UBS (UBS) 25 Oct 222022 Q3 Earnings call transcript

Good morning and welcome everyone.

Before we start, I would like to draw your attention to our cautionary statement slide at the back of today’s results presentation. Please also refer to the risk factors in our 2021 annual report, together with additional disclosures in our SEC filings. On Slide 2, you can see our agenda for today. It’s now my pleasure to hand over to Ralph Hamers, Group CEO.

Sarah. you, Thank everyone. Good morning, pleased this to we with am good with share amid significant for quarter uncertainty, you macroeconomic discipline. I results and executed geopolitical CETX profit We our in €X.X XX.X%. net delivered return billion on capital was and

asset and CETX to and Our as our of for our for managed well, balance you capital cost/income be a seasons we XX.X% leading And sheet ratio to the with strong see. ratio and position continued investors. strong costs remains an risk a management can of clients all XX.X%

Turning the to commercial you the next slide, overall momentum. where have the overview of

the The slide. And through on can our of to remain on Client high solutions. end here of of the of the with and very This are globe are across Ukraine, year. quarter, volatility was across see really clients sidelines lot effects we affecting well residual generally least at It’s differentiated back prices, close improvement. inflation, time at feedback the down, waiting are the activity for raising has cases, have They you active with this asset energy concerned that’s about the economies exchange foreign from market the expect teams and I volatility private segments. them clients to slowing banks spent across rates a as Institutional on consistent. affecting about investors their and the signs advice sentiment in globe stayed central In pace all war record continue and levels. rates. the this our providing been snapshot of and and clients, investor remain pandemic, the

markets. the their diversified seeking as net through mandate clients back protect And and portfolio the seeking wealth. private higher-yielding billion a additional made We have through opportunities assets commitments quarter. we for on we result, new €XX products are rates. interest in for to to which private guidance, Management Wealth need gave, They clients fee-generating of saw solutions and their higher coming grow in

through funds money in net market this capturing management half markets. money new demand the through savings billion We’re of CDs of in money coming through €XX and asset and

money the have €XX markets. billion I in So

from is coming €X So GWM billion clients. actually

foreign footprint. continue also In optimize shows was and classes. seen and deploy value a U.S. Switzerland way mortgages Markets, that’s this record that interest supporting quarter, up down. to were are FX, XX%, also are have e-FX our We saw that actively lot deposit-taking we deleveraging It the that offering deposit We lending, our the geographic to the being and of shows the investments, mix Global volatility, I of across well. ability electronic FRC resulted organized. asset think for kind in resources the in and rates flexibility as in technology specifically And quarter but from And impacted this equities our our exchange foreign given which performance excluding as in XX% benefited revenues and being a trade I by shows a Asia-Pacific, mentioned, net clients we businesses. actively, and Lombard we manage is year-on-year our but institutional flat where demand in our income, net we exchange. for specifically resulted growth in book loans, clients and of impact strong loan The to And that in a continue saw

growth market execution organic consistent As is see, of conditions. strategy our despite can driving you volatile

economic But balance clients our the are The the employment Now where together regions. high. more sheet well economy really inflation other towards better than data holding execution U.S. in moving comes the our basically solid. is strategy That’s to up picture. Consumer regional and of remains relatively

rate rates is project have we X.XX% increased income, but have hikes to which asset elevated net X% reduced well, XX% to supported activity muted as recession. such they and Interest client at result, be up and interest year-over-year. levels of fat funds a the As risk

drive the billion and existing net mostly management fueled on to accounts that’s over adviser That U.S. financial So and wealth assets, inflows. of for separately new specifically fee-generating Demand €X from continue alternatives there. our base. managed

the We had quarter also quarter our our advisory quarter. which that in recruiting cost/income strong was commitment drive remains align also and this and GWM strong to the as our and should hires the fourth ratio, support and fourth These hiring well for scale beyond. XX% a below flows pipeline quarter, improve Americas through

which clients. our see you focused to So scale advised growth on remain strategy, is committed firmly U.S. coming the personally We through there.

solutions We will develop our budget. technology continue existing to within digital also with advice remote

way, Switzerland, moving stability relatively and avoid the by lower economy on inflation and of by gas. by due solid continued a small is of clients our Switzerland. in loans, to retail to in growth, to disruptions real business That across new dependence limited narrowly The in said, recession are deposits billion Now will Swiss we and billion crisis. net energy new Switzerland the focusing many our net million performance new in through also net Europe, rest Russian impacted and solid a expected them our products supporting of demonstrated be business in €X €X €XXX a on is, investment the

you of that’s is as impact, indicated us as to where on to can fee and assets having in for Clients back the €X EMEA, in and and increased the requirements more by times, turn macroeconomic the net unprecedented geopolitical uncertain generating these the most imagine. that billion earlier, significant than Now moving advice EMEA.

growth the our further business our know, we Spanish as We improvement you And business Management profitable footprint. and optimized of are further also also and this at looking in quarter efficiency of Wealth and SFA it have sale the we’re in Switzerland as part delivering again. our completed of EMEA and strategy,

with path also about a back question recovery in is as in clients China the restrictions think X% that growth we Asia-Pacific, economic attractive region. the Asia-Pacific there year. next that point there COVID-related dealing term, at believe and that’s clear timing. growth long-term in some property to are sector. whole the is short delaying a Lastly, But structural We is But is really prospects to continue still, the it our

