Q1 2024 UBS Group AG Media Conference Call
Good morning, welcome everyone welcome to our first quarter 'twenty four results call for media. We're joined this morning by our CEO, Sergio <unk> and our CFO, Todd technically and with that operator, we'll open it up for questions.
Unknown Executive: Morning. Welcome, everyone. Welcome to our first quarterly 24 results call for the media. We're joined this morning by our CEO, Sergio Ermotti, and our CFO, Todd Tuckner. With that, operator, we'll open it up for questions.
Media Representatives wishing to ask a question May now press Star and one the first question is from Christian Colby from Blake. Please go ahead.
Operator: Media representatives wishing to ask a question may now press star and 1. The first question is from Christian Colby from Bleak. Please go ahead.
Christian Colby: Yes, good morning everyone. I have two questions. The first one is, Mr. Ermotti, what are you especially proud of in this quarter? And the second one, why don't you pay back the whole ELA money? Actually, obviously, you don't need the money anymore.
Christian Colby: Yes, good morning.
Christian Colby: I have two questions. The first one there to meet the end market what are your especially proud off in this quarter and the second one but why don't you pay back the whole.
Christian Colby:
Christian Colby: And Bonnie actually or obviously, you don't need the money anymore.
Sergio P. Ermotti: Uh, well, what, you know.
Speaker Change: Well, what what we are drought is definitely the fact that we.
Sergio P. Ermotti: What we are proud of is definitely the fact that we are making good progress and we are even accelerating our strategic plans and the execution of the integration. So the fact that we were able to achieve good integration results and, at the same time, be seen by our clients as a trusted partner and you saw very good inflows, very great activity in terms of new mandates and new businesses is probably the best achievement. In respect of the ALI, you know, this is because we inherited a very, very substantial liquidity deficit from credit.
Speaker Change: We are.
Speaker Change: Making good progress in that and we are even accelerating on our strategic plans and the execution of the integration, but at the same time.
Speaker Change: The real crucial part of the exercise is doing that while not leaving your clients.
Speaker Change: Aside and.
Second kind of order of priority. So the fact that we were able to achieve that good integration results and at the same time be seen by our clients as a trusted partner.
Speaker Change: And you saw very very good inflows very great activity in terms of that.
Speaker Change: Mandates and new businesses is probably the best.
Speaker Change: Massachusetts.
Speaker Change: In respect of the law suit.
Speaker Change: We know it is a very very substantial liquidity deficits from credit Suisse and.
Sergio P. Ermotti: And as our CFO, Todd Tuckner, mentioned during the call, we have been managing effectively all of that. We returned last August, you remember, all the public liquidity backstops, we paid back the ELA. And now we made further progress yesterday, and in the next months, we will close this matter. But all those things have to be done in an ordinary manner as we execute the next major milestone, which is the parent bank integration. Okay, thank you. Thank you very much.
Speaker Change: As our CFO, Doug Doug mentioned during the call we have been managing.
Speaker Change: Effectively all of that we have returned last August you remember all the public liquidity Backstops that we paid back the Ala and <unk> and now we made further progress yesterday and in the next months, we will close this matter, but all those things have to be done in an ordinary manner.
Speaker Change: As we execute the next major milestone, which is the parent bank.
Speaker Change: Integration.
Unknown Executive: Okay, thank you very much.
Speaker Change: Thank you very much.
Speaker Change: The next question is from <unk>, we will incur from financial Brian. Please go ahead.
Operator: The next question is from Owen Walker from Financial Prime. Please go ahead.
Brian: Hi, good morning, Thanks, very much for your time this morning.
Owen Walker: Hi, good morning; thanks very much for your time this morning. I just wanted to pick up on a comment that Todd made during the presentation on jobs, and he mentioned 2,000 jobs have been reduced in the first quarter, and I think that was 19,000 reduced since the beginning of last year. Can you put some color on that in terms of whether these job cuts were spread quite evenly, or were they focused in one area? And also, is there anything you can update us on in terms of the plans for the rest of the year in terms of the job cuts program?
