UBS (UBS) 26 Oct 212021 Q3 Earnings call transcript

Thank you. Good morning. Welcome everyone.

First, I want to draw your attention to our cautionary statement slide at the back of today's presentation. Please also refer to the risk factors in our 2020 Annual Report, together with additional disclosures in our SEC filings.

our hand today Group over two, my it's CEO. slide to pleasure to to agenda and for now Moving Ralph Hamers,

for the see. advice our We're Thank line growth our today, It's everybody trusted and for fueling clients good joining tomorrow. growing are also Thanks from Across a will you, and morning. our us ecosystem. quality you on quarter, execution but this board Martin, welcome. the benefiting

off. working and our Our strategic paying are initiatives are investments

for delivered almost net years CETX So we profit, the and on in quarter, $X.X billion XX%. the a return over highest XX capital in was our

we're making and on well an So as update progress good this shortly strategic presentation. refresh give this you our we'll in on

Turning to the next slide.

and the positive were market Just economic backdrop third looking in across, broadly see quarter. you the

were same we some the highs. near still the variants, monetary policies U.S. course, the But -- to evidenced sentiment provide and through towards markets U.S. raising of hear of similar them weather our China, spreading the remain quality high, our Fiscal having policy uncertainties concerns in of all-time equity quarter, the COVID our uncertainty recent and rising. time, environment, whatever these valuable end concerns in we'll from with supportive. also third see continue the Although, fears report. of for inflation, clients are clients too, economic But growth. the last our Vaccination uncertainties. and execution are around rates in We as there to at advice

the clients. this slide, you So the if momentum see at you with ongoing look

adding the Americas. with was the in strong by the We're that and of higher meetings as clients inflationary meetings alternative from in my annualized We we the Transaction-based management for pursuing actively some us generating year-on-year investments new resilient looking momentum billion seeing with CEOs, optimism you is quarter, adds $X.X from obvious. capital. opportunities They asset growth and the markets. is their do growth to forward preempt order that disruption Funding still and that That they in fueling some growth equity in see. M&A to same themselves, as funds markets. are we build private it see alternatives, world. that a ETFs, in want themselves fast well. continued -- other activity flushed inflows CEOs it time, some the We're my at causing navigate At year. and scale look in as skill the our sold see driven delivering fee-generating the all M&A other affordable SMAs ecosystem with corporate products, in strong investing. is first of Our with particular -- And to well. in in net deleveraging region. turn clients billion, net man Net capturing in word, saw for another despite investments of with private That advice. already wealth what at and to to against $X.X the NFGA, opportunities. quarter a for growth, what were as continue very X% volatility a revenues were wealth new assets, new to loans with fees a global strong are clients the positive these saw our We in X% At helping clients last performance interest real structured private Asia investors was Pacific yield volatility positive up for solutions that

on on and say. billion and paying record, were the are -- year. fees take markets, as in result, in continuing in global we clients in electronic with Banking as And strategic investment And equity deferred mergers reached were converting brokerage just by the closed. our we're XX% choices in well. revenues. Pacific last I Net Global an markets equities. fees annualized, strength against driving as XX% are saw growth $X.X record Equities funding Asia third areas also XX% third Prime debt quarter of its fund well year. as pleased focus up with as particular our XXX as new recurring firms as best cash had advantage helping Our year-over-year, We quarter The the their trend And all-time well. should hedge best balances best all there on advisory high, underwriting record FX, record of us. savings well. In performance favorable. cash in quarter on both well. the this Switzerland, record. launches a into as CHF from several see We're were SPAC-related for revenues fees mainly had our well, in investments a million products quarter, helped among off quarter

build to for the Now as ecosystem our fueling on investing growth, continuing and deliver to slide. shown on up and build our next is

here, turn our markets a to underweight markets turn as and an you for area private the to therefore, a for as private It's are markets with But diversification, well volatile an where we clients even here. source understand. we bit asset add generally were to can more start continue this to expect continue, can investors to if value. class also where Just yield,

institutional of the months and During we into investors the well. private of first markets facilitated investments year billion as $XX the nine

But facets. seamlessly expanded further know U.S. us saw Sustainability is what right offering do; why our growth. clients another we That's demonstrating sustainable the SMA our has major to only it's yet for here. many not last example can at good the our working also another of by and thing we integrated sustainability $X Our that work quarter become a investment inflows billion together of quarter, for ecosystem offering. we engine for achieve in this

their For depending topics, preferences. wealth sustainable example, their can personalize investing along our mandates now private on clients six

We target exclusive Sustainability them. investments next impact and focus to UNSDGs. months the fulfill year-to-date became that's annualized raise Global of by us. reached Robeco's and the SDG six investments a Equities $XXX billion $X.X companies also for and motivates billion Engagement that for partner to grew We for XX% fund distribution over fund

as well, -- My Way you up, -- see mandates platform scalability And the that can a you than is is well. of net generating continues adjust of Way, Now, assets the the third tripled Invested than adding intuitive around clients monitor new continued year-to-date strong an set -- and to to the the lastly, $X.X growth tripled application jointly continued our the billion, we inflow year. the as that to and here on contributor to see assets year-to-date in allows leverage as this quarter this mandates My advice And more and see again success also as tripled quarter. scalability -- significant fee we highlights Year-to-date strong globally. platform. operating this per adviser. can more

that profit parties also another us, also clients, growth, the on disciplined our And So results a financial all we shows ecosystem of provide capabilities regions. focus strong clients but of of execution to that quarter through ourselves, the led the this our but momentum, that to overview, for fueling all $X.X have of our that in capabilities our basically third all billion. pretax our focus our on resulted full across you our businesses, delivering business the

year, $X.X gains. the all a of X% income one-off overview billion. from You was last we Operating can number dimensions. when up across this was an That for of here see had of at different example

in we've of resulted the So, XX%, higher to year-over-year. investments. the a leverage, than into in a well. terms And of of well. book Return X% on underlying, -- it down here up in support you a costs terms as value over as quality of how on was CETX X% mix this kind reached And Operating decade of the because, again, savings through reported in decade. all executed and to next Net of X% well come share is lowest this the XX.X%. per some plans more the was sequentially much below coming cost-to-income to see already to highest capital year before. as how we've as the Tangible profit income -- actually over strong up our also the ratio were level

