Q3 2025 UBS Group AG Earnings Call

Broadcast.

Operator: At this time, it's my pleasure to hand over to Sarah Mackey, UBS Investor Relations. Please go ahead, madam.

You can register for questions at any time by pressing star one on your telephone shouldn't eat operator assistance, Please press star and zero.

At this time, it's my pleasure to hand over to Sara Mckee UBS Investor Relations. Please go ahead Madam.

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 included in our annual report together with additional disclosures in our SEC filings.

Sarah Mackey: Good morning, 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 included in our 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 Sergio Ermotti, Group CEO.

On slide two you can see our agenda for today, it's now my pleasure to hand over to send you a multi group CEO.

Thank you Sarah and good morning, everyone.

Sergio Ermotti: Thank you, Sarah. Good morning, everyone. The power of our unique business model, diversified global footprint, and balance sheet for all seasons was evident once again in our excellent performance this quarter. Regardless on how you measure our Q3 results, we delivered strong re-returns, driven by significant momentum in our core businesses and disciplined execution on our strategic priorities. Invested assets reached nearly $7 trillion across the group, supported by robust flows in Global Wealth Management and also Asset Management, where we surpassed $2 trillion in invested assets for the first time. In APAC, invested assets across our asset gathering businesses now exceed $1 trillion. This quarter's exceptionally strong flows underscore our position as the region's largest global wealth manager.

The power of our unique business model diversified global food drink and balance sheets for all seasons was evident once again in our excellent performance this quarter.

Regardless on how you measure our third quarter results, we delivered strong results driven by significant momentum in our core businesses and disciplined execution on our strategic priorities.

Invested assets reached nearly seven 3 million across the group supported by robust flows in our global wealth management and also asset management, where we surpassed two trillion in invested assets for the first time.

In APAC invested assets across our asset gathering businesses now exceed $1 trillion.

This quarter's exceptionally strong flows underscore our position as the region's largest global wealth manager.

The buildup of our investment banking capabilities in areas of strategic importance supported our outperformance in all three industry fee pools and is consistent with our ambition to increase market share.

Sergio Ermotti: The buildup of our investment banking capabilities in areas of strategic importance supported our outperformance of industry fee pools and is consistent with our ambition to increase market share. We also saw healthy private and institutional client activity across the globe. In Switzerland, our clients continue to benefit from UBS's unique global footprint and capabilities as we supported businesses and households with around CHF 40 billion of loans granted or renewed during the quarter. I'm particularly pleased that we achieved all of this while further advancing on our integration efforts. Over two-thirds of clients or accounts in Switzerland, more than 700,000, have now been migrated onto UBS platforms. We have substantially completed the migration of personal banking clients and commenced corporate and institutional client transfers.

We also saw healthy private and institutional client activity across the globe.

In Switzerland, our clients continue to benefit from UBS is unique global footprint and capabilities as we supported businesses and households, with around 40 billion Swiss francs of loans granted or renewed during the quarter.

I'm, particularly pleased.

That we achieved all of these while further advancing on our integration efforts.

Over two thirds of clients are accounted Switzerland more than 700000 have now been migrated until UBS platforms.

We have substantially completed the migration of personal banking clients and commence corporate and institutional client transfers.

We are encouraged to see improve satisfaction from clients, who are now on the UBS platform and we remain on track to complete the final migrations by the end of the first quarter next year.

Sergio Ermotti: We are encouraged to see improved satisfaction from clients who are now on the UBS platform. We remain on track to complete the final migrations by the end of Q1 2025. The integration of Asset Management is also substantially completed, allowing us to fully focus on opportunities to drive efficient growth. Across the group, we continue to streamline our operations. We are nearly halfway through our application decommissioning roadmap. We have shut down 60% of legacy servers and processed around 40 petabytes of data. This keeps us well-positioned to deliver on our gross cost savings ambitions by the end of 2026. Our recent employee survey highlighted what, in my view, is one of the most important markers of our integration progress.

The integration of asset manager and he's also substantially completed allowing us to fully focus on opportunities to drive efficient growth.

Across the group, we continue to streamline our operations we.

We are nearly halfway through our application decommissioning roadmap.

And we have shut down 60% of legacy servers and proceed.

Around <unk>.

And processed around 40 petabytes of data.

This keeps us well position to deliver on our gross cost savings ambitions by the end of 2026.

Our recent employee survey highlighted what in my view is one of the most important markers of our integration progress.

Sentiment across UBS and former credit Suisse colleagues is now equally positive and well above industry benchmarks further validating our efforts to create a common culture and vision across the organization.

Sergio Ermotti: Sentiment across UBS and former Credit Suisse colleagues is now equally positive and well above industry benchmarks, further validating our efforts to create a common culture and vision across the organization. I'm also pleased that we resolved significant legacy litigation related to Credit Suisse's RMBS matter and UBS's legacy cross-border matter in France in the best interests of our shareholders. All of this progress and business momentum further reinforces our capital strength and confidence in our ability to execute on our capital return plans as we continue to deliver on our 2025 objectives for dividends and buybacks. As previously communicated, we will provide more details on our plans for 2026 with our full year results in February. Our priorities extend beyond staying close to our clients and successfully completing the integration. We also remain committed to strategically investing across our platform to position UBS for sustainable growth.

I'm also pleased that we resolved significant legacy litigation related to credit Suisse's, our MBS, Martha and UBS is legacy cross border matter in France in the best interests of our shareholders.

All of this progress and business momentum further reinforces our capital strength and confidence in our ability to execute on our capital return plans as we continue to deliver on our 2025 objectives for dividends and buybacks.

As previously communicated we will provide more details on our plans for 2026 with our full year results in February.

Our priorities extend beyond staying close to our clients and successfully completing the integration.

We also remain committed to strategically investing across our platform to position UBS for sustainable growth.

Curtis This week, we filed our application for a national Bank charter in the U S and we expect approval in 2026.

Sergio Ermotti: Earlier this week, we filed our application for a national bank charter in the US. We expect approval in 2026, a pivotal milestone in our multi-year strategy to improve the breadth and depth of our client offering and setting the stage for long-term value creation. At the same time, we are advancing our AI capabilities. We now have 340 live AI use cases across the bank, increasing resilience and building the foundation to enhance the client experience and deliver meaningful gains in efficiency and productivity. With respect to the ongoing political process on banking regulation in Switzerland, as you saw at the end of the quarter, we submitted our response to the Capital Adequacy Ordinance consultation. We will do the same for the ongoing consultation on capital requirements related to foreign subsidiaries before it ends in early January.

A pivotal milestone in our multiyear strategy to improve the breadth and depth of our client offering and setting the stage for long term value creation.

At the same time, we are advancing our AI capabilities. We now have 340 <unk> life AI use cases across the bank, increasing resilience and building the foundation to enhance the client experience and deliver meaningful gains in efficiency and productivity.

Yeah.

With respect to the ongoing political process on banking regulation in Switzerland. As you saw at the end of the quarter with submitted our response to the capital adequacy ordinance consultation.

We will do the same for the ongoing consultation on capital requirements related to foreign subsidiaries before it ends in early January.

Looking to the fourth quarter with valuations elevated across most asset classes investors remain engaged but increasingly focus on managing downside risks, which is also evident in periodic headline driven spikes in volatility.

Sergio Ermotti: Looking to Q4, with valuations elevated across most asset classes, investors remain engaged but increasingly focused on managing downside risks, which is also evident in periodic headline-driven spikes in volatility. Against this backdrop, transactional activity and our deal pipelines remain healthy, though sentiment can shift quickly as confidence in the outlook is tested and seasonal effects come into play. Furthermore, macro uncertainties along with a strong Swiss franc and higher US tariffs are clouding the outlook for the Swiss economy. A prolonged US government shutdown may delay capital market activities. Summing up, I'm very pleased with our strong result this quarter, and I am extremely thankful to my colleagues for their continued dedication and focus amid ongoing macroeconomic and regulatory uncertainty.

Against this backdrop transactional activity and our deal pipelines remain healthy, though sentiment can shift quickly as confidence in the outlook is tested and seasonal effects come into play.

Sergio Ermotti: With respect to the ongoing political process on banking regulation in Switzerland, as you saw at the end of the quarter, we submitted our response to the Capital Adequacy Ordinance consultation. We will do the same for the ongoing consultation on capital requirements related to foreign subsidiaries before it ends in early January. Looking to the fourth quarter, with valuations elevated across most asset classes, investors remain engaged but increasingly focused on managing downside risks, which is also evident in periodic headline-driven spikes in volatility. Against this backdrop, transactional activity and our deal pipelines remain healthy, though sentiment can shift quickly as confidence in the outlook is tested and seasonal effects come into play. Furthermore, macro uncertainties along with a strong Swiss franc and higher U.S. tariffs are clouding the outlook for the Swiss economy, and a prolonged U.S. government shutdown may delay capital market activities.

Furthermore, macro uncertainties, along with suites with a strong Swiss franc and higher U S. Salaries are clouding the outlook for the Swiss economy, and a prolonged U S government shutdown may delay capital market activities.

Summing up I'm very pleased with our strong results this quarter and I am extremely thankful to my colleagues for their continued dedication and focus.

Ongoing macroeconomic and regulatory uncertainty.

We will stay very focused on executing on our strategic priorities, while we remain a trusted partner in the communities, where we live and work and positioning <unk> for long term value creation for all stakeholders.

Sergio Ermotti: We will stay very focused on executing on our strategic priorities while we remain a trusted partner in the communities where we live and work, and position UBS for long-term value creation for all stakeholders. With that, I hand over to Todd.

With that I hand over to Todd.

Thank you Sergio and good morning, everyone.

Todd Tuckner: Thank you, Sergio. Good morning, everyone. Throughout my remarks, I'll refer to underlying results in US dollars and make year-over-year comparisons unless stated otherwise. In Q3, we delivered reported net profit of $2.5 billion, up 74%, and earnings per share of $0.76. Our underlying pre-tax profit was $3.6 billion, up 50% on 5% revenue growth, and our return on CET1 capital was 16.3%. Included in our underlying performance are net litigation reserve releases of $668 million, primarily driven by the resolution of legal matters related to Credit Suisse's RMBS business and UBS's legacy cross-border case in France. Excluding litigation, our return on CET1 capital was 12.7%, as we grew pre-tax profits by 26% across the group and by 19% in our core divisions. Moving to slide 6.

Throughout my remarks, I'll refer to underlying results in U S dollars and make year over year comparisons unless stated otherwise.

In the third quarter, we delivered reported net profit of $2 5 billion up 74% and earnings per share of <unk> 76 cents.

Sergio Ermotti: Summing up, I am very pleased with our strong result this quarter, and I am extremely thankful to my colleagues for their continued dedication and focus amid ongoing macroeconomic and regulatory uncertainty. We will stay very focused on executing on our strategic priorities while we remain a trusted partner in the communities where we live and work, and position UBS for long-term value creation for all stakeholders. With that, I hand over to Todd.

