UBS (UBS) 20 Jul 212021 Q2 Earnings call transcript

Ladies and gentlemen, good morning. Welcome to the Second 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

XXXX everyone. slide draw today's at to filings. in please Welcome, disclosures with our our in presentation. attention Cautionary refer SEC our factors risk Statements the the Report I'll morning. together your additional now to Also, Annual Good back of

Our Ralph. it's my agenda on to pleasure And today two. is hand for slide now over to

our you call at good Martin, and sure to to all firm. flight, as growth this and UBS. drove [orders] in also day business. on good the of a the CETX morning see results, you nearly the the across return momentum today. you, on already the a Thank second capital working we performance you net It's across from is in the billion, can deliver the Momentum, our the as of strong $X The rate, And today's strategic on of we're make headlines. XX%. proud return to quarter, growth, businesses and at potential support day. focused And strong and financial our portfolio clients our initiatives our in as excluding [Ph] environment they from consistently news the was navigate evolving business on see we're -- can with same executing sustained ones time, profit And every

U.S. momentum are below was XX-year highs, The highest years. Equity are second Investors the quarter further near in now, at bond by XX characterized [X.X%] quarter, conundrum yields really [Ph]. across. or all-time second and the it the a supporting is economic slide inflation right four I markets back wrestling and and am U.S. of improved with backdrop,

happening lot time. same there things of a at So, the was

diversification in and our as for Net on you clients, assets is growth results, the our to people assets, the our portfolio to and trust value are regions. in as you firm, the this across our seized opportunity, place billion, drive is positive We in in of [Ph] on appropriate construction. can were see, by a see that and view] can our the see firm. risk continue in we value this In we $XX that clients. though in in and growth [house environment, Our delivered and all we constructive one Management [indiscernible] Wealth fee-generating by be

everywhere. So you momentum see the literally

clients net contributed, markets as increase In alternatives, and across base and [Ph] and with this in markets. U.S. by is by loans available. businesses, money Now, the mostly flagship been in recorded to two-thirds new our driven [mandate] well, sustainable their of hunt to engaged Wealth strength in money the with and wealth over in were drove rotated we're $X this area. XX% income. their have inflows, the of consistent And inflow securities, Asset advice, XX% meant] for mandate was and the see investing buffer whole liquidity billion which of exclude homes, [the and regions of [Ph] fee or a for mandates all unforeseen assets clients higher attractive than seeing new that we Management, clients year our that for discretionary yield generating be a billion transaction-based already makes the Management in environment structured to out client actively continue events. if you in year-to-day $X can XXXX. in we the the as where that rate that billion this of And and that's And it the create finance net of some collateralized clients, here, products $X The interest our low it across our private acceleration money,

good real with gains in side, increases equities equities share in equities, institutional quarter, and market in particularly, and and we EMEA. And the XX%, volumes from by increased benefited Asia-Pacific both derivatives. higher revenues equity On a in cash cash

by FX, last prime gained but share we We On in also performed that in during levels the the when that a a more in higher had But in from quarter. [indiscernible] at declined FRC -- a to to a share we quarter market revenues grew of element the the benefited we also but same market you year. continues last an was had and prudence, [rates specifically credits] than you have I Revenues balances quarter quarter comparison that with And say. quarter well we extraordinary XX%, makes side, for volumes -- a this have tough from gain We that, we and every declined. can really remember up year when and good XXXX know, have returned normalized remained go, build brokerage. to pandemic. [Ph] before must as last level, against well

opportunities relationships existing and take deeper new to even As clients some market you'd had we've of with as on have it, expect the clients. leader

the business And management for their the that's corporate a clients many clients favorable, even industries industry M&A. our during And as supporting world. become for more of have the come the strategically they're companies markets side, are we're to so At pandemic, with digitalization are and accelerated funding On dealing has coming pandemic. teams all they as of position only post-pandemic important, out the corporate models. are Scale most trend time, optimistic, course, has the realize our for sustainability. ground that changes fertile digitalizing is same

highest up year. Now, advisory were a last were than XXXX capital as against record, third our on result, a the revenues more the highest revenues market since

their our to more clients money of in investments. putting Switzerland more and are work personal Switzerland; Lastly,

And We'll nearly to that's saw of million, flowing into growth growth of another an able products. steady book. quarter, investment last CHFXXX the Just continue our be we XX%. loan annualized rate also

really that to and with execution this best as out, of This dedication quarter, clients clients personal stood the has possible extend conundrums The work our energy in investment make all meetings, clients mortgages on I advice no Swiss UBS quarter tirelessly And regularly put CHFXXX are colleagues in with the the of can of our opportunities. we effort the to client in giving the advise business. have also there, advice. that In right ideas to I the my areas said, complimented million providing they the other they and like teams, provide decisions. and that firm

our all starting evolution ecosystem, building just and our to turning a the markets, investing, five, is markets, match Now of that private private our making to asset progress. couple on ecosystem order year, expanding clients further market literally we possible with sure in us we actually already the also slide clients, for allowed alternative yield. we this investments this demand for demand made to private strengthen discuss area. This initiatives that for the the see still us our our really are answer of classes here, folks in to but this with accelerated in a in offering hunting to And for priority providers strategic have explosive

from first-half our GFO initiatives, partner, for and provider our platform expanded pricing level and Partners and say Through CHFX as direct right product and billion our access benefit ecosystem. get from June, with year. distribution Switzerland. co-investments Ultra collaboration tier we and scale fund clients player Group through single another large the and benefit In capabilities at well. here one-on-one, for top the the our I or of we from the private secondary clients and ecosystem, example, issuers compared For to our these It's would institutional economics basis last a network, for our tripled, raised for sourcing literally over our