We clients’ the billion assets And will continue of for transact expect it to investment with limit dynamics look through And inflows. said, also, willingness restrict us expertise. on another saw a at in region will diversification least our take year. to we And leverage. willingness and this their net end these for to they strong this new also in €X result, quarter of that as fee-generating

four fee markets, raises rates for #X XX% We including actually of new and net and growth Asia-Pacific year-to-date. we IPO is market share. equity the pools over in took equity banks Kong’s non-domestic fee-generating Hong outperformed in Asia-Pacific capital the annualized a in assets position claimed Our three in largest Asia-Pacific’s In primary year. that top markets

geopolitical our clearly our in the way value in faced investment we as add with So to very macro across resources to bank complex environments, and all our clients. very are our footprint but using are well regions flexible continue to we focused be diverse be capabilities on supporting showing the the for allocate of summary, global clients and and

profit strategy mentioned at our quarter. as you, on to capital return X XX.X%. how Net at at CETX execution Turning delivered XX.X%. €X.X the that for earlier demonstrates good has a billion, of Cost-income here consistent Slide financial ratio

efficiency as will to course, and expenses continue prepare we be intensify we further cost fight and times inflationary on and focused Of for our to discipline we tougher come. will pressures,

of X, position important you to that strength Slide a the facing of that to we have give Turning felt given the peak are these some into we in, environment it uncertainties. was we

target our capital. levels CETX remain Our at above capital XX.X% ratios well in

continue meet operate requirements of liquidity We significant clients as our with regulatory support well. to amount a to and

XX% our average all high-quality loan-to-value XX%. loans are loan seasons by less book, Our sheet is of the collateralized supported balance for than a is and

And in ability a generative with that credit have We we confident returns and sustainable shareholders. capital and has to risk capital a model limited high that, attractive our deliver remain to uses character.

So performance delivered the we good quarter. to summarize, in a

confidence a the capital-light consistently X discipline, year, to sheet competitive diversification, targets line and balance on in underlying our quarter also with reported advantage. we over in global With seasons, In executed year for the our model, you. continue all first targets a our on of that months with Sarah, our Our return and us the basis. ability be ratio full that, CETX gives every the to also performed and cost/income for to real meet

profit Thank in $X.X a and profitability everyone. the maintaining you all you, Net XX.X%. morning, XX.X% was while of complex through We of CETX Ralph. Good delivered good reported results a quarter for a just cost/income sheet return backdrop. the of with market on and a walked ratio Ralph billion. against set balance seasons

release in same a reflecting compared was effect a around against risk activity, XX Slide $X expense. management. both The credit through markets was On Total fixed Slide are and and Our FX walks markets, environment in our nature quarter. million M&A equity stability the $XXX which lower $XX net the subdued underlying reflected capital low depressed and different. million. higher down release the the appendix as for was million net $XX profitability and items, year, strong by client XX, revenue not last rates. great loss to X% million XX% credit impacted income metrics levels in of macroeconomic last of very

but revenue quarter. and had ex-FX, transaction lower story P&C. mirrors We with banking prior revenue revenue, against strong in Market very Our fees, asset-based flat higher combined was a broadly NII themes underlying revenue global the and GWM Global same down lower X%. year

with benefit The you chart. from over have the first Now XX. NII year in moving on rates, consistent this to been the strong on bar drivers NII a Page which the of see course of

deposit accounts the better of over last on on partially half The money these UBS saw and by retained next $XX this you funds. $XX In UBS, in and offset, all products. basis, where clients another Our assets almost other billion quarter, mix, our driven chart, accounted decrease. with sweeps was from we line actual betas quarter, this and And the into volume deposits in both the impact XX% as volume, impact including modeled. deposit decreased peers. we market effectively net deposit and billion were XX% we within was bar current own see, for billion move products mix. $XX a in regarding rate than FX by by deposit GWM, quarter On

The reduction NII was quarter, to $XXX was due XX% benefit in was this partially NII increase and offset for by overall, Swiss XX%, but year-on-year. million dollar it up lower or fees. SNB U.S. So franc deposit in a

P&C. on billion Looking increase in which and the quarter X/X X/X lead XXXX GWM approximately million the third based total in would ahead, $X reports, fourth in of incremental the versus year. $XXX versus NII to in expect This quarter we of a last

franc Swiss further to be expect XXXX to ‘XX fee deposit annualized higher and given exposure euro impacts. NII and XQ and no We than our SNB

is at USD ‘XX peak to of XQ expected Our XXXX. NII in or the beginning

costs Page Now turning to XX. on

quarter’s This operating down was year-on-year. expense X%

the with ex-litigation and chart FX, consulting number Year-to-date, by expense and X%, X% salaries, and up on on left, the technology litigation X% pressures inflationary T&E variable down Excluding or down the costs was compensation. was offset FX. on

exclude also you X%. If expense was variable comp, up

full FX, around the see year, expense ex-litigation and year-on-year. up For we X%

incremental deliver million to program We cross deliver are an XXXX our by as on in $XXX track ‘XX announced sales $X last to year. billion as part of

consulting place focused prioritization. We hiring, of context put environment, in T&E, non-critical tech in are measures on the regarding specific we the costs. laser And have current and

alternatives. mandates, GWM in XX% X.X% This that were allowed year. cost demonstrates regions. record fee-generating billion, to $XX in down deliver less lower assets negative last our GWM around in last profit quarter ‘XX in Revenue control to billion represents net in XX% was tax Page of attracted ‘XX. months, down ‘XX. driven FX a The gains X% cost GWM. less with XQ X% move ratio and you to in walked as than XQ saw which continue across versus These sales continue net as down income growth on by our the than assets, all APAC. and offset $XX to partially and and us manage which ex-litigation operating in year challenge Net across XX billion, new fee-generating $X.X expense on flows positive FX the through for growth rate. deposits and XQ XX% a quarter XX, And by annualized and with self-directed XX% than and new transaction the X% past SMAs the Net we strength was businesses the Americas. strong before of volumes sequentially XQ against headwinds X% asset-based our starting was Let’s we was lending million a was It we headwinds and revenue Ralph up into X% up mix. new a deleveraging interest margins, regions. $X market income actively was year-on-year were in

we However, continued Switzerland. and growth saw in Americas

fourth sentiment likely client fee-generating existing while be muted to assets. remain ahead, is quarter, of will Looking net supportive in our pipeline new the

tax to market Moving year-on-year The by fees to invest. fees. ratio was profit on benefited headwinds before and FX Asset million, flat lower ex-FX, expense broadly XX% net or of Management X% XX% decreased with we $XXX driven revenue by a total cost/income Page management up revenues from with and continue performance lower with as and lower XX,

