UBS (UBS) 27 Apr 212021 Q1 Earnings call transcript

Ladies and gentlemen, good morning. Welcome to the First Quarter 2021 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 and everyone. morning, Good

SEC will As our hand Annual cautionary Please Report. Hamers, attention risk agenda our our Ralph On to Slide can today. your slide usual, also in at see XXXX to presentation. for I pleasure statement results the to today's It's over the my you draw to back our including CEO. filings, X, Group refer factors of now

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has One handle to a events. is sheet that all seasons UBS for reasons of balance unforeseen the

as a first XX%, true that a business diversification made The in the resilience. double-digit and on of Although and not buffer - quarter, we after the investment also, of want we our ever this - is results CETX further to we the continue capital served quarter. kind strength our In equity, have. and testimony adds the the of program with event and the produced a regional the plan were the power our This our to able because clients and us, and increased this to XX%, quarter in growth, event. credit our bank also further And also first and this pandemic, first franchise providing diversification through capital earnings loss, return on to through the we ratio and CETX our business despite whilst return loss. investment year this and this even to bank execution, but with of to

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will our and that and you when year, update. more strategy launched investments a we our I assets investment to - here. DNA, continued our growing I the slide, you see accounts our cornerstone explain Turning to at is also separate know, year-on-year you you the between XX% ecosystem of invested give by quarter attract here this the Management And last next Asset of truly, you initiatives managed assets. The can Wealth that And strategy. separately have core the see

I deliver is another well. as out in for our and be offerings That to flagship the attracting sustainable a our quarter. think when build It's a UBS billion textbook it shareholders, to of trend clients example our we best what to for customized of our to high. achieve of springboard clients. work inflows great and mandate continues products $X together can we the I as continues Demand

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Switzerland money successfully This In driving force behind inflows $X new of a as the we launched net scale that outside it - quickly. billion outside well, Switz of quarter Management, strong we of aim again Asset very sustainable strategies quarter, to this category. net were a product in once attracting just

my our billion our momentum we me regions, of refreshing But continued positive UBS our before more based to clients, results I results, let ratios, see XX%, with the on capital. as to And full to this And backdrop, give $X.X strength strengthened this in you. strategy And will combined we're income in Kirt Kurt, six. shares. repurchased potential. XX% of as these financial quarter. said, details the to a go I strategy, of who you across return again, franchise, broad market that increased across drove capital on as Operating divisions. growth resulted Now, balance unlock with demonstrate some can over sheet, and on over our CETX slide our you performance

everyone. and tangible Thank Ralph. operating billion PBT Yes. driven X XX% into return percentage on on leverage. the profit points equity. of And you, $X.X $X.X capital, Net translating quarter up good of billion, for return CETX XX.X% was a XX%, morning, by was

incremental Updated XX%. X aggregate income macroeconomic expenses million Stage and $XXX last to cost in with release $XXX $XX ago. million an credit the Both Our over ratio and million have saw or any loss premature informed would year X FX-related compared deemed management increases an a and factors $XXX applied release three overlay. a around We to million quarters. was of revenues costs

PBT. below for net small a effect on million Although positive at basis, was the $XX

Turning to expenses.

income under As costs scenarios, operating items to compensation leverage. first Year-over-year, and we've operating many larger excluding variable times flat. and drive we growth flat variable one-time aim operating quarter to excluding manage compensation said expenses in positive before, order were FX to

XXXX, X% adjusted rate strategy we due expect litigation and movements refresh. see over the we higher and currency out related potential excluding a with excluding to for Looking planned We our investments FA around costs cost pandemic. had any entered full than restructuring year XXXX run compensation, variable base to up originally to and our

like expect expenses retain restructuring And quarter book in for we XXXX. the As decline and flag refer to per years. of economies $XXX would reduce I in million items one-time to $XXX our their and to continue that's will million to open, around year, this any also quarter. in we functions to would around second group expect accounting that loss of future

generating the pre net $XX another cost-to-income profit APAC, explain important out X% The mainly client in transaction an nearing the and execution in of new with continued percentage and loan were growth $X.X plans assets, top both GWMs a highs, metric loan up new the volumes. Lombard with on billion, high growth PBT grew activity decreased reflecting last and Americas line of these driven growth $X.X with new had quarter XX% increased expenses Moving and to strong and to mainly I'll We moment PBT. net over by grew and volume fee tax loans, set on most in related to new our businesses. Revenues and year-on-year, by market GWM points. are region, in as demand. APAC performance growth, diligent of driver at X.X year the earlier billion, recorded results. X%, and a reaching every Tom Iqbal Americas ratio

loan net a we've this substantial with the as growth of revenues. quarter. We of generating in as as year, of quality introduced recurring mentioned, last just future a net performance profitability, for more It's new impact the this GWMs on over fee portfolio. revenues, have captures - measure transaction to achieved money, well new as new while contributing our see a assets, new changes better We it indicator direct assets, the maintaining GWM