On the call.
Brian: That's what made to the presentation on <unk> you mentioned.
Brian: 2000 jobs have been reduced in the first quarter and I think that was.
Brian: 90000, the juice.
<unk>.
Brian: Beginning of last year can you put some color on that in terms of where these job cuts spread evenly.
Brian: Legal they focused in one area and also is there anything you can update us on in terms of the <unk>.
Brian: For the rest of the year in terms of.
Brian: Program.
Todd Tuckner: Hey, Owen. You know, we're, you know, in terms of the detail behind the, the quarter on quarter progress and the progress since the end, you know, we're not offering detail in terms of divisions or regions and where that, you know, those reductions are, are coming. So we're just giving over, you know, just an overview at, at group, both on the FTE, you know, which is in our key table. And then, of course, we have the commentary on the total workforce. But that's all we're disclosing.
Speaker Change: Ah yes.
Where are you now in terms of the detail behind the.
Speaker Change: The quarter on quarter progress and the progress since the end.
We're not offering a detail in terms of our divisions or regions and where that.
Speaker Change: Those reductions are.
Speaker Change: Our coming so we're just giving over you know just an overview at our it group both on the FTE, which is in our T table and then of course, we have the commentary on the total workforce.
But that's all we're disclosing.
Okay, Thanks, and anything on in terms of plans for the rest of the year.
Owen Walker: Okay, thanks, and anything on in terms of plans for the rest of the year?
Speaker Change: Now in terms of head count plans look we're not.
Todd Tuckner: In terms of headcount plans, if you listen to the analyst call, you know that we're very focused on costs, but we're not managing costs by headcount. We're managing costs across everything that we have, and it's not always about headcount, and so we're not offering any forward guidance on where we think headcount will be.
Speaker Change: You know you can if you listened to the analyst call.
Speaker Change: You know that we're very focused on our costs, but we're not managing costs by head count we're managing costs across the whole you know everything that we have and it.
Speaker Change: It's not a it's not always about head count and and so you know we're not offering any forward guidance on where we think head count will be just overall costs.
Speaker Change: Okay. Thank you.
Speaker Change: The next question is from Hamzah <unk> from CNN. Please go ahead.
Operator: The next question is from Hannah Zadie from CNN. Please go ahead.
Hamzah: Hi, good morning, Thanks, very much for taking my question just one on the this issue of of increased capital requirements.
Hannah Zadie: Hi, good morning. Thanks very much for taking my question. Just one on this issue of increased capital requirements. It would be good if you could just provide an update on what the latest is with regard to your discussions with the Swiss government on those. Do you feel like you are getting through to them in terms of your point of view and making headway?
Hamzah: Would be good if you could just provide an update on what the latest is with regards to your discussions with the Swiss government on those do you feel like you are getting through to them in terms of your point of view and making headway and then.
Hannah Zadie: Does UBS have a kind of, you know, the figure that's that's out there in terms of what may be required is anything as much as $27 billion? Does UBS have a different figure in mind? What do you think would be a more reasonable, more reasonable figure? Thanks.
Hamzah: Does <unk> have a it kind of it.
Hamzah: You know the figure that's that's that's out there in terms of what may be required if anything as much as $27 billion does UBS habit, a different figure in mind.
Hamzah: What do you think would be a more reasonable.
Hamzah: Movies will figure thanks.
Speaker Change: No. Thanks, I mean as I said in my remarks that we have not been consultants are in this process and we have not yet been consultants, we don't know exactly if and when we gotta be consulted probably towards the end.
