.S. deposits to we doing from maybe charging Swiss loan coming margins on us. replicating you negative the been the CHF past introduce the to Swiss And fees. we are Kirt can on there we your portfolio XXX,XXX two rates is we other for do the Now the have not low, do on way, in NII environment, So start the course, some side, to of looking also beyond that? comes keeping the least the business. on margins we if with dollars. in on as rate NII has certainly that more NIM the from will on Wealth seen way clearly. are also expect, business alternatives the By pressure with there's at we which side across. clients see. the it this in increase perspective. And started We've announced the compensate Swiss business look coming And of the And at to, gross on it alluded at negative margins, the first to deposit if We introducing healthy the as then, of on much pressure the on also francs as opportunities that mid-year, deposits our through

of side, that has most and on Although Management the over francs time on in kind if been perspective. dollar Kirt, Wealth taken Swiss could? of already you

can some Wealth gross I margin. Management maybe extend Yeah, comments, Jeremy on the

saw I think during reduction in was the as, broader and the and I comments the that of margin an speech. quarter, course we made my there in overall

come all, in relative First overall continue a the see new lower a we back book. of do margin into sales mandates to at that to

in the we class the non-mandate the of in Reg A fees think, be dynamics example, in best of to U.S., also view that, in a the clients C which to within place I class addition we we interest to into versus see reduction our as is clients. shares business, trailer in response shares for

Now around overall My for $X.X an also we the that comment in quarter itself, margin not recurring particularly impact were attract whereby assets clients dynamic have in evident invested was And that this from trillion in because do had additional the almost of dynamic investments Pacific. margin. the up XX%. Asia very growth significant

for business the First, I we note, PBT. would manage

a basis, on with year-on-year So XX% most up that. important what is PBT pleased is we're our very full year and is,

Asia year-on-year. actually Pacific, almost our PBT up doubled. in XX% Now was It

region time, in highest fact were revenue the the same billion. only invested However, we that that up saw this transaction and $XXX have XX% And at penetration, the in in Asia out mandate assets you our dynamic play given XX% to margin concentration Pacific.

in things at paid, GWM Finally, that referenced, fee year-on-year, business, the is a look I have the there Swiss was P&C to one to was of you million of $XX that terms that what to our overall But our also up X%, ago. that most year a revenue And impact year-on-year that us. absent margin. is was an fee, transaction again, transaction on had is which important

capital The verse On litigation? the plan verse litigation? capital

capital we pace overall to the capital of risk about on all naturally we of at in Jeremy our that deployment of shareholders look How the is, we of events, horizon. and event deployment kind have risk and any think light return we of consider our

that on $X billion announcement significant buffers, And clearly, know, to with to built. another XX that going XX.X% points of XX%, quite billion, reserves the you the that we're look at of billion you buffer. were $X.X excess up sitting the we basis $X we repurchase versus there's So if suggests

We in timing March about will of how observe for and XXrd. will is scheduled X see outcome March the beyond of French and of buybacks course French of course, the case. which to we March And the the naturally think that inform case pace

And most just We've from as is already position referred because you settled to matter. legal well. RMBS I case, our colleagues. cases other our conclude the that different of related wanted just of to clarify to on kind the some to one private that RMBS

FEREA left And So is expect we than is remaining events And to started basically, that matter, anything else. what we that more discovery is the just one. one. this 'XX be to on the 'XX have

That's really very helpful. you Thank much.

Next Autonomous question is Stalmann go Please from ahead. Research. Stefan from

point revenue, out of one generated an roughly award I have in in $X take the deferrals underlying you amortization question, to gentlemen. increase any morning, actually the please. year $XXX variable employee's more from Ralph. But million again, than incremental the comes again, the incremental revenue. accelerated And if you billion only increase probably of perspective, where there's hardly Good bonus year-on-year. And The it welcome back compensation.

you cash sustainable? very the those And of basically the advantageous otherwise let's little the for keeping around could much. intents has question do the you very, in obviously mix say, bit are have side? pool a leverage maybe considerations this? pool been, both can there versus So it now the whether And deferral already on bonus change awards? been all operational is metrics. the been. there than you and some in fixed, you bonus the XXXX and political hint Also, your Is whether downside would lower has very Thank in for that's think purpose upside a on comment Maybe revenue