new to from net predominantly transaction fees transaction and fee Management year captures longer income. you issuance, flows fee Report. net generate to no private reporting funds, that net Also, and Annual based generating money net money, flows new with and able mandate, XX% net recurring to exclude markets of but flows its quarterly unlike investment find for in interest spreads. and related deposit XX% commissions generate the net include funds Wealth of KPI and money, new related flows fees new exclude products of This that in trading payments generating will still Wealth mandates. the Global be interest a Compared of income. are dividend transaction and form hedge or new generate base on new assets We investments assets into assets review, The Management's our full assets that underlying new Global

income. rates from income Moving been we've lower around ongoing as continued excluding slightly it impact flat roughly Sequentially, we lower growth. of benefited guidance have US would count Net in was day effect. and the January, back taper interest $X dollar a the of to gave down in billion loan with to line

by positive in clients our slight fee in Americas recurring with reached net driven new For fees assets. existing rose even record frees a generating against XXXX. advisors, and of new assets. with as strong Sequentially, net new we delivered constructive further generating the higher with revenues and quarter-on-quarter. that quarter fee interest average and a interest and a lending, markets rate based were income net Recurring The content, Transaction income headwinds the $XX solutions transaction second X% increase income up provided first APAC interest by offerings sequentially, CIO quarter, engaged supported X%, grew absence backdrop. higher combined billion a X% the anticipate

mainly interest NII on franc offsetting related a primarily clients was reduced by X hedge $XX absorbed continued to institutional by single transactions, Group. reflecting Sequentially, points, fees. US SIX now travel mandates, negative fee PBT of down increased dollar primarily to on credit drag quarter Euro in But funds loss abroad generating and and the and CHFXXX transaction revenues basis the less card recurring share Transaction sustainable basis mandate exposure decreasing up due the million. rates. lower margin X%, mandates. from with to fund the and asset two impact rate and these increased class the result income credit exchange COVID. higher in clients. lower expense from rates. XX on XXb-X reflecting have margin spent from assets lower loss P&C with as of with primarily points, we deposit first this Sequentially, in investment our lower funds. points compared fees funds a reflecting dollar release a Income was year along activity generating mandates reached revaluation versus to was and headwinds a down a in corporate came fee by Our by flows around million high gross by with including custody, credit also basis X US fees fees, a ago, for in investment Partly and XX% our Swiss driven leisure income largely net without XXXX, Operating based quarter, new on higher of foreign

would of to part XX bank, universal our that digital we services did branches focus the in quarter, digitize through to our expenses, year. in continued higher we branches contributed announced X% smaller technology. elevated close closed channels, in As as estate operating in to our accelerated first due Real therefore, in to of combined clients Swiss our access rise investments costs preferences recognizing last around after depreciation. having XX the This QX already accelerated

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

Management Asset PBT consecutive its growth. quarter delivered year-on-year of eighth

Fund X $XXX levels, First delivered by million, levels XXXX. points new XX%. inflows of were and channels XX% to to management as highest $XX billion, down invested quarter continued of driven XX% Net a fees, $X.X percentage equities. leverage, was last AM the and trillion. fees regions, PBT fees across in by since and asset offset positive driving in our combination operating are the over Hedge partly up by income benefited million, $XX mainly QX Performance million X% our all cost strong we from increased to reduction businesses, rose had net positive higher classes assets rate excess of over million We which to market $XXX run $XX contribution and year. driven ratio

our end $X or Global the ago with initiative the Management of Wealth inflows our at billion quarter And $XX number in XX years The XX%. total four of SMA accounts delivered IB managed from million, a down separately saw since of start PBT ranking Management of Asset year a in two XXXX. rose billion program. to number US $XXX

markets this absorb would base the for XXX% into above $XXX Ralph up and more to was attributed conditions extended brokerage would cash with quarter was returns IB year-on-year, which by the rates have with a report effects. It in personnel increase to driven was the by compared headcount by driven This a the a XXX the equity. exchange where return ECM prior increase record COVID operating FX On XX% without in PBT XX%. on still US expenses in basis, million that we stack a fully equity mentioned, IB brokerage XX%. substantial and Banking loss client, prime issuance includes X%. excluding and up As mainly an Markets normalized equity significant advisory. a increased have record expenses, event equities foreign IPO Global currency APAC. prime XX% saw driver was X%, larger helped been Global this market foreign follow-on able issuance an to offset a partly pandemic. increase posted The revenues. were neutral with expenses derivatives translation by from the the decreased higher capital revenues related market, in lower US products XX% higher volatility we revenues was The by loss, in lesser main in increase increase by - year, Operating in reflected relating

for leverage requirements unchanged and at ratios remain and capital Our respectively. capital our X.XX% X.XXX% CETX

to CETX that billion we'll Ralph. I to and would repurchases our year-to-date, ratio our X.XX%. back note, completed like to hand buybacks quarter, leverage CETX ratio resume XX% and capital to On $X.X the we of We During increased shortly.

