UBS (UBS) 26 Apr 222022 Q1 Earnings call transcript

Ladies and gentlemen, good morning. Welcome to the First Quarter 2022 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 Sarah Mackey, UBS Investor Relations. madam. ahead, go Please

welcome, and everyone. morning, Good

additional agenda report, refer our I to Before attention today's SEC to filings. factors also can your like our today. we results Ralph hand over It's now our Hamers, cautionary in Please of start, to On annual back disclosures our CEO. two, Slide with you to statement draw the Group together risk for see would slide XXXX the my to presentation. pleasure in at

Thank you, everyone. morning, Good Sarah.

proved of The of the first remained geopolitical And to plans, result invasion scale and quarter key of dominated we've ecosystem global our by enhance the benefits we're and serving our Ukraine. on it focused 'XX once our of clients working power macro our extraordinary was executing during investing, of managing for times, priorities: a events and risk. turbulent day. three these hard as strategic every again Russia's We

Our and clients complex well had can you a understand. environment, as navigated challenging

together the was really further Russia. manage on At the our stay them them advise risk and and by portfolios and we exposure their same our to risk working own time, businesses we the So our control close prudently functions, to focus to across reduced management.

of focus clients diversified our resilience and business. management and highlighted resulted risk it in Our the on financially, another strong quarter

volatility. the far including last committed markets. our billion that to the important an more And and on wealth management Slide of during will it's private milestones portfolios of the so have volatility, ever strategy market you quarter, On we higher inflation, and this achieved have can We continue alternatives. in execute higher some are that to to diversified, well four, environment to rates, regardless ensure year exposure see $X of our clients higher than

this you for another in can $X.X finance first quarter. seamless accounts billion to as Our number separately our for Sustainability, the a important of our us we remains offering clients for U.S. inflows well. launched of continue sustainable clients, managed quarter, And well value imagine, we saw products. as

with rates to For transition now interest proceeds example, a And if are in preferential also climate in energy we the mortgages offer efficiency with of used Aon. fund Switzerland, improve buildings. new collaboration

Manager well awards, are the clients center so we in firms at we're across U.S. Wealth year proud in survey. strategy, XXX satisfaction And awards. named the have Wealth as latest received Europe particularly Western number Banking house Our derivatives Asia Manager Private sustainable been in risk in 'XX our Best Best awarded the of as including Euromoney Best survey, we Power also the client the in management But wealth Pacific, in Wealth of globally. JD Management in to one currency were investing

many doing. also more So personal for accolades to from easier with process do logins. login mobile We active how desktop for now. our many we're our is stay of evolving as continuously different clients as our our making three banking mobile We're us. mobile applications, institutions than than half to even times More switching clients connected it we

silos, firm. way teams. also see Agile in cultural from of removing at To of away part in colleagues client promise, working. our better became trend that our activities you So of different together We're across bringing us we're make here desktop even to types change mobile. delivering the UBS, XX,XXX this agile moving driving month, Early

support working. We continue also to hybrid

already to working provide who roles models. flexible example, employees an in industry-leading approach the that's the work U.S., we've eligible to work will in of remotely. that with For And employees opportunity launched to addition hybrid in the to XXX% we enabled two-thirds in

see. to short, Now imperatives, strategic continuing focus as can our you we're on in

purpose, a about as this. our sustainability also is volatile well, we those not in these especially of One strategic to times, forget part focus of core ecosystem, should our

You see Slide five. update on on this an

supporting in side, those donations. through the we to Together donate with committed the have the who people can we're relief Ukraine Optimus people XEX Clients flat and Foundation. towards markets, efforts On and match have the employees those country.

far, So to of million million. And is amount total a to with goal reach around our raised. up $XX $XX

still So million have number higher to till going we a here, now. raised $XX but

address on equality. advanced wealth also We our priority and to

inclusive that introduced we their investments. U.S., group specialized and promote inclusive diversity example, For helping team the investing and in clients growth in an through

across We've of side, map may planet well earlier valuable remember, the this client different in had as month, AGM our received you scopes. also our voted we favor On the road shareholders there. our feedback

with engaged our standard which we as disclosing further reporting in help Scope our based should climate on Partnership apply. stay the will Accounting X our this expand short, evolve One disclosures and will we time. that way Carbon Financials, by we for targets also evolve So PCAF is shareholders methodologies over in us emissions

of to our to member founding innovative developed achieve net Green voluntary a a own trading the us member a scalable help emissions became joined being platform create we truly market, zero Foundation as and steering carbon place an also carbon operations. Software We from

it's important quarter also been another from see a perspective. you sustainability So agenda

already was in Slide on subsequent Lower monetary before, against sentiment, And even Inflation before markets six. of Now and growth our policy. environment, as see China. to war was mentioned volatile. expectations investor war were this especially the fueling dominated tighter that in you and grow, backdrop Russia. market in Ukraine ecosystem the the by sections the can fears dampened and But continued

$XX stability our sector confidence reflection Our knowledge, clients turn a research to liquidity. more rates advice, that and our in And to knowledge. through local And of us execution and our to our Chief just also as outreach, ranging and the intensified covered annualized bulk deal research their reach, knowledge, CIO that to proactive our how in interest for mandates. and true to in And our Office than these reaching and clients, but And our a we provided hosted global inflows prospects Investment our growth over we our stay XXX,XXX We fee-generating advising of is events, our insight dedicated of decisions. more. client were to the and X% billion give an to saw currency into engagements how clients bit investment and close assets situation. rate war with you idea a advice as gave X,XXX to guidance topics that's around the clients inflation their this more

management In capabilities. in saw our strong addition, asset we inflows

We across fund $XX at fastest continued see as excluding money, well. accounts with new separately growth market net managed our business hedge investments products, and money sustainable The to billion.