Sergio P. Ermotti: Thanks, I mean, as I said in my remarks, we have not been consulted in this process and we have not yet been consulted, we don't know exactly if and when we're going to be consulted, probably towards the end as there is a public consultation process, but when the ordinance draft is written, so we don't know if we're going to be involved in any shape or form, of course we're going to contribute our views to the matter, but as far as the current situation is, is that there is no interactions, we have no insight and that's the reason on any of the figures that were published, there were, you know, speculations, so we don't really comment on speculations, we don't want to speculate on any of those The only thing that remains clear is that as The Consequence of Buying Credit Suisse, We are absorbing $9 billion of additional capital requirements to phase out regulatory concessions created with God, starting in 2017, and that's one fact. The second fact is that we are going to face 10 billions of additional requirements as a consequence of our new market share and balance sheet size.
Speaker Change: Hum a public Ah Ah Ah Ah.
Speaker Change: Consulting shouldn't that process that but when the ordinance draft is written so we don't know if were going to be involved in any shape or form of course, we are going to contribute.
Our views at the matter, but as far as as the current situation is that there is no interactions we have no insight and that's the reason.
Speaker Change: On any of the figures that were published a they were you know.
Speaker Change: Speculation so we don't really comment on speculations that we don't we don't want to speculate on any on any of those matters. The only thing that remains clear is that as.
Speaker Change: The consequence of buying credit Suisse, we are absorbing $9 billion of additional capital requirements to phase out our regulatory concessions credit Suisse got.
Speaker Change: Starting in 2007.
Speaker Change: And and that set that set.
Speaker Change: That's one factor. The second fact is that we are going to face.
Speaker Change: 10 billions of additional requirements as a consequence of our new market share and balance sheet size.
Sergio P. Ermotti: So, overall... We're going to have around $20 billion more capital, $19 billion, and already very strong capital positions that we had before. So that's the only fact that I can comment on, but the rest is very difficult for us to take any position on.
Speaker Change: Overall.
Speaker Change: Are we going to have around 20 billions more capital, but to me the night.
Speaker Change: A dollar spent billions of dollars.
Speaker Change: And.
Speaker Change: Already very strong capital positions that we had before so.
Speaker Change: That's the only fact that I can call, but the rest is that it's very difficult for us to take any position on it.
Hannah Zadie: Thank you. Just if I may ask one more question, can you? Do you feel like your relationship with the Swiss authorities is not as good as it was a year ago because the fact that you haven't been consulted and the process is quite surprising given that, you know, you were brought in, you know, at their request to do this emergency rescue. And so presumably, you worked very closely with, you know, ministers and other, you know, regulators and authorities.
Speaker Change: Thank you just if I may ask one more can you.
Speaker Change: Do you feel like you and.
Speaker Change: Our relationship with Jesus.
Speaker Change: Not as good as maybe it was a year ago because of the fact that you haven't been consulted in the play.
Speaker Change: This is quite surprising given that you brought in.
Speaker Change: At the request to do this emergency rescue.
Speaker Change: And so presumably you works very closely with yes ministers and other.
<unk> do you feel like that relationship is not.
Hannah Zadie: Do you feel like that relationship is not, as I don't know, amicable or maybe not as friendly, not as close as it was, what's sort of happened over the last 12 months? Oh, look, you know. I think that
Speaker Change: As.
I did a amicable well not maybe not as friendly United closer as it was at the once that have happened over the last 12 months.
Speaker Change: I looked at you know I think that we are constructively work with any.
Sergio P. Ermotti: Look, you know, I think that we constructively work with any, you know, with regulators and policymakers around the world, including in Switzerland. We know that we are staying focused on what we can control. That's the reason I'm saying that we deliver, we are delivering, we have delivered on our commitments. [inaudible] kind of issue that at a point in time, we will be consulted, but I don't know. We don't control it, so that's the reason why we stay focused on what we can control.
Speaker Change: Regulators and policymakers around the world, including in Switzerland.
Speaker Change: You know, we we know that what we are staying focused on what we can control.
Speaker Change: That's the reason I'm, saying that.
Speaker Change: We believer we are delivering we delivered on our commitments.