Stefan. of lot a questions, detailed That's

And fixed. this our operational flat. related to variable is expenses so not this is been able fixed there before a variable that keep also basically - really for have our compensation we performance, pool that, year. we it for is despite year, did bonus the the And change did really we So, the change to

accomplishment. So a that's, really good

their of corrected kind of fixed the away whatever full And to have we you a take framework then variable it's our each that variable different that. of have we at compensation from in the compensation. at That's into that's, in divisions, way has there. fact, of accrual, So own is although that we for year, have accrue variable And then that gone the pool for corrected way performances not the the if they the clearly we have different full looking compensation. have it. compensation look But for kind variable is accrue to you way

was from very therefore you the XXXX. Last variable year composition good you going you And year, down was year and year pool from see year. really Now another the therefore, clearly was again result saw see a that revenue perspective. a this And up. up going good and so the it

that that new really but at schemes Kirt, ensure that you clearly the said have is within we the staff been eligible recognition allowances variable UBS. find they same at example, people ensure performance, business mindful of transform of an from can have in feel take opportunity cautious in we because to of, that helps. that, making in awarding in that the restructuring time been clearly company, can't kind the reward client in are about pandemic, how to we as of new to also we've circumstances competitive have for sure the UBS specifically we pay find we also way terms But as to stop to the and compensation to needs. this time, and been really really we attractive specific we that are to Having in we've employer is continue change which hope go we said by market is thank have across our them I globe. perspective. do redundancies which account giving We'll well. a to not that good positions everywhere, vis-a-vis people not we have the for leading And to, have local - fact jobs to you a this a to terms to you within Now, order a looking into compensation specific we're restructure are

Ralph, much, very you Thank Yes.

ahead. Magdalena Please next is question Morgan from Stanley. The from go Stoklosa

another good kind One and Thank very I've about one much and got morning. got capital that I've still focuses thinking about questions. Investment your kind you two the of Bank. the is of returns on

buyback talked significant lowering XXXX kind of aspects we brought your course, of quarter. of more the perspective of about longer I'm a of various numbers. of announcements And little higher bit of dividends from because slightly the your and quite So kind interested share a term, course thinking about changes this the

because, of entered of Now, you the more about of from buybacks XXXX that's shifting second kind Bank, really below back going and in on generation as is you And share do your here. of mix Investment how attractive capital the of in that XXXX two aspects buying dividend look be so think we the forward? about to it about rebase trajectory, see shares trajectory So you kind think you your course, I'm how XX%, the revenue return one. valuation? about into can plus much course, perspective, of thoughts a just And 'XX, have versus there? it From But interested of Because, when think restructured strong. kind course, two we things my businesses, across books, when the of very kind we year-on-year you've growth actually 'XX. business. here, One, your book investment at above than with sustainability XXXX here, is

been it So course, look just a let's the that it PBT into, of the strength entirety? part cyclical from in of profile? think three level but we sustainability on part the its next of of years, Or would a kind the as even structural, should revenue we revenue, markets. have was it maybe How at say, of think about I the

I'll first the question thanks. will take second the just well, Okay, And and Kirt take one.

it's In also as that's for banks, most them was only we say XXXX terms us, particular already for their and a numbers. have of as of constructive clearly the Bank, Investment investment come with out the other year, not here.

so our sure investments, lot we there a the and needs of we the if comes we not And lot is we we though rotation a in make anticipate in through a kind that flow execute of to of on have transactions. flow in those business. those system. And And are warehousing business, are then client

is. lines So and almost quarter more prime fourth good areas the over the business, Bank ECM, that it across The performance whatever whatever and the as equities, Investment is also basically has led LCM, year, derivatives well. specifically business all product brokerage in the to it of cash a the the equity across

So basically working you're across seeing the their investment all banking almost of activities.

flow of a more those And that lot markets and the side. a give volatility the than risk are flow clients not. on don't flow, you basically, quite the generate a some much if to the Now, take as others we a being we back some you to rise some or warehousing and will will rather And house of like as either are, volatility clearly, see we house, our with revenue do.