inflows in put also billion $X to and majority growth Switzerland Inflows work XX% in the were a into personal were annualized to driver rate. investment Our investing where products. sustainable their banking money of clients of major continue in quarter, mandates, the is a also growth. And these that's

EMEA. as opportunities especially Volatile trade trading in Our institutional many drove clients markets well. had volumes, to

Our clients access were active on all foreign liquidity, markets this derivatives high resulted in exchange, and record. able global particularly manage highest were and risk, the in where provide we facilitate to equity volumes, to revenues

their our an as times, On control being in give strong update So And our our to conclude, a assets that Slide seven, the you that throughout strong on see value us. is of Russia. these stability, with source one is clients us. trust seeing continue environment, they to of we position the important reasons capital to complex and keep work

on for proactively. also focused to our on this can here, managing We're strong And reduced during quarter. significantly a all sanctions you the So being the rapidly exposure our clients side evolves. as our already applicable partner Russia complying as see means situation own right-hand risk we low with

combined management, us our risk diligent with diversification made more resilient. this Now global

the and indicated, operating CETX clients results, to growth. Slide cost, income gives strong and Our opportunities. this led ago, reached XX%, you challenges a leverage profit these a Operating was and can on was as meant X% on worldwide advice churned, Return profit remain this see up consecutive also eight. up of XX%. seventh disciplined We times for year XX%. year-on-year up through challenging financial capital these versus Positive was as quarter times, pretax on but net making

percentage over XX.X%. decreased ratio to cost-to-income points Our X

also We by in of back the end $X and of track the to the well buy shares repurchased quarter, year. on billion $X.X around we're billion

opportunities plans take for investing. ecosystem the lines. we're do and both that, our that, top And we who the into bottom to our with we us as growth the well Q&A. will strategic numbers as over captured hand global we convene Kirt, So on And our executing as drive before I'll get to vision to through

best and At a return a everyone. billion, was CETX weightings we $X.X $X.X imply reflect a the given since loss on We environment, credit delivered quarter billion, management made profit updates million. return current some we translates macroeconomic to Thank to apply scenarios were expenses XXXX. continue up $XX for XX% Good our PBT uncertainty. Net ongoing and and the capital This on to first net you, equity. - overlay XX% tangible morning, Ralph. XX%. to

$XXX $XX the 'XX. of overlay March, As a million reduction from million, total XQ was

helped salaries. keep our invest remain X%. to deliver and Turning excluding with of FA while achieved to to while cost-to-income on to managing variable effects expenses. which This a currency pressure, the line litigation, our some around we expenses, absorbing in of us quarter, and and We notably growth for disciplined inflationary guidance increasing compensation, full in ratio XX.X%, year continuing

positively in to Positive billion fee-generating growth led quarter, was Net Moving the higher together from contributions of Americas. line top U.S. $XX contributed costs the increase in by from higher the regions X% X%. to higher assets that regions despite and operating expenses. growth an supported $X.X than were of more with offset financial annualized highest Revenue our drove compensation, outside businesses. down the X%. in billion GWM than rate more growth APAC EMEA PBT All income litigation inflows advisory operating provisions, Switzerland. was higher X% an which, to with net in by double-digit all new

were by sales mostly This mandate new net of quarter's billion. fee-generating driven net $XX assets

mentioned strong continued offset $X.X momentum Americas, new billion as momentum in the Switzerland, the in continued in EMEA. Switzerland We Net was committed markets, quarter, first $X quarter and where earlier. deleveraging partially lending positive in as in by and Ralph also private the APAC billion clients

Sequentially, from fee revenue alternatives. the Moving as income mostly notably regions, recurring Recurring net from tailwind to along of SMA the and into in more income in and inflows mandates over the than asset U.S. the was from income. momentum with performance year, day effect count last new fee-generating X% year-on-year, by driven X% down grew negative initiative lower discretionary fee our market FGA. other offset net

NII based a on as described backdrop higher in were macro was private with up These year-over-year average deposit of regions. client these geopolitical balances Sequentially, on strong around As already the taking, our income is quarter, and Net guidance. as uncertainty. well alternatives exceptional APAC, Americas the momentum in reflective decreased 'XX. mandates line balances with and in increased of continued results Entering versus second that prior in macro month XX% margins and which daily Despite where XX% have transaction XQ in Transaction-based reminder, especially generally saw based with risk X%, in other clients levels activity revenues affected on decreased reflective end the calculated income billing in remained XX%. lending continuing interest we growth and challenging balances. markets. very factors, volumes by an Ralph cautious geopolitical

revenues. anticipate in recurring lockdowns. This likely affect given the we this ahead, Looking of COVID-related transaction added especially both effects will Asia, persist, and to

hikes markets higher more remain is these that the course to assuming markets NII now of with headwinds, U.S., the additional flattish rate the over Given year. offset in we factoring than in expect

see growth around end For the quarter of forward increase XXXX. of half the XXXX, second anticipate sequentially. billion majority we current increase curves balance $X an year-on-year XX% In of we materialize of could quarter, in on this the and based sheet. NII will The second remainder around