Speaker Change: No I mean is not necessarily.
Speaker Change: Yeah.
Speaker Change: An indication of relationships that we have been not been consulted Oh, we are respectful of any processes.
Speaker Change: We do believe that set you know considering the fact that these set looks like UBS Lex.
Speaker Change: Kind of issue debt at that point in time, we will be consulting, but I don't know we don't control. It. So that's the reason why we stay focused on what we can control.
Speaker Change: Alright, thank you.
Speaker Change: Yeah.
The next question is from Daniel Zulauf from CAH Media. Please go ahead.
Operator: The next question is from Daniel Dulov from CH Media. Please go ahead.
Daniel Zulauf: Yes, good morning.
Daniel Zulauf: Three quick questions.
Daniel Zulauf:
Daniel Zulauf: <unk>.
Daniel Dulov: Three quick questions. The first one is about, again, on the capital issue. You have been asked by an analyst this morning, You entered the takeover discussions back in March with some clear Ideas about regulation, I mean, the analyst asked you whether you ask the government for some, Regulatory Guarantees in order to prevent a strong regulatory action. You mentioned, you said there was one issue, the competition issue that was clearly, Clearly agreed upon back in March 2023.
Daniel Zulauf: The first one is about again on the capital issue you have to be knows Brian on released this morning.
Daniel Zulauf: Whether.
Daniel Zulauf: You went through.
Daniel Zulauf: Takeover discussions back in our March with some some.
Daniel Zulauf: The clear.
Daniel Zulauf: Ideas about regulation I mean, the U a E. The owner was almost Q O Q, whether you wear them Oh, it's to government for some.
Daniel Zulauf: Regulatory guarantees in order to prevent a strong regulatory action.
Daniel Zulauf: You mentioned you said that was one issue due to the competition issue that was clearly a.
Daniel Dulov: And then you said you wanted to stop on that, commenting on that thing in a tone which suggested to me that you were, like unhappy about how things developed and and that you were expecting like a different a different approach of the government than the one that you have seen right now maybe you can reiterate my your comment on that or confirm or deny my my impression of what I've heard this morning the second question is you mentioned this price pricing issue in the global wealth management business that you have started back in fourth quarter 2023 Increasing prices on your global wealth management services.
Daniel Zulauf: Clearly our agreed upon back in March 'twenty, two 'twenty three.
Daniel Zulauf: And then you said you wanted to stop on that commenting on that thing.
Daniel Zulauf: The tone, which suggested to me that to where.
Daniel Zulauf: Like them on.
I'm happy about how things developed and.
Daniel Zulauf: And that you were expecting a like a different mm mm a different approach of the government than the one that you have seen.
Daniel Zulauf: Now maybe you can.
Daniel Zulauf: I reiterate my comment on that or confirm or.
Daniel Zulauf: Or deny my my impression of what I've heard this morning.
Daniel Zulauf: And the question is you mentioned.
Daniel Zulauf: This.
Daniel Zulauf: Price a pricing issue in the global wealth management.
Daniel Zulauf: Business that you have for started back in our fourth quarter 2023.
Daniel Zulauf: Increasing prices in a on your G.
Daniel Zulauf: Global wealth management services.
Daniel Zulauf: I was wondering why debbie's is that because has that something to do with Cubbies race was crazy through selling it services that are at lower prices than you did or what are the reasons for that.
Daniel Dulov: I was wondering why that is. Is that because it has something to do with Credit Suisse? Was Credit Suisse selling its services at lower prices than you did? Or what are the reasons for that?
Daniel Dulov: and the question coming out of that is should we expect price measures, pricing measures, also in the P&C business soon? Yes, that's basically the question. Thank you.
Daniel Zulauf: And the sick and under.
Speaker Change: Yes, you know, it's coming out from that this RV ER should.
Speaker Change: Should we expect a price.
Speaker Change: This measure was pricing measures also in the P&C business mm mm soon.