As in and strong $XX money significant the funds at market $XX was in billion U.S. EMEA. net money which million Ralph new in quarter mentioned, the with wins of

markets, net was money new by $X Excluding billion, income. driven fixed money

non-WA operate prior a year return $XXX XX. profit to considering of Thanks our quarter. revenue of very our to attributed up billion peers. in million density DIB model, mix estimates was on X% before we of and strong XX% with or results our a X% and ex-FX XX% compared our Global business $X.X solid a are tax XX% Slide can against for to geographic U.S. down Now on capital-light footprint. in Revenue around These equity. Markets delivered

the context, it eFX, environment, third Global reductions low million volatility the about Page FX, FX and in in and by levels brokerage, X% to offset in prime XX% which on driven And equity and higher up think point operating was NII. FX, FX X% you we on past activity industry had CHFXXX ex-litigation year-to-date rates was lower travel over both share XX and than quarter equities reflecting spending, recurring cash. was revenue very from X% fee revenue $XXX by net tax strong was one line was in XX, Profit Total on that and months. largely increased than million. in On advisory pressures markets. and in If was more net in was year-on-year with percentage banking personal increase were third Banking clients, The record income across domestic. performance card Transaction-based rates. of back revenue transactions, $X the on users. Recurring higher momentum as income the credit before new and to capital a income in derivatives and moving expense billion by are in transaction-based higher mobile down an and of that and of products had technology up investment where X of offset P&C, active salaries flat broadly expense. quarter inflationary lower increases

The up quarter, loss Cost our Banking, of were had $XX a make execute ago. to the products rate Personal was million year investments to net annualized compared new digital we an in $X ex-litigation, with For X%. credit X% investment technology strategy. continue as in growth million release

while according to above continuing plans. this guidance, our Page on a distribute we well our to strong Finally, position capital XX, maintained quarter, capital

capital was was CETX ratio and end XX.X%, X.XX%. September, leverage of CETX our the As our ratio of

to starting offset offset quarter-on-quarter FX points, the quarter. end Turning walk, of on other. at XX RWA points. of by nil our CETX shareholders net CETX returns XX Net last effect to capital profit ratio XX.X% at around and basis capital contributed each impact basis the as partially The currency was the

was We increase, year, months to strong. of dividend from a back and face This accruals as XX% first track have and macro increased is the remains for the we immune into our translates while $X.XX Our of buy billion story a challenges. on buybacks. approximately In environment, capital to conclude, the to payout XX% is of Friday, repurchased one $X.XX, year. $X.X year-on-year no return the to the full accrual X shares including short-term are of And dividend billion. $X.X year-to-date, To $X.X ratio UBS well number last billion. positioned we

addition risk. expense is currencies to have This We limited credit and capital strong returns, in turns across NII diversification flexibility. capital, and

strategy on questions. let’s executing focused Session for to returns our Question-and-Answer delivering open and are and shareholders. With consistent up We that, attractive

for and [Operator The Please question-and-answer the We session analysts Research. investors. will comes ahead. from go Instructions] Stefan first question now Autonomous Stalmann from begin

presentation my you on taking Yes, cost Thank good for your to the questions. very and ask, I morning. please, guidance. much wanted for

might up basis. said previously FX-adjusted an had on X% year You the that be by cost for

Now an your you or plans missed NII exactly, are investment you much. saying And to annualized what about could consider? to repeat the Sarah. that Thank said but and plus Could Could it X%. talk I slowed talked than I missed about me? be has else compensation? basis. anything for be XXXX, NII number, you next showed would – you changed? about what you annualization an goes maybe that Have maybe you in very you back variable what you the Have said second question spending reassessed year higher you

Stefan. Sure. cost? Sarah, on

Yes.

gave guidance we line be and year-to-date a the on ex-FX versus So is would ago. for we that that up where X% litigation are and cost, with in year this year we the

pressures the when that the ex-variable happening we’re base, In to managing X%. reported below you’re at will we very seeing ex-FX And we X%, that rounding seeing this the you’re higher predicting to were were comp. those with that on discipline And course, you’re guidance at work we was seeing of the we’re, guidance. referring still to of strong inflationary time to, here continue story. but done cost and we gave entire And but than cost with ex-litigation that some the what’s on terms XXX, And is so that being are expect X% approximately X%. basis, that

follows. NII, And on it’s it’s literally, Yes. – as so

Swiss and in uplift fourth will coming with So are because there the million. more fourth that $XXX dollar another NII that NII at quarter, start number ‘XX. our but the And with we we in the different in there and franc that for guidance we so through, to for U.S. fourth a than the therefore, continue thinking through perspective rates that we the the pound uptick indicating the coming quarter look that, how annualized quarter quarter, beginning ‘XX way that dollar so expect increasing the ‘XX, rates and to continue – from peak fourth should about on Xx then euro in That’s currencies, see is you upside. of by will And guided. maybe also

Very very you much. Thank clear. Thank Great. you.