In about that? So how many you do different ways. go

you whether clients. the generate extent you or you the really the to which make make was And First, can to those scale, have for actually scale, products, have to you that analysis your scale. have you improve can't necessary in sure generate the you the it

And of So, to invest what in have very to in we business business franchises these important the the execution it's are to platforms. all clients. top there's see We opportunity. further platforms. with very what actually lot digitalizing and FX well. a costs core the know And our decrease we that stay we as execution further on for we us, that's because get scale initiatives our these know business equity the a through - coming And well. around of and which And

have on We a good the digital also team effort there.

help can do that So that us. think I

And on we're into is firms other really from the brokerage well prime business areas, depending that, heard the the other all with as on you've advisory well. that market can know on business. Year across you Now that pipeline you the I tell it as where but the New as is, good a going

three think looking to longer one we term, important, And Kirt? in efficient in and quite activity ensure on think so products that's short actually five good will that good. at. we're see we it's market top And stay can what it? side, and elevated, all be how about are can pipelines We I term, the that's truly we those we that that how be top

for we capital. that reduces return time for our tangible don't to like certainly the that We for overall decision also dividend CETX - finally, But also throughout also below capital therefore us we gives AGM fact think trading be three-year valuation a wait to repurchase us Yes, very it. returns. stress our equity to levels good buy we that our of your a and gives what and But as cash just We impacts reference how shares. consider we it's it value, our us just this we cash not back is, back should capital dividend. book to a the address Magdal, it's the trading that can of we more when flexibility. hold from our accrue it at consideration, trading - our Naturally it between and highlighted. a It when is, our we is, a you our valuation And the to And current book, it's on consider our attractive I three-year increase us higher mix think for buybacks, plan. plan valuation approve value fair informs, about and year guess, if one to current we the just have we the away can look question pay capital above the year and and times versus the manage don't versus we when with ability cash you time of capital believe proportion as difference to as our us dividend. we're suggests it stress we have better to then and shares. firm returned the also what a go

do And overall, something In progressive, how that's this that could intention cash dividend think we want of go share. be level right we of at mean $X.XX our about progressive. progressive said, us, look is as dividend $X.XXX a for Our we'll And or but as to to we is of growth? because what intention dividend through with minimally I year the be optimize to probably buybacks do the each terms point. at progressive,

much. you thank Great, very

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

and warm for Ralph. a too, welcome Hi, me good morning

questions. So two I my have

please, all, further, this of a on case. potential like First to I'd bit tax go evasion

you be look you're on quantum depending worst-case this an tied then that the lose appeal? have there and final did Are the appeal And And just then that how that you And on going could take? your program $X if and in long that, Ralph, stages change for appeal? of and like billion the that for you've further in it buybacks, noted outcome, would where success management But And year? did phases official been process taken on ING. this to secondly, your and that what quantum. [ph], to to growing have committed buyback change in would be. You've looking digital alluding people seems to let's banking a or maybe say €X.X not timing case arguably, in clients differences hasn't way would a off perception you the that's billion specifically banking, I'm the digital maybe offering have maybe wondering buybacks, the at at management, really wealth should if wealth a outcome, but it digital forward

Looking wealth thoughts management there. thanks. you to wealth see UBS the to management your for appreciate in I do Many digital offering improve specific maybe general, clients? and opportunities

program, #[off-mic]. of buyback terms our In

the gentlemen, shortly. continue please you. hold will and Thank line, conference the Ladies

There disruption reconnect. the to have is in line. to mute We'll a

can you Andrew, hear me?

you, hear I can can you. hear We

other how look I factors. would And form as model you capacity ratio course, as just a off. our not impact dropped sure something of that we which CETX we mentioned, certainly I'm is But would where and overall along buyback at, would with worst-case it Okay. given that naturally outcome, we expect,

the equivalent Appeals is make after more Supreme to of appeal French Court. Now, finally, of can terms level the one Court, of there process, we that the in essentially the

And how also case, of into French would any we informs take opportunity naturally, that would outcome of so the potential for we would what accordingly. we we as and we and view what consider it would account would of outflow, appeal strong for look in us probability consideration at the And would to that terms case be.