Our underlying pre tax profit was $3 6 billion up 50% on 5% revenue growth and our return on CET, One capital was 16, 3%.

Summing up, I am very pleased with our strong results this quarter, and I am extremely thankful to my colleagues for their continued dedication and focus amid ongoing macroeconomic and regulatory uncertainty.

Included in our underlying performance, our net litigation reserve releases of 668 million.

Primarily driven by the resolution of legal matters related to credit Suisse's RMB S business and UBS is legacy cross border case in France.

We will stay very focused on executing our strategic priorities while we remain a trusted partner in the communities where we live and work, and position EBS for long-term value creation for all stakeholders.

With that, I hand over to Todd.

Excluding litigation a return on CET, one capital was 12, 7% as we grew pretax profits by 26% across the group and by 19% and our core divisions.

Todd Tuckner: Thank you, Sergio, and good morning, everyone. Throughout my remarks, I'll refer to underlying results in U.S. dollars and make year-over-year comparisons unless stated otherwise. In the third quarter, we delivered a reported net profit of $2.5 billion, up 74%, and earnings per share of $0.76. Our underlying pre-tax profit was $3.6 billion, up 50% on 5% revenue growth, and our return on CET1 capital was 16.3%. Included in our underlying performance are net litigation reserve releases of $668 million, primarily driven by the resolution of legal matters related to Credit Suisse's RMBS business and UBS's legacy cross-border case in France. Excluding litigation, our return on CET1 capital was 12.7%, as we grew pre-tax profits by 26% across the group and by 19% in our core divisions. Moving to slide six, this quarter's strong financial performance is once again proof of the enduring advantages of our platform.

Thank you, Sergio and good morning everyone.

Throughout my remarks, I'll refer to underlying results in US dollars and make year-over-year comparisons unless stated otherwise.

Moving to slide six.

This quarter's strong financial performance is once again proof of the enduring advantages of our platform.

Todd Tuckner: This quarter's strong financial performance is once again proof of the enduring advantages of our platform. We saw broad-based client momentum in constructive markets and disciplined execution across the franchise. On a reported basis, our pre-tax profit was $2.8 billion, with $561 million of revenue adjustments and $1.3 billion of integration-related expenses. Our tax expense in Q3 was $341 million, representing an effective tax rate of 12%, supported by the net litigation releases. In Q4, we expect our tax rate to normalize, resulting in a low double-digit effective tax rate for full year 2025. This excludes any effect from revaluing our DTAs as part of the year-end planning process. Turning to our cost update on slide 7.

In the third quarter, we delivered a reported net profit of $2.5 billion, up 74%, and earnings per share of 76 cents.

We saw a broad based quiet momentum and constructive markets and disciplined execution across the franchise.

On a reported basis, our pretax profit was $2 8 billion with $561 million of revenue adjustments and $1 3 billion of integration related expenses.

Our underlying pre-tax profit was $3.6 billion, up 50% on 5% revenue growth, and our return on CET1 capital was 16.3%.

Included in our underlying performance are net. Litigation Reserve releases of 668 million.

Our tax expense in <unk> was 341 million, representing an effective tax rate of 12% supported by the net litigation releases in.

Primarily driven by the resolution of legal matters related to credit sources, RMBS business.

And UBS's legacy cross-border case in France.

In the fourth quarter, we expect our tax rate to normalize resulting in a low double digit effective tax rate for full year 2025.

This excludes any effects from revaluing, our D T A's as part of the year end planning process.

Excluding litigation our return on cet1 Capital was 12.7% as we grew pre-tax profits by 26% across the group and by 19% in our core divisions.

Yeah.

Moving to slide 6.

Turning to our cost update on slide seven.

In the third quarter, we continued to deliver on our cost reduction program as we make steady progress in right sizing, our technology estate streamlining functions and reducing third party spend.

Todd Tuckner: We saw broad-based client momentum in constructive markets and disciplined execution across the franchise. On a reported basis, our pre-tax profit was $2.8 billion, with $561 million of revenue adjustments and $1.3 billion of integration-related expenses. Our tax expense in Q3 was $341 million, representing an effective tax rate of 12%, supported by the net litigation releases. In the fourth quarter, we expect our tax rate to normalize, resulting in a low double-digit effective tax rate for full year 2025. This excludes any effect from revaluing our DTAs as part of the year-end planning process. Turning to our cost update on slide seven, in the third quarter, we continue to deliver on our cost reduction program as we make steady progress in right-sizing our technology estate, streamlining functions, and reducing third-party spend.

Todd Tuckner: In Q3, we continued to deliver on our cost reduction program as we make steady progress in right-sizing our technology estate, streamlining functions, and reducing third-party spend. These efforts translated into CHF 900 million of incremental gross run rate cost saves in Q3, with the cumulative total reaching the CHF 10 billion mark 1 quarter ahead of schedule. Compared to our 2022 baseline, we nominally decreased our overall cost base by around 13% or by 24% when excluding variable compensation, litigation, and currency effects. On this basis, our conversion rate of gross to net saves is 77%. Similarly, integration costs this quarter are indicative of the scale and intensity of the ongoing Swiss platform migration effort.

This quarter's strong financial performance is, once again, proof of the enduring advantages of our platform.

We saw broad-based client momentum in constructive markets and disciplined execution across the franchise.

These efforts translated into $900 million of incremental gross run rate cost saves in <unk> with the cumulative total reaching the 10 billion Mark one quarter ahead of schedule.

On a reported basis, our pre-tax profit was $2.8 billion, with $561 million of revenue adjustments, and $1.3 billion of integration-related expenses.

Compared to our 2022 baseline we nominally decreased our overall cost base by around 13%.

Our tax expense in 3Q, was 341 million representing an effective tax rate of 12% supported by the net litigation releases.

Or by 24% when excluding variable compensation litigation and currency effects.

On this basis, our conversion rate of gross to net saves is 77%.

In the fourth quarter, we expect our tax rate to normalize, resulting in a low double-digit affected tax rate for the full year 2025.

Similarly integration costs. This quarter are indicative of the scale and intensity of the ongoing Swift platform migration effort.

This excludes any effect from revaluing our DTAs as part of the year-end planning process.

Turning to our cost update on slide 70.

We expect moderately lower levels of cost to achieve in the fourth quarter as the program enters its final stretch.

Todd Tuckner: We expect moderately lower levels of cost to achieve in Q4 as the program enters its final stretch, with completion early 2025, after which these change-related expenses will taper further. Our integration costs to date also reflect the additional opportunities we've identified along the way to realize further efficiencies, accelerate benefit capture, and in select cases, drive incremental revenues. We'll update you Q1 on our 2026 integration cost budget and the gross cost saves we expect to deliver as we sunset integration at the end of 2025. As in prior years, we expect more modest gross and net saves in Q4 as a result of our continued focus on the Swiss platform migration and a seasonal uptick in select non-personnel items, notably the UK bank levy. Turning to slide 8.

In the third quarter, we continue to deliver on our Cost Reduction Program. As we make steady progress in right-sizing, our technology estate...

Todd Tuckner: These efforts translated into $900 million of incremental gross run-rate cost saves in Q3, with the cumulative total reaching the $10 billion mark, one quarter ahead of schedule. Compared to our 2022 baseline, we nominally decreased our overall cost base by around 13% or by 24% when excluding variable compensation, litigation, and currency effects. On this basis, our conversion rate of gross to net saves is 77%. Similarly, integration costs this quarter are indicative of the scale and intensity of the ongoing Swiss platform migration effort. We expect moderately lower levels of cost to achieve in the fourth quarter as the program enters its final stretch, with completion early next year, after which these change-related expenses will taper further. Our integration costs to date also reflect the additional opportunities we've identified along the way to realize further efficiencies, accelerate benefit capture, and in select cases, drive incremental revenues.

Streamlining functions and reducing third-party spend.

With completion early next year after which these change related expenses will taper further.

These efforts translated into $900 million of incremental gross, run-rate cost savings in Q3.

Our integration cost to date also reflect the additional opportunities we've identified along the way to realize further efficiencies accelerate benefit capture and in select cases drive incremental revenues.

With the cumulative total reaching the $10 billion mark, one quarter ahead of schedule.

Compared to our 2022, Baseline.

We will update you next quarter on our 2026 integration cost budget and the gross cost saves we expect to deliver as we sunset integration at the end of next year.

We nominally decreased our overall cost base by around 13%, or by 24%, when excluding variable compensation litigation and currency effects.

On this basis, our conversion rate of gross to net saves is 77%.

As in prior years, we expect more modest gross and net saves in the fourth quarter. As a result of our continued focus on the Swiss platform migration and.

And a seasonal uptick in select non personnel items.

Indicative of the scale and intensity of the ongoing Swiss platform migration effort.

Notably the U K Bank Levy.

Yeah.

Turning to slide eight.

We expect moderately lower levels of cost to achieve in the fourth quarter as the program enters its final stretch.

As of the end of September our balance sheet for all seasons consisted of one six trillion in total assets down $38 billion versus the end of the second quarter.

Todd Tuckner: As of the end of September, our balance sheet for UBS consisted of $1.6 trillion in total assets, down $38 billion versus the end of Q2. Loan balances remained broadly stable at $666 billion, with around 92% secured by collateral. Mortgages accounted for 58% of the total, with average loan to values of about 50%, while Lombard lending represented a further 24%. Credit-impaired exposures in our lending book remained stable quarter on quarter at 90 basis points, while the cost of risk decreased by 4 basis points. Group credit loss expense was $102 million, mainly relating to non-performing positions in our Swiss business. Our tangible book value per share grew sequentially by 2% to $26.54, primarily from our net profit, which was partly offset by share repurchases.

With completion early next year, after which these change-related expenses will taper further.

Loan balances remained broadly stable at 666 billion with around 92% secured by collateral.

Mortgages accounted for 58% of the total with average loan to values of about 50%, while Lombard lending represented a further 24%.

Todd Tuckner: We'll update you next quarter on our 2026 integration cost budget and the gross cost saves we expect to deliver as we sunset integration at the end of next year. As in prior years, we expect more modest gross and net saves in the fourth quarter as a result of our continued focus on the Swiss platform migration and a seasonal uptick in select non-personnel items, notably the UK bank levy. Turning to slide eight, as of the end of September, our balance sheet for all seasons consisted of $1.6 trillion in total assets, down $38 billion versus the end of the second quarter. Loan balances remain broadly stable at $666 billion, with around 92% secured by collateral. Mortgages accounted for 58% of the total, with average loan-to-values of about 50%, while Lombard lending represented a further 24%.

Our integration costs to date also reflect the additional opportunities we've identified along the way to realize further efficiencies, accelerate benefit capture, and in select cases drive incremental revenues.

Credit impaired exposures in our lending book remains stable quarter on quarter at 90 basis points, while the cost of risk decreased by four basis points.

We'll update you next quarter on our 2026 integration cost budget and the gross cost saves. We expect to deliver as we sunset integration at the end of next year.

Credit loss expense was 102 million, mainly relating to nonperforming positions in our Swiss business.