As do bottom And we given above on top you to focused the be to we have the financial can we on line. continue you. well the and we continue perform growth see, while that, driving targets that

normally, hand Now, before because like update an over to that I of you refresh. bit to our are I'd give Kirt, a where do on I we where this strategic to basically is as

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beyond ago, a build stronger. strong this I CEO So the delivering excited organization and there's I was year. three a so over the took make priorities when it on UBS. was potential the all year what are unlocking we saw I and And that said, as to true much I potential about first on were And as on to of a even focused foundation

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here are. home So It's for corporates XX% It's which And bank in over continue as it's us. a business large of Switzerland a serve the Switzerland. negative is the universal very how first offset to years one one-third us we -- our for to more things of number is clients. integrative that execution in important course to about efficient our us serving the the that from here growth, some segment six our seen enjoy a of And strategy made we almost It's be there leading important successful The you in helped households we business. of Switzerland. country. around that every highly we can first, of think. in serving has we And is position led have rates impact now.

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that make aim we be We X one even It opportunities. that we're our why down digital areas happen to and faster for in focused. that's available that absolute we than market. Switzerland we a at the see number the growth finance in third focusing means are pensions, where better That's our aim leader all must. than we the sure second grow digitally. universal as more and our sure bank products this That's that that. on that to making play basic products, We're to as First, priorities With will number important sustainable see undisputed Switzerland that of our and core, on not we commitments our well. an This become the want technology technology-dependent private will clients one to grow in We in and such the for double as surprise making digital make both And mortgages. role as digital an bank capability well. universal Switzerland. we banking the will remain sure to make come Switzerland, you banking the

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organize to our needs. around have We client teams

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we initiatives cost through investments to through the grow saves revenues our these core. funded target with at With the our digital

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leading is be bank here a there our market do our for even want position we number position with We think customers. in to the further potential. do further improvement growth we there potential think and our better is one home So maintain

region to Turning another importance. of

It pool important As And faster pool of those important wealth there's I terms It's just investment the wealth are is -- is Americas. larger because ecosystem. said our anywhere two be the areas growing that's focus for in an else. the of is regions that than importance in geographic anywhere active else where Americas. for us in of also March where than is that's utmost us and to one the of there's part

goals help thought our assets leadership, and result, achieve them this generating fee well. liquidity XX% as on as growing invested That's client-centric $XX us for focus a their other plays legacy new have strength That And that in bank We've nine were in loans of our new consistently longevity We in global as we're strategy differentiates our marketplace. our a from also the solutions here. business players were to the here. benefit changes trends. up We're first that net that And the for off. clients. equally playing regarded a annualized people their our our -- -- were We year-to-date just the see $XX at Net is our months in our billion billion. the an and clients annualized year. region. anticipated by well paying anticipated of that impressive We X% And you for ecosystem.

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proposition for model advice rollout for is priority third investment that's a the scalable specifically the a digital-led and affluent the US of our service for clients. and Now Americas

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but you this we direction. steps doesn't technology. All we're of in and are on that on to of not And also mean in we made that the also updating I it have kind previous plans, here mean, -- plans brings already these us where

It can differentiator no the the clients. how -- in some up, strategy first our make time the some the will technology And a we technology account is into where can already technology, the this There taken do time. But at bring level that there technology there means, of made. bring see instance, the to execution difference. the make how that clients, today that's our of our swing. personalization. of on deal on not can in plan relevance it you where be where also which technology results specifically, because developed is making that is are sure in that of It's with basically we we've steps we from UBS it and truly there to and a moment full is serve proposition technology is where there do have the content It technology when of

thinking it's and that need of in is that itself. development you planned prominent for well. good So way important now every as technology But

and culture very to an a You engineering technology you need manage as frequent need in way. well

So -- and five try to tell pillars that you. is these what

and So technology you work if you deliver front back. you want have want to be agile successful to to technology to with

in in ways it end -- in support of next this print X,XXX moment, out we cross-functional but back of to process into the the two improvements will colleagues Agile@UBS. speak. people some you launched towards on even work And to it them we of the today. on you end, know, pilots, transitioning in plan. So we currently that in that will incremental the experience we the deliver setup. can't do areas agile In the in order working further. are weeks back that, expect because annual do of agile, technology you roll you piloting as work have and some use if Agile@UBS actually as XX,XXX are The are At already of X,XXX these in then this we And different year

planning. do you quarterly So

So we've our made already. planning cycles shorter

them We made We've have made frequent. more faster. them

the in way run quarterly meeting from strategy data more not. these same the do why and recommendation is to data up we we've need technology, maybe these But of clients In we've decommissioned can just the promise implemented So feel we even looking need client to and we X,XXX vein, next year. decommissioned on a away is optimize, have zoom-in to state We're back is mind, But to We already that's you reviews already. need And the to we some see, critical our AI going AI-based some less months there this new more forward. group. zoom-out for what we analytics. delivered, strategy turn are it. migrating and recently not And well. technology around that we in or drive and our here and -- already to on mind hub the months -- in a in of approach tactically, in applications that always six change, strategy out legacy three they flexible so you've engine a foundations we expensive advisers strategy days. central six Switzerland our projects as make the three That's these analytics projects putting in all what UBS And technology as But chapter in with where back what are started have to lastly it picked to place of we months, months business prioritize. cloud hundreds to maintain. into as this the We're applications. can to moving we're the to differentiator here at rolled where

happening time without been I'm think it are where to have here? to see momentum of off on the Now at couple journey what's eyes we And UBS. at our last same I our the ball. the where future we proud defining able does here over that our -- taking quarters, The build

in nine post-tax in a income on to decade, we to delivers context. results. we capital. do XX% what pre a on months operating Here decade more over highest year over some return slide, the a performance CETX financial our nine you in business last this And shareholders. Clients a had also And returns the that shown the last you months cost-to-income decade and attractive that's us you their we -- see and The why this the in have nearly get over are rewarding a profit them. But business. of for that ratio lowest historical see for these our highest

this have is hand think Kirt. I exactly to where to I over

up by Ralph. quarterly XX.X% XX.X% morning, $X.X At CETX percentage points ratio to CETX $X.X two capital net highest on cost-to-income the generation. XXXX. operating XX.X%. on everyone. was and a percentage Thank billion, return leverage. billion since equity translates of improved PBT into return you, and we profit $X.X drove of capital two tangible driven This The delivered of XX% Good points billion a

gain our reminder, year the As million partial Fondcenter. a third $XXX a from quarter sale included of last

improvements. all PBT and this Excluding to and gain, growth divisions efficiency regions contributed business

releases Our credit of million XQ X and Stage results net million loss in which included X. $XX of $XX

given we While some slightly, macro to macroeconomic uncertainty. overlay, factors apply once continued again decided have management improved a