Okay.

so yeah, And bit. up #[off-mic] a

generate we our also capital franchise. firm a on a And deploy the a so, maybe of do lot can a capital build where return and okay, distribution, in with clearly, right can as and And is, we you capital. - how what we

also to capital where Kirt said, coming allow we'll in. the manage as business you want and And then have coming clearly. we then the that's in And Andrew, see excess on Management areas, and of we digital? where for to be where to It's lot we that's we So where kind as three P&C my my in in question, time the distribute, capital, use over three tactically, around can and well. of looking But I is conservative we actually our which for in view, view, And generate the lending but Investment will we accelerate some areas. how mean, in Bank. clearly, digital, biggest the opportunities of that the some is already CETX. to least the to Wealth back at a further, do the but strategically, three see we're digital opportunity everywhere, at almost areas for moment,

is the execution have and the And services to said, platforms quite and there good the And in clearly I rapidly. we services those. initiatives step in we we up where know really through increasing second really on well. one for some of Swiss these the really and services have order those digital demand Bank, perfect differentiating products that that further is digitalize those to we As in go some some of

be to manager that artificial the our I understanding at it in well still may digital them a those moment, do. And do so the very financial it's personal, job quite advisors digital all in we and a analyzing bespoke also in well. bespoke but clients data some better good really all really our offering core further that intelligence need think with the support And our in make generating you support to their if So needs I investing that's and be while the can advisors more support processes think the also to or time to time, and what find as our business of but we clients and with supportive that same I intelligence client to clients lot understanding making better. we everything better to strange, our and do have pricing. as financial then of more wealth it them being and client advisors you applying make the am in a do lose of there the much support effective at the be predicting at they digital right convinced that to understand processing product our client because of and productive and they can and timing

I components can improve believe are we I support think where we and firmly the wealth the those can that in, manager.

much, you Thank very great. That's Ralph.

The Goldman next Sachs. Please question Omahen from from ahead. go is Jernej

two my at just I well. welcome questions to first from Good UBS. morning And have side left. Ralph call as results your

of like first I'd And The presentation. on here is XX ask page to what the one is your following.

up volume So the loan went year-on-year. billion billion by $XX $XX quarter-on-quarter,

that's So an increase. XX%

And it much. increasing do have of the contraction just That's sub-question, If deposit this XX, is about coming increase that top that How a two tell does page in the right U.S. monster X% exhibit? U.S., on Thank that really the show? a for been is the must You U.S.? margins What net in deposit in the margins one think steepening then interest we explanation lower in curve and as expanding both commentary and the should well. question or margin the only here And volumes, what expanded revenues the you given have the we is say very the income? period? in question one. how that XX% rising, then

question, repeat you the Could second please?

you by the PBT divided In says are. it Page what Can XX, reported equity actually explain components exhibit. footnote what. what shows? PBT right here top this reported understand attributed don't but average the of just I

right divisional So your PBT peers you results here? in you. you've understand Thank have I it you. essential, to trying of compare it. U.S. don't what just taken with Thank done chart Well or but top a

Jernej, morning. hi. Good

your So how interest the think overall billion XXX $XXX look about in U.S. and point maybe at year-on-year, if question, rate is you that of volumes first I that margin. dollar so think deposit just deposits, in basis terms margin, if our contraction into you in and contraction, translates

So there you level book. U.S. is volume, income you across this apply very when of our to can substantial see how interest that net headwind dollar

volume is actually, Now, helpful. the

fact offset did increase the massive headwind. partially that does we that is But that a volume So contraction.