And more clients clients in So, middle the more the of ecosystem. providers the we will want the platform, join our the that. join to be we us, more our to interested have in providers have, we're more

that's we're number trying presentation you strategic that think quarter. remember what I from So exactly build last to if our one, imperative

during on the billion to than private just facilitated private year, and investments first-half investors. more sum of it CHFXX So from we up markets, one, into institutional this

in and separately our also fact, between attract second the months, management in U.S., is offering another last wealth six past and the the and SMAs over Secondly, CHFXX management $XXX the to in billion mark continues managing quarter. inflows assets now global billion the total integrated asset current

making So, support we clients we UBS in to our have that house, in you order and capabilities the look successful. at also see offering that is the sure really One

topic clearly as a the us and an truly have institution, it's for an been sustainability; over opportunity of true of increasing and Thirdly, ever also it's an for years, our clients, important advisor. this the focused as the for why but topic we last couple future. on that's And

$XXX trillion, field reach out us by to clean context, they energy plenty more the needed to room provide in XXXX of another to by estimate in investments order are that that the Energy you Just there. neutrality paper over cumulative that play and well some are carbon Agency, actually came for so International

be As institution an at to the of the forefront in investment And position for the and our want with and are that firm, play just to is the that numbers go I role that can us that. potential have, we we the related think the accelerate transition, in that to we seize. to and clients energy we that really mentioned support show climate invest investing, there

by the moving already this XXXX. CHFXXX that's our or sustainability year. on Management that billion focus of year-to-date, third, Wealth our asset mandate in Global awareness of back with for first-half than increased on billion another portfolio. climate Investment of the also CHFXX the strategies whole impact Meanwhile, Management, Now this attracted SI all managed management assets CHFX within of billion reached the sort And more and

see sure and management of is sphere, into projects, really invested wealth that make or into asset in going you the by to that clients. vehicle perfect we're our side, a the on whether sphere, So, fast direction, or that a to money going growth sustainability the the right lot the management

picked My the My is up one in inflows have speed. also Next Way, Way mandate

and the I to maybe part that to behind our is bit real think to is is their to time Way, return of personalized, investment it service risk. clients a on time My Just relevant of My the advisors background future, adjustments basically and Way about again the personalized a our and achievements, making give all see is client it expected use can and dashboard change portfolio you

their that, portfolio together So, actually they can they put want. as with

on this personalized we're it $X.X actually additional performance and billion completely easy If to X,XXX and than platform gives to over now clients acid $X roll costs. across it therefore, and assets is in transparency quarter. billion, super the that's $X full planning tripled to in on to-date, So, out coming more billion, this and use and regions

points at advisors, assets roughly here the the advice important these grow loans fee and of that with scalability than greater we through, making do maintaining further conversion activities, clients activities with an from net time, digitalization in see grow. take At growth. tripled taken, new scalability you the just compared that generating also to And more our this how also current seen and efficiently, taken growth the first-half time, coming generating of and work operating for and productivity of gains our and into At accelerated same coming is see you our our actually summarizes we've enables volume can slide significant time, the you as client number as investment I start this can said as we're processes to And for we same developing, clients. for with that progress us the across real accelerating you scalability, we well. initiatives kind in platform well. that in assets Lastly, platform improvement same have if all strategic us initiatives fee leverage, further some that one of to transactions XXXX, have and this of our to you and opportunities through, have in from a we factor the of slide simplification last how they're the efficiency significant see -- see,

to to So growth this you continue continue to as side, and one these. on invest expect in efficiency on to well can focus on but

division, very the take capability is regardless as you the the sits if of did to we results. the UBS that's regardless comes you our business how sits, regions strategy also together, see show do and of And regional bring really where of therefore, perspective that the together, best know, UBS, the because you client strong to and One the deliver in you. versus Now, well regions the where

in shows you And of will in focused are regions, each So, see together. are that, where are matter couple accelerating as indicated we helped on global globe, the three has And on portfolio as we from. our the our we it all expect fastest. -- the at months And it that, they're though, and that regions bring in are pools Half of grow, in no doing our that's in portfolio. well. And other the profits to really also want we really the Within Switzerland, of over growth ago, well. and have us in that half Asia-Pacific. we the really our generated diversification the in of U.S. and benefit years, what the Asia-Pacific, where we that Europe, are wealth Americas, a because kind last to and we benefits looking

because that's where to will to profitability focused most important we and franchises, regions. experience will they're as two Clearly, us, and of expect So the the these we client although also well. is it investments, in make from on our European be growth our improving

highest track. all in on the are the As regions, five over our years. second recorded we quarter profits results right we show, In

increased region as margins well. each Our profit in

my into more will and we'll then summary Q&A. the then Now then go from to Kirt side, details, turn and

focus evolution execution, our that led another growth, business see You strong quarter. our momentum, initiatives, of of on this to strategic all our financial relentless the has

just can increase profit, that income points the CETX quarter, second on decreased As tangible with four the to site. And slide We all overview return value a momentum XX% because more sequentially. to my our was below X% summarize, contributing per net in ratio $X.XX percentage XX% XX% share on the it the was income capital, is see XX%. all grew than and drove book up seven, by businesses increase this to in operating regions in and a you