As was generated $XX US. million, deferred million million tax $XXX $X.X the amortization capital we a the the XQ. of Year-to-date, $XXX in in increase total from of overlay billion from about September, assets CETX including

Given we wanted tax our our to to in the in tax relation ongoing discussions guidance DTAs. sensitivity Washington, update loss

would other tax value tax be increase enacted. percentage US no by for the is million federal approximately tax which Assuming we corporate in the changes, US each income the expect that of our rate. DTAs This increase $XXX would point in the law would in effective quarter

income expenses and lowest FA able ratio operating a operating currency XX.X%, to excluding our us growing variable helped Year-to-date, were broadly litigation and stable. of restructuring to deliver Turning compensation, maintain we expenses. effects, XXXX. nine-month cost-to-income while This since

we effects years. prior quarter, seen fourth seasonal to due the expect for in we in reminder a cost an as have As increase

our profit $X loans double-digit profit China. to billion, to gain and nine deleveraging cautious, driving in a XX%. APAC, billion Net new net leverage ratio in time. became the annualized from partly sale our sentiment cost-to-income our outpaced This ratio across the the $XXX growth first growth, momentum Americas Operating $X.X GWM six XX% following was was percentage PBT percentage and the This below income or new positive year-on-year record from expenses of up ninth XX% client profit our continued another cost-to-income points Austria, offset in XX% Americas. developments in mortgages. $XX lines domestic strong million and by quarter Americas contributed with some fell on with all with almost its for the mainly growth, of as record. Year-to-date, on business revenue was recent GWM, regions Moving billion, down policy best in operating in consecutive pre-tax the quarter points of improvements APAC. and to in lending more highest businesses. entirely generated XQ the All below was Lombard by

fee-generating annualized growth of $XX X%. rate new assets net billion, Our were an

fee growth rate new for generating nine this net annualized Our is year asset X%. months the first of

Recurring new income. grew income strong by higher our market NII. increases continued fee driven with and a to fees volumes new continued to on in interest fees net up X% Moving lending and generating was deposit assets. Net XX% high, along sequentially performance

to X%, quarter. any income rate rose products. For insurance NII driven client remain quarter, we life Transaction-based alternatives, expect headwinds, the the structured flat third and in by interest engagement with absent fourth higher broadly compared

sentiment to muted more over around our I due quarters deliver its uncertainties client the past XQ While mentioned. China, book in and on focus flows record, just on best transformation region positive PBT APAC allowed as continued to remained the

very together as a PBT with of investments CHF to Our up P&C, asset Cost-to-income quarter interest clients in with year-on-year diversify as solutions our XX%. million, style interactions in a in asset seeing Net are and we as income million world-class increasing by globally travel strong restrictions and endowment credit mandate and quarters. fund last $XX X% the custody four with all growth net billion in was all in market million. primarily new on X% above XX% products was fee-generating leisure Credit investment drove over the and clients regions fee equity year-on-year. recurring with and foreign funds. constructive XX% fee-generating backdrop transactions, up reflecting revenues We driving our was continued ratio private investing higher hedge up to transaction Transaction-based to increased an in XX% and interest saw Asia, fees. into exchange loss XXX momentum well to $X in move increased private improvement. all-time spending net credit income and as from the on $XX releases an Operating higher by quarter were clients card income ease. net XX% pandemic Recurring increase high, income growth

deposits. of various $XXX in helped optimization product helped billion. Continued we costs was by of led fees deposit year-on-year by momentum measures, X% net provide Banking clients net by to further as product recurring to investment and cash increased $X.X which new liquidity income billion Net of to $X.X million result a with in lower interest flows inflows, year-to-date. were Personal was alternatives engage Year-to-date, new and investment as loans new net funding

the of in For excluding the ratio million up Operating XXXX. sale XX% cost-to-income the Asset driving seven gain XQ down on I was XX%. tenth consecutive year-on-year growth. quarter comparisons, points to positive was XX%, reference percentage will PBT leverage Management, PBT $XXX year-on-year

over Excluding last associate, nearly net XX level performance $XXX were $XX to to an fees rate new on fees $XX related months. up fees run loss normalized decreased Performance of a more in management net a million the million market million. XX%

investment attributed we net Since Revenues have since $XX inflows and deploying been remaining in billion billion next XX% has money last quarter excluding money markets, absorbing up to XX%. million. PBT best delivered XXXX, XXXX, by beginning outstanding The The XQ been at billion. were and its in on the would to every average equity while where RWA growth, IB new XX%. $X XQ increases to we For disciplined group regulatory After $X one-third return up our supported quarter, muted within balance LRD. year. delivered $XXX year-on-year exceptional our net six markets on RWA attributed expect in sheet. performance while and above We fees delivering of with single was performance return this remaining results, saw repeat of equity we the constructive of bank XQ averaged of result the not quarters exceptional

This since Banking by ECM driven Debt benefiting by by a levels issuance. XX%, X% advisory bond revenue ECM and issuance higher markets capital and up the quarter, leverage higher was highest DCM XX%, sizable higher led with Equity XX% capital number increased of of loan XXXX. of from IPOs. rose XQ M&A deals. Global revenues and in levels Advisory were markets

and associated brokerage. a the million and lower sale of products exchange an cash index foreign from These with were in partly property Global Excluding against comparative. gain credit rates, revenue equities year-on-year by family income XXXX, from prime intellectual driven by strong the X%, equity $XXX rights Markets XQ derivatives, by offset increased

accelerated expenses X%, ratio XX%. expenses certain Cost-to-income on million in compensation mainly was $XXX XXXX, deferred currency outstanding the were XQ operating Excluding effects. from of modification up awards