year-on-year, lending XX% point billion Now you $XX is math had we offsetting X%. your volumes as quarter-on-quarter, that, rightly out, the increase overall correct, billion up in $XX and

margin we to addition did that, some In improvement. have

going expect that fact strong increase, and the we that income the overall, to me, we a and with were and delivered interest of is, that to about volume I of statement less what performance book, quarters offset over a continue lower the the with think forward. able So our we is over volume to what to year, a net deliver

loan basis income $XX basis. on and year-on-year a specifically, Now, quarter-on-quarter up net million to interest on a our up $XXX million is

lending. significant So momentum our again, I quite from think

that's, Maybe whereas you parameters have margin the in Jernej, sheet, you production. have new improvement on have your those balance you on basically, with. your full margin that on the the compression dollars are to work your book And

an think what actually, the has it's accomplishment, here. So, quite [cross-talk]. we done team

it you Now, a a bit more. loans, accomplishment. of year-on-year look can plus UBS in add sustain an question pace doing XX%, said then so what you here, just growth forward, I I is growth you and think do would here? And you're can think, this do you When here

then couple taken continue relationship to the us, the focus do is We the very next if over risk, our is U.S. productivity our continue we in we planning see a process. below actually structured XX, our our relatively the see lead that they completed place, market to I the the IB wallet Yeah, to to that business. our we by to productivity we can if overall, the our the where next Right gives relating good end mean, set we're with - model, the are And on to look plans example, show our you you at place, loan inventory we loan our book. good overall intention that revenue we GWM, to the up and return that venture less penetration, for compare Swiss our now other think that very just in and just as we're at relative that of turn look we've deploy overall, total over our less with bar all we than we're And is that well that lending, to equity. on are joint of that peers, attributed to years, we peers in around so hold or on upper take increase. us, our to as and for to risks franc show consistent trying helps is and us I also capabilities that couple much share. take evidenced the is capital loan to what the that And mean, slide And penetration model our peers. in well actions overall years, believe investments peers, growth the we conviction we you'll to have

So of providing we're where and just and works our markets overall really banking model reinforcing points lot well particularly in there's volatility, well that proof we're works a investment

Right. reported, group. as you But show? was by understand them have peer divided So of results taken this you does actually just so what allocated I I can ask? asking, equity have you what right. have Now, divisional that, but I And your

comparable what? this So divisional is a or

correct. That's

attributed compared reported, and business. our at of across peers looked equity. that they've like-for-like results of we've our also at the course, basis taken and peers, the revenues That's reported, a we our they've bar right, looking the that on divisional And we've

Thank very you much.

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

from Hi, too. thank myself welcome also you, and

and XXXX questions, to results and very going of of think actually, one just as first set you strong two a profitability, to the this obviously to X, Do for at And back 'XX trying achieved try targets. level about do I'm exceptional? Or you so kind kind terms also in beyond? as the various and and bit forward just just XXXX into the is looking especially think is, in going understand given headwinds. this a you it And of above year going see Slide profitability thinking in system terms Obviously, of the well detail at you've when maybe and Thank Ralph. curious, And how them that on on the actually, of bit the different what the etc., second had thoughts the ask question, had. a do IT look the the about when just at one, given maybe IT, your I more about a are last just and the you was think see actually, but loan you infrastructure question I targets? and mean, going And to UBS? processes, you're that on slightly you. we the growth just the sustainable

us have And of clients, money that in solid, a terms very entrusted you many Thank very Okay. it market us trustworthy, so, volatility, Amit. a see the of it in - being all very in clearly rotation they in also the the Investment XXXX, has for the you, Yeah, has advisor with across. which the the a for market, more worked of to Bank, view to us. knowledgeable worked clearly

much full. in level? an one across you all divisions. come Is terms underlying, this regions growth So, But a is bank of franchise we all forward? in business on going Not stronger that across the number see XXXX absolute

further - what on we're of Also along. a working best foundation. for strategic how targets further us, we we I move can warrants And that kind think tuning those the that's fine Slide certainly provides on some strategic kind of X, will take forward. the on update and if

give Let in second quarter. me you update an the

that's IT Then the on side. So one.