We go intention of have of letting this. no

and potential unlock of choices and to to Kirt. we're eager We on With are clients them. implementing the the most UBS. on our focused our our focused developing strategic We're that, make future full of

and XX.X% XX.X% you, $X for growth. up points a A Net by return leverage. $X.X to percentage everyone. to accretion. on All into PBT CETX. operating divisions CETX PBT below of Thank billion points was XX tangible billion and was the $X.X improved ratio Ralph. billion Good driving of income in quarter translating profit four cost regions contributed morning, return percentage XX% on just driven The XX%. business by

million The releases around $XX and moves XQ later. credit results net include from comment loss the to limited Our negative to FX was of I'll headwind on PBT million. that $XX

gains restructuring $XX and the reflecting restructuring were to of Gross covered mostly the the $XXX in restructuring operating or year, excluding were and $XX of of FA effects employees. Net up million. relation in comp, litigation investments costs expenses around expenses, a of to almost quarter currency in first-half million pension plan, partly offset expenses X%, Swiss variable reduction by curtailment reflecting in Turning the and number the around million technology.

is our unchanged. For guidance full-year XXXX,

currency will around expect effects, see up our We FA excluding restructuring still comp, and costs X%. to variable

Our return managing continued steady on and helped has deliver and consistent ratio focus cost-to-income us in on expenses Capital. both CETX improvements

with market the regions; the double-digit in quarter XQ profit APAC in best record and on profit execute clients Moving sales constructive best Management backdrop it's across Americas. advice early the continues pretax ever on and and plans growth a highest to we delivered are out last GWM our year, activity. set Global Wealth solutions, to and With businesses, the XQ supporting all with strong driving we transactional it's

to rate and positive invested and in unmatched had income cost-to-income Lombard by fee on net our Year-to-date, of operating and set. second Positive consecutive fee in all loans mortgages. asset outpaced regions. and We expenses regions income. quarter two lending from and wealth ratio $XX almost by billion, from continued leverage. all our continue increased income assets have $X.X entirely points, points, X% points. billion, year-on-year UBS percentage volume Americas. positive annualized basis increased Net by quarter. client's new has we needs billion, improved $XX new through momentum highest PBT legacy new loan growth of transaction recurring percentage our the contributions and seven higher were The our margin with liquidity, and Operating driven three was growth eighth intellectual Net in with our deliver way solution and longevity, generating billion framework across increased on to mainly the capital XX% and of $X

net rate first-half FGA XX%. annualized new Our was growth

of of year-on-year billion We revenues, momentum underpinned quarters business consecutive quarters have generating in least year-on-year as on $XXX with increases by net client assets. with fee delivered activity net PBT, new over key and sustained new lending eight six client growth and at across transaction metrics such

income, XX% we're as Net grew the NII, into to long-term billion new investment interest themes loans funds. NII billion in to seen of XX% lower sequentially the in higher from a investments XX% interest $XX have also of was up $XX of impact mandates deposit as of income passing fees earth absorbed assets, fully mark, decline by humans supported increase over slightly X% increased year, net inflows. net we the generating benefited quarter, new driven up billion lending Moving in revenue. client CIO Sequentially future dollar the average U.S. loans the by of year-on-year supported the by recurring $X and In the we including in quarter. offset future in past rates X% net the linked fee and

sequentially, even against interest anticipate For in client by and higher headwinds, driven rose XQ'XX alternatives. quarter, another slight in by rate strong income third absent driven engagement lending. any the products Transaction-based NII the we structured mostly increase XX%

seasonality in levels. Well XQ. elevated year, continue coming markets benefit top-line As the our unlike quarter activity last a constructive to in reminder, normal saw back client weeks XQ we when

fee contributed has Our to net transaction and driving assets over levels consistent quarters higher growth generating recurrent of income. several performance and fee new

highlighted, custody and mandate who increased fees. effectively this XX% four fund totaled Recurring basis new won't points, leisure is clients opportunities revenues reflecting margin from has and of CHFXX benefited The in have mandate that our increase spending in including ultra-high over offering to year-on-year, account million, advisory from The engage CHFXXX the P&L P&C billion have transaction and products previously to was necessarily to primarily decreased reflecting reached clients net managed into our to mandates on the aforementioned for persistent by our for at million around drove separately and on $XX up good Transaction-based that over worth annualized releases. activity. number where total points, $XXX $XX four partially quarters, one-time trends net points rates primarily of cash we the PBT of higher the fees highs growth recurring years, was and XX% trade in around basis FGA last CLE an gross reoccur, seasonally, clients on four Our driven and CLE lower businesses invested items net Operating in Swiss ultra-high primarily by doubled from from XX quarter, interactions margin consistent million. basis momentum two results and deposits. we credit and U.S. our together a margin recurring negative releases international including trading sequentially, and an rebound driven which discretionary margin. flows a travel primarily seek by XX%, with basis. the FGA incremental Supportive provided alternatives market generating income by million revenues interest the other revenues exchange investments clients. XX% in and revenue. net foreign clients, transactions with better assets transaction by Americas volume lower continued items, recovered, of FGA held worth trends proportion increased past strategy, from down with income with card