Kirt. you, Thank Yeah.

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

Thank Morning. brokerage corporate Archegos you. is One of prime and about other the kind what the two please. And about center. questions, means is it going and And forward.

the one, I So how first about after just this brokerage you think wondered incident. prime

an hand, bit moment. a you're with hand, on you share On caution opportunity doing of more could than the one could withdraws, Suisse other this that to this the market is But Credit sensing also you before. take say have I'm our

promising. balance for corporate plans the center, those detail about sort could second to question you to to so talk a just So very drag allowing of that center? all drag you you your you in see corporate how prime And of just the thoughts where year? a $XXX for I will division quarter, reduce ask to do it is support the sort on million the What wondered sounds you year bit next more of be that future you'll zero then brokerage? And for post-Archegos if which a was allocate this

and question one. first the take second take Kirt the I'll Okay.

So Jeremy, thanks.

given disappointed as what are both go we and And GFO side, about that prime the you and the reviewing the see do as one do know, for was way fully that side, was idiosyncratic. this case, well happened. an the on by positions the high As business. we that on a said, we're aware unusual seriously provided not that, relationships, And risk said this think we broker a market concentrated pretty having And of.

this come business, this conclusion to then and think don't come to I So from a reasons. around general for one, wise, of kind is two it

are relationships brokerage business us. good our It's for been important is brokers about you But a us, some to the to has prime go strategic the with And the capabilities build at client crucial relationship, we it. of transaction-by-transaction. franchise. have the to relationship-by-client - again, build situation-by-situation, you'll it, prime been the also has offices. family business way That's it will to to First, - know, Kirk? look

functions group of Yes. in Thank just address terms Ralph. you, Jeremy, we to where are.

below below couple and go have years million a then we'll of that. of to be get that sight see continue we that in $XXX believe, to us come then clearly of see down expect I line to where then beyond that guided and the million I next couple years and So over nicely $XXX

Now and considerably. us what allowing its to achieve that NCL actually reduction? is down Firstly, is shrinking coming

service holding the most within largely of perspective, our those from look side, regulatory you entities, reg we out if costs. a Secondly, we've built were

then is asset all improve down. Thirdly, to DTA just And that our will forward than ways it finding to treasury we costs drivers its going the and was. And bring lower funding finally, our efficiency. are those be continue to

And do center? a zero plan some the like do the banks, to corporate it So division? fully have US allocate you you'll of you to

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Okay. Thank much. very you

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

Good you. morning. thank Yeah,

please. on Archegos, So a little bit

of Zurich had, revenues up. pages writes it's know, have I that check the has risk report, And here found this you up And X, down when know, annual XX been any IB could say UBS the a from costs where in blows not you You idiosyncratic, before. it's I've York but disclosures risk. XX, clear New

for it $XXX talks hopes risk, credit get the an to being in lot risk and of low your for mean, it's losses, multiple a UBS extraordinary low whole than and I figure. year. million about a being institution very So higher a a severe

protection management, evidence principles, report, XX side business the page independent that, and four protection accountability, of five wrong the take reputation, others, the no financial on risk not and of management So annual like disclosure, control of of of strength, of others, all this but principles, fine, four looks is controls, no the mention there. of risk clearly

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hear Well, And can I Alastair. you know, as thank you, in said, disappointment I speech. the your

the relationships individual disappointed, as was specifically doing know, Before detailed of disappointed question this. processes, well. or you sides, all well relationships, both risk a brokers, of processes as the and surrounding as that's the asked, we GFO you're prime And I management are the the I, understand relationships, we on are review why of

what currently that's we're doing. You know, and

with market you us. Having was a many highly at event event, expect positions. a you to the not it said from look situation, at So, And an highly from the if position different concentrated concentrated it look and taking perspective that the was seriously. specific it can that, case, this across we build-up players, idiosyncratic was of a are it

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you. thank So

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

our different one about another very I've and perspective, slightly good still morning. two cost. triggers One, much. Thank got on from questions. you And [ph]

industry the changes reviews of the about what So, gone. side, and, having the positive comes the that to know, kind back conversation Swiss went it, what and disclosures regulations has kind potential regulatory kind you you're you of looks a through the event. this you And that your may the perspective of - may the of with on regulators up conversation, this come as wrong to at start, also, when in from know, US the post how know, particularly

you within about could know, question. to costs framework actually absolute can of as at strategic base you that well, of have little technology, of and Ralph, a my cost, know, an is with the strategic you use bit so from happened much. your you course that ambitions? to of communicated. there you question And the variable think in actually attacked excluding fixed that within when very a and what of update, eight it perspective what, second also an framework, base when you revenue. us of is down, of kind going side, to made, of i.e., of the they potential about Thank changes, perspective of is slide kind be kind go kind context, with of you XQ update this base medium I a terms, from explains cost do term look cost that automation So my was of revenue fine, the that kind of costs And your I'm really but kind and But also just have be the come when never because that's issue kind particularly course, simplification, cost in cost think an base, argument variable