to net increase see Recurring along and continue cost branch million travel, business million X a by continue higher revenues from transaction, CHF 'XX, $XX all-time fees. with from we net partly an investment fee gain million. $XX We XQ in momentum This XQ clients. up by digital higher ratio compared million of Operating tech in improvement very foreign an $XXX with by from to revenues in mandate to XQ The year-on-year. 'XX. up good partly income exchange control, also XX% were offset account income. compared Costs interest loss in a spending recurring a release income strong expenses of closures in increased with 'XX, from credit income P&C benefiting million million valuation income a in was XXX our strategy. credit to PBT XX%, was fund card custody, to loss transaction XX% as a reflected credit $XX execute $XX down XX% X% driving increase loss to with X% on offset high, and cost costs point increased record was in leisure percentage level Transaction-based primarily increased

fees NII mostly result in over recurring year-on-year, measures. increased billion by investment net months. product momentum was Continued optimization new a $X.X inflows XX as the of past X% of deposit by helped

sequentially, XQ good run lower ratio PBT to adverse billion quarter, record, helping For markets, IB's Invested a the over rate fee flows management XX Management, increased quarter, $X lower highest of new The with a across momentum. XX% particularly is rate cost-to-income Banking Global an from Markets for were in billion, Performance in delivered money, keep were annualized fees record X% up billion were asset Net equity return assets last was net PBT all of to were against was the net 'XX. the currency continued XX%. its inflows X% down Net delivering reflecting supported alternatives product attributed quarter. million, flows management's exceptionally was on new Costs strong effects. for investment year-on-year. fees growth down performance money excluding on market Asset a XX%. new XX% down X%, XQ Personal below the 'XX. In $X quarter XX% up an distribution months including channels. just $XXX $XX

revenues ECM, in by invasion from the and on 'XX. Concerns along compensation default LCM. pools loss increased policy the income 'XX, million revenues. prime down of XX% outperforming Advisory XX% of of primarily revenues a especially decreased and fee by very in XX%. were strong response, variable higher Global about were brokerage subdued the revenues to exchange global foreign rates the as increased a capital monetary XQ advisories, Banking Global equity up with as to XQ markets client weighed first on lower Markets X% derivatives, The inflation income $XXX X%, the driven investor on X% ratio higher a was Excluding across equity quarter issuance Ukraine, expenses in flow, and markets. Russia's DCM in income cost sentiment. Capital deal result versus Operating was products.

XXXX, billion billion the leverage XX.X%, higher March, ratio increased was As RWA Market a cross-border increased our quarter of reflecting billion counterparty - Credit across higher $X.X of decision year, GWM to and by ratio end reflected moves the increased CETX and activities billion. and average related as RWA sequentially. higher to capital regulatory and increase matter this risk second bringing movements was last quarter, risk X.XX%. and billion and P&C. the further $X on stress asset derivatives in classes. due our credit market in $X $X.X by far Operational $XX be by GWM, as the in RWA market-driven in risk the CETX RWA the from IB well court will increased in lending to client activity and French December risk in matter

aim continue billion back during to We buy $X to XXXX. around

almost Together of XXnd shares, the the dividend which accruals, XXX% $X.X billion quarter. XQ this net April, As had represents million our of we in $XXX of around of $X.X repurchased profit. billion with first in of

It I UBS' my of would a great to shareholders for XX has at like UBS, privilege Board Executive Group here to Before our and we be the move the CFO quarters. Q&A, to Board been everyone and thank colleagues sincerely at analysts, Directors.

the also later, the to We And ask. to UBS that, there's on answers result the all Kirt, well you think, sure there. a colleagues as years to I sure here quarterly very real today, could in make for real last what add wing meetings prepared. done of that thank a at like discipline almost behalf these for have can for audience And you here give have I'd it'll and you I open support disciplined, CFO, a your that as making as you we done here still two but can were very over what I questions all me the think man. be Maybe that UBS for thank I well

in a to there's sure I'm already miss transition with we'll - going So be there place smooth Sarah, is but you.

So thank you very Kirt. much,

Ralph. you, Thank

Over to I first the and one. audience guess, with Kian, is the

[Operator Please JPMorgan. Kian instructions] question is from The ahead. Abouhossein first from go

question. future your taking And Kirt, all, very the much thank for you in best you of thank and my endeavors. for first your all all Yes, support,

coming question. So the to

respect through think you In et wealth transactions, the to may. the the that the line, how in the we and talk I on flows, if The you about year? the basis? about seeing you're context, about net cetera. trends? slowdown should Asia a the mentioned about continued half, first bit you bit talk the how in clearly is ongoing management. relative NII. about second little that progression can a trends You mainly, through also with regarding think Can talk but new to billion Can you talk - And offsets quarter, mentioned that revenue You $X regarding little that we on a question should Pacific, lockdown, deposit beta in unwinding second money about

still second you of more see to reiterate I could relates operate stands ex-variable, the issue terms in that considering question costs you The guidance on the that the to of if environment Thanks. around wanted cost. just if inflation?

But question. it comfortable important on is sure that first you, fill your to feel there on all a around the take going Kian. is couple I'll things. you one of last Kirt factor in that. Okay. Thank as I'm cost an

expect we clearly, more see coming UBS is side, bit for Switzerland, cost cheapest investment the low think from, that but to bank a part about cost inflation. is a in of where there's some one the very and up our of that's inflation with through cost we upward in in salaries. the globally from is to things pressure U.S., a perspective. But Asia in well, diversified - well the which place the this the we coming is and once large are moment place as there that and across actually continue. on operate a pressure certainly that well not probably bank, is see here as at us we what base manageable It's time There So I around good helps

of helps that terms costs us in So managing our globally.

as we know, We years a last cost delivered $XXX year. launched Secondly, X.X already program ago, it million you $X of of savings billion.