As in prior years, we expect more modest gross and net saves in the fourth quarter as a result of our continued focus on the Swiss platform migration.

And a seasonal uptick in select non-personnel items.

Our tangible book value per share grew sequentially by 2% to $26.54, primarily from our net profit, which was partly offset by share repurchases.

Notably the UK bank Levy?

Turning to slide 8.

Overall, we continue to operate with a highly fortified and resilient balance sheet with total loss absorbing capacity of 199 billion of.

Todd Tuckner: Overall, we continue to operate with a highly fortified and resilient balance sheet, with total loss-absorbing capacity of CHF 199 billion, a net stable funding ratio of 120%, and an LCR of 182%. We were active issuers during the quarter, capitalizing on particularly favorable market conditions. We placed around CHF 3 billion in AT1s and over CHF 7 billion in Holdco, both at attractive levels, enhancing our funding position and reducing financing needs for next year. Looking ahead, we'll remain focused on further strengthening our funding profile as market conditions allow. Turning to capital on slide 9. Our CET1 capital ratio at the end of September was 14.8%, and our CET1 leverage ratio was 4.6%, both up quarter-over-quarter and above our target levels of around 14% and above 4% respectively.

As of the end of September, our balance sheet for All Seasons consisted of $1.6 trillion in total assets, down $38 billion versus the end of the second quarter.

Net stable funding ratio of 120%.

Loan balance has remained broadly stable at $666 billion, with around 92% secured by collateral.

And then LCR of 182%.

We were active issuers during the quarter capitalizing on particularly favorable market conditions.

Mortgages accounted for 58% of the total, with average loan-to-values of about 50%.

Todd Tuckner: Credit impaired exposures in our lending book remained stable quarter on quarter at 90 basis points, while the cost of risk decreased by 4 basis points. Group credit loss expense was $102 million, mainly relating to non-performing positions in our Swiss business. Our tangible book value per share grew sequentially by 2% to $26.54, primarily from our net profit, which was partly offset by share repurchases. Overall, we continue to operate with a highly fortified and resilient balance sheet, with total loss-absorbing capacity of $199 billion, a net stable funding ratio of 120%, and an LCR of 182%. We were active issuers during the quarter, capitalizing on particularly favorable market conditions. We placed around $3 billion in AT1s and over $7 billion in Holdco, both at attractive levels, enhancing our funding position and reducing financing needs for next year.

While Lombard lending represented a further 24%.

We placed around $3 billion, and 80 ones and over $7 billion in holdco, both at attractive levels, enhancing our funding position and reducing financing needs for next year.

Credit-impaired exposures in our lending book remain stable quarter-on-quarter at 90 basis points, while the cost of risk decreased by 4 basis points.

Looking ahead, we will remain focused on further strengthening our funding profile as market conditions allow.

Group credit loss expense was $102 million, mainly related to non-performing positions in our Swiss business.

Turning to capital on slide nine our CET one capital ratio at the end of September was 14, 8% and our CET one leverage ratio was four 6% both up quarter over quarter and above our target levels of around 14% and above 4%.

our tangible book value per share grew sequentially by 2% to 26.54,

Primarily from our net profit, which was partly offset by share repurchases.

Respectively.

Looking ahead, we expect our year end 2025, CET, one capital ratio to decrease sequentially.

Todd Tuckner: Looking ahead, we expect our year-end 2025 CET1 capital ratio to decrease sequentially, driven by an accrual for intended share repurchases in 2026 as well as the full year 2025 dividend. The amount of the accrual will be informed by our ongoing strategic planning process and remain subject to the continued successful execution of the Swiss platform migration, as well as visibility on the shape and timing of future capital requirements in Switzerland. Turning to UBS AG, the parent bank standalone CET1 capital ratio was roughly unchanged at 13.3%. Similar to last quarter, we continue to pace intercompany dividend accruals to maintain prudent capital buffers and offset the FX-driven headwind on leverage ratios across group entities.

Overall, we continue to operate with a highly fortified and resilient balance sheet. With total loss-absorbing capacity of $199 billion, a net stable funding ratio of 120%, and an LCR of 182%.

Driven by an accrual for intended share repurchases in 2026 as well as the full year 2025 dividend.

We were active issuers during the quarter, capitalizing on particularly favorable market conditions.

The amount of the accrual will be informed by our ongoing strategic planning process and remain subject to the continued successful execution of the Swiss platform migration as.

Todd Tuckner: Looking ahead, we'll remain focused on further strengthening our funding profile as market conditions allow. Turning to capital on slide nine, our CET1 capital ratio at the end of September was 14.8%, and our CET1 leverage ratio was 4.6%, both up quarter over quarter and above our target levels of around 14% and above 4%, respectively. Looking ahead, we expect our year-end 2025 CET1 capital ratio to decrease sequentially, driven by an accrual for intended share repurchases in 2026, as well as the full year 2025 dividend. The amount of the accrual will be informed by our ongoing strategic planning process and remains subject to the continued successful execution of the Swiss platform migration, as well as visibility on the shape and timing of future capital requirements in Switzerland. Turning to UBS AG, the parent bank's standalone CET1 capital ratio was roughly unchanged at 13.3%.

We placed around $3 billion in 81s and over $7 billion in Holdco, both at attractive levels, enhancing our funding position and reducing financing needs for next year.

As well as visibility on the shape and timing of future capital requirements in Switzerland.

Looking ahead, we will remain focused on further strengthening our funding profile as market conditions allow.

Turning to U B S E G. The parent bank Standalone CET, one capital ratio was roughly unchanged at 13, 3%.

Similar to last quarter, we continued to pace intercompany dividend accruals to maintain prudent capital buffers and offset the FX driven headwind on leverage ratios across group entities.

Turning to Capital on slide 9, our C1 capital ratio at the end of September was 14.8%. Our CET1 leverage ratio was 4.6%, both up quarter over quarter and above our target levels of around 14% and above 4%, respectively.

While we maintain our intention to operate U b S. A G standalone CET, one capital ratio between 12, and a half and 13%.

Looking ahead, we expect our year-end 2025 CET1 capital ratio to decrease sequentially.

Todd Tuckner: While we maintain our intention to operate UBS AG standalone CET1 capital ratio between 12.5% and 13%, we would expect the parent bank to remain above the upper end of the target range, particularly if dollar Swiss stays near current levels. Turning to our business divisions and starting on slide 10 with Global Wealth Management. In a constructive macro environment, GWM delivered a pre-tax profit of $1.8 billion. Excluding litigation, profit before tax was $1.6 billion, up 21% year over year, with APAC, the Americas, and EMEA all delivering double-digit profit growth. Asia Pacific was a standout, with pre-tax profit up 48%, driven by 16 percentage points of positive operating leverage. With the platform migration work largely behind us in the region, the team is now fully focused on delivering for clients and growing the franchise.

We'd expect the parent bank to remain above the upper end of the target range, particularly if dollar Swiss stays near current levels.

Driven by an AC for intended share repurchases in 2026, as well as the full year 2025 dividend.

Yeah.

Turning to our business divisions, and starting on slide 10 with global wealth management.

The amount of the approval will be informed by our ongoing, strategic planning process, and remain subject to the continued successful execution of the Swiss platform migration.

In a constructive macro environment G. Wm delivered a pretax profit of $1 8 billion.

As well as visibility on the shape and timing of future capital requirements in Switzerland.

Excluding litigation profit before tax was $1 6 billion up 21% year over year with APAC, the Americas and EMEA, all delivering double digit profit growth.

Todd Tuckner: Similar to last quarter, we continue to pace intercompany dividend accruals to maintain prudent capital buffers and offset the FX-driven headwind on leverage ratios across group entities. While we maintain our intention to operate UBS AG's standalone CET1 capital ratio between 12.5% and 13%, we'd expect the parent bank to remain above the upper end of the target range, particularly if Dollar Swiss stays near current levels. Turning to our business divisions and starting on slide 10 with Global Wealth Management. In a constructive macro environment, GWM delivered a pre-tax profit of $1.8 billion. Excluding litigation, profit before tax was $1.6 billion, up 21% year over year, with Asia Pacific, the Americas, and EMEA all delivering double-digit profit growth. Asia Pacific was a standout, with pre-tax profit up 48%, driven by 16% of positive operating leverage.

Turning to UBS, the parent bank standalone, the CET1 capital ratio was roughly unchanged at 13.3%.

Asia Pacific was a standout with pretax profit up 48% driven by 16 percentage points of positive operating leverage.

Similar to last quarter, we continue to pace intercompany dividends across to maintain prudent capital buffers and offset the FX-driven headwind on leverage ratios across group entities.

With the platform migration work largely behind us in the region.

The team is now fully focused on delivering for clients and growing the franchise.

While we maintain our intention to operate UBS AG standalone, the CET1 capital ratio is between 12.5% and 13%.

We're building on our distinctive advantages in scale global connectivity and cross divisional capabilities.

Todd Tuckner: We're building on our distinctive advantages in scale, global connectivity, and cross-divisional capabilities. That's evident in this quarter's strong flow momentum, top-line expansion, and disciplined cost management. America's pre-tax profits grew by 26%, reflecting another quarter of strong revenue growth across all revenue lines and positive operating leverage that lifted pre-tax margins to 13.4%. Transactional revenues continue to benefit from the sustained momentum of GWM's collaboration with the Investment Bank, where jointly developed capabilities and solutions are resonating with advisors and deepening relationships with clients. The Americas team also made further progress enhancing its banking platform to support ongoing net interest income expansion. Excluding litigation, EMEA delivered a 13% increase in pre-tax profit, driven by higher transactional revenues as clients actively hedged equity and US dollar exposures.

We'd expect the parent bank to remain above the upper end of the target range, particularly if the Swiss franc stays near current levels.

It's evident in this quarter's strong flow momentum topline expansion and disciplined cost management.

America's pretax profits grew by 26%, reflecting another quarter of strong revenue growth across all revenue lines and positive operating leverage that lifted pretax margins to 13, 4%.

Turning to our business divisions and starting on slide 10 with Global Wealth Management.

In a constructive macro environment, GWM delivered a pre-tax profit of $1.8 billion.

Transactional revenues continue to benefit from the sustained momentum of Gws collaboration with the investment Bank. We're jointly develop capabilities and solutions are resonating with advisors and deepening relationships with clients.

4 tax was $1.6 billion, up 21% year-over-year with AIPAC. The Americas and AMA are all delivering double-digit profit growth.

Todd Tuckner: With the platform migration work largely behind us in the region, the team is now fully focused on delivering for clients and growing the franchise. We're building on our distinctive advantages in scale, global connectivity, and cross-divisional capabilities. That's evident in this quarter's strong flow momentum, top-line expansion, and disciplined cost management. Americas pre-tax profits grew by 26%, reflecting another quarter of strong revenue growth across all revenue lines and positive operating leverage that lifted pre-tax margins to 13.4%. Transactional revenues continue to benefit from the sustained momentum of GWM's collaboration with the Investment Bank, where jointly developed capabilities and solutions are resonating with advisors and deepening relationships with clients. The Americas team also made further progress enhancing its banking platform to support ongoing net interest income expansion. Excluding litigation, EMEA delivered a 13% increase in pre-tax profit, driven by higher transactional revenues as clients actively hedged equity and U.S.