Speaker Change: And.
Speaker Change: Yes, that's basically the questions. Thank you.
Speaker Change: Three questions what is the third.
Daniel Dulov: Three questions; what is the third?
Daniel Dulov: Oh, I forgot about that. Don't worry. Okay.
Speaker Change: Oh I forgot it on the railroad.
Sergio P. Ermotti: Okay. All right. Good. Fine. So, well, I appreciate your psychological analysis of my remarks.
Speaker Change: [laughter], Okay alright.
Sergio P. Ermotti: But, you know, I think that maybe what I can tell you is that, you know, you know, it's probably if you listen to what I say is that We delivered on our commitment, and you know in my point of view it tells you the story so we are pursuing we are doing what is right to be done to our for our shareholders to our clients to our employees and we believe we are doing what is the right thing to do for switzerland that's the reason the board of directors supported during the weekend the acquisition of pretty swiss also to do some things for the swiss financial system so in that sense we are delivering on our commitment, The second issue is the repricing. The pricing is something that you go back, to the very early stage post-acquisition, but most importantly, the latest update in February on our three-year plan. We made it very clear that Credit Suisse was running an unsustainable business.
Speaker Change: Alright, good fine.
Speaker Change: So well I.
Speaker Change: Sure you are.
Speaker Change: Psychological analogy yourself in my remarks that that's you know I think that maybe what I can tell you is that you know.
Speaker Change: You know, it's probably if you listen to what I say is that at.
Speaker Change: We delivered on our commitments and that you know.
And my point of view. It tells you. The story. So we are pursuing we are doing what is right to be done to our for our shareholders to our clients to our employees and we believe we are doing what he is the right thing to do for Switzerland. That's the reason.
Speaker Change: <unk> a director supported during the weekend the acquisition of credit Suisse also to do some things for the Swiss financial system. So in that sense, we are delivering on our commitments.
The second issue is the re pricing the pricing is something that you go back.
Speaker Change: Two the Verde already stage post the acquisition, but most importantly, the lie at.
Speaker Change: The latest updates.
Speaker Change: In in February on our three year plan, we made it very clear that's pretty sweet was running an unsustainable business model.
Sergio P. Ermotti: Too much cost, too little revenue, too much risk. What we are doing right now, and that translated into a return on revenues on risk-weighted assets being half of what UBS had. Now, what we are doing is restructuring everything that can be restructured to cost through exiting non-core businesses and releasing capital and efficiency. But in some cases, where we have areas which are not, broadly speaking, every client, but we have areas where, of course, services and credit were subsidized or priced at an unacceptable level, well below where UBS prices were, and we're below every competitor's prices. It's true that, in a selective way, we're going to have to relook at repricing things.
Speaker Change: Too much cost to legal revenues too much risk what we are doing right now and that translated into the return on revenues on risk weighted assets being half of what UBS hat.
Speaker Change: Now what we are doing is that we are restructuring everything that can be restructured through cost through exiting noncore businesses and re leasing.
Speaker Change: Capital and efficiency, but in some cases, where we have areas, which are not broadly speaking every clients, but we have areas where of course services and created were subsidized or priced at an unacceptable level well below where you be S prices.
Speaker Change: And we're below every competitor prices.
Speaker Change: So.
Speaker Change: It's true that in a selective way, we gonna have to re look at repricing things, we do that alongside with clients. We discuss with clients. This matter, we don't CTC she was being some things that.
Sergio P. Ermotti: We do that alongside clients. We discuss this matter with clients. We don't see this issue as being something that creates any particular problems. Of course, not everybody may be happy to hear that. Of course, who is happy to pay more? But we are explaining to clients why it is. And we don't. In Switzerland, we are growing. We have been implementing that strategy for the last six months. Clients are coming to us and are not leaving, and this is the ultimate testament that we do our work in a constructive way for all interested people.