do is, If think how do that mainframes IT? And there really of gone we it Cloud, the we to And we through and story and do and move towards how it are think are can I do be the put we on prioritize Cloud, good we to can continue manage the here. in What that? a some How job. of What etc., private I've areas what can we infrastructure, improvement, all on use also, we, quite IT want Head time ability to Cloud? clearly, there we of efficient. etc., I how up But I Clouds? we there public with there. step the where areas do in IT? etc. to more in Sort where we is the comes

the I have, spend we if per forward. way like forward, we go going think the that about you technology se, need look going will, at that a technology our if higher it's we spend not

there. the versus If benches, you technology spent look up revenue, at we're at right the looking

divisions. which But So shows our allocate spending I we once on through do we more think technology. different the quarterly that year decisions change spend rhythm the investment of think a that not in rather tax basis, under I can kind take we we're that a to than

than to rather targets milestones time finding have on not you quite you have to programs, to the we in long to the delivering, different a we optimize the divisions, basis benefit. set that and haven't short-term some you're I to think because making different big out term basically really have I'm that ensure been progress and a have but across And that although deliver, leads you're long-term you could a more not it after that programs. impairments able program, believer to optimize across

What go spend. So doing in there, I how think technology? we how allocating are technology technology? spending we are is, in technology prioritizing think and to I on, I up we think we're need about well. we're spend spend, we doing managing more do technology it don't

that's think change the the I will be, spend. effectiveness the where of

Okay, thank you.

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

back. had Thank come GWM to morning. for to on I you dynamics, margin Yes, the sorry questions.

whether to was those of On element to with the should on fee fees? the mentioned overall we Q-on-Q, point of AUM margin trying why Q-on-Q front, number that non-fee million higher it mix or base. momentum whether so the fixed start you sustainable to And I'm pressure $XX on grow modeling how that's that business? you. than start there earning can and that would really you faster Or stays elements loan understand or growing erosion, doesn't earning is is of rising is? a further revenues I'm $XX But the AUM the base. the standpoint, that higher we have break is loan lending sustainable to a AUM I growth new if out extrapolate margin, fee as trying million markets? margin the be that sort that your gets the that into as on the that from suggest over Q-on-Q could would understand diluted relative grow, the it margin just momentum and and from NII Thank how understand then AUM

Yeah, for the Adam, thank you, question.

So within this where if simply, have $X.X and trillion, there's relationships contract mathematically, trillion is based. invested clients $X that with are very trillion, we we the have $X that not if in assets,

only And custody so them. attract recurring or provide like of some other fees we relative fees to therefore, they the and recurring services to they don't attract

we're So in and we assets corresponding see therefore, revenue. increase in see those when an appreciate, not a we recurring increase markets, seeing

So over margin, therefore, in erosion asset where so some the allocated an is base. quite and a and we recurring larger that straightforward. revenue being we results invested And see do mathematically, receiving increase just are that

the details, the with as million expect going leading of additional what the reflective I'm expansion. quarter we fourth down I should going did, to reflecting not the break the loans I to forward. all in some of along the In and into interest addition the you that partially terms of of said, quarter fourth that's net frankly, lending income $XX to mean, $X billion during margin see

market should we carrying expect AUM pressure Okay, continue multiple? margin so a of we see on to mechanical if

look I I we what's offset still around think as our would income is most net lending. And net net our to pressure incremental on dollar think what and $X income U.S. expect expect interest for important we income we increase rate deposit from quarter-on-quarter I at continued that book through billion. QX, is indicated in interest of interest interest

fee carry and side, the positive on markets always be going green? is are if to than the to the And lower fees on Okay. AUM

mean, our bit are recurring would relationships to appreciation Yeah, into some it's you we on focus we when growth you and recurring different going when say of also a We see the it be given portion a report that's off, all see provide expect to why margin valuations we start actually - revenue, PBT. benefits, go only but But that overall. we if get think or and transaction-based impacts can we pretty that which in incur that very operating don't income and have mathematical that's margin misleading meaningless, come to pressure. is I dynamics in involved margin

Right, right Thank there. you.

question Next Payen from is ahead. Kepler Nicolas go Please, from Cheuvreux.