Asia-Pacific was a standout, with pre-tax profit up 48%, driven by 16 percentage points of positive operating leverage.

The Americas team also made further progress enhancing its banking platform to support ongoing net interest income expansion.

With the platform migration work largely behind us in the region.

The team is now fully focused on delivering for clients and growing the franchise.

Excluding litigation EMEA delivered a 13% increase in pre tax profit driven by higher transactional revenues as clients actively hedged equity in U S dollar exposures.

We're building on our distinctive advantages in scale, global connectivity, and cross-divisional capabilities.

On the same basis in our Swiss wealth business profit before tax decreased by 3% as NII headwinds from Swiss franc interest rates offset strong recurring fees, while transactional activity was somewhat softer than in other wealth regions.

That's evident in this quarter's strong floor, momentum, topline expansion, and disciplined cost management.

Todd Tuckner: On the same basis in our Swiss wealth business, profit before tax decreased by 3% as NII headwinds from Swiss franc interest rates offset strong recurring fees while transactional activity was somewhat softer than in other wealth regions. Onto flows. GWM's invested assets increased by 4% sequentially to $4.7 trillion from favorable market conditions and strong asset flows. In Q3, we delivered net new assets of $38 billion, representing a 3.3% annualized growth rate. The quarterly performance was driven by exceptional inflows in Asia Pacific, which alone contributed $38 billion. This included a small number of sizable flows linked to strategic holdings, as well as strong client momentum across the region. EMEA and Switzerland also contributed positive net new assets of $6 billion and $3 billion, respectively.

America's pre-tax profits grew by 26% reflecting. Another quarter of strong Revenue, growth across all revenue lines and positive operating leverage that lifted pre-tax, margins to 13.4%

Onto flows G.

G Wm's invested assets increased by 4% sequentially to $4 seven trillion from favorable market conditions and strong asset flows.

In the third quarter, we delivered net new assets of 38 billion, representing a three 3% annualized growth rate.

Transactional revenues continue to benefit from the sustained momentum of GWM's collaboration with the Investment Bank. Our jointly developed capabilities and solutions are resonating with advisors and deepening relationships with clients.

The quarterly performance was driven by exceptional inflows in Asia Pacific, which alone contributed 38 billion.

The America's team also made further progress, enhancing its banking platform to support ongoing net interest income expansion.

This included a small number of sizable flows linked to strategic holdings as well as strong client momentum across the region.

Todd Tuckner: dollar exposures. On the same basis, in our Swiss wealth business, profit before tax decreased by 3% as NII headwinds from Swiss franc interest rates offset strong recurring fees, while transactional activity was somewhat softer than in other wealth regions. On to flows, Global Wealth Management's invested assets increased by 4% sequentially to $4.7 trillion from favorable market conditions and strong asset flows. In the third quarter, we delivered net new assets of $38 billion, representing a 3.3% annualized growth rate. The quarterly performance was driven by exceptional inflows in Asia Pacific, which alone contributed $38 billion. This included a small number of sizable flows linked to strategic holdings, as well as strong client momentum across the region. EMEA and Switzerland also contributed positive net new assets of $6 billion and $3 billion, respectively.

Excluding litigation Amaya delivered, a 13% increase in pre-tax profit driven by higher transactional revenues as clients actively hedged equity and US dollar exposures.

EMEA and Switzerland also contributed positive net new assets of six and 3 billion respectively.

Net new assets in the Americas were negative 9 billion.

Todd Tuckner: Net new assets in the Americas were -CHF 9 billion, primarily reflecting advisor movement following the structural changes we introduced last year, including to the compensation grid as part of the franchise's broader realignment. Importantly, the strategic reset is already driving improvements in the region's pre-tax margins and operating leverage, thereby unlocking investment capacity to further enhance the platform's capabilities and solutions to help advisors grow their books and better serve clients. Looking ahead, we expect turnover to moderate, supported by a healthy recruiting pipeline and a record number of advisors choosing to stay and ultimately retire at UBS. Net new fee-generating assets in the quarter were CHF 9 billion, supported by sustained demand for discretionary mandates, including our SMA solution in the US and My Way in our Swiss and international franchises, as well as our advisory offerings.

Primarily reflecting advisor movement following the structural changes, we introduced last year, including to the compensation grid as part of the franchises broader realignment importantly.

On the same basis in our Swiss wealth business profit before tax decreased by 3%, as nii headwinds, from Swiss franc. Interest rates offset, strong recurring, fees while transactional activity was somewhat softer than in other wealth regions.

Onto flows.

Importantly, the strategic reset is already driving improvements in the regions pretax margins and operating leverage, thereby unlocking investment capacity to further enhanced the platform's capabilities and solutions to help advisors grow their books and better serve clients.

GWM's invested assets increased by 4% sequentially, to $4.7 trillion, driven by favorable market conditions and strong asset flows.

In the third quarter, we delivered net new assets of $38 billion, representing a 3.3% annualized growth rate.

Looking ahead, we expect turnover to moderate supported by a healthy recruiting pipeline and a record number of advisors choosing to stay and ultimately retire at UBS.

The quarterly performance was driven by exceptional inflows in Asia-Pacific, which alone contributed $38 billion.

Net new fee generating assets in the quarter with 9 billion supported by sustained demand for discretionary mandates, including our SMA solution in the U S and my way in our Swiss and international franchises as well as our advisory offerings.

This included a small number of sizable flows linked to strategic holdings, as well as strong client momentum across the region.

AA and Switzerland also contributed positive net new assets of $6 billion and $3 billion, respectively.

Todd Tuckner: Net new assets in the Americas were negative $9 billion, primarily reflecting advisor movement following the structural changes we introduced last year, including to the compensation grid as part of the franchise's broader realignment. Importantly, the strategic reset is already driving improvements in the region's pre-tax margins and operating leverage, thereby unlocking investment capacity to further enhance the platform's capabilities and solutions to help advisors grow their books and better serve clients. Looking ahead, we expect turnover to moderate, supported by a healthy recruiting pipeline and a record number of advisors choosing to stay and ultimately retire at UBS. Net new fee-generating assets in the quarter were $9 billion, supported by sustained demand for discretionary mandates, including our SMA solution in the U.S. and MyWay in our Swiss and international franchises, as well as our advisory offerings.

Net new assets in the Americas were negative $9 billion.

Regionally and then F. G. A growth was especially strong in APAC and EMEA with annualized growth rates of eight and 6% respectively.

Todd Tuckner: Regionally, NNFGA growth was especially strong in APAC and EMEA, with annualized growth rates of 8% and 6%, respectively. At the same time, net new deposit outflows of CHF 9 billion largely reflect the reversal of dynamics observed in the prior quarter. While the uneven market backdrop in Q2 prompted clients to tactically reposition towards liquidity solutions, in Q3, clients actively redeployed capital into investment and trading solutions on our platform. Client releveraging continued for the third consecutive quarter, driving positive net new loans across all regions. In Q3, net new lending was CHF 3.5 billion, largely driven by Lombard and mortgages in Switzerland and the Americas. Turning to revenues, which increased by 7%.

Primarily reflecting advisor movement following the structural changes we introduced last year, including to the compensation grid as part of the franchise's broader realignment.

At the same time net new deposit outflows of 9 billion largely reflect the reversal of dynamics observed in the prior quarter.

All the uneven market backdrop in <unk> prompted clients to tactically reposition towards liquidity solutions.

Importantly, the strategic reset is already driving improvements in the Region's pre-tax margins and operating leverage, thereby unlocking investment capacity to further enhance the platform's capabilities and solutions to help advisors grow their books and better serve clients.

In the third quarter clients actively redeployed capital into investment and trading solutions on our platform.

Client re leveraging continued for the third consecutive quarter driving positive net new loans across all regions.

Looking ahead, we expect turnover to moderate, supported by a healthy recruiting pipeline and a record number of advisors choosing to stay and ultimately retire at UBS.

<unk> net new lending was $3 5 billion.

Largely driven by Lombard and mortgages in Switzerland, and the Americas.

Turning to revenues, which increased by 7%.

Todd Tuckner: Regionally, NNFGA growth was especially strong in Asia Pacific and EMEA, with annualized growth rates of 8% and 6%, respectively. At the same time, net new deposit outflows of $9 billion largely reflect the reversal of dynamics observed in the prior quarter. While the uneven market backdrop in Q2 prompted clients to tactically reposition towards liquidity solutions, in the third quarter, clients actively redeployed capital into investment and trading solutions on our platform. Client re-leveraging continued for the third consecutive quarter, driving positive net new loans across all regions. In Q3, net new lending was $3.5 billion, largely driven by Lombard and mortgages in Switzerland and the Americas. Turning to revenues, which increased by 7%. Recurring net fee income grew by 7% to $3.5 billion, supported by positive market performance and over $55 billion in net new fee-generating assets over the past 12 months.

Net new fee-generating assets in the quarter were $9 billion, supported by sustained demand for discretionary mandates, including our SMA solution in the U.S. and My Way in our Swiss and international franchises, as well as our advisory offerings.

Recurring net fee income grew by 7% to $3 5 billion supported by positive market performance and over 55 billion and net new fee generating assets over the past 12 months.

Todd Tuckner: Recurring net fee income grew by 7% to CHF 3.5 billion, supported by positive market performance and over CHF 55 billion in net new fee-generating assets over the past 12 months. Transaction-based income rose 11% to CHF 1.3 billion, with notable strength across Structured Products and Cash Equities. Net interest income of CHF 1.6 billion was up 3% year-over-year and up 5% quarter-over-quarter, with the sequential trend reflecting a favorable mix shift towards transactional deposits as well as lower funding costs. Looking ahead to Q4, we expect net interest income to be broadly stable sequentially as modest growth in lending balances should largely offset headwinds from lower rates. Operating expenses in GWM were down 1% and were lower by 2% when looking through variable compensation, litigation, and currency effects.

Regionally nnf growth was especially strong in APAC and AMA with annualized, growth rates of 8 and 6% respectively.

Transaction based income rose, 11% to $1 3 billion with notable strength across structured products and cash equities.

At the same time, net new deposit outflows of $9 billion largely reflect the reversal of dynamics observed in the prior quarter.

Net interest income of $1 6 billion was up 3% year over year and up 5% quarter over quarter with the sequential trend, reflecting a favorable mix shift towards transactional deposits as well as lower funding costs.

While the uneven Market backdrop in 2q, prompted clients to tactically, reposition towards liquidity Solutions.

In the third quarter clients, actively redeployed Capital into investment and trading Solutions on our platform.

Looking ahead to <unk>, we expect net interest income to be broadly stable sequentially as modest growth in lending balances should largely offset headwinds from lower rates.