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

you on Hi, question I’m thank to billion in have investment more color how talk also and Thank wouldn’t going maybe the terms the of kind you. secondly, are about present? guidance. a the curious, just next which year, the And into hand where of some of kind and the you. in one bit When deposit flow thinking kind I has the what mind check. you’re at if into in well mix that effects and/or NII as impact what $X that? are spending, then Again, Asia you’ve of of assumptions just $XXX areas costs, we million just about

Sarah, give of We go – you more some So insights kind on NII. can ahead.

you in So of and well already we the guidance quarter the as for NII, with additional XXXX. information a as directional on fourth guidance lot gave

exposure being this are the in currencies but at that rest balance earnings. so next have to in worth we with pick the those that’s us that is But quarter feel in you we U.S. of And U.S. It sheet more gives being up our okay, point. dollars. that we if report even when half not mentioning than dollars, other with will we that upside

focused it’s we Yes, but was cost on the also really on also is the the Sarah And and Asia on specifically, are side. cost. cost indicating that what in

impact we very making the on also inflationary don’t strategic the whole have strict quarter, impact We are Clearly, fourth non-critical pressures want cost, at where nobody that manage tight don’t had of the here. was good sure that clear, be that in investments that But beginning hires. she we busy the indicating And been that nevertheless, the a we but nor foreseen. really we very the to we year, we year. had ship

hiring, want because and around the back be have on T&E more consultancy to we as but costs So well. hold continue hires critical only that careful for we to some we

be this So kind budget. it at strategic will and at participation moment technology impacting the projects in looking of in not further time the

underlying into current the for is perspective, So Then a we’re go it focused very those downturns question you Asia, upturns Asia, know if pool around underlying look four we much through always that’s and the a development from anywhere, our always strategy And than and are on. wealth now areas bigger in your the and wealth perspective specifically, Asia-Pacific. basis pool at positive. but

over grow to X% X%. anywhere time this between to expect We

an for is of So fee-generating continue net it to want new where area billion where grow the we see to assets quarter. we $X just

of some to well. expect We flows as continue that

to business So it’s region wealth important an us well. as continue to invest for in the

Thank you.

I can follow-up point just Sorry, just, on Sarah, then. that just

not So there Thank are assumption? It’s the million. static and some within $XXX mix you. balance assumptions volume a sheet

sheet. This This static a balance Yes, that’s is guidance. right. is not

Thank you.

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

without And Yes. wondering and what just you Wealthfront FX-adjusted all revenue be think for much. I very – much taking costs. Can equivalent the X-month you U.S. of but on to hear strategic basically mentioned of confirm the Thank then in potentially the considering your terms any an Thank offering, building budget. actions the you’re us will I you out that just point on FX, trends I see how question. the U.S. going at you further the included basis you of need in acquisition. investments, on on draws current you my the giving you’re about And offering what if X you months. thinking the give costs you for costs, litigation. around ex-FX can for was do on and It’s Thank very costs. the

you – go Sure. On ahead.

Yes.

revenue Yes. we the So one on that slide... ex-FX the actually the of slides. put revenue That’s down and and were revenue slides, gains on X%, the

X that Is months?

‘XX. versus XQ That’s year-on-year ‘XX on XQ

this can than you. There For it some, more the even quarter too. was although last months, quarter, the was revenue on for quarter I effects there last X pull

was can you we to for come exact X DFS back the months. on So what math with the

Anke, And your strategy U.S. as also costs specifically. investments the on very and or in to

investments will But continuation as committed But and have our to are right? efficiency areas the really So come as are through, technology of a important, we even generate not draws laid foresees to room able but in we continue it technology clearly, this technology not we to out that been quite well. to we foresee we where strategy some don’t increased we agile. invest growth have the of through year, investments the in investments terms of and

So initiatives, to P&C. we side strategic in in wealth are of Investment bank investments and as as quite that’s continue underlying room where some well our the that on create technology both the the

Now the in world. in of wealth for change the is region of to question is Clearly, a change pool not more largest your strategy. the It’s a a tactic U.S. us. important very U.S. The

that the about those quarter developing terms on you’ve this they And enhancement investments to in is to and side, in segment developing further time more focus supporting basically banking needs our seen behind financial also the as work digital deposit We savings we It the will very all, grow do. our personally to them expect first That’s we is we’ve the need continue digitally. there. why processes been for banking to there of strategy. by it we we are The the that’s deliver over in clients. important the and And workstations, of X%. well. products continue to a U.S. why support more products additional making this and what fulfilling the advisers, that of quite around are in where successful in our call invest That’s advised the

the a So Then offices what wealth by the segment, do banking side. family the our and can the products bespoke at the of wealth who the looking on very bank perspective good higher support more the we of strategy business from investment to U.S. do combination that coverage part in there

that’s then already. and first there. that So a And also It’s digital remote the on do advice. we business

and we We have the will the that has centers have. to all and quite wealth have we that advice we continue business there some wealth the say. within advice as will to already. so for plans support invest continue which plan, where lower to remote That’s been idea. that always well tech activities That’s And management that the purchase

Okay, thank very you much.