good Yes, morning. question please. you taking my and have I Thank for two

year. of that be production income And much is more of is in in is that would double the strong had particularly, and one you almost due to Management. a sustainable in which have Asia. IB income you very where IB, Wealth There I Wealth the The first much how how and Management, on venture and GWM? almost you joint on believe one between And PBT the have tripled second think

region we expect same the Should outlook much. or be on of there? appreciated. PBT Any Thank decrease year? So will next very expect we for kind this should what in from you a trend

in the And terms look control, a momentum lending. drive if in and can we it's what and see overall, very of flows if you at strong volume. clearly - GWM the you the Yeah, you

impacted Away in course, see strong by going focus in mandates, in net and movements from revenue, continue revenue. into also equity on markets, significant that, current also a XXXX. of to given go that's the something transaction we our you leverage and momentum just as see we're You that's new

growth GWM kind revenue our than was term income we that and IB XX%. More of you up one the an is results. important that XXXX a And long-term faster bit. overall, clearly by our of part operating highlighted of revenue XX%. GFO the overall Now And growing is the saw broadly was fair

forward So GWM-only revenue we continue expect expect be the actually one would the faster than to going to of firm. us the And across generate for the that we that grow to growth drivers we revenue. would

we is PBT and Pacific, expect of Asia see be if Asia forward emphasis the is GWM. too, in that terms in for to in going indeed strategic growth structural Now region on that trends see growth overall about us Asia. we place important in order hence to our Asia overall, going you growth in to And such it the still for reason think

expect cyclicality, and be trend to think next the strong we we to that be out years over the to of growth Asia that. there's remain we And so yes, that Pacific, Asia see the in for when while does years leader going Management. is We five think well, Wealth see particularly over And period. going less

right on improvement you middle-class Asia combination with the So this also be the is us is certainly why to look economy kind to manager? same of pool the growth not, as but this region. the important global last the see and that Will demographic a some parameters the is the year? now is pushing there, welfare further the from know, fastest. you where up And if perspective, and where year be also that's where a to in be a think a at need trend and of as on because Asia for it's be, I side. perspective, GWM wealth manager want pool and it a is where grow will wealth why you growth is the U.S. is

work Asia kind And make Asian success it of of That's growth one XX quite I crucial a be that volatile. more a Asia very well, also worked clientele. tremendous stream And And some that for there's for is mentioned, tremendously is our as the that other specific out On work. across work formula where in And may to Pacific growth the strong there us. comes potential. a in we that But on strong well, the area is in Asia. certainly a if Investment why is streams to Bank UBS also year, clients, general. I yeah, had the year one that's one side, bit it the think truly our

Thank you.

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

ask to and bank thanks. X, global rather group? please? return months? in about So I Yes, [indiscernible] of QX see equity? in And you pending Can do peer couple buyback would peer just do Slide leading CETX firstly, profitability pause And a tangible you hear question could a you. your you just the or do be a clarifications, hearing that on then technically, yourself the or Thank be of results idea March metric on delayed French talk when then is on shareholder few that is, to you a turn your the group banking second after European decision? returns intend than expect you it to And

we yeah so on Jon, know. the French don't actually case,

moment, X, March the the on starts hear I at procedure it normal said, will I ordeal. XX, it get which As think. And date will last March that a we is until at we

into will period I be. to so can't there really look on future what XXth. as the But the will know And that we

So that's one.

parameter that we of and you Europe have. return lot are our moment return terms a and businesses on But in going. at going the strategic outside capital, it not see In updates, looking are that also This and capital our currently the to CETX through know, we we of things, change on also clearly Europe. of where capital, these is we're is

be and of the kind certainly us an let better Europeans be there ambition than others. to so And with have

you. Thank

is ahead. guys. from Tom Hallett question KBW. Hi, next Please The go from

wondering guys. theme for strategic In what scale is the And questions benefits I for in me, Management? Hi, mentioned large also peers, in strategic seem was the A of big clients. Asset from are M&A shifts. intentions breaking for the your to particularly U.S., couple scale please. clearly the do but you a presentation, be which becoming just

wondering track change expecting would be stage just become secondly, just of engaging UBS a particularly only WA we be coming a I'm reflation And but into the trade? clients across and we're And need Thanks. within can inorganically I us, to can over need met curious conditions grow CETX And does move? in what or are year? the Year, what positioned at wealth should month what regions, more how in just So to the then are business? New wondering know the and to context impacts to such remind open also the you