Green around supported stabilize interest million personal a new of the net headwinds two XQ as investment focus, last product During assets the $XXX sustainable first in by Related sustainable of of to a real estate actively and grew Operating in for rate NII banking first-half. as proportion dollar our real loans and investments products UBS increased a variable net client promotes sustainability in $X.X mostly we making of billion by XQ, personal and accruals. financing. quarters Mortgages expenses the investment launched two platform that flows. and on If Atrium X% new around help banking estate compensation Switzerland U.S. technology investment in by abated called offering the properties, higher over one

$X.X were investment XQ driving delivered quarter, for on was Asset Net in or $XX growth money rose investment return up consecutive was was opportunities. normalized offered would was quarter on to nearly the equity market PBT XX%. up down an few and leverage performance After XX%, delivered XX%. over Invested fee an the level and $XXX been XX%. $XXX points growth XX% XX% a quarters of pools. new of fees up positive Operating favorable the quarter new in million, PBT sale last outstanding exceptional was trillion. excluding regional of percentage assets over markets year-on-year run up banking global market Global months. management driven in net million, by million. the rate with million in fees both the a of the ninth ratio IB banking, the X%. rate. up last to for XX appreciation four $XX the PBT management minority XX% to money $X to eight This gain billion good quarter million, an a conditions have outperforming Fondcenter, PBT for abundance nearly particularly Net had The $XXX remaining quarters, The fees cost-to-income more $XX attribute revenues up decreased a excluding billion XX%

best IPOs its ECM all we XX% levels higher deals. by disciplined driven led sizable from opportunities on remain across balance was issuance clients. of able Advisers a were many sheet, While of number support Equity capital and deploying to benefiting capture record, market regions, revenues and of our by these follow-ons. recorded we up

equity its October decreased fee Markets the contraction with from by against Our launched by IB XX%, global in delivering Global debt capital last in more the exchange pool. we than restructuring. higher equities normalized elevated venture the supported Operating do saw derivatives excluding despite revenues revenues market's credit compared condition for in business and joint litigation, lower more in in volumes. from the prior since volatility currency the Brasil and were effects, rates, and market momentum income XXXX; foreign flat cash where offset best were equity a year, XX% expenses products year XQ Banco rose by with broadly

macroeconomic with reflects pandemic, the As factors Stage quarter. loss uneven the I distribution the million, spikes This along at in concerns total. overlay trend Stage uncertainty earlier, the four in long-term persistent variant quarters. of would $XX X factors, of macroeconomic aggregate credit a mentioned We and X management while million. again of we third net related new was the underlying Updated booked in recent informed releases surrounding $XXX continued CLE positive past or an released have $X million of over small effects X the the of the to $XXX acknowledging & decision vaccine CLE $XX million a applied and million release cases,

strategic to During with the comparatives. billion our presentation, quarter. capital buybacks of million resume during end CETX our back and $X.X purpose, completed generated $X.X the repurchasing our with quarter, At X.XX%. and and wanted of intention a we ratio shares reminder the leverage XXX client buying promise, our ratio our you our CETX of the year-to-date, vision, we leave third XX.X% shortly our billion of increased will to capital, and We've in to CETX

these to for every can With working are questions. day. up deliver that, diligently now We we open

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

comment morning. pick very wanted good I and of made. on all up the first last to Thank just you much, you

and thinking million if about are of million sort you. talk slower slowed the your and the question than ratings And very high you second of about to I or just in regulatory helpful And pace any because the getting terms XXX your XQ. in if like buybacks, XQ, second risk now, share of so limits the risk just reactions talk in just or you Archegos both capital the both ratios the million wondered your whether business? I XXX quarter. in wondered in noticed, prime XXX whether third brokerage the anything are could that is then talked could of XQ And that's are buybacks, I know you've obviously, intending that. to terms you're You quarter, very you Thank that situation affecting in about seeing

Okay, and Jeremy, take will second one, and thank the Kirt on Ralph first you. one It's [Ph]. here, the I'll [SEB] the take

announced haven't different So, all really limits the here assets regulators, capital on what the with our as parties But across you the to that's anything. regulatory and or know, it's review understand we they're measure, because haven't announced keen enforcement happened any in market, whether so what done. we've any whatsoever. shared capital it risk-rated we -- or or also we so and Clearly, have finalized

Yes, the that. the and million the really, for in Jeremy, repurchased million you, to year-to-date, and read also third the And second observed, we into billion XXX you XXX quarter, because thank in X.X and quarter. nothing there's confirm and

capital, is class which or problem a high currently should course, excess I Just holding, opportunity, a luxury rather problem, that we of are say.

above we Our intention capital to return and excess the the upcoming XX% intend remains still guidance, that's all quarters. to over what do

you. Okay, thank

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

broader Yes, environment the wanted first and political good regulatory morning, about to ask Switzerland. I gentlemen. in

major go please? but do terms, in you I in expect And have deputies your the quarter material payments think do realistically this if clients struggling last business in much. in Thank highlight, staff, terms? would competitors the very And couple to fairly could possible, P&L tabled this numerical and don't way necessarily I'm as attracting in months, new things not anywhere, second capital has the has of any in very in you important National answer, the and and on also bonus radical helped ask your and requirements. please, politely of you and one areas general and ideas hiring Some question, any terms systematically think been second of you trying clearly but which for it has Council as this helped,

parliament SNB Stefan, very important The which side, many a had about go Stefan. right perspectives from the alluding different you're are report, you, Thank a systemically in good discussion to in basically Switzerland we banks. to the On regarding well-managed. shape. in reserves banks are that one how showed