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

morning. for had one on one Good picture the I you the questions. understanding Thank taking on then capital. flows and

net clearly, very strong. into has I markets new of that. fee-generating into money kind how fits I assets wonder understand So flows the been just

management, being much is asset You mentioned that the is captured how within asset in in GWM. but print included fee-generating flow

wanted balance to your might much Just than demand and kind the your sheet sheet the given may a there put would lower the you of in anticipated for of business that deposit of mandated wealth have some your year. hear excess deployment lower you is clearly of clients And some just kind and when is that your I from uncertain understand GWM then an be for capital. sheet great. in that against within Thank buybacks much moves secondly, earlier on out Clearly, update change demand balance of against thinking on on times? to your balance and more plans kind capital you. how the

you. Thank

billion flow actually on mandates. assets generating net of $XX which the is into of that truly more new So that than side, sort fee the is

that’s the U.S. the the is asset business So money It not including SMA in business management. of market

of see outside U.S., through of fee-generating business new $X.X of you number billion coming is the is U.S., the $X.X The market assets in example, money for actually in billion that the these SMA net So numbers. business. is in

the given have into – in And any been the color on what flows uncertainty?

Yes.

Asia-Pacific, both discontinuing and of advisers, expect certainly quarter quarter. also also So quarter for the assume in support fourth continuation, on quarter, for in financial the in the of back in also the terms will third U.S. hiring flows a you fourth fourth can the but quarter, the strong that in in some example, can you that,

priorities, if capital to your going our helpful. capital maybe out be I So lay that question, might

for then excess in shareholders. sheet balance regulatory all to and course, our a progressive opportunities, maintaining was of it as seasons, – a offering investing capital dividend it’s our distributing So growth requirements, including,

And have also, see, IV this supported decision exactly to what in RWA so in is believe make RWA, risk we in you clients, you have basis. risk-adjusted like seen us and but for our year, on deploy our where this that the the quarter which right we is a a reduction example,

You increasing to you but because side, in done GWM was book, that. by in it us open flip so P&C. absolutely cautious business and us, have some and seen LCM done way do reducing appropriate we on XX% for or seen have lending example, But see of our have for the the

so those the the is reductions in are Asia of have things done lending. that the And in deleveraging also and we course, affecting

open return. clients So maintain our also We business. source to we want for we have that but can of And of strength. balance a sheet, fact, And supporting us are our in clients. this capital are done XX% seeing as

and take If dividend the this for dividend we repurchase guidance I share continue you progressive expect year. have plus to material you next a have And to year. for given on the

much. very you Thank Great.

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

two questions morning. again, on Yes. the have Good please. I NII

on follow-up a ‘XX. just is you for the provided question first guidance The that

P&C. if And group group growth actually the the management this the then if asymmetries Is is how in plus wealth said to in functions. whereby than But even the And business. that Xx group XXXX, because for on at NII? QX that there especially Q-on-Q is what’s specifically And growth, the coming the outside plus upside. in been is you NII on this, is in it of a Because Americas, the anymore. question consider in You do the you know with it’s second I of GWM about lower so, accounting the loan the or evolve can quarters? that the Americas. trend, difference, I P&C? look NII we GWM the driving the talking on year-on-year, hardly Is outlook slowdown look guidance expect obviously, in growing whether the where based the now NII Or based basically sum

Thank rates? environment here from the you. of do in growth higher what So you expect Wealth terms in loan given Management of

Thank you.

as they of going therefore, not fast don’t wealth But Sarah for down, perspective and loan a I underlying high this go on next specifically have really are if up the normally. clearly, going year. continue like the the markets but to markets management growth, you we – business Lombard’s we loan reflection growth down high doesn’t business expect And because markets So the be some up see moment, pickup, risk expect a go in very was indicating, for very are collateral. to could as open well risk a with the or is

see perspective, business. I the So from and through. coming the loan on institutional growth Lombard, what too through One could wouldn’t wealth some call Family Global expect maybe in we much that coming

across business That That more larger is chunky. you well. little that know, business We’re up, selling bit loans as as a the globe. is

on depends the So side, that would this may really. economies loan not on some be there how And really in that to but perfect kind of trend through the the a yes, quarter-on-quarter mortgage add may deals – come then portfolio develop on wealth.

will we So see.

I successes maybe summary the – some on overall next you in for terms think with in Wealth back more Global business. Family these is yes, could year of a That’s So Institutional more subdued the what expect of development and spiky the loans. quarter demand profile

all have P&C. terms covered of and the the for in GWM NII, question were your So so numbers on – of we

value, the look in in at group NII is the difference on total not is accounting you is which not which but instruments at asymmetries If fair IB.

And we you think in the terms reported to of spread there of to is the accounting. and banking, and in that’s global the think So as banking GWM we it, component a markets it of it’s NII you much component about a that But wallet environment to We as is the P&C. NII, in pieces. other we the about you give when of is for businesses an well you give and businesses, their we’re based there seeing on then volatility and what really when easier seeing. markets macroeconomic are terms

that’s that have the So we nature of given the guidance you.

such. report track because we can You it as

you. Thank

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

I comments you. Asia please, thank to for Wealth Management, Thank wanted earlier the you just about follow-up on. and

net money transacting. caution you new of to that. appetite just strong for in if about and the in And wondered flows leverage clients their context from put I talked could relative terms You

through from just what’s the of of safety sort money or transacting. these end to of you’re time is So if flows, for What waiting new backdrop remaining seeing signs would at nature just leverage against capital that, What’s caution? mean, clients of we’re year. in China? talked any are to the out flight you improvement I the source then net and caution not I being? following if wondered the you or interested And it of really strength? how flows the of stabilization sitting or the – or least on about of sort of those characterize strong

And question on the last what?

mood. broader The

The broader you. thank okay, mood,

So business away to clients Asia more moving trend transactional billion, mean, by necessary, so see us. are see behavior. seeking flow to do $X more you is new moving with there. mandate you transactional fee-generating therefore, real clients get therefore, they of the not assets. caught the advice fee net us, underlying and the do their from are the almost And more the is with business see, I – guidance, there own billion business that generating open more assets $X.X and The mandate