Hey, [indiscernible] good question.

big know, small. we on are clearly across don't So in one, on the regulators, interactions our comment globe, our regulators you the we or daily with contact with that first but these matters,

your that one, on we summarize to to the keep know, our big we one, you would said if know, out in. be you learning as there all a regulatory that, a second equal, do would Having word, with Management come an and if clients scope way should that all could things point, to cost, this I that think I if keep you one a that brand actually looking Wealth there And or equal. on things reduce or transparency markets already mentioned. may it, we're, brand I and And for specifically in for so this in exclusive requirements I - call increase On is basically grow that these is is either can the bilateral Asset that in opportunities. the it think growth provide you are your it markets known have for at for

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you on. what can rely is that So

very Thanks much.

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

Yes.

First Two my all, taking question. questions. thanks for of

the claiming broker player again, I to said you and you underlying hits, which that you and It you little coming sounds Morgan a The happy in? quite underlying one Ralph, I exposure. all, against fully it terms first back And business mix. operate believe are amount like need one in that I in understand the the either you with any And actually, smaller geographies bit wondering, anything exposure, subscale with businesses you're of Stanley, future is prime that of of you're and take unhappy amount roughly small Archegos they in related geographies all and And talk just in same on can the there must question review think one, that is be context, it number was strategy. first you relatively is to be the to losses second that same loosing the the feel areas the to to takes they that geography you on business strategically? as more a terms are second into or quarter top of cannot you of a have

you and that So how peers? analysis terms can you overall, making you're much you How your exposure? of against me, to me of PB probably secondly, of much to And the family have explain that business explain Stanley, can more or because on in or unwind the less lastly, i.e., why as Friday, not of Sunday? were is by to decision done for office? there Friday example, peers, one Morgan a Goldman the positions And was

and not Thanks, on into in top Kian. you that can't a event exposures are business. I sub-segments, player I though, five specific tell disclosing prime itself. the we Well, go the the these we're can broker

a come like not some peers. So different we our have position it from than is of

kind So you to your the not Back can the is that comparison first question. of make.

regardless like we improving geographies that, important where very clear And Management certainly to will business this there are line geography, Asset through. of that no, presentation us. not capability that the the some Austria, for by think I always feel profitability, on that areas are Having the Wealth and decisions will business to happy, way that from scale, are starters, difficult places the the for more And generate and where or in and you the that we we up the really businesses are the they we businesses need certainly really can’t were took not also may local is if we coming that - it sufficiently of find there growth where be managing. lead scale also scale. is said or to

one the and business, that build all think but capital as way, and time, the actually give But know, in efficient is right order you other we you needs we the a alignment business for to we that manner, Then around, - that is need in a can improve, very for where clarity, size needs certainly that know, want manage of all well. all always a capabilities the to needs you it time. So should goes investment terms improvement for businesses as of we're in our the to example, bank, hint. wealth that that kind we the

and areas where not know, happy to will you where there again, always improve. be we're need So we

have scale the in – areas can not not, some be we we scope And the wealth, then of in of we we and it factor challenges see will – across. of a is the we are asset So improvement the feel whether if improve globally one which still and some all for in the on number that scale is our strategic. a and businesses,

rest I all should So even strategic. think it's place. over on your you is if laurels, the And really the never business

your add-ons impact to has Archegos, on could of And upwards - rate assets be just think weighted on as capital, some this and graded any regulatory we peers counterparty there ask add may risk at done that more in you on relation back, would coming claims one form, Why question Archegos? terms the exposure? in same money to And player as underlying amount of of to related to lose - the be Archegos in one just in Archegos. number that should

comment, I I won't comment. can't

situation. that You may and have going have different, may you exposure, may you the and have margins have have into be different that you been collateral, positions

shows there. regarding as we - have the I this CETX that are set. tell I one, able that in strength you being We discussing So through the more. the can't capital. XX%. And weather first really at comparison if capital kind regulators improved a to your you also quarter build further situation and can't of along. I can our with also draw Clearly, in we have to of they that and a some with On confidence that give we anything challenges may just even come

come. that that But add such And don't would add as we is I present. our know just capital requirement no on there's X.XX%. current at said, I Ralph would what's been re-emphasize to

much. very Thank you

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

morning. for taking three. Good have Thanks Yes. I my question.