CETX billion third add-ons, in by RWA our sequentially, capital X.XX%. we CETX regulatory our ratio of to leverage report. ratio generated the and During on XX.X% quarter, mostly $X which our and driven we billion page increased by to $X.X detail CETX XX increased quarter

of XQ, open $XXX to to repurchase for questions. With completed we expect in we $X billion. million In that, repurchases up guided, million. buybacks can As $XXX to increasing our year-to-date fourth up we the quarter,

and go is Jefferies. Instructions] analysts Bocahut Flora the Please begin investors. [Operator first session from for The question question-and-answer from now ahead. We’ll

have I please. morning. good two Yes, questions

see The first would the $X.X how move sensitivity report in yield that frame it's be curve. your also XX the up sensitivity. months regarding And time US is much you billion that additional $X.X of NII what mentioned longer. be NII billion, driven? one interest point for the XXX rate that parallel basis specifically of would or over Can maybe is quantify I in for you whether the

you sensitivity make comments drivers helpful. on would So basically the can NII understand be any us to the help

this nine level question has think of your the last is much almost was second first level return which you the is and you X when months. are has The very you. you continue? do Tier at in and up. one just Thank above look sustainable quarters profitability, this capital piled ask on drivers This the few on now. Part XX% cyclical. a to for equity obviously XX% is target to on It's year. is wanted of of But I The profitability, common that been set the of higher performance which

you, Thank Flora. Yes.

interest income net the of generation. terms in Just

Clearly details XX-month would there the is of deposits provide exactly a that the of US, show given for $X.X don't of we dollars overall, a billion would First which up in period. in. be which the just that but concentration and our fair portion in US market all, on currencies

actually that's at and the shape very markets. very And revenue and our levels. we up, that operating hold markets, that we revenues. to are good our In equity profitability clearly see terms think And of income in for levered you I equity our our transaction overall it's look the our very of performance, in as overall, our markets level constructive helpful to volatility of equity to profit extent the markets extent

we forward, that can control going we we is continue the the we ecosystem clearly build out. Now flow and control factors. the generate going overall broader there see look also levels ecosystem-related And can't to we're business And in that What to market activity the to and and help good our the to we're continue continue very across that going investments confident collaborative business. other generate flows enhancements will scale forward. also that see to we're going to around revenues

discipline. a Yes. it's clearly of mix on Maybe capital one, so, that

the it's cost cost a the ours will on support, So, What it's and model cetera, that ours. continue discipline market capital control we on. scalability advice partially side. not through that can et the clearly partially Income one is And always and discipline. to discipline be work we is and scale will and capital-light other client and

Thank you.

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

please. questions Yes. two Good I morning. have

target Agile you technology speak to is about -- first to people transitioning with The X,XXX on agile. transition where than one you more

financial perhaps the performance term question what know in operational in and the performance? costs. to for mean UBS does it terms is And of on wanted I even second So of

and you between Your on this XX% and ratio target to XX%, be XX% quarter. is achieved cost-to-income

you. to do of is So think know you sustainable going kind wanted I performance what forward? Thank

Yes. Thank you, Nicolas.

is on what we're first here one agile. the the so front-to-back on Agile@UBS, So introducing

on in So then a you completely side organization. the technology have of this rhythm the is rest and agile the different not

you two this sprint an means it to into right? run satisfactory And are And you article moment people the or people also outcome. people I'd Now they assume basically just weeks and for out products, towards teams you actually less in there work, into In project, engineering, outcome you the even make to if who managers. you agile, contributors sure order another either back actually article one. our know stop the interface, know front order who may that are layers that who become make is you the the the go sprint. put not basically rather to that people The that's the processes. which fix customer if is multidisciplinary take them them who in and kind of this So be than

same So what that with fast for what the that's there. my and market much you a improve, higher to experience change is to that you trying investment and that you're fail time IT big is improve productivity And do.

and or We terms engineers get technology can on more of engineering outcome the culture have. feel quality with in agile we in work we well. that But Blockchain see by this same more by the technology you'll So, less the that plans we further the as of improving out of working Blockchain. and the much

the will and market for and So, for buck gains And productivity or see. same lead doing that more time will success to me to the you better all the gets that's either what commercial that we we of from and your XX% happy of -- second broken guess cost-to-income it very is I to which through ceiling come. question. that the We're where have is floor, question, here kind your

moment we update targets. can we that with And structurally, we we come new financial think To will have around run is where quarter. on extent we're when the the new update feel accomplished X a around to this February targets market so that happy there we we KPIs back the UBS

very much. you Thank

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

Yes, thanks for taking my questions.

view I your even times traded discount. similar focused, you a valuation your US against regarding I'm XX% mix clearly really. valuation the peers, understand valuation just new in at similar that in a second do that Asia. if in considering some more against generating for XXXX China? a If mix? the to can and a net which the how asset lower discount discount? about material bit terms And what situation around net outlook And think fee to and lending so regarding talk number forward also Morgan the your money The at And new your say of you're more you question a region? First is loan growth you about your look seeing of we reduction trying which Stanley, what in of about is going question XX% has have is reduction. should And net net explain think own you How

make. our market. feel is improve. power We strongholds -- we is that that we we our best. to that a And how one will question of work that maybe a what for do That's three know out what hear potential basis. has answer I do. towards and that will capabilities of Kian orchestrate confident will home UBS that second think with be that of potential income that. And UBS and how difficult the this And daily answer, is UBS of we clients. and clients to what order in-house difficult completely best a third-party but different if you see time can many ecosystem right? quite one providers you and heard know very bring working UBS we in is can more And here. best is markets on can thing the to you that should best in geared much Any will And do or structures what that to the what -- service So to comparison divisional the some today what is the actually question constellation what our there more will The the of you you only is our and to with think peer client-focused bring valuation any we we potential who of have and the we of orchestrate the we to is that of across months' more do plans us. am you've of a we what what that UBS. That's is is further