Client. We leveraged continued growth for the third consecutive quarter, driving positive net new loans across all regions.

In Q3, net new lending was $3.5 billion.

Operating expenses in Gws and were down 1% and were lower by 2% when looking through variable compensation litigation and currency effects.

Largely driven by Lombard and mortgages in Switzerland and the Americas.

Turning to revenues, which increased by 7%.

Yeah.

Turning to personal and corporate banking on slide 11, where my comments will refer to Swiss francs.

Todd Tuckner: Turning to Personal & Corporate Banking on slide 11, where my comments will refer to Swiss francs. PNC delivered a Q3 pre-tax profit of CHF 668 million, up 1% or down 3% excluding litigation. A resilient result given the Swiss macro backdrop of 0 interest rates, a stronger Swiss franc, and trade uncertainty. Importantly, these results were achieved during the most operationally intensive phase of our integration efforts, demonstrating disciplined execution and client focus while the team continues to advance the client platform migration in the Swiss booking center. Revenues across recurring net fee and transaction-based income were up 2%. In personal banking, the migration of Credit Suisse client accounts onto UBS's platform is already supporting positive revenue momentum through deeper client engagement and adoption of our discretionary solutions.

Todd Tuckner: Transaction-based income rose 11% to $1.3 billion, with notable strength across structured products and cash equities. Net interest income of $1.6 billion was up 3% year over year and up 5% quarter over quarter, with a sequential trend reflecting a favorable mix shift towards transactional deposits as well as lower funding costs. Looking ahead to Q4, we expect net interest income to be broadly stable sequentially as modest growth in lending balances should largely offset headwinds from lower rates. Operating expenses in Global Wealth Management were down 1% and were lower by 2% when looking through variable compensation, litigation, and currency effects.

Recurring fee income grew by 7% to $3.5 billion, supported by positive market performance and over $55 billion in net new fee-generating assets over the past 12 months.

P&C delivered a third quarter pre tax profit of $668 million up 1% were down 3% excluding litigation.

$3 billion with notable strengths across structured products and cash equities.

Zillions result, given the Swiss macro backdrop of zero interest rates, a stronger Swiss franc and trade uncertainty.

Importantly, these results were achieved during the most operationally intensive phase of our integration efforts demonstrating disciplined execution and client focus while the team continues to advance the client platform migration and the Swiss booking center.

Net interest income of 1.6 billion was up 3% year-over-year and up 5%. Quarter over quarter with a sequential Trend reflecting a favorable mix shift towards transactional deposits as well as lower funding costs.

Revenues across recurring net fee and transaction based income were up 2%.

Looking ahead to 4 q. We expect net interest income to be broadly, stable sequentially as modest growth in lending, balances, should largely offset headwinds from lower rates.

In personal banking the migration of credit Swiss client accounts onto Ubs's platform is already supporting positive revenue momentum through deeper client engagement and adoption of our discretionary solutions.

Operating expenses in GWM were down 1% and were lower by 2% when looking through variable compensation, litigation, and currency effects.

Todd Tuckner: Turning to Personal and Corporate Banking on slide 11, where my comments will refer to Swiss francs, PNC delivered a third-quarter pre-tax profit of CHF 668 million, up 1%, or down 3% excluding litigation, a resilient result given the Swiss macro backdrop of zero interest rates, a stronger Swiss franc, and trade uncertainty. Importantly, these results were achieved during the most operationally intensive phase of our integration efforts, demonstrating discipline, execution, and client focus while the team continues to advance the client platform migration in the Swiss booking center. Revenues across recurring net fee and transaction-based income were up 2%. In Personal Banking, the migration of Credit Suisse client accounts onto UBS's platform is already supporting positive revenue momentum through deeper client engagement and adoption of our Discretionary Solutions. Personal Banking transactional revenues increased by 10%, and recurring fee income was up 6% alongside positive net new client assets.

Turning to personal and corporate banking on slide 11, where my comments will refer to Swiss francs.

Personal banking transactional revenues increased by 10% and recurring fee income was up 6% alongside positive net new client assets.

Todd Tuckner: Personal banking transactional revenues increased by 10%, and recurring fee income was up 6% alongside positive net new client assets. In our corporate and institutional client business, non-NII revenues rose modestly year over year despite the Swiss operating environment. Growth in corporate finance revenues more than offset softer FX hedging and export finance activity, reflecting currency and trade policy effects, respectively. Net interest income decreased by 9% year on year. Sequentially, CHF NII increased by 1%, driven by lower funding costs and deposit pricing measures offsetting the impact of the 25 basis point rate cut announced in June. For Q4, we expect NII to be broadly flat sequentially, both in CHF and USD terms. Turning to credit loss expense.

PNC delivered a third quarter pre-tax profit of $668 million, up 1%, or down 3% excluding litigation.

In our corporate and institutional client business non NII revenues rose modestly year over year, despite the Swiss operating environment.

A resilient result given the Swiss macro backdrop of zero interest rates, a stronger Swiss franc, and trade uncertainty.

In corporate finance revenues more than offset softer FX hedging and export finance activity.

Reflecting currency and trade policy effects, respectively.

Net interest income decreased by 9% year on year sequentially Swiss franc, NII increased by 1% driven by lower funding costs and deposit pricing measures offsetting the impact of the 25 basis point rate cut announced in June.

Importantly, these results were achieved during the most operationally intensive phase of our integration efforts, demonstrating disciplined execution and client focus. While the team continues to advance the client platform migration in the Swiss booking center.

Revenues across recurring fee and transaction-based income were up 2%.

For the fourth quarter, we expect NII to be broadly flat sequentially, both in Swiss franc and U S dollar terms.

In personal banking, the migration of Credit Suisse client accounts onto UBS's platform is already supporting positive revenue. Momentum is building through deeper client engagement and the adoption of our discretionary solutions.

Turning to credit loss expense see early in the third quarter was $58 million on an average loan portfolio of 248 billion.

Todd Tuckner: CLE in Q3 was $58 million on an average loan portfolio of $248 billion, translating to a 9 basis point cost of risk, down 5 basis points sequentially. This included stage 3 charges of $56 million, largely driven by a small number of positions in our corporate loan book. For Q4, we expect CLE to be around $80 million, reflecting continuing global macro uncertainties that are also affecting Switzerland. Operating expenses declined by 8% this quarter or 6% excluding litigation. Underscoring continued cost discipline with further synergies to come once the Swiss client migration is completed. Moving to slide 12. Asset Management delivered a pre-tax profit of $282 million, up 19% year on year. Excluding net gains on disposals, AM's profit before tax was up 70% on 5% higher revenues.

Todd Tuckner: In our Corporate and Institutional Client business, non-NII revenues rose modestly year over year despite the Swiss operating environment. Growth in corporate finance revenues more than offset softer FX hedging and export finance activity, reflecting currency and trade policy effects, respectively. Net interest income decreased by 9% year on year. Sequentially, Swiss franc NII increased by 1%, driven by lower funding costs and deposit pricing measures, offsetting the impact of the 25 basis point rate cut announced in June. For the fourth quarter, we expect NII to be broadly flat sequentially, both in Swiss franc and U.S. dollar terms. Turning to credit loss expense, CLE in the third quarter was CHF 58 million on an average loan portfolio of CHF 248 billion, translating to a 9 basis point cost of risk, down 5 basis points sequentially.

Personal banking transactional, revenues increased by 10% and recurring fee. Income was up, 6% alongside positive, net, new client assets.

<unk> to a nine basis point cost of risk down five basis points sequentially.

This included stage three charges of $56 million, largely driven by a small number of positions in our corporate loan book.

In our corporate and institutional client business, non-NII revenues rose modestly year-over-year, despite the Swiss operating environment.

Growth in corporate finance revenues more than offset softer FX hedging and export finance activity.

For the fourth quarter, we expect <unk> to be around $80 million.

Reflecting currency and trade policy effects, respectively.

Reflecting continuing global macro uncertainties that are also affecting Switzerland.

Operating expenses declined by 8% this quarter or 6% excluding litigation.

Underscoring continued cost discipline with furniture further synergies to come once the Swiss client migration is completed.

Net interest income decreased by 9% year-on-year, sequentially in Swiss francs. NII increased by 1%, driven by lower funding costs and deposit pricing measures offsetting the impact of the 25th.

Moving to slide 12 asset management delivered a pretax profit of $282 million up 19% year on year.

For the fourth quarter, we expect to be broadly flat sequentially, both in Swiss franc and US dollar terms.

Turning to credit loss expense.

Excluding net gains on disposals Ams profit before tax was up 70% on 5% higher revenues.

CLLE in the third quarter was $58 million on an average loan portfolio of $248 billion.

Todd Tuckner: This included stage three charges of CHF 56 million, largely driven by a small number of positions in our corporate loan book. For the fourth quarter, we expect CLE to be around CHF 80 million, reflecting continuing global macro uncertainties that are also affecting Switzerland. Operating expenses declined by 8% this quarter, or 6% excluding litigation, underscoring continued cost discipline with further synergies to come once the Swiss client migration is completed. Moving to slide 12, Asset Management delivered a pre-tax profit of CHF 282 million, up 19% year on year. Excluding net gains on disposals, AM's profit before tax was up 70% on 5% higher revenues. Performance fees in the quarter nearly doubled to CHF 87 million, supported by strong hedge fund results.

Performance fees in the quarter nearly doubled to 87 million supported by strong hedge fund results.

Translating to a 9 basis point cost of risk. Down 5 basis points, sequentially.

Todd Tuckner: Performance fees in the quarter nearly doubled to $87 million, supported by strong hedge fund results. Net management fees were stable at $755 million, reflecting higher balances and favorable currency effects, which were offset by industry-wide headwinds from clients shifting into lower margin products over the past year. Invested assets in the quarter grew by 5% sequentially, surpassing the 2 trillion mark for the first time. With integration now substantially complete, Asset Management is well-placed to leverage its broader scale, enhance product offering, and improve efficiency, to drive sustained value creation. Net new money was $18 billion, a 3.7% growth rate, with positive flows across all asset classes, with particular strength in strategic growth segments, including $6 billion in ETFs and $4 billion in US SMAs.

Net management fees were stable at $755 million, reflecting higher balances and favorable currency effects, which were offset by industry wide headwinds from clients shifting into lower margin products over the past year.

This included stage 3 charges of $56 million, largely driven by a small number of positions in our corporate loan book.

For the fourth quarter, we expect C to be around $80 million.

Reflecting continuing global macro uncertainties that are also affecting Switzerland.

Invested assets in the quarter grew by 5% sequentially, surpassing the two trillion mark for the first time.

Operating expenses declined by 8% this quarter or 6% excluding litigation.

With integration now substantially complete asset management is well placed to leverage its broader scale enhanced product offering and improved efficiency to drive sustained value creation.

Underscoring continued cost discipline with fur further synergies to come once the Swiss client migration is completed.

Net new money was 18 billion, a three 7% growth rate with positive flows across all asset classes with particular strength in strategic growth segments, including $6 billion in Etfs and $4 billion and U S. Sma's.