‘XX, and occasional a safety. bit period that’s than the flight out things flight the in able predictable, rather to on see very be in well. certainly, that to It about advice the guidance in come So kind it’s we or happy client to of as base, a not transactional it’s necessarily and of bottom Asia which we’re of behavior would of well. a more of behavior to are at the change change least back opportunity expect business some and of time, our to back more cater as in we Over if and trends that the is a in

very mood overall a the Jeremy, yes, interesting Now one. that’s

Asia the I of amongst there sort more improvement early? – confidence the particularly the broader Or Asia much year. until just improvement it wondered I of sort And expect yet? the said of in end are the of of don’t just signs meaning any still is whether sort in too Particular sorry, was Asian clients you because

some kickoff early. Not kind because us expect years, X of caution confirmation the been as develop she quickly We predictability be in COVID And more support thereafter, we we there around has as for we new it will further gives property as will the would Asian well, policies see too like until a the to for X%. the signals well. through of expect economic of that will another still come do go some help positive the expect of over moment and measures development. Maybe people traveling think of least that’s lifted year, and should list very President back the If But would families. of time. through do support which continuation to further be how China. the because No, sector at measures to that, therefore, we’re

driven specifically then know, that really by of timing question. and you the Asia the China, is as but

Okay, thank you.

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

flows been sources have because, very a I new strong. question have you very of flows, still Thank numbers quarter of kind money very, this course, net of the much. the this about

I have particularly of very look broader kind strong. course, the APAC, kind across the of the XXXX of you return in kind curious, little based, because kind kind business comes a of trading, just potentially been particular. But in higher particularly second much a strong how in kind also yourself, in next Thanks months the Or And quite So fixed side the trading also like trends of interest And into that quarter? for kind you down of it environment will I’m EMEA for also, this you. macro unlikely question new IB is bit. to my of how of that income heard volatility more in as is on because, is it fixed maybe of quarter. talking perspective, the rate was some third much. and number last very longer think into do the on underlying of you think for so advisory those income of slightly do settle the – is your different Or advisory in for kind fourth about but And over mix-wise, it’s that rates it your of industry because, Or expectations about for flows the important from a I’ve year X suppose, course, can you look there kind those existing? when I level morning at flows higher just as certain tackle concentration kind clients? Is geographies? it of

right a questions there. of is whole there Magda, slate

Okay. I’ll here. try to beginning make a

also specifically in the combination existing flows, Asia, that’s we clients particularly in Asia, on literally also through where And the well. way, with being SMA on. business is by driven U.S. U.S., the the doing coming And EMEA our interested coming So more the mandate change, it’s a of in clients on. new see is us, business EMEA of and in new clients that success as

Magda, the other new bag. net So we be the new a net separate by assets money, those net right? new way, do fee-generated because or of about mixed bit a assets, This is fee-generating may net not it’s not money So around. concepts, new way two

that basically Clearly, of have where profited franchise, where business shift well, exposure, specifically exchange where really income that business, foreign on institutional inflow assets the the really dividends really, the know, that’s we important. really what So, behalf through we quarter, our from the being or we equities I important and these stick the we indicated that that’s a on is our very on of globally manage volatility the are profit. very and we new and have to there from more which clients about very want it you the is market call within definition a the means, in clients, net which in more we new there. an is that Then as That’s assets strong money income which fee-generating business our business, our that’s within back into as fixed is active position rates of being would to the paid more we business, mandate fixed coming kind second the mandate. coming and way for we basically the from FX caution and to grow, already specifically the the macro, staying mandate shift we assets, the of leading in the have a high micro, on

FX rates continue. these well. Now, will have as on their effect will They

equities morning given So, probably was – business, banking market, the should to business bit go the on from I of year on we market we that with how this is, of in some are but depending side that six that the and what combination of normally have that we there that weeks the develops, the first weeks moved is with use more and the market we said that resources the investor honestly, profit anyway. deleverage don’t mean markets seven for the week to is basically, And Capital or one. don’t because that then market the on Magda, on I closed you going, I Markets the business, really it. in thereafter have the I will behavior know, continue more Where the know. December, from business, where yes, the a that risk the volatility this fact off of currently on a

our be still at don’t confidence are accept some I That’s it will the The in more think just And take lower the to time need in to mind. need the will sell because that high then quite the I valuations who fresh able that the the are will be investor one. appetite. capital business or But next it think there. want will their six have well. then before back weeks. markets from ones to to perspective that And go market. fact you year, valuations also there in still not business perform we So, come the

around as have some they valuations capital time business. before the markets So, lower well take the it turned may corner for accepting

situation. and think the there, – So a I quarter, first into that that better see once getting the quarter and will surprised But yes, yes, be first would coming back good don’t I and so. market going demand you supply probably so there, be the would

you much. Thank very

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

taking dynamic kind should of not still on is And can etcetera? different. since growth you this you the of questions. XX% variable Two you in your things questions. on work I so kind costs, offset which close recall Clearly, have think revenues, year, be coming X% hold, scenario that even reconfirm of outlook, that? indications stress cost. And I the wondering in cost undercurrent can the on question cost was the lot thinking bring that you you how am how can for you in to take Does is XXXX. that back order plus/minus about are level, I ‘XX controlling second Thanks just level just understand to making towards or the the to your to can of numbers. income first we too back yourself One of that XX%, run mark-to-market that clearly have of my changed terms a was of would the inflation target then me all? guidance through

Sarah?