Speaker Change: <unk> creates any particular issue of course, not everybody maybe happy to hear that so of course, we're always happy to pay more but we are explaining to clients why it is.
Speaker Change: And we don't see that as an issue now if you look at through facts in Switzerland. We are growing we have been implementing that strategy for the last six months clients are coming to us are not leaving us.
Speaker Change: And this is the ultimate Testament that we do our work.
Speaker Change: Struck this week for all interested people.
Speaker Change: Yes.
Oh can you be a bit more specific on the type of services that you are repricing.
Daniel Dulov: Can you be a bit more specific on the type of services that you are repricing? That's
Sergio P. Ermotti: That's the third question. You see? You got it. It's mainly credit.
Speaker Change: The third question you see you got it.
Speaker Change: Uh huh.
Speaker Change: Yeah.
Speaker Change: It's a it's a it's a it's mainly mainly created mainly credits.
Speaker Change: Mainly mainly.
Sergio P. Ermotti: mainly credit, it's credit where you see, you know, [inaudible] Right, so this is no longer necessary. So in that sense, is it fair to say that we have two drivers, one is creation, but also the phasing out of unnecessary premiums that were paid because the standing and the strengths of UBS definitely justify a much lower funding cost for us. And when you're talking about credits, are we talking about corporate loans, especially, or are we talking about mortgages? What kind of credit do you intend... primary?
Speaker Change: Mainly created it's created where you you see.
Speaker Change: Mm mm.
Speaker Change: <unk> issues right. So I think that's of course also to be fair also on the deposit side because when you look at the last 18 months or so before.
Speaker Change: The acquisition.
Speaker Change: I'll start with UBS.
Speaker Change: Curtis suites at to pay a much higher rates to attract deposits or to retain deposits or retain assets right. So this is no longer necessary. So in that sense. It's yeah. It's fair to say that we have two drivers one is created but also the phasing out of.
Speaker Change: I'll start off that unnecessary premiums that were paid because the standing and the strengths of UBS.
Speaker Change: Is that is definitely a justifying a much lower funding cost for us.
Speaker Change: And then just the two to two especially for my third question.
Speaker Change: To to them. If you were talking about credits or are we talking about corporate low ones, especially.
Speaker Change: Or are we talking about a mortgage or what kind of credit do you.
Speaker Change:
Speaker Change: Do you intend to.
Speaker Change: Primarily it's.
Sergio P. Ermotti: It's across the board, but also including not only mortgages and corporate credit but also, specifically, it is also, to a big extent, also in wealth management. Talks, right?
Daniel Dulov: It's across the
Speaker Change: Across the board, but also including not only.
Speaker Change: <unk> Corp.
Speaker Change: Corporate credit, but also in specifically.
Speaker Change: Specifically also it's our biggest spend days also in wealth management.
Sergio P. Ermotti: Lombard Credit, for example.
Speaker Change: All right lumbar credits for example.
Speaker Change: Okay. Thank you.
Daniel Dulov: Okay, thank you.
Speaker Change: The next question is from young sang sang from AWP. Please go ahead.
Operator: The next question is from Yangxin Song from AWP. Please go ahead.
Yangxin Song: Yes, good morning. I know you don't give guidance for the global group, but you did give guidance for Switzerland. You spoke of 3,000 redundancies, and I would like to know if there have been any changes regarding this number? And how is it going? How much have you reached of it until now? And when will you finalize this? Thank you.
Speaker Change: Yes. Good morning, I also have a question on head count.
Speaker Change: You don't give a guidance on how the global group, but.
You did give a guidance of Switzerland, you spoke off.
Young Sang: Redundancies and I would like to know has there been any changes regarding this number and how is it going how much have you or have you reached out of it until now and when we can finalize this thank you.
Todd Tuckner: No changes at all in our headcount plan for Switzerland. As a reminder, the vast majority of those reductions, unfortunately, that will happen, they are rather starting in late 2024, but more so in 2025 and 2026, is not something that we see as imminent. Actually, if you look at the next few months and quarters, we need resources; we need even more resources to really manage the very complex integration process.