Moving to slide 12, Acid Management delivered a pre-tax profit of $282 million, up 19% year-on-year.

Excluding the gains on disposals, AM's profit before tax was up 70% on 5%, higher revenues.

Flows were also strong and unified global alternatives, where asset management's new client commitments in the third quarter reached nearly 2 billion alongside 8 billion from global wealth management clients.

Todd Tuckner: Net management fees were stable at CHF 755 million, reflecting higher balances and favorable currency effects, which were offset by industry-wide headwinds from clients shifting into lower margin products over the past year. Invested assets in the quarter grew by 5% sequentially, surpassing the CHF 2 trillion mark for the first time. With integration now substantially complete, Asset Management is well placed to leverage its broader scale, enhanced product offering, and improved efficiency to drive sustained value creation. Net new money was CHF 18 billion, a 3.7% growth rate, with positive flows across all asset classes, with particular strength in strategic growth segments, including CHF 6 billion in ETFs and CHF 4 billion in U.S. SMAs. Flows were also strong in Unified Global Alternatives, where Asset Management's new client commitments in the third quarter reached nearly CHF 2 billion, alongside CHF 8 billion from Global Wealth Management clients.

Todd Tuckner: Flows were also strong in Unified Global Alternatives, where Asset Management's new client commitments in Q3 reached nearly $2 billion, alongside $8 billion from Global Wealth Management clients. Overall, assets invested in UGA reached $317 billion, up 4% quarter over quarter. Operating expenses declined by 12% year on year, reflecting execution on AM's commitment to improving operating efficiency. On to the IB on slide 13. Our Investment Bank delivered a very strong Q3, with pre-tax profit of $787 million, more than double year on year. While maintaining its capital discipline, the IB generated a return on attributed equity of 17%. These results highlight the strategic value of our investments in expanding our global reach and strengthening our talent, technology, and capabilities.

Performance fees in the quarter nearly doubled to $87 million, supported by strong hedge fund results.

Overall assets invested in UGA reached 317 billion up 4% quarter over quarter.

Net management fees were stable at $755 million, reflecting higher balances and favorable currency effects, which were offset by industry-wide headwinds from clients shifting into lower-margin products over the past year.

Operating expenses declined by 12% year on year, reflecting execution on aam's commitment to improving operating efficiency.

Invested assets in the quarter grew by 5% sequentially, surpassing the $2 trillion mark for the first time.

[noise] onto the IV on slide 13.

Our investment bank delivered a very strong third quarter with pretax profit of 787 million more than double year on year.

With integration, now substantially complete, Asset Management is well placed to leverage its broader scale, enhance product offering, and improve efficiency to drive sustained value creation.

While maintaining its capital discipline, the IV generated a return on attributed equity of 17%.

These results highlight the strategic value of our investments in expanding our global reach and strengthening our talent technology and capabilities at the same time, the Ib's close partnership with global wealth management continues to drive increased client activity and revenues, particularly through jointly delivered structured.

That new money was $18 billion, a 3.7% growth rate with positive flows across all asset classes, with particular strength in strategic growth, including $6 billion in ETFs and $4 billion in U.S. SMAs.

Todd Tuckner: At the same time, the IB's close partnership with Global Wealth Management continues to drive increased client activity and revenues, particularly through jointly delivered structured solutions, a key differentiator in serving our wealth clients. Across the franchise, we saw broad-based regional momentum driving revenues up by 23% to $3 billion, with the highest Q3 revenues in both Global Banking and Global Markets. APAC was again a standout, posting its best quarter on record, with strength across the franchise as our deep regional coverage and scale allowed us to capture elevated market activity and reinforce the region's strategic importance to the group. We're also pleased that our strength in APAC was recognized by Euromoney, which named us Best Investment Bank in Asia.

Todd Tuckner: Overall, assets invested in UGA reached CHF 317 billion, up 4% quarter over quarter. Operating expenses declined by 12% year on year, reflecting execution on AM's commitment to improving operating efficiency. On to the IB on slide 13. Our Investment Bank delivered a very strong third quarter with pre-tax profit of $787 million, more than double year on year. While maintaining its capital discipline, the IB generated a return on attributed equity of 17%. These results highlight the strategic value of our investments in expanding our global reach and strengthening our talent, technology, and capabilities. At the same time, the IB's close partnership with Global Wealth Management continues to drive increased client activity and revenues, particularly through jointly delivered structured solutions, a key differentiator in serving our wealth clients.

Strong and unified Global Alternatives where asset Management's new client commitments in the third quarter reached nearly 2 billion alongside 8 billion from Global wealth management clients.

<unk>, a key differentiator and serving our wealth clients.

Across the franchise, we saw a broad based regional momentum driving revenues up by 23% to 3 billion with the highest third quarter revenues in both global banking and global markets.

Overall assets invested in ug reached 317 billion up 4% quarter over quarter.

Operating expenses declined by 12% year on year, reflecting execution on am's commitment to improving operating efficiency.

APAC was again, a standout posting its best quarter on record with strength across the franchise as our deep regional coverage and scale allowed us to capture elevated market activity and reinforced the region strategic importance to the group.

On to the IB on slide 13.

Our investment bank delivered a very strong third quarter, with pre-tax profit of $787 million, more than double year-on-year.

We're also pleased that our strength in APAC was recognized by Euromoney, which named US Best investment Bank in Asia.

while maintaining its capital discipline, the IB, generated a return on attributed Equity of 17%

Banking revenues reached $844 million or 52% increase year on year with each region outpacing the fee pool, and delivering topline growth in excess of 40%.

Todd Tuckner: Banking revenues reached $844 million, a 52% increase year-on-year, with each region outpacing the fee pool and delivering top-line growth in excess of 40%. In advisory, revenues increased by 47%, led by M&A delivering its best quarter on record. Capital markets was 55% higher as LCM fees nearly doubled, led by outperformance in the Americas and EMEA. ECM revenues grew by 1.5x, driven by the pronounced uptick in IPOs and convertible activity. For Q4, we expect banking activity to normalize from Q3's exceptional levels. In addition to seasonality factors, our guidance reflects both transactions brought forward into Q3 and potential timing effects from the US government shutdown delaying capital markets activities.

In advisory revenues increased by 47% led by M&A delivering its best quarter on record.

Todd Tuckner: Across the franchise, we saw broad-based regional momentum driving revenues up by 23% to $3 billion, with the highest third quarter revenues in both Global Banking and Global Markets. Asia Pacific was again a standout, posting its best quarter on record with strength across the franchise as our deep regional coverage and scale allowed us to capture elevated market activity and reinforce the region's strategic importance to the group. We're also pleased that our strength in Asia Pacific was recognized by Euromoney, which named us Best Investment Bank in Asia. Banking revenues reached $844 million, a 52% increase year on year, with each region outpacing the fee pool and delivering top-line growth in excess of 40%. In advisory, revenues increased by 47%, led by M&A delivering its best quarter on record.

These results highlight the strategic value of our investments, expanding our global reach, and strengthening our talent, technology, and capabilities. At the same time, the IB's close partnership with Global Wealth Management continues to drive increased client activity and revenues, particularly through jointly delivered structured solutions. This is a key differentiator in serving our wealth clients.

Capital markets was 55% higher as LCM fees nearly doubled led by outperformance in the Americas and EMEA and ECM revenues grew by one five times driven by the pronounced uptick in Ipos and convertible activity.

Across the franchise, we saw broad-based regional momentum, driving revenues up by 23% to $3 billion, with the highest third-quarter revenues in both Global Banking and Global Markets.

For the fourth quarter, we expect banking activities normalize from Q3's exceptional levels.

In addition to seasonality factors our guidance reflects both transactions brought forward into the third quarter and potential timing effects from the U S government shutdown delaying capital markets activities.

APAC was again a standout posting its best quarter on record with strength across the franchise as our deep regional coverage and scale allowed us to capture elevated Market, activity and reinforce the Region's strategic importance to the group

We're also pleased that our strength in APAC was recognized by Euromoney, which named us the Best Investment Bank in Asia.

Looking further ahead, our strong pipeline positions us well to deliver on our medium term objectives provided market conditions remain constructive into next year.

Todd Tuckner: Looking further ahead, our strong pipeline positions us well to deliver on our medium-term objectives, provided market conditions remain constructive into next year. Supported by high equity volumes and sustained client activity, Global Markets revenues rose by 14% to $2.2 billion, despite a strong prior year comparative and more normalized levels of volatility showcasing the strength of our Equities and FX businesses. Equities revenues increased by 15%, with Cash Equities reaching a new high as we capitalized on our strongest market share to date. In financing, top line growth of 33% was supported by Prime Brokerage delivering record level revenues and client balances. FRC increased by 13% with growth across all products.

Banking revenues reached $844 million, a 52% increase year-on-year across each region, outpacing the fee pool and delivering topline growth in excess of 40%.

Supported by high equity volumes and sustained client activity global markets revenues rose by 14% to $2 2 billion. Despite a strong prior year comparative and more normalized levels of volatility showcasing the strength of our equities and FX businesses.

Todd Tuckner: Capital markets was 55% higher as LCM fees nearly doubled, led by outperformance in the Americas and EMEA, and ECM revenues grew by one and a half times, driven by the pronounced uptick in IPOs and convertible activity. For the fourth quarter, we expect banking activity to normalize from Q3's exceptional levels. In addition to seasonality factors, our guidance reflects both transactions brought forward into the third quarter and potential timely effects from the U.S. government shutdown delaying capital markets activities. Looking further ahead, our strong pipeline positions us well to deliver on our medium-term objectives, provided market conditions remain constructive into next year. Supported by high equity volumes and sustained client activity, Global Markets revenues rose by 14% to $2.2 billion, despite a strong prior year comparative and more normalized levels of volatility, showcasing the strength of our Equities and FX businesses.

In advisory, revenues increased by 47%, led by M&A, delivering its best quarter on record.

Equities revenues increased by 15% with cash equities, reaching a new high as we capitalized on our strongest market share to date.

Capital markets were 55% higher as LCM fees nearly doubled, led by outperformance in the Americas and EMEA. ECM revenues grew by one and a half times, driven by the pronounced uptick in IPOs and convertible activity.

For the fourth quarter, we expect banking activity to normalize from Q3's exceptional levels.

In financing topline growth of 33% was supported by prime brokerage delivering record level revenues and client balances.

In addition to seasonality factors, our guidance reflects both transactions, brought forward into the third quarter.

FRC increased by 13% with growth across all products.

And potential timing effects from the U.S. government shutdown, delaying capital markets activities.

For the fourth quarter, we expect more normalized levels of transactional volumes in global markets, particularly when compared to the especially strong prior year period, which was supported by unusually elevated market activity ahead of the U S administration transition.