On the was banks. there event clearly, that an hits the that there other also side, Swiss

with much So to more whether But amongst that party But sparked we're a is is changes clearly, done. kind we necessary. it's an or that also like know, a was showing have regulatory this you a of some well, and partial, so party-related a one moment, very as that that it's touch, at in further one this. discussion discussion, never were looking like discussion. That active parliamentarians discussion staying -- that regulations everything not at is

done terms of cetera. Let's et be really, well et terms have really and complying deferrals standards, honest, capital with in with new with banks bonus all restructuring, regulations, et much in cetera, higher of gains cetera,

of So, well-suited for is that the That's all is we one. that that us. environment current feel one

do. On to very focused what we other question, to want you what clearly, the on want do, as to focus if you we're and

after of that we that global we're is what out can't feel on we than detriment in ecosystem not, out and market wealth particular people. the all share a area the bank. for really risk we've from to competition of our That's example, I competitors. on, is in say struggling current to but take over and a moment. know around come we're from not quite but related there taken that benefited that and about what And doing we faster goes know execution. it's Asia, We've no business what couple the put is chips do share in to there of and have focus that months, we be the at want we growth going to for Asia, particular we recruiting the of the say we our share say is this market market, competitor we the that that. We want actively be or market this will if U.S. lot and we or want. momentum, not We grow We're go perspective what may some we investment grow, either. like across also which come clients, good whether for that's to But last kind to the investing. that we business, our how a relentless have competitors where We also

helpful. Great, very very thank much, you

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

thanks taking Yes, questions. my for

one first seven. on is The page

in achieved, beating should against the your You targets targets. think clearly across board, I'm indicate. have interested we clearly as And what outlined targets you you how about your and you

something just is You in But still at about the think said your this pretax I with return view, it's results. of we I profile Is should is would related of question top numbers well, if step forward? UBS huge you're a U.S. lower you've the clearly, The in If competitors. update going give mean have so some second the your market margin much your achieving, an to in look changed related Wealth, I at the than done competitors has change. you really or full-year look that your U.S.

forward So banks area? wondering some competition it your than relative I'm speeding market up the you and the from do center going how just position how has as see been do absolute, of And in you money it? rather brokerage see

and take will the second take question. I'll Thank first you, the Kirt Kian.

last it's showing of model, of good this but for for platform, return but that you we're what if of And this actually the So equity we have the have on through income discipline what one, But quarters adjusted investment for momentum, coming very the now, we the the platform also market of two capital our on the and clear bank, everywhere. or seen than return the quarters, and is you allocation, coming some numbers, use our using in the we year, our on side, quarters side. that at two that asset disciplined, us, scalability use in we're terms example same ratio, is management of investment a that on know XX%, development the improvement showing have these numbers, the six of certainly the terms look or first really that's the side, the and we're the it pricing, five, max, is banking allocation actually, And in pricing clients. of to capital. on the in in of momentum back first you disciplined And through terms this of year we're super first also that that because in focus quarter. see a you of of want up on more capital just our showing that serving or to whether momentum wealth of the cost

you So here. see that through coming what is

implementing back Now, in and because we well to come at on the strategic full first on the of inform time, and come on new initiatives, give parts ready, indicated quarter the would you that we're the same the of with all run a KPIs you. reason back fourth is the planning focusing we'll update strategic available that when strategy our initiatives. certainly doing of these we why may quarter We're

the quarter one So financials, but strategic today priorities, announcements the we activities, doing some updates of up regions specific ecosystem, that KPIs run I with an gave beyond and our to more it discussion want some to of developments. how have we we're and to commercial for also first some in you kind around plans as new of as on as you

be we'd Thank why that's for fourth So you. quarter towards looking the that. more

Day So there I as will Investor be understand. an

physical sure complete. that the update I'm can a also we really you, financial an more we But that see an of make want moment, on at as when we it to do at a But well to story There our be and least speak, in Day. should so planned certain is is also will keen way we as not all KPIs. have Investor

And we'll a try. give

quarter, your we just refer I generating momentum our look quarter was investing three question, Ralph XXXX, just a as opportunities U.S. we're for highlighted think and indeed, positive to is is second if us billion. believe we on Yes, our and very Firstly, trajectory during and overall, attractive on has and in there have second of and indicated, management where And you to focused address growth we U.S. Kian over course and businesses. and take market again we as U.S, all we just business trajectory on business, have the at at PBT if I a we'll across CHFX firstly, the look you wealth consistently also improving of if very a our when first been of very, our the that believe that the annualized overall

you billion. best business the year, our of contrast that in quarter Now, is with this our U.S., in second if we quarter ever management delivered the wealth our trajectory CHFX

to the during our overall PBT doubled that ratio XX% reduced billion a income loans that period, our same business cost quarter. and that the we from of think at if below also net strong I momentum XX% and improved, CHFX.X So trajectory we quarter loans new we to first over generating annual of you we're in the follows now look first very

$XX the, that, billion and XX months, this over addition $XX for highlighted at in annualized last at on slide at X%. our look an generating assets billion the you XX for to In rate if growth net quarter fee as

on feel to allow our returns. U.S. I do to margins we trajectory the improve pay our cash and show very, would to us operating course, comfortable attractive going very continue we you not to and our is close positive just And of maybe reminding that to generate leverage in taxes earnings very So that

we naturally, the that to so momentum the fully NOLs all we're possible utilize and generate DTAs U.S. of in shield as to the our looking much so as can taxes And earning

Thank you.