We way to here are on to planning $XXX execute well. million and our deliver as

comfortable X% on comp ratio are cost of the exchange variable we with foreign and to the ex So to there. market, cost-to-income XX% ex guiding still how develop. a XX% litigation, ex And depending markets feel we the committed increase,

that's on you On a So on with side, similar sentiment Pacific, is we the clients Kirt quarter. Asia the more. from actually, cost. one number give What last can see

to in pattern So wait-and-see terms net Positive of new also a investments. active muted invest quarter. this appetite of bit a assets fee-generating

UBS So firm, of quality basically, our the money advice Asian attract also stability, clients. with as the a does

still the So inflows. we see

quarter also in well, We continuous deleveraging have seen third certainly row. a as

of sideline come ammunition back And some this investors clearly, So it make market. quickly those moment the are that for patterns. of at so the there into are many the factors to the in world kind

- China be moment there's can of that come opens will up the and numbers, money for specific the to think is maybe, back. now less going confidence So there and lockdowns Kirt, that that numbers that Furthermore add? more strict you I truly

you, Ralph. Thank Yes.

overall to prosperity. declines, the just add with client just regions. in in have of would started revenue that see, course, I And China And other particularly year performed launch markets, to the apart the quarter Kian, from Asian equities related to recall transaction of course, relative common sentiment. poorly also we So just third of last

we revenue. going that's we're markets. see Asian clearly, So forward that depending going seeing impacts recurring And in on on movements to also, overall continue

your beta, of particularly the front as overall is And that question. into we will NII you. three see Pacific, to be billion - betas in $X built Asian the of rates. overall, benefit quarters. the $X mentioned be also Clearly, in the we we Regarding since upcoming as would to end pattern the we've the our obviously beta we expect into seen offset that that the rise. in three I we've highlight was as terms surprising we billion expect although quarters it fact see of in that our be the wouldn't to the well, around expect a outlook, of in we in XXXX, start would now progresses we beta that progression partly increases will interest that What deleveraging row. Asia to will by And part get this and lower

clearly, impacts in that our revenue APAC. So

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

staying just theme, same best well, questions for Two on I morning. echo the the the Good guess. as Kirt I to comments also future. And

bit First Investors think being bulk in but mode, see you do done. question deleveraging. a talked and just is the still of deleveraging know the on now Asia wait about you I Asia

gave here, turn the forward to So NII sensitivity. curve, expect return rate Asia Asia you back then would GWM uplift to on question to guidance the growth? - curve the And loan based continues Park interest steepen. obviously from on on forward Previously, to the second GWM you

So additional income? and of you XXXX commentary you. in can provide both on terms Thank XXXX interest net also there any for implication

Okay. Maybe deleveraging. on

in in actively seeing the is that Asia support order our we're deleveraging in what facilities to with investments. together lending our So managing have basically clients, we

less determined and of one certainly either the forward top the focus there of that our for of that facilities ensure On family in offices So loan how on the you that, stay it's Asia. to values how real the more and the at wealth institutional the development with the the bank by markets one higher wealth growth and see that approach markets, less in initiatives those again end look may Global leverage you is managed. Family also market maybe we more leverage, or or going Asia, is do think are if I a strategy of develops called

being So that stay expect steps also in we we you prudent some that leverage should small in extended because clearly, I think make do. but what segment, sure more in we could

then risk is well. And clients. and clearly, - of together the is provide back going more leverage prudent markets by our the that, driven back as time, institutional But with our And management on global Family if there up, So initiative. more over region. see top also up - wealth leverage Kirt? markets leverage could and the go the into we'll Global is Asian expected to provide the you

Thank you. Yes.

one related Just APAC. other comment to lending

as have you leverage where think the highest that's the region penetration. I we know,

see P&C. like not do but clients guided forward. interest turn we're your Asian expect quarter P&C. as their deleveraging investment $XXX million got strategy. sharper actually another sure we pickup to completely leverage $X of you also see when just indicated pertaining positive, $XX would part actually, use XXX, see There's the expected Overall, we XXX to now our sharper to - million that but in they we roughly last just that's when - around that I billion. at in We question, therefore, But So around you GWM, and also around going pattern negative, tend turn to to they

is we sheet. on seen, course, last balance as guided. the curves And P&C we in So from you also effects static when that mentioned, an as this on based have also, increase of moved forward

an terms on see might lending movements and balance inflows you what the overall So we have side, both of in or deposit impact expect. will the sheet course, of any outflows, on

around XXXX. You mentioned guidance

we think would provided rates I you the see quarter we should course just quarter, But in of what and the into second is because you expect this of what next quarter-on-quarter obviously, the as year. just hold, first through We if of expect pattern to increases rates year the haven't any. get see

guys. you Thank

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

much very you good and Thank morning.

also very of the best you kind give net much over all and - sorry, given you kind very kind in for of with got new the about a question, us kind questions new betas of of I've any look questions, that they're from I of higher, wondered Thanks number? very us more Kirt, adviser-led I of sense to the parallel deposit years the before - much. and two just when Could or of morning. topic of $X assets. NII the accounts I times of billion - kind us points us and of accounts. channel shift for thank we And my are - - they disclosure? the that sorry, weather future the is kind think, well, for slightly you inflows. would partnership luck existing generating on course, One you've have what got us the to by new And whether our assume is much us, because, 'XX at what's this I give kind for brings. particularly money you whatever inflows going Or a the number guidance the give just billion net driving the got of back the chance the fee a We've sense the where strong basis and how And could the suppose, generated? your second XXX the perspective this if course be from to slightly quarter. you you one happen at because of bearing of