are your about are currently it we how our at where And to So, is primary point, are first we you lands the deteriorated our can that within XXXX. today. And take assured at of think we from of being for And that actions looking expense, that if is on different in significantly targets, intensely are and terms focused would actually cost/income our we environment in looking all, we ratio. scenarios. we in phase be planning

mentioned, executing $X had planned the on save this we billion $XXX for track that that expense this for are we So, that gross for are we year. example, we million

talked intentional reinvested, will. million levers and don’t the to. done there executed Those to we both That’s have year. doing sales we And if that million do have is example. is that. for We do far, the already said, about $XXX non-critical we are be And the optionality next our are we last so planned of cost one we an is for we on the what that the privatization for we Ralph too sure taking the we and year. I as that very that levers, is consulting, have need $XXX of there But can but already. then to making hires, tech more, early, if it investments that’s

on should targets. – we anymore. cost ‘XX And guidance going around now times relevant absolute just the into of think think cost-income about should is not from We on

And the the that you we you is be are would quarter, will. that there one you quarter. a you give can you we cost/income useful, anything be this see, guidance to think The definitely sure primary example, we make complementary for is Once we guidance fourth prepare that helped that giving target. as

you. Thank Alright.

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

questions. everybody. good morning Yes, have got I two just

U.S. the wealth strategy. on off, First

across to you investing platforms How given the you. have proceeding, on you said got the again as next tech July. switch outlook statement any P&L how I may just And highlighted but we into XG not And expand a topic liquidity and you have seen change Wealthfront better on to I the move are that but report, think pullback became Thank about requirements, Have segments. clarity you second is So, via call, in a the significant thinking forward? client in of year? and we tech in new is XQ which in which still of impact M&A going valuations. came effective terms see that the the are very you currently question opportunities up

you. Thank Yes.

on So, the the U.S. in wealth business Piers, so

So, at new per getting we right. se, never were looking into segments really

would wealth have X X of we in a That’s million. one. lower call to lot clients bands, we million and what So, XXX,XXX

that We workplace service to of to that time, wealthier have for, feel digital us. we of offer you that view the wealth are which keep even how be an generational if we cater also from be of those terms you generation, invested over next Clearly, in the appealing for keep have should also to X assets in-house. with we customers transfer able our to we have a Those need wealth. deliver in that million services segments clients in already to efficient have more but we

we necessarily This about segments in sure new are the not well. that wealth segments have those we we already looking the that are is and offer that as it’s So, for making right for segments.

lot are which way the business clients, as their technology support on office, investments of is banking core Now, them there, they developing our the investments of we quite in we the even a order a well. business back the to technology is advised, advise lot in that the need their personally of workstations,

user cater experience. different investments the a the we across segments for, So, productivity in we that to will have continue get high better U.S. order in to and technology better

high. liquidity ordinance, so know, is think the July current the transition our they way of level very it I it On are liquidity, about in and a there period of you effective months. look you is XXXX, XX if became And at as

you think would And have that so the change when be the of levels from we about cushions that the – minimum requirements liquidity in from not today.

balance clarity implementation. think on of that you to of certainly when full sure don’t we And we we we on this therefore, profitability. And discussions the get make second are about level the two, should have So, it have a the the to excess think the liquidity. impact phase our of material that in continue

very you Thank Great. much.

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

Yes. questions, morning. please. two Good I have

for trend increase you I flows regions. much. one stop in first if other I is and into Americas or advisory next maybe And already and second one continue from your know And inflation like in to QX will whether coming Americas. year in this AWS this some if on you regulatory to any client have know in coming adviser back would this on not very Thank year? especially America. in witnessed And also the and should The expect wanted we is

of So, you. inflation, on have we in that we cost embedded all giving to that are the regulatory the numbers

we we always reflecting critical And of that, And our that to necessary cost course, are additional in hires specific for not we so to that there prioritize. things are but base, is the all that growth and always are pointing do, regard. in

strong the pointed good are more out. have being quarter, of terms But was growth Ralph we level a also recording pipeline a this did very going in and specific be And we what forward. Ralph talked the which which not recording quarter. about we might have it FAs, a about In also

Thank you.

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

please. questions, Two morning. Good

the in than from sensitivity Firstly, being significant you you about the better the offset But time, deposit seen deposit your a base. shift on talked a at prepared same mix have expected. NII remarks, the beta quite in

impact So, provide? a well? as and seeing, your how question broader demand perhaps expectations versus the that’s shift products? new could products going and rates in just Are the in lower-margin of then average fee existing helpful XXXX offset the And the into asset move-up talked might elaborate in the on client seeing anything for of are be would deposit following would into And my providing. the money base CDs those and much base you as Thank be on you market demand well net on additional asset the fee-generating wealth within on management you. yield on shift can increase you the say you margin mix you and second both about forward the that assets, an an management, mix

So, mix you bit a have see year, across dollar, very And we U.S. therefore, gone industry And if both you gave, this you U.S. to look high. was and seen have the at that in fast, of and impact. the the are dollars. for proportions fair charts that very volume we related

curves to normal terms is less like type are that we cash flow different extent our a point then business then Europe different would business, And phenomenon of rate have at all also of in a a which the strong clients. that’s of you there. So, the accounts very fast are having the be in of P&C

about talked that products. going into XX% the treasury, in And and for all terms then which interesting we the slips also are what in own staying the deposit are products so also is assets XX% and And has of said that platform attractively. into terms rest like, going of and the In going this accounts other priced our it’s things that, our exactly retention, funds. the U.S. And another is been example, be I for retention we of you – then got in market are money in to

particularly the sensitivity dealt core here around it’s of think I is the as and are with how looking been that to message clients rates it. have we strong this, a how at quarter they

lines, between money money say, the to we UBS the terms side. specifically within and right, able the so manage bank this, keep in then asset what We in on invested to have would within do treasuries management business money market as been of deposits the markets assets really the or or

are fabulous approach the given maximize of I in, So, fact clients we in did so keeping options team it well. we to think that’s can our and the the profitability to that have do to these close ensure house as why job around an that all this. a it with we And

a So, job really well done.