The follow on first requirement. a capital quick one up

a and seems profitability Thank crisis your weighted Archegos, ready to in regulatory sustainability, much. of most of your perhaps on discussion you update light very to last revised the - big you sustainability COVID-XX you for is on question revisited with mandate? on really next the years? And risk And for one – that us the can your willing strategic is framework. upwards and a in couple budget on you be - expect of Beyond with are insights focus better assets, you the they the IT new budget, the accept inflation which be now. to – lower do clients, Do their second your IT In your expect probably?

last repeat question, please, you the Could Nic?

better clients you discuss sustainable accept sustainability, are with lower Yeah, their they ready about when instance? on investment for sustainable on mandate, for fitted a to mandate, return

Okay.

reiterating last [ph] depends extent To for. the what one. really So it the you're looking

we really not actually return. were investing some go lower that accept lower for to then sustainable and really form And areas, have a returns. combination. necessarily mean good specific So does in see may Orders a they impact

the the or the and So portfolio. and from the through on that investment have wishes perspective, it client really depends she client impact to wants he

our XX with generally, to Nicolas, look second your more on a the on that investments, should you going IT in we bit on to and maybe for top there's the much basis. with honestly, Now, at pick, can and of that question think I the a we'll know, a on dollars, side, lot and of rule we you that go realize IT, percentage level do, IT that quarterly we're manage and a budget strict revenue

we to we really and put is order going as Then a technology productivity do we the has also that joins at it, we can productivity not beyond the them why budget, And here business you the improvement at call one, that will that else, crowd use the thirdly that, to of ones it, we're that comparison professionals, each improve we because or regulatory it receive do and further or the what that So we right would that top our can't know, change, change, return think this is But ones the compliance in up, it And manage divisions, that whatever as that often the to in and you needs don't somebody business to - more. say crowd the with every gap. everything change with on Mike actually level, purchase, review and hurdles. otherwise first, meet that in out that returns, place we there. over that's ones. have always really make that, go will it, return competition other they clearly, some we the look that out projects or of the some bank of business beyond take in with the leveling of we that project

of So we're it business being increase - you this, is planning a managing about strict across to in it order so terms perspective, that of it leveling business as divisions in the not a technology big up being it, basis, and how really support we the very doing manage divisions budget to on within the quarterly allocation, professional the rather productivity. from a the improve than can some

that updates we're reg continue III impact rules. Nicolas, around around to to uncertainty given your absorb of some of refine guided we residual to $XX billion increases between of still question, due maybe, that rest is impact of before billion we before Basel the year is that that. billion, $X And somewhere FRTB $X we full terms We've first have this in that finalization. to course, - billion there's model of the making And estimated to $XX

expect to clarified where of be we And as of so has impact FINMA couple then an and down on through we'll have still bring look addition believe have discretion, areas those In we you a optimize clarification opportunity points. to this we of we we finally, that year. to all go that the update discretion to rest as we that

you very much. Thank

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

guys. Morning,

second couple take a it those Just reinvesting to? in you're that's all me, like what And gross from you restructuring the the specifically you expenses Could quarter? really. Because related benefits on elaborate there. just sounds

obvious outlay in won't secondly, you. I'm Or curious plan. the on there's from the no financial benefit the restructuring So on have then no to end disclosed? they as year? until strategy, of And be why just investing Thank the targets

we one. out there. you doing well, Well, I'll know, financial first answer the have targets we're if Clearly,

for activities on with which everything. reviewing not still, are we update think you. concluded financial are the need to of some don't We moment And up new come is therefore, this the therefore we I to we more given. have perform that towards and working given. the and ends address year But comply are to we expect as of And do positive the these targets fulfill have we this ranges to targets. we And

what Kirk? that's I so And say. can And

the restructuring you’ve indicated, $XXX of costs. an than that hurdle, geographies. our on across broad Ralph, its reinvest just Tom, just importantly, more that one, clarify, from base reduce be heard opportunities otherwise, growth billion the see actually very we first $X group Also, and the that we this to if million, to your opportunity would across and only around we

So top operating costs And about intent before, just guided our around the grow clear maintain to that. positive be we've real and line the very flattish, to very, is as deliver leverage.

Thanks. Okay.

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

you. thank Yes,

two? Or looking I mean, divisional just on some expect which reform group now new or measure earning we expect combination? like then of firstly, the So second is net please big to the be And or slightly cetera, should question return enough flows? for compare et targets the that last targets. moment? assets. And comments it the financial will the targets, And of be growth how tax buybacks, net a of a higher be it some because fee and Thanks. more ambitious would may to a my assets a roll not new over prospectively follow on on dividend on, would pre new of some profit a forward at you year the of of the on including you're CETX,

still Yes, be targets because go inappropriate work. terms they the the of just it have for financial would us overall, in we might comment to to what and be through

operate at we keep we of our tend this year, targets end we targets. meanwhile, for so and as positive and tax And to the current said, those

have client really of overall, fee impact includes what just flows are principally is assets terms mathematically inflows. and other an large there excluded don't and our generating In deposit also inflows stock that revenue, recurring on

the net example, assets, been asset fee that a last been but fee the on generating case have asset fee point the positive money is And net not general, you'd so higher new generating a over would you the actually composition out would fact a see having basis, basis. But quarters, said for quarters, on number net most that, new generating in And than have new a would five different. archaeologists number. on Americas money

competition patterns differences do you some so of And also overall, regional terms are and the there see that in overall.