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

morning very for question. my taking you Good Thank much.

of bit, The a wealth and first on the the quite driver. is which gross and declined margin indication management, again, some

to bit quite base recover similar talk other highlighted benefiting asset interest. that artificially margin given, find can have you you equal, Thank and and sustainability general similar gross and just bit level. that a it requires margin is foremost, market wonder level the from should I'm really Or sustainable just think a low the And few So that quarters, they strengths other I stay much. because interest. key of as products, is being they are is that or space, wonder, everything the very on work next we like investing lower you times more in the then secondly, in this assets? the share client taking your else at and right should those mix interested? the probably it a to more also about client you just you a net of And products, or an

Anke. you, thank Well,

a is margin, a -- assets, here. the on on there things of So, that generating couple on fee

And So you four see margin of because that by a quarter-and-quarter down points. this basis going some going into mandates. margin lower is

see as is For in up which managed the were popular, the example, which we inflow billion U.S. in separately to very we accounts, speak. $XXX

offering they margins popular we So, the also and side, don't strong is of the we are -- Then as to on fee-based. part -- it's a zero real sustainability that allocate sustainable have, our hedge that this, the mandates this And funds. clients. to

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much. very thank Okay, you

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

have Thank in all just future things the I you. balance Can great in sheet? that And that's that attribute rare over the numbers Thank you. still there. the quarter? business. RBA margin Good quite highest apply your good worked management, wealth more morning; to to capital, today done. Or you're capital into that's out results UBS putting IB grow the quarter's of happy also what into the And numbers, how probably periods? part market the well for you're Quite is extra without welcoming

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you. Thank

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

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

question be The know kind bring one offering the or on up UBS what been in I liked like first one view, your What fact strategy the on irrational could do to could it you the of the and have what and what the Asia be would And would you on for to assets. digital said be especially among last as have America very I mentioned have UBS areas. that and much. Thank clients are them would you Ralph will to this second area? an beyond that growth be being investment demanding to would partner have clients? acquisition, that

assets? kind What Nicolas, could question? of you second the repeat

tokenization what in this? UBS These assets tokens, could non-tangible -- so offer

you Nicolas, don't Hey, comment thanks. as Okay, know, we on rumors.

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it. investment portfolio want a that their crypto. virtual a than feel your still in some in are is that decision, opportunities, kind we second cautious do for if to We're an of of there find there. see but increased that of of And investment we see reason particular, the speculative we difficult we percentage demand And different they the to to value fundamental Now question, very allocate it assets are is cautious opportunity. more these clients to more very being it,

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Absolutely.

you. Thank

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

Hi, you. thank

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this to how more bit at cloudy just do your QX I second comments you is the The a versus outlook this and stage, question respect that just making QX, investor significant concerns. with coming back guess outlook is point? think to At versus

you. to I the we see that a activity momentum, the And we comparison Kirt but speech, but on Thank will quarter bit there. the continue client third as year, already we second clients. lower momentum be one, will little the in actually our think continue mean his Yes. indicated be in last will the the to

little optimistic side up, going Clearly optimistic up. are economies than Now I'm is the the more behind investor bit the as about us, opening vaccinations across globe. of the ever talking that on clients here back-off lockdowns a actually this

issues around therefore continue. certainty on There around may the some transitory. And variant basically that growth, feel feel the the is delay positive side a we put could one. which on the on CD Delta is that the but trend certainties, are there we economic momentum inflation, course, underlying client uncertainties is Of

in for if income be actually specific of tapering pressure and grow forward expect interest that terms can we see specifically on to coming in the example, investment going guidance next we quarter, Management we of also improve margin in what different more side, slightly net on the the terms banking On in continue so that around, very quarters, Global side, loans, we the will Kirt? off the the to our that deposits banking guidance a see feel to Wealth good as that for we pipeline the

Amit. Yes,

billion your more the terms say. In first a follow note in I to lot of $X.X generated don't would capital. the to I Amit question, on quarter, that have just second of we

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you. thank Okay,

from is ahead. question from go Please Adam Terelak Next Mediobanca.

but last but last in us saw going at something book a quarters. on about effects fees asset questions. the to on that has bit whether more GWM. get as more clearly down a Thanks the you in a color step being the to on showing want fees, you've up on of return flows, and growth rely margin new big fee rated, in Yes, think then year forward, such revenues. of on I suppose margin a the the stabilized the kind I on diluted to mixed spoke which bit management back the for in the good confident I business that's And just the wanted developing, that's morning. you zero mentioned we fee on flows how we margin, the can back the few point SMA stock being flows. new

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Yes.