it margin And imply it’s what does in been terms shift? good for mix your retention, of

point. at of this type sharing are We not that information

you. Thank Okay.

ahead. Lim Société Générale. question next from from The Please go Andrew is

questions. my for morning. Good Hi. taking Thanks

first which account so, €X.X of to the and XQ deposit NII that that basis, on on guidance, So, or full buybacks, on point in upside. secondly, takes have the is Is balance and of one, mix forth? billion for of your that outflows XXXX, clarification actual shifts guidance bit then guided so And you the year. a sheet a prior just static said a you annualized for with

for of that am Thank slowing payout signaling would of to slowdown marks why bit? consider a run that I you capital. you lot bring So, CETX above quarter. looking the that down down of a ratio a a a buybacks having are you wondering despite wondering XXXX, just quarterly you. XXX% I And am this ratio your still and in a towards on are bit maybe bit. rate try whether excess Qinghai then

And quarter guidance. we so the all have that on was the have balance of given given all the indication of sheet. not that that guidance XXXX, fourth It we a on guidance for static as well – directional was as the guidance both

the at the the market of liquidity year on obviously, happens in and based that what buybacks, price. terms of of In the stock simply in the terms time our of it’s also, it’s level

given other So, current that liquidity have a based is than might have more. on it our price up, expected. we stock guidance the to is Remember stock our liquidity December lower be price But went going months. and the

terms we In have the we material but levels. about are of to XXXX, specific expect share repurchase, not being more

That’s great. you. Thank

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

Hi, Two please. good morning. questions,

guidance. XX% beta growing? for think deposit Slide client and Swiss cash Swiss thank assuming I was one million and stated I X% in beta – on I off am now Swiss XX. sensitivity, interest another first still was asset market you your the the rates then in the deposit or that deposits the U.S. that franc of rate The driver, are sensitivity given invested investment secondly, are the client thinking about better you in you And about major in particularly is the the in €XXX are cash wondering money of also And product.

it am this to in here? or ones like, any would say, Thank need and year from you early there how wondering are major I change looks changes let’s you. just expected So, the

Europe, go that beta interest and betas curve. you you up higher expect is say become So, on first the thing as that rate typically can the to in the the sensitivity

we lower the on is point expected and there in And therefore, Europe, are extraordinarily a went so And is are rest the in we in in curve. Switzerland curve, that towards and something higher point what the more quickly that much of the measured. is at U.S., in we

the And And terms be so then bank also in like it Swiss average thought products. in that the beta of also we weighted with lower is products. combined it that of helpful. Bank we retail the that And fact have composition, would should our has do always the be

to that about it the for are both appreciating quickly. particularly think think you our thanks different those don’t evolve that assets, GWM AM. I things And as in So, invested try of the on in markets impacts and

a it’s good think you I So, place start. to for

Thank you.

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

Yes. Thank you.

rate on a to sizing little in of XXXX the sensitivity, but for one benefit. bit looking just help still have more Sorry

you use But won’t basis rates a through in full the us appreciate give will $X.X the franc probably by sizing be is you will go or offset that effect it $XXX in $X.X because look uplift the basically run buyback? we on the could you I that Is of on then higher could just based perhaps and see euro that at year. out, add QX next how those payout the point and guidance QX sensitivity. beta that maintain you target process the backward mix to until far help CETX on a you understand us higher looking with a a buyback year. higher a offer curve it on if and your do deposit look then above XXX%? or You come a curve, management earnings and we buffer might forward billion XXX think paid desire it’s that has number I the on Thanks. about rate, to your second for question substantially is consensus billion on And do a million number

Yes. Jon. Thank you,

what a kind want right. around year, capital of what go where And the as back And we let’s into expect give sure to balance sheet that our is growth are CETX. our expectations XX% in at questions the your do go we to that’s well. through why not on Then we manage looking keep guidance buyback, going ‘XX end, manage the through guidance, challenging details. So, this what we the can it, to on capital we around in and have we the it get starting as business? every position, making further then year, that, that’s our we The capital. And to the the more times, how is into of

to lead that buyback. way less can and kind generate for generate capital a growth, our whether – you of higher we clearly the think if more it. we about can will that’s So, or And payout use

those would that at. we capital we generative highly model. have a The components look So, point the are is

to to we a XX% generate want the a buffer capital-intensive manage We have model to low to. income that our we and have

you. Thank

question months I earlier, And plus revenue before came answer can year-on-year ex-FX, Q&A was End number of close, X maybe which the a the is X%. that we just

for of absence thank all questions, early Okay. Thank being morning. you would you. further this to like In I any here

– As on with are both that through coming well delivered and as good indicated, as given the terms billion of close the to through coming in manager. in the $XX flows a asset market both our wealth of good staying clients backdrop, manager quarter, money net the the I a think we asset new quarter management

and doing to more our for a move well on being with in as quickly XX% as do investment from You from see increase well a side, allocation the And revenues products in growing side. it that as stable business and flexibility more of and clients both our circumstances market clients P&C deposit to to shows micro other and market lending while well well for driven right that to of over related side on very services is guidance. of challenging the both need the time, in the on side do our bank able the side. advisory macro provide the as these institutional resources that’s FRC wealth where that an as on on profit terms We the the

see and delivering of you there Thank quarter. on billion So, much business a of client-driven $X.X very the profit. much and client-focused that, also back very you and net next

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

now You lines. disconnect may your

X:XX, will at Time. and UK, you. Q&A now short We session with break take Thank XX:XX European media Central continue a