Great, thank you.

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

Hi, A Archegos investment morning. good ups the on and couple follow bank. of

anything seen that. I perhaps I seen Firstly, opened against proceedings, anything, enforcement could after but haven't confirm haven't whether perhaps obviously FINMA yourself, Suisse Credit the can has you confirm but you

target bank, you brokerage margin, talk investment is maintain in exposures the do elaborate to you of see coming expect Credit and more the variation absolute the risk still perhaps target, the swaps, target. then your you you that broader has a clarify prime finally, cap figure? a guidance to being on that that more What it you you've in And an if you the investment to given are are asset of focused Obviously growth initial on business so, where expectations there the group about you. are XX% can in Thank and of a the bit steps an leverage group. future, RWA there? Suisse group XX% now retained on the your to back proportion absolute grow, management, Do gone on taking when amount to from there. around you about And from expecting leverage bit banking? and equity Secondly,

proceedings is no enforcement So the FINMA. first question, current there from

future. As we've likely we said, already what though, judge in the might they do can't

synthetic the and your of concentration, specific particular around all questions clearly, lessons exposures, with event terms this the is of key second concentration, In overall, concentration, from learned combined overall lack transparency.

what the overall on So the changes we and overall changes and topics. into already learnings processes, reg some incorporated will those our into specifically to incorporate and are address

they deploy returns see continue our market, best in in deploy purposely, wealth they are expect dynamic, they where can overall. importantly, our of that investment will bank where of of where business. can and change. the group terms In RWA guidance, LRD to the I they third they because exactly indicate management very would doesn't opportunities the support And where one best terms And generate and the I that won't the to

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

the various from bottom is side your businesses. lost like you on for well Good tangible XX% Thank want result. say And this is, I what line from guess after hits Yeah. that morning gets I done all calls stated return this just the on call. my a equity as comprehensive well. on to

Now, be you theme one call. even, Can from what said to of deviate question. ask the this last I can't I just seems

client i.e., prominently any a FINMA that part carried suspect response, more yes I FINMA have normal is Can within requested hasn't the On your PWM have, was it ask risk Archegos, operation, as have ordered then equities just last institutional as And Then the this far. action would measures your of is on which this a no. US was operation? to there's reducing in have you So FINMA family when simple featured rates, any UBS in at you I or an question carried question confirmed so Or office? times. point? it as I comes the enforcement second I it

lower between absorbed. the revenue higher of US bond you to You've commented US been Can time moving what you yields lag number? sensitivity higher, higher and rates very a the has yields much. reported you and what is that Thank bond think is just dollar effect the confirm

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that all, reducing request, terms response. positions overall Just any of at the they've FINMAs nothing group. our our There's terms nor yet in been on added as in of exposure, of across

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time the lag what - see sensitivity higher, to what's shifts think in broadly? impact the curve then the what the think numbers? If And revenue you you your do the do you expect when

Yeah.

work through as XX to know, we lower the us year median naturally, the both overall And back and that curve. longer, of of cash well you that's know, it longer the You replication. replication synthetic, portfolio, end takes kind the to as – out a in see anything our for

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Perfect, you very again well ROE. thank much. done XX% the And on

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

much or return Morning. Thanks buy wanted to billion $X target the that the the for you the wants back a actually distribution. capital he today. repeat up and I quarter indicative on how taking or in questions. I buyback, during accrual documents AGM follow such to to the of last XXXX no set - what noticed quarter, targets relates your

buyback? that again billion run have a So into you're billion loan NII, really the so, to discussing distribution to further you rates. the mentioned And a an if why through that extension we're spreads $X that then thinking the go before XXXX run wondering about full quarter. was in were being whether it I of not quarter on second, you've I good wanted And

rest clearly far this You XQ, this to now to the Q-on-Q? again, expect are NOI time XQ how the growth of about adding revenues quarter as And is extrapolate think we'd much year? XQ, runway? a that beyond. Thank understand, And how want in you. but that through and up we NII from could lending such Just billion you said

Difficulty] [Technical

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

hear Hi, good morning. me? Hello? you Can

we hear can Lim, you. Mr.