Tom. handful, a That's

asset Let little with me the generalize first going start management, bit a I'm on to one but here.

start from of position we clearly, our exercise strength. So a

manager only asset around You is can the what right but in see PBT what there. also year, asset that doing clear franchise product is and in the have results invested needs new also that an not successful to the decisions in making the growing very and truly this very we be is Suni that

So, active strategies have very one Chinese The that there. the from been sustainability successful. certainly call is came

has there. successful to our almost really that, have Our with clients, very hedge been trillion. scale been fund successful with And building we $X.X

wealth an also that in capabilities, for manager scale asset in business? One Does we management is knows. manager? what So, never the sufficient Absolutely. asset need support the

different some a business we accomplish year, But we to that that could look order, or right right will of the growth, manager cases, that not, because there organic divisions. the the it see the do clearly if product, for have these last looking growth organic proven we take then an we it. to But that, some there in between we inorganic have feel will efficiencies have, for the are of That's presents that accelerate have the we But or at And other that have we - the is whether asset it. in whichever all Now, consider if the may we further opportunity of we do alignment organically. out we can is right maybe growth. room we opportunity itself management, accelerate it one an we want is questions

Yeah, on I overall for to as pretty support GWM to we're multifaceted increase But that what of can from mean I away consistently, its question. continue think and comment around I that, But naturally, terms And we changes. business won't to assume regulatory that methodology RWA, capital ongoing a was increases we're billion I growth highlighted think to of you expect multi deploy $XX we've going to likely lending. in see. in

you. thank Okay,

how on are Just of the abroad one engaging maybe the the other clients trade? question terms in of in positions the context reflation report

that. repeat Just

reflation sort in that? seeing are trade, of of So, terms how clients

I don't really have that detail available.

the clients think do research, towards client you segment, so look at I so segment that are see we pockets. if and you positive

And all investing. are placed things percentage going XX% advisors. we out advisors that active clients our the think seeking are I towards advice, are and that's our of given with XX financial of as there of network Eight client super well So a are on. where positive

provide. we in So clearly, play to the are market and what our that the need the that's uncertainties Clients strengths can advice, of franchise.

Thank Okay. you.

The last go Please question from is from HSBC. Piers ahead. Brown

gentlemen. good Yeah, morning,

half. one on losses. for if I credit credit provide And charge, lockdowns in of so of And half second another about incorrect? you may or 'XX? Just previously guided the context putting you tougher we've updates as a losses? the drop in the in I of be think recovery, seen, credit the expense, economic recovery about credit wonder final loss the can me I And in offs share maybe through might Thanks you one there is for half first the you loss trajectory of obviously so, year just can thinking last as market model particularly sense to, the over some be economic quarter the would in of expense or get for anything trajectory mean, full the the how be be much. first assumption makes very might of think we're which that month Europe over seeing, sort change I

driven million by million Yeah, by impairments of releases. X offset Piers. of the quarter, $XX & Overall, had $XX X partially Stage CLE where $XX we Stage million X for of

release, a into was as felt the a scenarios, it premature overall, our factors further reserves to Now P&L. release for overlaid, that which we informed - consequence the actually of our additional updating economic we actually

around versus adverse also and bit around to going a from do uncertainty the see XX/XX weightings to the optimism lockdowns In the vaccine, on do baseline addition That of is, we how scenario the XX/XX. that, our we see, to the unfold recoveries despite to of are because going fair what we current are impact rebalanced be. the

creates So how might bit of overall credit of for XXXX expense. potential scenarios acknowledge that that loss and range course that we of then then impact quite a

of & X around would see still impairment a we to Overall XXXX expense fair degree uncertainty Stage more that. variability the side went So we and side. than expect X in on on

Okay, thanks very much.

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