Todd Tuckner: For Q4, we expect more normalized levels of transactional volumes in Global Markets, particularly when compared to the especially strong prior year period, which was supported by unusually elevated market activity ahead of the US administration transition. For the IB overall, operating expenses rose by 7%, largely driven by increases in personnel expenses. On slide 14, Non-core and Legacy pre-tax profit was $102 million, with negative revenues of -$42 million. Within revenues, funding costs of around $100 million were partly offset by gains from position exits in securitized products and macro. Operating expenses in the quarter were -$149 million, driven by net litigation releases of $440 million. Excluding litigation, expenses were down 56% year-on-year and 18% sequentially as the team continues to make strong progress in driving out costs. On to slide 15.

Looking further ahead, our strong pipeline positions us well to deliver on our medium-term objectives, provided market conditions remain constructive into next year.

For the IV overall operating expenses rose by 7% largely driven by increases in personnel expenses.

On slide 14, noncore and legacy pretax profit was 102 million with negative revenues of $42 million.

Todd Tuckner: Equities revenues increased by 15%, with Cash Equities reaching a new high as we capitalized on our strongest market share to date. In financing, top-line growth of 33% was supported by Prime Brokerage delivering record-level revenues and client balances. FRC increased by 13%, with growth across all products. For the fourth quarter, we expect more normalized levels of transactional volumes in Global Markets, particularly when compared to the especially strong prior year period, which was supported by unusually elevated market activity ahead of the U.S. administration transition. For the Investment Bank overall, operating expenses rose by 7%, largely driven by increases in personnel expenses. On slide 14, Non-Core and Legacy's pre-tax profit was $102 million, with negative revenues of $42 million. Within revenues, funding costs of around $100 million were partly offset by gains from position exits in securitized products and macro.

Supported by high Equity volumes and sustained client activity, Global markets revenues Rose by 14% to 2.2 billion despite a strong prior year comparative and more normalized levels of volatility. Showcasing the strength of our equities and FX businesses,

Within revenues funding cost of around $100 million were partly offset by gains from position exits and securitized products and macro.

Equities revenues increased by 15% with cash equities, reaching a new high as we capitalized on our strongest market share to date.

Operating expenses in the quarter was negative 149 million driven by net litigation releases of $440 million.

In financing, topline growth of 33% was supported by Prime Brokerage delivering record-level revenues and client balances.

Excluding litigation expenses were down 56% year on year, and 18% sequentially as the team continues to make strong progress in driving out costs.

FRC increased by 13% with growth across all products.

Onto slide 15.

Since the second quarter of 2023 N C. L has reduced its non operational risk <unk> by almost 90%, including additional reductions of $2 billion. This quarter freeing up over $7 billion of capital for the group life to date.

Todd Tuckner: Since Q2 2023, NCL has reduced its non-operational risk RWAs by almost 90%, including additional reductions of CHF 2 billion this quarter, freeing up over CHF 7 billion of capital for the Group life to date. The wind down efforts expertly executed by the team over the past several quarters have not only significantly strengthened our capital and risk position, but have also reduced the divisional cost base by nearly 75%. As at the end of September, NCL had closed 94% of the 14,000 books it started with and decommissioned 65% of its IT applications, further reducing operational complexity and driving its strong cost reduction performance. To conclude, Q3 marks another step forward in our integration agenda.

For the fourth quarter, we expect more normalized levels of transactional volumes in Global Markets, particularly when compared to the especially strong prior year period, which was supported by unusually elevated market activity ahead of the U.S. administration transition.

For the IV overall, operating expenses rose by 7%, largely driven by increases in personnel expenses.

The wind down efforts expertly executed by the team over the past several quarters have not only significantly strengthen our capital and risk position, but have also reduced the visual cost base by nearly 75%.

On slide 14, non-core and legacies pre-tax profit was $102 million with negative revenues of $42 million.

Todd Tuckner: Operating expenses in the quarter were negative $149 million, driven by net litigation reserve releases of $440 million. Excluding litigation, expenses were down 56% year on year and 18% sequentially, as the team continues to make strong progress in driving out costs. On to slide 15. Since the second quarter of 2023, Non-Core and Legacy has reduced its non-operational risk RWAs by almost 90%, including additional reductions of $2 billion this quarter, freeing up over $7 billion of capital for the group life to date. The wind-down efforts expertly executed by the team over the past several quarters have not only significantly strengthened our capital and risk position, but have also reduced the divisional cost base by nearly 75%.

Within revenues, funding costs of around $100 million were partly offset by gains from position exits, securitized products, and macro.

As at the end of September and C. L had closed 94% of the 14th000 books had started with and decommission, 65% of its applications further reducing operational complexity and driving it as strong cost reduction performance.

Operating expenses in the quarter were negative 149 million driven by net litigation releases of 440 million.

To conclude.

Excluding litigation expenses, costs were down 56% year-on-year and 18% sequentially, as the team continues to make strong progress in driving out costs.

The third quarter marks another step forward in our integration agenda, we addressed legacy risks and advanced the client migration and the Swiss booking center, all while continuing to drive profitable growth across our core franchises by staying close to clients.

Todd Tuckner: We addressed legacy risks and advanced the client migration in the Swiss booking center, all while continuing to drive profitable growth across our core franchises by staying close to clients. The quarter's strong financial performance lifted our 9-month underlying return on CET1 capital to 14%. Excluding litigation and normalizing for taxes, our return was 11%, above our full year guidance of around 10%. We look forward to updating you on our expectations for 2026 when we present our Q4 results early next year. With that, let's open up for questions.

In 2023, NCL has reduced its non-operational risk RWA by almost 90%, including additional reductions of $2 billion this quarter.

The quarters strong financial performance lifted our nine months underlying return on CET, one capital to 14%.

Freeing up over $7 billion of capital for the group life to date.

The wind down efforts expertly executed by the team over the past, several quarters.

Excluding litigation and normalizing for taxes, our return was 11% above our full year guidance of around 10%.

Have not only significantly strengthened our capital and risk position.

Todd Tuckner: As at the end of September, Non-Core and Legacy had closed 94% of the 14,000 books it started with and decommissioned 65% of its IT applications, further reducing operational complexity and driving its strong cost reduction performance. To conclude, the third quarter marks another step forward in our integration agenda. We addressed legacy risks and advanced the client migration in the Swiss booking center, all while continuing to drive profitable growth across our core franchises by staying close to clients. The quarter's strong financial performance lifted our nine-month underlying return on CET1 capital to 14%. Excluding litigation and normalizing for taxes, our return was 11%, above our full-year guidance of around 10%. We look forward to updating you on our expectations for 2026 when we present our fourth quarter results early next year. With that, let's open up for questions.

But have also reduced the divisional cost base by nearly 75%.

We look forward to updating you on our expectations for 2026, when we present, our fourth quarter results early next year.

With that let's open up for questions.

We will now begin the question and answer session.

Operator: We will now begin the question and answer session. Our first question comes from Giulia Miotto from Morgan Stanley. Please go ahead.

Participants are requested to use only handsets when asking a question anyone who has a question.

As of the end of September, NCL had closed 94% of the 14,000 books that started with and decommissioned 65% of its IT applications further, reducing operational complexity and driving its strong cost reduction performance.

To conclude.

And one at this time.

Our first question comes from Julian <unk> from Morgan Stanley. Please go ahead.

Good morning, Thank you for taking my questions I have two.

Giulia Miotto: Good morning. Thank you for taking my questions. I have two. The first one, it seems clear that UBS is already ahead of, I guess.

The first one.

It seems clear that UBS he's already.

Well I guess the pain.

The third quarter marks. Another step forward in our integration agenda. We addressed Legacy risks and Advance the client migration in the Swiss booking Center. All, while continuing to drive profitable growth across our core franchises by staying close to clients.

Two examples KAUST incoming management, 66% against the plan of below 70.

The quarter demonstrated strong financial performance, lifting our 9-month underlying return on CET1 capital to 14%.

No quota delivering ahead of expectations, so why wait for it.

Before updating the guidance.

Excluding litigation and normalizing for taxes, our return was 11% above our full-year guidance of around 10%.

And then secondly different topic first brands.

I didn't see any comment.

Morning, but there has been extensive escalade age.

We look forward to updating you on our expectations for 2026 when we present our fourth-quarter results early next year.

Operator: We will now begin the question and answer session. Participants are requested to use only hands that are asking a question. Anyone who has a question may press star and one at this time. Our first question comes from Giulia Miotto from Morgan Stanley. Please go ahead.

With that, let's open up for questions.

It all depends on timing.

I think the management.

We will now begin the question and answer session.

Does it signed them.

So could I. Please have your comments on this issue and have you seen outflows on the back of it is this impacting.

Participants are requested to use only handsets while asking a question. Anyone who has a question please press star and 1 at this time,

You have seen them UBS O'connor.

Yeah, and Andy coming from Fisher. Please thank you.

[Analyst]: Good morning. Thank you for taking my questions. I have two. The first one, it seems clear that UBS is already ahead of, I guess, the plan. Two examples: cost in Asset Management, 66% against the plan of below 70%, Non-Core delivering ahead of expectations. Why wait for Q4 before upgrading the guidance? Secondly, different topic, First Brands. I didn't see any comment this morning, but there has been extensive press coverage about the $500 million hit on the Asset Management client asset side. Could I please have your comments on this issue? Have you seen outflows on the back of it? Is this impacting your sale of UBS or O’Connor? Any comments on this issue, please? Thank you.

Our first question comes from Julia from Morgan Stanley. Please go ahead.

Thanks, Julia for the questions and good morning, so thanks for recognizing our progress on our plan.

Good morning. Thank you for taking my questions. I have 2. The first 1

You were asking why are why wait to update the guidance well clearly it's as we go through our year end planning process, which is ongoing and really critical for us.

That will inform how we think about 2026 in.

it seems clear that CBS is already ahead. Oh, I guess. Uh, the plan um, 2 examples, costing, I mean Asset Management 66% against the plan of below 70, uh, non-core delivering ahead of expectations. So why wait, for Q4 before upgrading the guidance?

In terms of the things I mentioned in my prepared comments for example around integration Budd.

And then secondly, different topics first brands?

Budgets also our.

Gross run rate cost saves that we expect to generate but also the outlook for each of the divisions, specifically around things like NII.

I didn't see any comment, uh, this morning, but there has been extensive press coverage, uh, about the $500 million hit on the asset management client asset side.

NII in our asset gathering businesses and credit loss expenses that are in our Swiss business. So the planning process is ongoing and that's the reason that we would seek to ups.

So could you please have your comments on this issue? Um, have you seen outflows on the back of it? Is this impacting your sale of UBS Corner? Um, yeah. Any comments on this issue, please? Thank you.

Todd Tuckner: Thanks, Giulia, for the questions and good morning. Thanks for recognizing our progress on our plan. You're asking why wait to update the guidance. Clearly, as we go through our year-end planning process, which is ongoing and really critical for us, that will inform how we think about 2026 in terms of the things I mentioned in my prepared comments, for example, around integration budgets, also our gross run-rate cost saves that we expect to generate, but also the outlook for each of the divisions, specifically around things like NII in our asset gathering businesses and credit loss expenses in our Swiss business. The planning process is ongoing, and that's the reason that we would seek to update our guidance in the fourth quarter.