Yes. you, Mag. Thank

actually, assets, new less for existing think I net more - demand the further where that's clients, we or on So fee-generating it's a mandates. do see

what the business, part which managed large is new net assets fee-generating a that see you is into of So advise. the moving we

So that's good.

there. at Americas the still the well. If is new the products, positive developments, in more then through with there. have important sustainability Asia coming you the as continues be saw to specific net product to fee in demand largest Pacific, generating indicated, And look assets There's as clients growth for very we we as maybe still but a product geographic alternative is

quite do well So time. at that's flavors - those are this basically that in moment the

of I maybe could comments. couple Yes, a add

real I believe in share implemented alternatives, at that, initiative. And fixed you movement in you and credit mandates momentum across continued And expect, of that been you we investment the well there's been patterns at there's as there, more terms patterns some And executed if do that SMA since and also if funds taking think you into might also we're SMAs. versus saw equities into alternatives. the as we income certainly in look as movement within look estate. of overall, of the movement like overall

side, NII not we had just highlight, to in rates. rates a I our upside out I'm basis that that do go math the and seen in will you've would our you as come see number up that report. of compression because the continue down, course, exactly interest you XXX down come see mention as put While higher sure, we points interest

a give the to effects there, rates, should of the that the interest so incremental interest we is time. rates if the of And see bit couple higher little a more idea an were you of sensitivity of think increase there's I

opportunities level with and betas, but see course, other movement also, markets into also some least outflows money of Of interest. at we see we generally and higher into from deposits

your assess kind of almost follow the broad Thank that. just partnerships course, up alternative for commitments. shown also within do business? kind billion I you much very the internal can When because, you. capabilities alternatives your How of of - side. you Thanks see on versus you've of And $X

Yes, question. Clearly, as within have it's our management. capabilities asset well we own a good

developing specific We funds. have O'Connor

the that an at the ecosystem multi-asset estate businesses, globally that well. are come capabilities well. there for very We very asset we are is in that market open So right? to That's external reverse we're the also and therefore, market capabilities clearly third-party And as distribute important parties to the private to concept attractive we have largest and But as as sees private for product. real more we money open. for third And well, also whole products we're as of equity-like their ecosystem, look management partners.

parties. equity side, on there there to do And attractive is whoever join for have many and can with on clients. private we us taken be So so. platform to player a to external forces is to advise our steps also curate the opportunities We to that the

Great. Thank much. you very

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

help Kirt, have two And side, my best forward. the please. morning. going the over all much thank Good questions, very for years also and the I you from

the Russia The report, question you clients if I assets on and subset? us not actually sure write could but Russian I Russian And the on first QX if the clients. Russian a to of captures tell I'm what the investment how of four X.X%, wondering that you all saw was clients? much bank. to second relates only your Page are invested relate

And month-on-month much. March? in first have come Thank whether it typically spread first maybe was actually in would has it the year was or $X.X was of from much been revenue almost you what also quarter quite very billion, this a very during month that of how particular, obviously if months us is $X.X markets billion how can of give global distributed So rough wondering sense you quarter? the in different impressive. normal some I by

Yes.

So question. maybe the just client Russian

we Russian out with people disclosures. and confusion when did of clients lot you're right, of there's think And come Stefan, a around I so scope -

our this invested inflows We looked very, a management on is scope wealth assets if doesn't regarding the deposit of And well our as months X.X%. quarter. so out that actually January scope is $XXX,XXX. that drove quarter best largest were we that drive what we best took drive as a but It not and that throughout generation year. saw of more that we and and is at months you market's that IB context Seasonality global we broader we that what Russian derivatives, all. say the firstly, certainly, that maximum are clients is pretty the with the clear in terms and overall substantially actually markets along to in, us, the it and course, FX month we unusual I significant bit hold geopolitical this at impact of about this total think And the we led good even the to naturally, - there targets going on a in we equities, because And conclusion manager, the overall particular, is think of the good typical business. we and revenue, our momentum Then wanted to actually Swiss often highlighted, in usually it business, wealth play of ordinance very with. meet we've with the did very, total was unusual, generate start the in would we that, quarter ensure overall of forward? growth And first the very a is have overall would as were I also that distribution to one broad And all and laid some European very that of basis, And play those the outflows to we of was how of we clients of But at ability to saw market in the turning a in we've see were in the we had. would the rates factors went revenue. quarter. the say what quarter and three throughout

I follow very Swiss understand Could correctly, the just if that EEA please? saying encompassing. you are Russian So rules the I Great. on and aspect, you're all maybe up

the also that include So tax U.K. and impose the by would U.S.