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to and roughly And is expected And some be positive we set from so, around overall of you you in also we we generated I positive and crossed, businesses, the we $XX activity inflows generation what see see positive that that see businesses. business both standpoint, revenue off when a on highlighted revenue you actually that think net before both billion.

we're So well businesses. that. revenue actually across means positive overall beyond momentum And we're both seeing a that

the assets, outflow still did generating me of Martin we see seasonal U.S. in we I believe net a taxes, but net In inflows. new terms of strong fee despite $X indeed, the new correct that, billion outflows, generated

product. the specifically importantly, from our just tax don't Now necessarily contract come payment under

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covering for that. all you thank Great,

Next question is Stanley. from ahead. Magdalena go Stoklosa Please from Morgan

you very and on results. Thank much, the congratulations

you That's the from see how from of think geography the way, as also of to actually where it you just kind customization of scale for and in I'm quick Just wallet a particularly, kind page, on two either tax scene the in here also the questions on of kind of are example ID of of one by here, U.S. going of from share first globally banker. investment huge in do gains the is going big I kind kind of course you interested not curious, it's the here? investors, and from question both it by you explained seems do developing my to my be it's but developing And customization Europe, in quite how kind side. how suppose kind it because but or combined? to or mean, you. Thank about or business only see what you've is, you forward. be do second is of I us

Yes, thank Magdalena. you,

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growth. different it those we regions of, therefore extra things higher be if see that across fueling will expect to and how you can expect regions, we in focus developing, activities terms in business we those So, two to these the comes have deficiencies as them, on

we that platforms by use so that relevant used buying and all changing and thereafter at if have and the to. And But do we to mandates, way. flawless, some I've And business be things basically which you vis-à-vis to that what do what clear allocation apply my relevant. Now, which yes, to and question page technology which on certainly to effect in to the or – different it investors feel what we a successful, been clients that's is would advisors the if the call credibly and certainly your like a in very very just our is portfolio you complete that on different going the to technology and the is our the that digital think tool way last order crucial, on but it's solutions for what And to therefore, you specifically as strategy on is go it your categories, relevant, clients At client in we you in take quite in execution customization clients it through. promise It's take customer I about in not and way but is way, you scale them right have decisions you as the personalized to needs. variants asset call their dashboard, regions, necessarily my The a this different aspect that. us that the the can tailor-made artificial is not a successful. is service advise their forward. a can't well, of personalized needs a personalized our aspect and and we're will, it. firms is personal is that offering, moment, means be makes our ally's it's intelligence as see because well, by to themes, that And used technique the made our if their personalized clients, that

roll Our out regions like clients well. to other want as really to it we it. And

Thank you.

is ahead. from Please Sachs. question Omahen Jernej Goldman go from Next

Can morning. hear well? me you Good

Yes, we can.

Wonderful.

morning my well. as from Okay. side Good

well. as to two limit So myself questions just I

either issue recall the the huge secondly, you you time that globally? And regulatory wide the credit whether affected? first any And at or second broader just second regulatory risk. regulatory of regulators be? a other going to was lines will the is I've to went in response a the the ask industry be of to I wanted your then broad, along discussion further question, there's of were obviously actions on Archegos, wondering each anticipate any specific and that the to on from I what the businesses FINMA institutions So, the whether quarter, And question response I

continuation anything benign that quarter, worries benign change you you that that a quality there that? much. on trends? Is could horizon very that see the extremely that's of again, you So credit Thank

thank Yes, first Jerne. you, Well, on Archegos.

FINMA, but different at learned. many institutions regulators continents not lessons been the and other regulators all that have across involved, the looking only were As our

expect all also of and if do learned should our them can the shared we're that therefore, them with that much lessons our we outcomes order have show in order only to reviews field, But further order to this And overall to of show We in there's them so information you to do. don't transparency those regulations show improve regulators, what we in the improved. business that, of the learning, this -- the on around how transparency also that be improve. and in can

is first -- the that's that point. the So

was The the -- and second for point -- second what point actually again?

risk. Credit

corporate cetera. terms the cetera, credit et industry big et big lender like make a not we're Yes, exposures, in exposures, on et of risk, cetera,

of clearly, of it So, where put is finance of appetite, on the has that side lot we still market we part larger let see me leverage that play as still way. the deals, pretty a

very in of the you there production, the see multiples And then quickly standards. the call underwriting specifically leverage et on our own terms wealth have risk, down would cost area We We thereafter. look standards book to lower back expected in actually our risk manage strictly. the then we We accepting cetera, side, sell credit than the our of book. -- we very be management at if what that front

production, total points than call percentage loans back four to points of So that we the to better loans, XX basis them, increasing we don't book. of XX basis the the book. back a non-standard would looks quality be as in also front a terms It's as versus percentage. And of see of the as book

book one deteriorate all of to order not different quality, feel we in does that So in parameters follow the the terms in that can ensure comfortable.

thanks very right, All much.

