Q4 2020 UBS Group AG Earnings Press Conference (Q&A)

Good morning, everyone. Welcome. Thank you for joining us for the UBS media call I'm Marcia on them as group head of communications and branding. This morning, I'm joined by Rob cameras, CEO and Kirt Gardner CFO.

And they will take your questions I, just ask that as you.

Present your question. Please state your name on the publication, you're with them and so now we'll get started I think we'll start first question for Maryann.

The first question is from Marion all familiar from Bloomberg News. Please go ahead.

Hi, there. Thank you and hopefully looking forward to seeing you in person soon Ralph and Marcia.

So just a couple of questions from my end too are a clarification question is probably for current and then a couple on just contextual color that maybe Ralph if you could give us.

So the first one just on the inflows in wealth management, there were two large single inflows.

For EMEA and APAC.

EMEA actually it looked like that was from the entire and flow with just from one client and I was wondering if you could give us a little bit of color on.

What exactly that represents the two big chunks.

If there's any color on kind of what was the problem for that.

Okay.

Sure Yes.

I'll take the questions in water alright, guys, yes.

Yes Marianne.

There were two large inflows, which is not unusual as a core.

With our very wealthy are entrepreneurs and very wealthy clients often times, we see large inflows related to the single stock where they want to.

Our advice.

To be able to diversify.

We saw that during the quarter.

The case of Asia Pacific for the quarter, we had $13 2 billion of inflows of which one was $4 billion. So I just a small correction that did represent the majority of the total inflows in APAC. It just represented.

About.

20, 25%.

But as I said, it's very consistent with what you typically see from us when we have a good quarter with positive flows.

Okay. Thank you and then during the analyst call. You mentioned, there was about $1 five trillion in assets.

The whole wealth management Division.

That don't generate extra fees and I was wondering if you could just clarify what you mean by that so these are just.

Reoccurring mandate fees or.

Yes, yes, Mario as you know if you if you look at the nature of our relationships that they range from clients, where we only have a relation around solutions that we provide to them with our advice.

Two clients, where there is 100% other discretionary mandate.

Where we manage all the investments on their behalf to clients in between where there is a level the advice and the level of content that they pay a fixed fee for but then on top of that we also have transactional relationships and there is additional fees related to that.

So within the portfolio of over three trillion net invested assets was one five trillion, where there is no contractual relationship that results in recurring fees. So therefore, when we see market appreciation across our invested assets, we don't see.

Of course on increase at all on recurring revenue from those clients.

Yes on that $1 five trillion in invested assets, Okay. That's very helpful.

Maybe this one's for Ralph.

So you mentioned a little bit some of the some other areas are looking into for your strategic update and what where the bank can improve digitally.

Could you maybe go into a little bit more specifically for each division maybe provide one or two examples of specific things that could benefit from a sort of digital revolution.

I know you mentioned that on the use of AI in wealth management more sophistication on the Swiss retail banking, but anything a little bit more specific would be really helpful. Especially also in the IV.

Okay, yes so.

Thank you.

Be more specific I think it's.

They're quite money initiatives that we have.

The IV side.

Really what we're focusing on there is very much to digitalize the.

Execution.

From the back completely.

Make sure that you credit half a day.

Process completely just price.

And that's where a lot of optimization can have a lot of that utilization will be useful.

Yeah.

So that's one that's more on the execution side.

The platform side on the investment bank as well in terms of bringing the supply and demand together.

There is some ideas around that as well how we can evolve that under his initiatives are on that as well.

I still think that day.

That's where a lot of the opportunity sits.

And could change to be successful as an investment bank and those products that are that we're leading in.

On the wealth management side.

I think you should kind of.

Take it lightly in terms of what we can improve because I think we can improve a lot if we.

Truly focus on understanding our place.

Analyzing their needs.

Making sure that we get.

The fulfillment of their needs and tie that would go with that.

We know there are channel preference for whichever service so.

One is due to normal banking.

Through digital whereas they really want to have the right investment advice.

Sure.

Advisor or day, one even do that through email and go into the system themselves.

There was a lot there are that we can truly improve to completely cater for a second one day call. It and if there was one it was one segment that got us deserves to be treated like a second of what is the wealth management segment.

Individual client is as unique as unique preferences has unique needs.

On.