Absolutely, just include imposed. than population a would it greater where sanctions were far

might where large are population susceptible when a you that that exposure. within In fact, we also any would and client that believe there's we further don't segments look be still of sanction part but that population, likely identify sanctions, certain at to that there there's

definition. pretty a broad it's So

our in the applying of been here the assets, are Swiss So to small at term strict and the conservative this. EU most it's the and part approach their we've pretty and invested a definitions

And those overall we've business, actually have but in looked been our to how We've very we've populations. reduce been sanctioned, populations looked risk. with higher at also proactive already clients proactive that also we've with just not

much. very you Thank

Sigee The Please Paribas. next go question from ahead. BNP from is Jeremy

how me there's just that from term sort if RWA Kirt modeling. billion best I wondered more for obviously of risk to you please. know whether comfortable more ask helpful. well. you're, RWA factors questions, market I near the us Slide don't there's play inflation wishes to as of wanted work, expect the from how And as coming. op models come from Two you. credit which Thank sort I to up One those you forward, risk is on some guess, just told I some very you've XX, Thank inflation still I with in there's XXXX wrapping still guess through. risk your from other that of well, or a guidance. $XXX of And drivers the whether lag effect more capital. and

asking what And that run rate. something really kind net I that Or we uncertainties kind Are then rate on more be help timing The small the really I'm question was my an of in just are question pace. any flows. And environment quarter world? steady at money was exit the flows in continues? in a So great. just very on the second would guess given a subdued where new is the of flow in the fairly we

Yes. Thank you, Jeremy.

RWA, we quarters, known for already we op the to FINMA, that around business terms obviously, do from $X that year expect the shall three of we the year. be And be have changes for encouraged increases volumes. driven say. on additional by remainder of for the that, we by Away those of of billion the yes, In been model remainder terms further are in expect Also going to risk. it's guided

$X the we at certainly, to if market reduction that market I because stress bar, increase, that of volatility look subsides, RWA a that Reagan see in you we would referenced. saw billion risk If expect

I in we about the guidance wasn't we XXXX your - updated how question, our sure what Now but did, fourth quarter.

III our that $XX adopting FINMA there expect would of any there's $XX of impact estimate subject, the and to that no referring would be still billion, to you're what at very finalization Basel of course, we still billion perhaps effect importantly So discretion.

combination is number Basel? a anticipate, the the strategy 'XX of we that's The and growth

Basel. That's

So be the... with in we still would line

no No change. change There's there.

No change there. Yes.

That's So asking fine. is I the million really yes. $XXX was what

then flows. second on Yes. And question your

So we're months asset over distributed. overall well pretty net the three where actually, new the fee-generating flows equally

we see good so And continue flows to in positive March.

you. thank Okay,

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

and also to echo Thank good luck and you. the thoughts thanks for And for future. help my you've Kirt provided

about terms questions. I then a on seems on what lending secondly, to or fee-generating sense two steady just further been have has drives to the a of declining or in contraction forward? to get think I relating impact, And million of trying to it volumes? regards billion get you're stable wanted how just the been in Russia, to One, that just in And also P&L going a of like how so reclassification of with there but particular little of about whether noticed on the the bit of margins, and the I'm curious a seeing margins kind the terms of whether other firm-wide just Russia, think guess lending. So $XXX the that that? about sense assets with what I lending. APAC, follow-up there to in $X

thank you. Yes, Amit,

little from the billion, with $X.X settlements mostly and wind related derivative we with of million that you was either a to there, taken in a and related. small down line the $X.X this impacted we overall with million provisions majority that $XXX remaining in which banks. costs example, that the or see interfered have, have $XXX might the portion nostro exposure and the receivables And were bit for therefore, of a is taken our vast So very the the we've IB. where CLE of and terms is to billion and sanctions is There's

$XX.X mentioned in terms clients billion that a of of new we the - sanctions. assets, think we outflow our Russian excludes that consequence fee-generating saw with the I as is some what net

we that future unknown. say It ensure depends that So course, bit can't aware you're we sanctions direction of that just impact haven't on mentioned some just But there to might a really It's you might what forward. the number see. be And could that what any that we is. adjustments. new of going were

really there's pressure the regarding deleveraging, just you Now Pacific any And with up - supply-demand and Wealth well. our think margins, as in on see our Asia not held lending of overall there's margins margins dynamics. business I not Management because reasonably the have

to seeing have on fact awful continue to an there's rates, a the banks, are the exposure, is Switzerland. there mortgage bit. pressure particularly lend pressure particularly And long-duration given Now an and from deposits grown margins we that of in exception to get Cantonal quite lot where interest

an So of favor And closely. we're market up the that give us volume margin. actually in monitoring past, that will is and in area we share you've seen

we're watching we'll manage an a responsible so but closely. that's way, that to area And continue in

not pressure is This in the Switzerland, on the margin book, our new the changing is production books. It which is the pressure.

projection perspective, meaningful. a not revenue from is it So

our first quarter. And the it's - affect in it first didn't absolutely. Yes,

Got it. you. Thank

I on the was billion money Just I AUM I did kind reduction just other which the is billion $XX.X new The and derivation outflow. got mean, how $XX.X to Russia-related there potentially the $XX of the that is check, changes the billion net change, as other well?

Yes.

impact, was a adverse you you moves, there's was that, new that, assume new currency And greater the I can generating. the which also have to away from addition you have assets. fee new also net then So net generating foreign fee which you in market - you quarter. think have had than And also net translation, money during

to you that as you And reclass. then well. in have the factor So have

Thank you.