Then So Asia. on my point here. that's

large clearly of on the back have end the of also already of comes more on asked wealth a some the think it region. sale impact much and committed the saw what NNFGA of repayment the pool that believe with the there deleverage, is else. We assets see we [ph] uncertainty [ph]. that come strategic. But will more I maybe the for to look And than you We've clients to may actually we the We some the quarter. way that's bit towards know to that faster through bit. is NML facilities. coming last some therefore, and there is deleveraging the And, are we We and XX that clearly the and of -- years. been grow Asia of maybe uncertainty anywhere a and -- So the that coming at at

We in region. the will invest

investing We are in the region.

in Kirt will the if bring We are therefore, numbers back that to Maybe hiring up. we think have the region. that And, you add? anything

seen always think other I and cycles covers Asia we've fact would I faster captured number you that I just No it. think of a expectations. note the would that I just than highlight

I forward. we'll continue going think so see And to that

you. Thank

is question from Next Citi. Andrew Coombs from ahead. Please go

APAC Thank called you. private yet investment the And Perhaps you one commentary Asia equities points. sentiment commentary, your the in the one being banking bank muted strong of on Pacific. follow-up as in on cash client In actually about more you out first. talked Asia

commentary banking more check activity just client around I was in to you're than base. to private in the transaction trend base similar rather muted and transaction whether to with between activity. do If your wanted the Asia diverge they seeing or deleveraging terms sentiment are beginning if institutional So client of the more client point

So question. that would first my be

regions, on LATAM, PBT specifically about those always Asia, you Wealth the growth more the a Day, that it was second on Europe whereas, put gave business. target there was slides intrigued Switzerland question margin. Investor out improving that with When and Essentially Management US Americas for with just were The an PBT you the with to I chose obviously last few business.

So the growth to US for getting up I the than is more the XX%. Is the case margin margin profit that an aim about enhancing the it think business? still absolute Is rather much target?

Yeah.

of and outflows, particularly US management of of, much a volumes within cross-border, trade across some institutional your a that of uncertainty in of our and we're did activity volatility first and the in of is were we're the saw the -- -- equities quarter. much quite we sort that client as that our some the with reaction around question, changes and bit some northbound to base concentrated terms driven which in lot and characterizing China of, part the capture that came outflows. deleveraging clients as kind wealth Just in fact show those in deleveraging initiated quarter some the and we during of some up the more a the policy inflows out Conversely strong right well of volatility regarding the the during particularly institutional cash to the actually fact we're looking of in to consequence of you're well-positioned China. And

doubled you investments. talked what been at being see the US. And we've focus Americas, growth. of grow in business about targeting done to where our Ralph if terms business we're -- initiatives look that largest with $X to Management some and In overall That's of we that on the rate that. year, about reflect you we investments in always Wealth believe the where a that the in the targeting of in traditionally now And really, we run our our Wealth have are just primary that had And referenced. we we've opportunity in and position And where in Management ecosystem, market XXXX our you billion we a if continue emphasis do our were globally think that investments we our we scale our management wealth there additional also given for and in world us. the and is

we're look million. above over we're you quarterly well the our up at $XXX XX% If for profit quarter, and third

on So we're now run billion. over rate $X of a

good last Asset later seeing growth scale, good contribution for also and seeing business scale business of to time, same launched IB in at margin. along in the some that that us the going year collaboration there. improvement we're continue to all in And gives with continued confidence we fact, Wealth seeing ecosystem in in in we're partly the with see we're revenue SMA so the growth the momentum and And the in initiative Management we're Management our growth example, our in

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

follow-up Thank more you. morning. on One Asia, Good please.

reduction, already a $X total were which in net $X the billion the bigger much about that loan and there's outflow bit kind billion You've fee-generating size. came invested new reduction of talked by assets down relatively $XX a But asset about the billion.

just that could That's my assets first what left about the of what I question. wondered, were. those the talk that if So were bank and you drivers

Wealth The fee whether The Management. you affect you levels outlook second question, XQ. Thank also the just may seasonality transaction and the the revenue on in the abnormal line you. mind, and I activity And about slowdown comments line, XQ? from still wondered change XQ have look just to that the warn whether fee or about in recurring as

Yes.

the Asia, market of overall of terms performance. our other impact assets course invested on In was

in Asian moved quarter. has You did the performance market index during the down third see

rate months, Management, speech momentum. seeing, look had the of understand note firstly, fact Asset run didn't guess we're XX we've good And of if $XX that, terms But new the question In I continued on it. that in I I inflows. over you billion completely very net at the just last my highlighted

that comfortable feel management we very be positive going forward, of of trajectory consequence is our So that. the fees as a to going

level. expect and performance my million What in that normalized quarter of actually terms the performance year fees, saw we the performance third last more in I outsized highlighted are fact the fourth particularly, In of business. also saw $XX a at in we mentioned, fee fees and we speech, that more out quarter. to performance predominantly O'Connor in as that our hedge levels quarter levels normal our see of fund fourth generated and fee And was the I

business, you management of there in strong lose lose the Jeremy is asset side. just and of add side, the If wholesale bit the to this may you And momentum institutional already a channels couple a Maybe right? on channel. you chunky management the on but see a wealth a -- client, billion

US SNI strong Concord and see impact. in initiative around in sustainability the alternatives. momentum So The momentum strong you as well

inflow there's Asset So momentum in business. Management lot a of quite the

Thank you.