No changes no changes at all in our.
Young Sang: At Cowen planned for Switzerland.
Young Sang: Is is that as a reminder, the vast majority of those are reductions unfortunately that that will happen.
Speaker Change: Or are there starting in late 2024, but more so in 2025 and 2026 is not a is not something that we see as an imminent actually if you look at the next few.
Speaker Change: A few months and quarters.
Speaker Change: We need our resources, we need even more resources to really manage the very complex integration that are process.
Speaker Change: You can't.
Operator: The next question is from Christopher Spank from IFR. Please go ahead.
Speaker Change: The next question is from Christopher <unk> Bank from ISR. Please go ahead.
Christopher: Thank you very much.
Christopher Spank: Thank you very much. Just a question on the global markets business in the investment bank. Now, is it fair to say that the FRC business, which used to be under, when it was just UBS, historic UBS, wasn't that in line with the wider kind of big businesses of other banks? But now, I mean, can we take this as an indication, because it's roughly in line with a lot of what the investment banks did in this quarter? Do you think it's kind of settled in this state, and you're going to be roughly in line with the markets going forward, the wider street going forward?
Christopher: Just a question on the global markets business and the investment bank.
Christopher: Yeah.
Christopher Bank: Is it fair to say that.
Christopher Bank: The <unk>, which used to be under <unk>. When it was just U B S Historic UBS.
Christopher Bank: Wasn't that in line with that.
Christopher Bank: The wider kind of.
Christopher Bank: Okay businesses of other banks, but now I mean can we take this as an indication that it was roughly in line with a little bit about the inverse with some banks did in this quarter are you do you think is kind of settled at this state and youre going to be roughly in line with the market is going the way the street going forward.
Speaker Change: Well I think you know actually not you should not assume that because that although we have retained a little bit more of the credit for that at the good credit card business capabilities that credit Suisse head end and some rates business.
Sergio P. Ermotti: Thank you. No, actually not. You should not assume that because although we have retained a little bit more of the credit, the good credit business capabilities that Credit Suisse had, and some rates business, in essence, we are not changing our business model and our strategy within the investment bank, where we are more of an equity, derivative, and prime brokerage operation. Of course, we are one of the largest FX market participants in the world.
Speaker Change: Since we are not changing our business.
Speaker Change: Business model and our strategy within the investment bank, where we are more fun equity.
Speaker Change: I agree with you that and prime brokerage operation of course, we are one of the largest effects.
Speaker Change: Hmm.
Speaker Change: Market participants in the ward, but when you look at credit and rates, we are well below our peers and intentionally so.
Sergio P. Ermotti: But when you look at credit and rates, we are well below our peers, and this is intentionally so. We believe that those businesses don't fit into our DNA slash business mix, and they are highly capital-consuming businesses, and therefore they don't fit into a capital-light issue. That's the reason we focus more on retaining the great talents of Credit Suisse in the banking part of the equation.
Speaker Change: So we believe that those businesses don't fit into our DNA slash business makes and they are highly.
Speaker Change: Ideally our capital.
Speaker Change: Our consumer businesses and therefore, they don't fit into our capital light tissue. That's the reason that we focus more on retaining the great talents upgrading suites in the banking part of the equation.
Speaker Change: Great. Thank you very much that's that's good.
Christopher Spank: Great, thank you very much. That's clear. Thanks. Thank you all.
Speaker Change: Thank you all are there no further questions. So we will close our call for today and thank you for joining.
Unknown Executive: Thank you all. There are no further questions, so we will close our call for today. Thank you for joining us.
Speaker Change: Ladies and gentlemen, the media Q&A session is over you may disconnect your lines.
Operator: Ladies and gentlemen, the media Q&A session is over. You may disconnect your lines.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].