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

the all return the best Good NII. to I And morning, to Kirt. to questions. want thanks for

guidance, the with think to about I Because some Clearly, apples has want I FX the year impacts. full here. think make got billion, sheet book. apples you the we've in talking just I loan the guide, On balance $X sure reduced were

then on sheet And the sensitivity $X So growth. balance any is billion, smaller, additional to saying have is beta have given the and that. slightly rates top we of sensitivity two - through that and sheet or the to adjust between difference balance slightly layer we higher than numbers probably we are probably for on that that is to then do the

that's static on given dollar rates out then NII term at clearly sensitivity. saying side deposits to out one-year So in a the we and has repricing pass-through. holding deposit Is back sheet. turning moving up the you're bit deposits, previous - had threat level of balance as the that threat cycles, now I of increased and what in it's on other the aboutX%? the cost And rates are turning deposits QX clients saw hear sudden I at think of and when there a on move from we the

and So could NII can next you that shifting quarters? talk to select the the whether pass-through term in that the than few rather but to can about whether not control, clients you quarter thinking are development, this

Yes.

$X take we the the maybe of the restate did we $XXX the as when how the end take So of close balance And same sheet billion the And the what quarter. then million forwards. the forwards apply basically as fourth We is, we to we our and mentioned just around quarter, we to this guide. and exactly with disclosures is always consistent possible. is

and we right. of XQ that flow - view XQ. guided positive for any so that, of I And our what exactly of through does million year. But on And $XXX or that's million. beta And it said, the not and we effect we the the any $XXX include of negative determine expect, It apply course, over you're within apples-to-apples as math. compare end the generation to at we is the and remainder

quarter, go hence, and larger guidance second to can impact as we you we impact significantly that fourth the the the of roughly then to expect we impact $XXX And So third continue it's quarter-for-quarter, in increase for quarter-on-quarter around expect, we some in the naturally, positive remainder as the was quarter. the of and saw there before, see year, fairly quarter. course, It's XX% million. first to said a

exactly dynamics. tend our as manage Now you're terms we in very sensitive. rate of of more repricing, overall deposit And to of do franchise, versus right large course, noting book that in our the terms consumer a be and, clients

And we so accordingly. manage therefore, that

as that We accounts, source are savings about but to as markets, want terming that funding. well, clients have funding current CD mentioned, I And was also make accounts at So stable a in source. and would and way as and we we think manage programs continue some we savings have accounts. we to that a And of also that money into as we sure outflows price accordingly. deposit us of expect out about for think we the will term I course we there that look And will well.

of is kind And speeds the at similar terming might this on in of the comment to see previous out, terms time? any that assumption on cycles? Or we

obviously, as expect accordingly. looking is the And steepened, - we to interest would to the our would more out. just would term prone increases see say modeling you I adjust to clients Well, rate

Thank you.

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

question. the you you, Kirt questions, thank as well, my thank very much and Hi, please. for Two taking And best. all

the growth is OCI. forward hold bps curve? hit NII capital think of into expect, And well margin versus shifts question I corresponding The first income QX Should more that up XX more follow-up in capital. QX The we just I asset in in sees QX expect equities? saw guidance strong underlying understand then to to on for your current a the quite fee NII fixed mean, margin - do further in secondly, should about moves, that trend we SMA? based on that you versus generating And Or ahead some wanted in to the you pressure given ex the talk on you also pressure QX. and given

Yes.

that the that date it's we large in that $X mortgage-backed billion, from capital impact that's around to see reverse. extent it's we its impacts reduce the saw also holding liquid to it And losses were of impact, through it we're actually flow we securities. a that interest portfolio and our banking by In where terms that, said derived we high-quality if and gets - to of or reverse, the overall capital treasuries so would have to and mix Having rates life that CETX. assets in U.S. subsidiary,

continue rate So interest increases. going to be exposed to forward, we

mostly this in structure. of the if So is curves, longer-dated we saw further the curves, moves because just

AA. rating upper note are average five of of weighted And around Our well that maturity years. end the assets those the average as is overall just to

quality. very, very they're So high

in is investments of we generating observed, have some mix over to couple as think, and the margins PBT before terms seen ultra-mix more as And of also place impacted quarters. we growth. forward, net had going continue impact to further But fee terms we've margin have versus about Now well just importantly, which products overall, margin. of manage SMA margin move into that the note as you overall has that in stability assets in going our I trends and last our initiative, with on business be then to clients that that don't business by worth. that an for any high margin. the for manage We talked But of you the we

what's see. continue to us, very new positive run inflows is we from fee-generating net we all asset the for So see momentum critical that rate

you. Okay, thank

question next Flora Bocahut The from Jefferies. Please go ahead. is from

good you, morning. Thank

for you. all well. Two side of from course, wanted all, questions First the future as best, I of Kirt to my ask to the

quarter. this saw we that move RWA the regarding is first The

normally obviously slide The to end useful. very here. and the other you back capital back a at side provided from than movements. the to of I see. this what increase is is RWA billion going This get we So more to presentation just asset lot wanted $X.X in the quarter

reversed regarding this. behavior, could in So the of in say, What's just And elaborate volatility it the business how this growth? would do for wanted see to is be if if coming driver? question excluding client market, example? could the you APAC. second mainly The think quarters, you on been much reduce Is

and and invest, what of customers seeing whether post tell also willingness kind that's month mean, just are can possible? focusing in us QX, saw in So U.S. in of the to the Europe, really here if I you on slowdown the that so April, you But U.S. European finished, you. whatever borrow. to your you some Thank

on can Flora, comment running, I that one, we're still to start the month really Maybe it's - honestly. which with a last is hard

let's month, get or weeks weeks be that which of can't a ourselves not because you would kind X X.X only extrapolate So anyway. in ahead of

we of in lot X X, on last what weeks. value have the seen think So there's in a commenting I don't

in what recent of around in changed inflation most the to And around thing combined a here really what I of is the news - that the checks the we sentiment and of at coming muting war, including quarter the from is important that And all the way, not the basically those mix with recent numbers It's numbers saw terms is our Asia, quarter. the investors. sentiments similar but COVID you and we see investor think a demand the by that the fourth basically of is cautiousness that where that indicate see of that our around globally specifically, have, most is we regions, ago. different can see we not positivism from out investor actually clients to has end we and situation. are