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

much. two. I've got so Thanks

my you're one strategically. where given very So Americas, one good is because us going a you've steering about first

model do particularly in workplace So on how do it for will market? think going advisers. dependent how the very of evolve with channels Because You've channels strategy the that financial US growth, of inflows is you business see mentioned course, your you're forward? you But developing. the

of You've course, via SMAs also management. mobile And mentioned of course, asset the channels. the affluent-oriented

one. Because strong question do And excess. all evolve future XX.X% it a into take mix on you very got that implies account, see a very really, significant from you've two when So is growth number of number here? how That that's capital. the you channel course, So CETX.

the How And do about so payout? how into you here level moving the do course, Thank organic of between think next also of year? growth about parts kind capital you. your of allocation you think but

you, Thank Magda.

on important specifically involved them to on product see That's the the is we channel very financial across I channel them for right US, true early business that our support them the up to the Financial grew support two with -- to we US right you the clients the are of a effective our that's that priorities in our for and see that front in So right? have cycle channel. if initiatives, banking mean sell Advisors they're to us, channel. our in they first channel -- services. to will franchise. life want their business the be the support That you more advice, that that to And support with advisers the getting with be

state-of-the-art that is they they're the at do what can good we How sure products we on the how Management more really which they what Investment bring advice first and the from, so to is, and focus they're we that do element of So platform work financial the Banking support to that do can motivated improvement ecosystem advisers. Asset of basically see make the client do.

to services a management truly we banking us. they mortgages, as which main side. our do build job services, to channel in support the broaden do side and them their are priority We dialogue really and client even mortgages building the advice. their banking important products to So own through on from also advisers well them with around that's financial want They for cash our Then important the is a in supporting like the to for introduce good and wealth entrepreneur the in order there. bank clients already second relationship banking -- the their

to and more that channel strong them our one, equity towards a which we what through, we and a example, of manage which one already which management already dialogue for an clients it with already stock have So, management, company is advisers these even third clients remote right? continue geared more at is the more services a there if is population where wealth different continuous digital opportunity, to the we proposition attracted are their they that develop affluent offering digital is clients then affluent plans so that the And to is their beyond outside build relationship As it's support to well as there to do look if cash current a will advice. with through basically we that do retirement And through you they But an there. management invest a more stock can with such after. wisely some or of feel, also in us, after that. a there two our plan them clients than are workplace financial as with proposition this support we opportunity a much on actually that million also said is channel, And clearly there. you

there. real segment a the different conflict no market. of So, there's It's really

terms top any intent return still overall Maybe Certainly our excess actually is over so question to holds we Magdalena sitting on of have XX%. significant just on of buffer capital. and of our XX% versus in luxury your which the guidance a

capital a favor flexibility. strategic continue some But also quite our shareholders. to give additional returns that of hand it the the us to return on potential Also Now, have in that good to we going one gives guidance bit those does us to of balance we clearly are buybacks.

emphasis have get repurchases Now, next on an to update capital continue expect on as overall you a very important our year. I return February, have to overall us can policy but think into share we we'll in

much. you Thank Great. very

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

taking Thanks afternoon. like questions. I good for Broadridge. my with Yes, would start to

of that increases mentioned project Could also particular how flag this you cost You have this slide. curious second was may going on transition and industry. not on or And this the management Americas this not That's the well, guess question period was you. may evolving concern is any project And is on your live. happen implementation I if update the greenwashing. any discussion remembered this if during I period? crucial now I there And maybe relatively going? in point an broad question provide for fund an

Wealth that in given selling you much. fair Management to ESG Thank own Asset probably your Management, also in very clients? a funds bit third-party in you're but with production your First credentials of

did actually call is question, with mention is It's that support That is which building Thank basically financial refer Broadridge. collaboration had on Map Stefan. Yes. we the I We through you, first scale advisers it to a our challenges. its project we the I in in continuing. which which developed your I On what platform think is basically

that project. know may past in re-planned have we you As the

further We moment, this improve their At -- are is working in there with it. releasing things. FA And we feedback with batches. is

released over as two a committed needs are what releases. to certainly reasons. and that to be that well we separate project for is So, in be finishing that But time finished will

industry work standard as parties And will financial then cost decrease for further core which from do improve the use that But other and platform well. many feel to could to well support to licensed site this we as financial their there's advisers. for We an be will well. as this parties to productivity advisers their this a work other as that also our need could be is platform First, or another it us. to to efficiently therefore be

on you… a greenwashing scale as play. other are So, that the it's very And bolting productivity parties to much on a -- side on On one play then side, third with a well.

and awful Yes, we have lot obviously, noted scrutiny. in an seen there's of that, certainly general I focus as sustainability comes course, And think, in that. you of greater with

of that sustainability. related feel last what report comfortable We We that. would with to ESG haven't we the and note we seen

overall slide businesses. you've think sustainability-focused across three assets I the our which presentation our in seen sit

Wealth Asset Management, as So, P&C. well Management, as

in We we're data very, this also behind Report our very that with reported Sustainability comfortable the sits Annual this. and

lack the in we think one the the out industry point you that challenges standard of reported be inconsistent defined of have to standards. that I in that that something with find have don't we exists another all is And might some the fact other that's could always and with standards, complexities jurisdiction. banking

to So, standards banking some clearly, that expected is industry. of and we're what we start very around hopeful get the conversions

sustainability and the ensuring. reporting in that is provide on reflect and we to to Our something we're to as that the very objective a leader that is continue practices best focused all overall market

Thank very for answers. you Great. the

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

morning. one on Thank you for next on capital GWM two, other year. I've into got flows and Good the the questions.

third-party looks the very, it on And reported funds? the mandates on coming been Are of being margin how flows, scenes. the very margin fee net obviously, On terms assets bit on fee-generating color business these new structure a very in? stable. the kind each Because or that is is get has assets fee-generating the flows still those discretionary just want of of to in I strong. advisory quarter the more behind into clearly

and outlook commentary So, And just some great. on secondly then the on would be capital. that

I In your clearly year, important of year input has think this next inflation. payout for terms regulatory an been

been little have some on report, And Archegos on of through? inflation that's terms in great. in losses Thank quarter with this on to and numbers the a calculated basis for that you. up Your exposure? XXXX detail Is what's bit FINMA gone add-on to billion Just that just us how terms the Could next come the to be do for more in technical incurred of prime would of is front. with the regular the kind do $X with that? the then highlighting you're that any you give on color