case. okay. questions. actually wanted right, I proceeding defense tax I'm All my to talk evasion about the

important the tax the viewing question And their wondering a application have the your And, time being to that, view sense In decision not spent analyze haven't more spending assets time of they I'm you you is fine, give encompasses it's of and have shift And big we just had this how for that any guess there's when agile, they So seems that here. yet to to wait from get we for your and I the And first And are question. we like entails for we views on matter. terms talked hasn't how could wondering, that with trying like, some till of more dependent the paid. time second in of should whether on how of courts we'll wait and about outline timing about know, concluded the then [Technical decide potential number shift law. a lot thinking to advance on the fine we it courts seems cultural just involved think information numerically, how on tax, view your And in like in more strategy. might that determined, any how interact in or bank. clients? relation a your know, the but the if your everything any September. it to the can about on spend to that mismanagement. if sense relating you businesses, view, we whether you is realize, I Difficulty] more specific thinking here? for September, So some shielded terms in And this. well, point you've UBS of And that's the and people cultural here, different on

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Adam.

of Of that I Adam, and the Andrews he then yeah, questions raised. just take questions Adam will the

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Yeah.

you… are Adam, So

And take okay. will Andrews, I

you are your Adam, We questions. you because like didn't off we didn't are back in mode. listening cut

we So in back we terms actually of as to capital repurchasing expect highlighted, shares returns, be tomorrow.

You can track weekly. us

I million XX% progress. a volumes just that buffer plus, XX% look year. we market that ratio, our built note, imply around will - if there modulate above would is reserve the still the on see in about the CETX up you XX $X current we based the that in would billion what last we residual just at as We a guide, $XXX we

progress billion net we’ll new the impact lending of going that us million around We to the saw lending million. volumes, help growth a if NII overall How year-on-year question depend new your what helping loans The a volume, margin. second certainly of year-on-year NII, will indeed, headwinds is in the would has been quarter you our increase. well forward, first to been seeing offset rates the quarter. that NII quarter from specifically related as of quarter-on-quarter $XXX net in I just the in $XX terms course, increase at as of the continue US dollar but lending $XX you've overall specifically. mention from In on was on as look combination in the

Andrew’s Hey, to questions. then

that before way the was decision. it read seen one change out case. also, evidence Andrew, not their there is. and of you The and the level any which with of the the we this provided, we yeah, to don't kind argument further on so terms court And actually the first provisioning French have we comes of in know, any expect information the

So that's one.

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Thanks lot. great. a That's

from go The Please next question from ahead. is RBC. Reingen Anke

question. Hi. Thank you very much my for

Just two follow up questions.

first for control. you much on term Thank guidance is your costs longer cost. on on the The very

talk I than do to confirm or ‘XX. much. would your standards did higher I higher available increase when just And underlying you're - strategy, the deliver, just so For you the driving committed be to on understand mean, and wanted you currently its pretty with you slides an you you update to about target? refer XXXX you I than much which I delivering on surprising compensation be Thank or expecting I understand on giving then an returns, industry correctly, by X%. higher very secondly, what wonder will this.

the did also excluding on effects. overall, that years did for one-time And from versus do comp, Yes, of us just that also a you've couple of layoffs to costs, X% pandemic. we question with have And runway year-on-year we increase, in hear we the come that is the foreign full response. your for postponed into over seen just flattish year that because variable items, in ensure considerate around indeed terms currency us reason translation costs correctly, expect you any slightly several the the we higher of last now quarters were and

return operate strategy our do in within of we Clearly, referring overall that's And I rest Overall expect right is, upper deliver of XX% sustainable the on highlighted, side, any and return the have of we're XX%. above cost now, go to we'll our of captured strategy area range, really we the at to our that's what build our focus, we On we to think terms high and capital. targets, as plans. update to And out through of said our then CETX that. end our further intend of overall overall returns. we consistently as on targets

you. thank Okay,

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

Good follow my quickly Thanks wanted taking on please. with gentlemen. Archegos for questions. morning, aspects, two up I to

fair net this that failure? credit You you regarding more your counterparty revenue point tax related is loss? have a costs the to have have million up you in take around legacy issue revenue restructuring wanted And expenses quarter. quickly I understand compensation a to hit that also assume do $X is you restructuring couple a a for Or this for operational quarters? to in measures to Or at the is come actually $XXX in already with and cost want to you market risk Archegos $XXX Archegos, XXXX? of reduction the loss? loss, as please? pre look and variable of or Thank million correctly, or And not, it view? between follow the regards of budget this anything or a achieve second this it the million savings to $XXX it event if that And on savings And made a that also loss risk to to risk distance net it an credit item more a Is essentially has bridge or growth billion $X to these you're there you. for a additional do billion sorry, targeting

Yeah.