So neutral terms between balance the of being a or quarter similar pessimistic. optimistic from or ago in

a is quarter like numbers the more a haven't We globally, the seen only pessimistic sentiment. bit But it's ago. that around Switzerland same little

Yes.

plan consistent highlighted. our of lending all increased strategy due by terms XXXX. with we of for the referenced to when already we were combination Obviously, that question, and expect also the and during that It doing In RWA that there's our I partly quarter. we us positive consistent where with is be factors of a is to

increase addition derivatives to an was activities. also there due In that, to

our so derivatives, our businesses. rates FX that and derivatives And a increase and our on and of fact was our lot we from reflect derivatives up that when equities markets revenue were the you

highlighted referenced expect of All performance of that going bit resulted we of of we the forward. related from levels assets. the which in that $X.X very correspond, higher that course, asset there is we updates, Then more with to billion, saw we model good those some there's deployment a and that overall

the the continued execution or and lot that reductions strategy. of to will our on the As business increases the depend environment of a also forward, going

helpful. Thank very Okay, you.

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

for question morning. and Kirt, the two Thanks taking much first. you Yes, very future. I and for good thank have good my luck questions

just impact the be $XXX you I the sure the one, that just impact for Russia. make for wanted question was if on that I a And well understood distribution. rest the capital year? And QX? the do the follow-up the million first And it for The on payout to and of would case, expect second further P&L was

or ratio it payout As that in for the the for the reached of ask keep capital development you share if year XXX% that, you is And I is wanted is rest failing? it is earnings positive we to in you above we a buyback some development billion quarter. hard could at to positive? the should Or $X said, much. parallel Thank increase you something to if point expect the very mind and

have million, will that in basically pay from when decreased of the nobody actually did Nicolas, to we Russia of how $XXX lot counterparty, constitutes in started. Kirt as as we a of lot that risk should prudently the of Clearly, - war to as well provision for money. expect us first now block I but can this we taken to being exposure it, bid before And perform costs the some direct take that's should the want exposure provision we the already or has we sanctions what manage as a a is as of settlements the call were knows that because situation, and is that And is think failed or for period but develop, the how - we which that also what derisking. the a on is basically beginning, in will money some ASTRO, you the for with a which but that are are the counterparties say money-wise, risk or exposure risk performing. basically trade and lot to to some a world settlements, one, derisking settlements or the have can from indicated, to has bit world collect total. the frozen quarter in cost even But you to counterparty which early generally you've pretty on derisking, that. nobody view basically we self-liquidate knows seen the we whatever And coming at where going. where look a us taken trades risk Again, is the

Yes. guide And payout. you go Nicolas, just know, payout, in terms we as we'll on so of don't back and

dividend we cash progressive is saw the indicated and highlighted quarter. we've you what So $XXX the in first million

up billion. going also before We to said we said indicated now we're around to repurchase, $X we

And so that language. stronger, is more confident

you billion And year, at it so going to to look going up follow with $X repurchasing what you on will when the to dividend will then of the and remainder can assume stick the through ratio that payout we're be that we're the be. and progressive

Thanks very much.

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

good for morning. taking my question. Thanks Hi,

So I've two got questions.

bit terms revenues sounds a for U.S. split U.S. for regions, also the of more regionally, like cost of offset look the we But strong the If GWM. on by inflation. Firstly, other having Asia. in than except some

secondly, the your but or yourself too made block if not And guess fall. whether wondering could wondering can't I pretax good that? I'm for then or we're to talk the you confirm luck that's was profit inquiries to in detail, activities? seeing know this element more have finally, or litigation, trading And U.S. whether then on myself, future. I Kirt, for So one-off in best U.S. structural inflation about regulators symptomatic whether you And we're seeing there's that a wishes much I of about

Yes.

litigation, year-on-year, first plus effect variable and you line had lower for I also then comp we we increase in of fact growth. Americas last that the top as compensation. the overall increase caused had So quarter, levels we highlighted X% in a so would also, in that said, onetime of terms the the we course, compensation And happened year-on-year. quarter, also, we FA But a of GWM, had note what had - year

cost. in So all of into the that went increase

revenue that, except is think in revenue. a something would going comp. But expect FA it's obviously will So general, forward, note we far certainly having on increases FA on NII that also you for not payout ratio NII, comp depend so about if other said lower that than I - would in sources.

And so to that be positive accretive should pretax margin. and

actually interactions the authorities regulators. then our or can last we comment on as never you And understand, with question, well

won't in this Andrew. also we case, that, do So

Thank you.

of gets to the Good. us that end Thanks session. the

of to our team answer pick know, managing quarter to up into led the this Strong quarter us. is At I adequately diving done, want you Kirt. Thank that confidence staying strong phone terms to also reiterate maybe on close delivering With thanks a our you call. showing quarter clients, a we and numbers. lot, focusing Relations of your that Investor in that very the while as strong saying continuous in well. the let's ready Kirt, our quarter you. a capital close feel questions with my always further just clients, of would momentum position in to strategy, to As I is all may P&L in and share moment, that, for commercial Thanks for terms buyback which risk you've have, the conclude terms

you. Thank

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

You lines. may disconnect your

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