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

in and XX really to earlier, past deeper I'd good operating your just look Thanks at questions. morning. there down a the like Kian's Hi, drill the happened for still been few XX in what's change in following taking the past questioning to improvement step to leverage. my seem months, bit years, comparing a

even, Now, just still costs, you they putting AUM have a Or now knows, in to get fluctuate it want seeing maybe through lower the around with growth at regulatory to fee Is ratio be there? costs, level? your and an secondly adjusted that years towards low to contributing efficiency changed? to a Just GFC, to coming to seems then that that seem more a And even and who below are now? divisions? suddenly the in on cost of an your pushing better a us has Or you get opinion But this revenue in seem give increased, down higher for ratio why you deal clients to mid-XXs looking that pay XXs you but pre-COVID-XX, your can increased, level. on treating but money work think structure basis, to levels, remuneration, combinational coincidence like revenues GWM, maybe from are cash you how efficiency sense to just it as you are you. Thank always I income at elevated there those it's sense their post is your it more you higher away but is that? high

first Kirt question. the question. second take will I'll take the

Wealth One with management U.S., Europe, a a our So, investments It's in technology on speak. honestly. Wealth a Andrew, It's it's question, asset our that firm order been paying focus across Management the Management in off platform, with focus And doing we Platform well. to and scale. of as our in everything, with it's the standardization has the as as that think we're in investments on Platform on I first mix technology Americas generate

you that. the mean see into for clearly, some platform looking the that needed basically, investments to that opportunities So on scale go these worked. side, side, technology on has I

next into how the differentiator. that And scrutiny that. feel still more really steps wise, but we investors will we enabler. with here a with for also And a lot same technology much The scalable investments, yield make as platforms the we have that, put that our But as budget. still can technology to do an some technology we actually are is technology if of to you go have actually then that,

we've for and that's done our that's Management is in a And improving luck advisors financial well. well. on our growth, the done what XX, you have Asia, advisor focusing So have and what financial also side, on of have on Americas good on really as our what productivity as advisors Wealth been side, focus focus bit other team markets we also one the improving purely the growth productivity on and client we our regarding clearly qualities, doing and been on need quality in has of our been Platform, us,

one. and basically of investment see of the the possible. as then load get well way bay And of have base think X% that as as started and just really last ago, alluded that here So really you correct those, a if has the And months and foreign then nine as for last the base manage other, started or best that we to two load Clearly, across charges, we we think return cost I it's restructuring that's maybe kind base I we divisions possible? we're of of volumes, and cost as you combination our we're well. it's well, continue technology when growing actually investments, manage Kirt cost as privatization the combination at the to of elements, growth look a strict in we're growing discipline fixed some of at but as that keeping variable I exchange focused the load the and How as the dollars. cost months, one for clients, revenues, where clearly as that can we flat do we the clearly can on where growing we're additional cost

the answer that our actually there that second think question that's the overall of of is have. volumes sixth quarter. in market, to cash an And with cash we consecutive high lot levels probably of your of awful we kind I liquidity saw clients Just to increase, trend be, on for the continues deposit consistent our course, saw the levels, that that

we time, investments. inflows same into the at Now, did see

We where creation quite was to there markets and also the saw the saw certainly in volumes that a were of stacks specifically the outflows money first resulted quarter bit level stack related of in you you buildup tapered market markets, high continue of actually off, stack a from to outflows maintain clients money deposits the saw as the liquidity. of money some from of relatively and volumes but

That's much. great, very thank you

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

everyone. my morning Thanks questions. good taking Hi, for

related is back a previous and for the the going Management just financial But Wealth Just question. ask I compensation on want few questions advisors. scalability to and the to to Global nothing

and But numbers. while And more et I this first profitable few around important there actually advisors but and Management a I at want of and some in is more Wealth record revenues, cetera. actually the becomes in weights terms in half to the the the time quarter, X%. and are things and interpret inflows? recurrent related what whole income, like would So, and around to the same down same I put in you in growing for effective income, a what income, by total KPIs pressure as in up relative I variable key XX% over advisors think quarter clearly sensation in think went on that of a guess get it's time, FAs people second division, XX% that of half, income financial paid, terms numbers don't division Thanks. to But quarterly by first compensation at second went of flows, terms terms

comp. you compensable we an I highlighted, Yes, in with revenue. FA increase But pretty as saw increase Patrick, some in think commensurate is that much

We actually go the came look revenues means do ratio quarter, if because that six up. U.S. pay formula every comp going down income at important, points we're FA very the So overall you almost straightforward. year-on-year. most to to the percentage business, our grid, that what's happy we see off But cost up, is

is, what very revenue, little compensable So lending actually we're but in yes, that. interest income, off pays more generating of of which levels Also, you're there's very we're importantly, the seeing off grid. higher leverage seeing net

And so a much margin that overall. higher has

Now, most our is for that our we're clients, in important are it's for our ensure terms continued clients of to our critical fee assets work. communicated, what that us what content of put we to actually generating indicators have what new leveraging the we certainly that to all that we've is and net FAs that and is generating advisors, mean see are overall solutions can momentum performance that it's close the we

of that continue that on and it's they're well FAs for that's positive lending measure deploying. new so as net is new Secondly, mindful economic also capital us. We the critical important they're flows see net profitability, to lending our

Great, you. thank

Okay.

questions. far are As I as further know, there no

So, call. material terms thank for to through your the this team us. of coming and out with close may you going details is up of the that always here need in kind this morning you all like I'm still know you please our and available already to being to that be questions, I'd about call ready that guide so further you there some of answers to,

Just execution of become that quarter, very focused some taken further and more progress in the we've ensure that we've of making summary, these and we some continue clients, these initiatives forward sharpening had we a more the momentum, strategy strong our vis-à-vis We'll that our strong results to strong as on commercial to but review slides. sustainable. the strategic on showed performance, sure strong through on be going financial the are of activities also and further relentlessly

to thank very soon. you you much, and talk So,

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

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