at In Archegos, and overall loss. as bit first, for a versus terms your you to you are correct, Well, XXX, trading a question first if little of do accounted reach look ask work actually the we're conclusions. your you going of you that's own to can XXX the

know, You so… our rate, tax

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you very Okay. much. Thank

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

Yeah, thank I've Hi, got follow-ups. a of you. couple so

to something alignments of the clarification a costs understand change done a that with the Or is in which one from on secondly, is this to an business kind the to terms and corporate present change? So just of the that, results is a reporting be how border in strategy. basis reallocation? of but that kind we there you divisions, internally, center of the And external be just wouldn't then going

it, you is know, there's ‘XX IB the understand until before that know, is results. year as And you well, the right I commentary I the business doing the guess So size. clearly time some

want that significant other review to And focused how you're on. and the areas just So understand try that you're undertaking. is the

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the start question. with I'll second

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services. have to digital We and on in digital side into will invest one

our The cost side, other reduce also have further. to will it

every we there is I has continuously to returns, But the be each to us are even So it it has anyway, a it scale, area make it expect make should you top and review those mean, if couple will and of – areas. literally to a make more. from has difference. the to strategic,

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Amit. Yes,

to of terms question, course, business expense first In line. the no your disclosing will we're one already were And divisions. mean, our from you disclosures, now, costs right see of presentation. operating in difference allocated those fully the I And only

then Okay, just that got on quarter. clear, the And per point, be it. XXX

item? So it to be wouldn't number $XXX XXX million a future, be that corporate center be that going as would that still would - reported or divisions, reported down then that the in case the a within

correct. Yeah. That's

functions, overall below all fully no related to group The operations retained. se that division the of terms cost, business is are In and there $XXX costs the allocated that divisions negative business already per in to activities not the that sits are million. operations cost retain

Okay.

et metrics, So for cetera there broad in internal any reflect to cetera, staff, of for to corporate any be et example, wouldn't center… alignment - employees, within changes, change

business were into already the or so directly the is but headcount. shift will operational with The divisions, business. the aligned now they They report XXXX

as and solutions what's to that's optimize integrated Ralph much their a businesses ability behind continue to gives better look really the and intent. the capabilities to just at And the those, provide so therefore, overall they outlined, clients it to

it. got Okay,

to opportunity as it's a cost opportunity? revenue a saving So opposed more further

front Well, it opportunity. efficiency as revenue I would and to both is well say for back

So that they're we think opportunities. both

Amit. both, clearly Well,

Okay, thank you.

from The Santander. ahead. Lee Patrick next go is question from Please

one clarification or Thanks and to nature if disclosure brokerage you have like, generated loss guess in to very good me we say exposure, I'm disclose, new if some sorry, for is this $XXX percentage the the the can look wonder there for And this right not a does been my trying loss related to Wealth taking in on product dislocation, have fee how there's hypothetically, morning. of sort of not for the the what know, Management. risk at to think firstly, Hi, of questions. of Because this. about example, that if perspective, upside just get a the I substantial in KPI the a good to One on from wasn't prime put do get on way of one days, And the the help or to market sense brokerage, downside. my losses, the near exposure product? understanding then very let's would notional that a million prime as trade? the losses I, seem Because of take if a on I reward product it? sense big in the loss also, you

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two the decline. million, net just terms the One, to mentioned, includes loss an then operating question, the components. the it was $XXX Patrick, first Yes. it's we from default your overall residual in of process. related and de-risking And overall, the as overall it's loss position

that that comment you entrepreneurs look of subsequently, your the alternatives, investments. of in wealthy right booked mandates, overall provide include terms is, assets. have from sit positions as stock direct and which overall invest, into that includes, might solutions solutions those we some KPI, investments example, and exactly you're and within be generating client that client, they positions some In in might single current fee would might investments, diversify part would direct on to investments then or at But initially large we then for advice, if the leverage

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the outside, if that But to just a from brokerage to ascertain bit, risk I us notional saying from you're go the just back get a the amount we is guess, I the really to for impossible can't or size outside? prime

- also has for you highly one mentioned is, one that attractive points comment on the That of let the of a business correct. this been just And me us.

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you. Thank

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

questions couple gents. answered a just of small clarifications. my morning, maybe Yeah. of Most been Good actually. But

back offices relationships it this impacted but what any wealth you're prime there like relationships guide year? thinking think above And be this Archegos, the just might outside expense - but going said happy refresh. sort be reviewing X% for investment quantify thinking broking, Are of should On strategy I we with. could we of the which wonder by bank Secondly, I was the within the of just sounds to you said you the X% any strategy potential year, about I'm pre on for of outside the if overall investment prime margin broking, you're family review? in spend business. sorry, sort for particularly the investment this there

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as going highlight it's forward. provide timing that again, So And differences. really we'll that just transparency we disclose to those

Thanks much. very clear. very That's

and session webcast no for questions. analysts over. Ladies investors the There is Q&A and and further gentlemen,

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