Adam. Thank you,

and mix as you I defined flows overall that as into fee-generating think know we've terms mandates. assets, go in of that principally the Just net

in top mix clients mandates discretionary of total overall recurring product our much XX% growth, So, margin, are income And transaction range towards very net just discretion of growing more that fully professional operating margin, that revenue. of have in we're of actually comfortable overall on mandate flows. of references positive go income the manage and the a full comprised a the only and terms much are we -- measure focused of on driving quality course this see we're mandates. to also, really just necessarily good net growth that an And is from of actually revenue. oriented fee flows comprised and under-contract line bulk assets revenue you And not more XX%. is are focused more full overall that versus the seeing, of revenue we're our we're overall And where of terms invested overall they're

and In as overall funds, is that's addition included to of mandates. are mix mandates, within inflows smaller there total but And the metric. also, a some well proportion of that alternatives

we to of see your we increase due seen question, the regulatory that I theme. and some highlighted did new a an terms add-ons capital you've that's not fact think, In

I an it's $X detail you we with the around Page do We add-ons. brokerage XX on get billion that mentioned as expect see that think to combined regulatory billion. do related that And unfortunate prime mentioned, I of another part $X.X our report. the of fact banking we

or not related of overall investment you year-on-year prime to and to can in important any to think our prime our model brokerage And business. note any was factors performance that consider bank. that an It's due you think losses I I me brokerage technical contributor at our all other heard nature.

regulatory capital think, that see with the we on I comfortable We we the attractively we needless return in have February to have and something is very, with provided continue add-ons intend our that substantial update, we shareholders. flexibility we're surpluses to you expect capital haven't yet still ability to an what and to add, very, but that would very our during in our highlight update terms to of very

Is bigger update Okay. was it to through fair to risk of the there? one items the say come market

part another one and fully that Yes, been that's one. risk we've having absorbed. was update discussions been since that of that's market The and was It's FINMA a with right. larger XXXX

Great. Thank you.

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

for taking morning. Thanks questions. Good Hi. my

here a lines. growth often decision main So the had is three as It's but and seen on with very the little some two the Banking. past one sleepy now first Personal quarters and for you've across good revenue growth, Corporate

or and as of driving if a NII that? about talked forward? developing I your some recurring deposit optimization wondering even your the but how secondly, offering one offer about merely you products was transaction-based whether fee customers, sits crypto strategy, seeing a something including we is growth And there about whether going to wondering, Whether crypto, taking broader things? income in You've trading grand Thank just on be bank it's that note feel strategy, or you I in you. thinking within based that to digital lending lot digital or you're ETF just talked valueless you're US. the full-scale income, within was then of custody the going you're scheme should

Hi. Yes.

what that's more don't one it's go is can about is why investment, it not We it's don't -- feel crypto of crypto. question many more much the something the the as Let's an but think, on players uses I we value crypto, market crypto. as what what that true it I not and advise that regard speculation. to understand speculation. start of value with still the there. therefore, And determines of That's the second

actively it, so they that it, we will if it's ourselves. clients it's going -- to but do And want to something can do come not not offer

income. your economic P&C do all you see activity of P&C indeed It's a business, that making the come that the up coming on dimensions So, now good business good on here back again. you've is seen normal to with

down of facilities growth. drawing You their the need are order year, companies capital, the they quarter they in support still their see the facilities you saw and see, new COVID investing. are first in they They repaying now working on to

And you well. the there to therefore, loans also mortgage market as develop increasing new there. net activities you the Then see well. more interestingly see continuing You see as

know scheme, of have see NII where or opening up the from that we for international economies, see CHF to basis pricing better engaged going as improving spending, deposits. credit card deposits price on perspective. for more seen that's this what Then as the customers you gone perspective. alternatives. charging a XXX,XXX with deposit you've the And you more Therefore, up Then we we impacts revenues either spending. them with also the our NII to So you how Therefore see with well. client-by-client deposits from growth through you as a over introduced their we have on that

from the picture So, really can the it's it's in domestic you -- all a I world. expect think, it's almost, banks

New dare not cetera. more to more capital, see mortgage businesses credit but you income, up, investing, card therefore cetera, spending. et economies only of transactional working see because you needing you the opening And growing, businesses interesting because more a et see much income, again. being rates, And et markets client low also move then much cetera, much

to were benefit So, ready clearly, we that. from

a for to implementing the making our to why servicing make At job at we as ready of happen. job that's do are better same all plans the time, good we even we did said. sure digitally plans this team being our So really the that I clients and and an have

much. That's great. Thank you very

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

Good and the morning. capital, hi. GWM second One lending. Two please. on Yes, questions one on

have you or going banks new potential forward? that loan. Basel do buffer management this -- GWM loan capital particular First, are capital at mentioned and XX% particular in a do of about incorporated growth was transactions? And in to target considering, about then supposedly III asset by you how Basel And there some IV to mortgages in I follow-up say lending ratio? for increasing think your was driven secondly, a wondering, an think change to Lombard or you. forward? looking inflation focus going should also you how say going also M&A finalization and or whether in so Thank we expect a bit Or capital-light Should or excess up everything in more division forward loan for is Some institutions on financial structured payout? growth you your targets. that

Yes.

reiterate the to intention our just naturally, flexibility. all is capital excess return of above we welcome terms capital XX%. in And to again, So strategic

point, for billion. wouldn't shareholders billion our put I certainly that work. would of we provided capital note We not to the itself, have all We them flexibility capital It's believe not that that of each to on the actually you in. also year-to-date. for to to because want of in a generate is built $X generated terms In to $X.X put to we quarter. retain or quarter work the we behalf we buffer In shareholders being we capital something our your acquisitions? mean that saw generated – being would would capital we retain ever

be alone that we're opportunity, we that flexibility. that likely us strategic to address able capital So know see to significant gives us If generate help pretty some to we opportunity.

$XXX our quarter, and or focus, where been of is is you've Lombard you we've XX% in and of The portfolio Now billion seeing I of that's preponderance terms that billion our the end XX% total of guess almost another year-to-date of in is of $XXX lending GWM majority the growth. then mortgages. And lending as GWM the the indeed are that loans correct. seen

that consider moment, total would financing nature. the is be at to our we of Now more about so X% stock only structured, single of what lending subscriptions

our there the about related opportunities, very heard going market type mortgage. continue to in Now look for on see expect will other lending. to forward would where We flows across flows going launching That's entrepreneurs, of part lending demand we particularly to our good lending. continue we But we're you also client that is is is that you areas bank to also structured within And that And the to banking lending. do that sources to in intention our continue Lombard of the broader and growing of talk to other going that Ralph US. a want address. platform create generate

for going another that's opportunity lending so growth us And or forward. loan

Very clear. you. Thank

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

much question. taking very you for my Thank

cost. on one just The is first

previously do terms then some secondly you divisions together? as restructuring I And already But of made comment target I your helped there like about you like is lot said wonder, currently just I mentioned. benefit It's as And a to talk by on stand? just confirm I is UBS divisions and go the working already billion You guess or of the how is where out small much that helped a you you And potential QX performance, year? there well the you want think next very the not work early Thank a there management. benefits incentivized much. how it whole across charges – year-to-date. just this program. for? that update with cost But think any potential, the if $X to already have within asset you to obviously is you much And in – more is has

Well that real I Anke. plan as the here investments. also so we can plan, the much through that a actually to give you, bit – is how the there February, come XXXX and of into XXXX more impact our where in of you we that, detail plan room then mean see to on Thank but the numbers we and also on translate impact and cost cost will

the side we On these expect make. them the make the other extent to investments returns to that

higher. provisions But because expected markets On bit quite some example, that had as see the restructuring is attrition for the we a little of we what well.

release well or is voluntary So cetera. in from results us cetera, that perspective, the et market as there helping – is because happening et

So this Kirt no major – for least quarter third I'm was... looking at moment at at the

Ralph the further million update as in in which is $X second in $XX billion million you February. Any to said $X lower update expected. restructuring quarter quarter, after than on third on the the we we'll related

Yes exactly. on And the... your second question was

across question on the collaboration second The was revenue divisions. business

to ourselves with wealth. our client. a ecosystem as we're developing we one the customers believe that you UBS of And know, as at the have in them of our Clearly, same Yes, in so the truly ensure to to trying partners that work more We we that is to want divisions. we that plus in support than very their collection look it's and ones capabilities an there. work order point good for deploy

together markets product wealth it to happening example program If in Investment for is if specialized has the the access offering. For in on areas. lending, direct many and with that the the it to do which do – you SMA different need working management Concord the US Wealth to has or further collaboration, under Banking on with the asset and the

there certainly where are So the so. we do we will feel opportunities

from make the the have of same has divisional house top that – all get fully the is realize the which product members, we products that should the You best Board sure the Nobody from sure sourced best specifically, is the financial service we in clients collaborative, house, of or which others. that top and KPI Executive the making our serviced KPIs. a that have

changes that made So year this to in already make quite some order work.

Okay. Thank much. you very

question is Regli from go Please from next Daniel The ahead. Octavian.

and presentation Global NII, four the have I on One for for Thanks Management. question. my questions. Wealth taking particularly in morning. Good

kind you QX? you you And deposit in yield what revenues? posted you the were what maybe of optimization. you give again about Can and strong on understand, revenue interest here to IB in route curve an quarter. going current an revenues for kind outlook for maybe outlook? the expansion mainly I to As expect Also thirdly, longer-term shorter-term an banks idea IB are of have us in margin seen has And of management due the a give QX. is now And of talking then to of for waiting us shape terms Can secondly the forward do Obviously, a very kind this regards revenues. now. And pipeline then NII impact or with maybe... deals for quarter we on repeatedly normalization pipeline while on in again the for in IB normalization

Daniel, Daniel, it's here. Martin

analyst. rule So two questions just the per is

two And take questions. the take we'll you. right, more we Thank So a these there it from few on because please, have people queue.

right. All Okay.

Daniel, I is on will with which your outlook. here, second start the question,

And where of really looking from to for benefit for to the side, for extent equity in et cetera, in going this this it year, current look But opportunities see to into, of I'm at markets, we we as continue good further my scale month. so is are add think to opportunities next M&A, actually markets momentum going as capabilities to by that models be well, go on hold looks up what that quarter. to terms Markets to the overall see – be capital constructive kind that we well the business market next their we going businesses. the good. grow the therefore, looking also build core the So the companies advisory to market looks knows. see this also new in you the currently, who to in not to introduction in

So from are as that general in on perspective, advisory side we markets the constructive well. as both think the that

this And year. – the improved maintained we've our of if terms net look also, margin in would expect you has majority of loans by your as was question, you GWM $XX new with we've generally, year-on-year billion in generated on our but the Daniel, But first the of on those a at NII loans. growth basis slightly, margins generated actually we lending overall,

a good we generated buildup was predominantly deposit see Now by flows, so volumes overall in actually a actually increase that increase in good NII. And quite over we've the last quarter-on-quarter, seen in three did and quarters.

helped quarter. the for some specific to Plus had some for sale overall in in above to that we've heard done included that, the available securities $XXX,XXX – to us that re-pricing the us. also non-NII for quarter contributors we addition In you reference US a and some some clients helped bit or that NII from other that revenue of non-margin sale the our

look main will next year. flows if our drive that you we expect revenue quarter-on-quarter, to the into NII, will forward, Going stable. referenced I at factor be look be as we that

of If deposit some won't short-term us in in increase expected shape side rates is the interest curve to really of help it currently until of back the XXXX. really that takes end change there a things. you curve, at help the us on the but the look And margin

earlier an leads to heard you XXX which basis question increase, billion, point that's about think but $X.X theoretical. I that, the very Beyond

a apologies asking more questions. – ask lot. wanting Thanks to And of Okay. for

worries. No

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

you. Thank Hi.

two So questions.

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you Thank for that. Yeah.

from Yeah, right? which is lending, different So different lending. which – structured structured from is

know. So it's just -- you

Yeah. Sure.

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you. Thank

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

Hey guys. question. my taking for Thanks

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Okay. Thank you.

In like and for in thank absence morning. this of I'd us further calling staying questions, to with you

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

your disconnect may You lines.

continue take and at break short now Q&A We will the XX:XX with media session. a