Update our guidance in the in the fourth quarter.

On the on the first brands topic, so to be clear UBS does not have balance sheet exposure to first brands.

And only a small number of funds are effective and obviously, it's always unfortunate when when clients generate losses that said, it's important to note that the most effected funds were targeted sophisticated investors and had clear risk disclosures no investment guidelines.

Thanks, Julia, for the questions, and good morning. So, thanks for recognizing our progress on our plan. You know, you're asking why we are waiting to update the guidance. Well, clearly it's as we go through our year-end planning process, which is ongoing and really critical for us.

Uh, that will, uh, inform how we think about 2026. Uh, in terms of the things I mentioned in my prepared comments, for example, around integration, uh, budgets. Also, our uh,

Lines where were breached.

It's also important to note that we moved swiftly to inform clients.

The potential performance impact and as a priority, we're taking steps to protect clients interests and maximize recovery through the complex.

Bankruptcy process you also asked Julie about the O'connor as previously announced we continue to progress with this with the sale of the O'connor hedge fund business to Cantor Fitzgerald, and we're working closely together.

Todd Tuckner: On the First Brands topic, to be clear, UBS does not have balance sheet exposure to First Brands, and only a small number of funds are affected. Obviously, it's always unfortunate when clients generate losses. That said, it's important to note that the most affected funds were targeted at sophisticated investors and had clear risk disclosures. No investment guidelines were breached. It's also important to note that we move swiftly to inform clients of the potential performance impact, and as a priority, we're taking steps to protect clients' interests and maximize recovery through the complex bankruptcy process. You also asked, Giulia, about O’Connor. As previously announced, we continue to progress with the sale of the O’Connor hedge fund business to Cantor Fitzgerald, and we're working closely together towards a first close.

Uh, Grouse run rate cost saves that we expect to, uh, generate, but also the outlook, uh, for each of the divisions, you know, specifically around things like, uh, uh, knee in our asset gathering businesses, uh, and credit loss expenses in our, in our Swiss business. So, the planning process is ongoing, and that's the reason that we, uh, would seek to, um, uh, update our guidance, uh, in, uh, in the fourth quarter.

Towards a first close.

Thanks.

On the, uh, on the first Brands uh, topic. So, to be clear, UBS does not have balance sheet exposure to First Brands.

The next question comes from Kian <unk> Hussain from J P. Morgan. Please go ahead.

Yes. Thanks for taking my question. The first one is regarding wealth management Americas.

You applied for the National charter.

Can you talk about the benefits of the charge and also talk about net new asset outlook.

Outflows in the third quarter.

And only a small number of funds uh, are effective. You know, obviously it's always, uh, unfortunate when, uh, when clients uh, generate losses. That said, it's important to note that the most affected funds were targeted at sophisticated investors and had clear risk disclosures. No investment guidelines. Were were breached? Uh, it's also important to note that we've moved swiftly to inform clients.

And then a and adviser attrition going forward, how we should think about that.

And the second question is just coming back to the eight Q1 document on CFS and.

And in particular 0.6, where you talk about the write down how it was handled and I recall from our conversations in public statements by the previous CEO at that time.

Of the potential performance impact, and as a priority, we're taking steps to protect clients' interests and maximize recovery through the complex bankruptcy process. You also asked Julia about Do Conor. As previously announced, we continue to progress with the sale of the Do Conor hedge fund business to Cantor Fitzgerald, and we're working closely together towards a first close.

Operator: Thanks. The next question comes from Kian Abouhossein from JPMorgan. Please go ahead.

Thanks.

The H one write down was a pre requisite always done before a precondition of the takeover of credit Suisse.

[Analyst]: Yes, thanks for taking my question. The first one is regarding Wealth Management Americas. You applied for the US national bank charter. Can you talk about the benefits of the charter and also talk about net new asset outlook post the outflows in the third quarter that we saw in NA and advisor attrition going forward, how we should think about that? The second question is just coming back to the AT1 document on Credit Suisse and in particular point six, where you talk about the write-down, how it was handled. I recall from our conversations and public statement by the previous CEO at that time that the AT1 write-down was a prerequisite or was done before or precondition of the takeover of Credit Suisse. It sounded like two separate steps.

The next question comes from Kon, Abu Hussein from JP Morgan. Please go ahead.

It sounded like two separate steps, whereas if I read numbers six it sounds it was all done in one go I E.

And there was no separation so to say and I just trying to understand what is a separate step one notch in terms of writing down the H one and subsequent also all UBS and see us.

Yes, thanks for taking my question. The first 1 is regarding, um, wealth management, America, um, you applied for the national Charter. Uh, can you talk about the benefits of the charter? And also talk about net new asset Outlook, post the out, outflows in the third quarter that we saw in nah. Um and uh, advise the attrition uh, going forward, how we should think about that.

In the second.

Thanks, Kim for your question so first on.

On the National Charter as Sergio mentioned, we just.

<unk> applied for the license just earlier in the week.

The expectation there is.

To broaden our banking capabilities.

I've said many times in the past expanding NII.

As a percentage of revenues in the U S business is one of our key a key strategic.

[Analyst]: If I read number six, it sounds it was all done in one go, i.e., there was no separation, so to say. I'm just trying to understand, was this a separate step or not in terms of writing down the AT1 and subsequent offer of UBS and Credit Suisse?

Strategic priorities to narrow the pre tax margin gap to our peers.

Peers, we think that the national charter.

Once we receive it.

Will enable us to serve our clients on a more comprehensive basis it.

Question is just coming back to the a-tier 1 document on CS. Um and in particular point 6, where you talk about the write down, how it was handled and I recall from our conversations and public statement by the previous CEO at that time, um, that the at1 write down was a prerequisite or was done pre before or precondition of the Takeover of credit so East. Uh so it sounded like 2 separate steps. Whereas, if I read, number 6, it sound it was all done in 1 goal. IE. Um, there was no separation so to say and I I just trying to understand was this a separate step or not. Um, in terms of riding down the ag1

And subsequent offer of UBS with cs.

It will enable us to offer a suite of services on par with other banks in the U S, including checking and savings accounts as well as an expanded set of lending products.

Todd Tuckner: Thanks, Kian, for your question. First on the US national bank charter, as Sergio mentioned, we just applied for the license earlier in the week. The expectation there is to broaden our banking capabilities. As I've said many times in the past, expanding NII as a % of revenues in the US business is one of our key strategic priorities to narrow the pre-tax margin gap to peers. We think the national charter, once we receive it, will enable us to serve our clients on a more comprehensive basis. It will enable us to offer a suite of services on par with other banks in the US, including checking and savings accounts, as well as an expanded set of lending products.

Thanks, uh, Ken, for your questions. So, uh, first on the national Charter, as Sergio mentioned, we just, uh,

But it's also important to emphasize as I said also in my prepared comments Ken that.

We're very focused on expanding NII in wealth and our wealth U S business, well before and we're taking steps to do that we've had our fourth consecutive quarter of lending growth in the U S business and we believe that our differentiated and specialized lending shelf is increasingly resonating with.

With advisers and our clients in terms of the.

The the M&A outlook for the U S. As you mentioned and of course as I mentioned during my comments the changes that we introduced last year, including vis vis the compensation framework.

Uh, applied for, uh, the the license. Um, just earlier in, uh, in the week. Um, you know, the the expectation there is uh, to, you know, brought in our banking capabilities. You know, as I've said many times in the past expanding nii, uh, as a percentage of revenues in the US business, is 1 of our key, uh, key strategic priorities to narrow, the pre-tax margin Gap to uh, peers. We think the the national Charter uh once we receive it uh will enable us to serve our clients on a more comprehensive basis.

Has led to some near term advisor movement, but importantly is lifting pretax margins and most importantly, enabling us to reinvest in the platform to help advisors grow their books and better serve clients.

Todd Tuckner: It's also important to emphasize, as I said in my prepared comments, Kian, that we're very focused on expanding NII in our Wealth US business well before, and we're taking steps to do that. We've had our fourth consecutive quarter of lending growth in the US business, and we believe that our differentiated and specialized lending shelf is increasingly resonating with advisors and clients. In terms of the NNA outlook for the US, as you mentioned, and as I mentioned during my comments, the changes that we introduced last year, including vis-à-vis the compensation framework, have led to some near-term advisor movement. Importantly, it is lifting pre-tax margins and, most importantly, enabling us to reinvest in the platform to help advisors grow their books and better serve clients.

It will enable us to offer a suite of services on par with other banks in the U.S., including checking and savings accounts, as well as an expanded set of lending products.

Looking ahead.

While I do expect some lag effect from the movement that we've seen are into next year, we do see turnover tapering and that supported by a healthy recruiting pipeline.

And as I mentioned on the call in my comments, a record number of advisors choosing to stay in and retire at at UBS.

On under on your second question regarding the 0.6.

But it's it's also important to uh emphasize. As I said also my prepared comments key in that uh we're very focused on expanding nii in wealth, in our wealth us business well before and we're taking steps uh to do that. We've had our fourth consecutive quarter of lending growth in the US business and we believe that our differentiated and specialized lending shelf is increasingly resonating with uh with advisors and uh, clients in terms of the um,

I think it's important here just as we laid out to indicate and really what the most important part of this F. A Q six is that the write down of the 81 instruments was an integral part of the rescue package and that rescue rescue transactions, so that the entirety of the rescue package.

A rescue transaction included things that we touched on in the paragraph above two quite critical the P. L. B.

Todd Tuckner: Looking ahead, while I do expect some lag effect from the movement that we've seen into next year, we do see turnover tapering, and that's supported by a healthy recruiting pipeline. As I mentioned on the call in my comments, a record number of advisors are choosing to stay and retire at UBS. On your second question regarding point six, I think it's important here, just as we laid out, to indicate and really what the most important part of this FAQ six is, is that the write-down of the AT1 instruments was an integral part of the rescue package and that rescue or rescue transaction.

Uh, the the nna outlook for the US, you know, as you as you mentioned, and of course, as I mentioned during my comments, the changes that we introduced last year including Visa V. The compensation framework um, has led to some near-term advisor movement, but importantly, is lifting pre-tax margins and most importantly enabling us to reinvest in the platform to help advisors grow their books. And and better serve clients.

The emergency liquidity, our extent of facilities that were extended.

Very importantly, the Swiss government guarantee or loss protection agreement against losses in credit Suisse's noncore positions of course, and our willingness to step in and the write down of the 81 instruments was an integral part of the overall.

Looking ahead, uh, while, uh, I do expect some lag effect, you know, from the movement that we've seen, uh, into next year. We do see turnover tapering, and that supported by a healthy recruiting pipeline.

uh and uh as I mentioned on the call in my comments, a record number of advisors choosing to stay and and retire uh at uh at UBS

Rescue transaction, so hopefully that addresses your.

On, um, on your second question, uh, regarding, uh, you know, point 6.

Your question.

Just quickly on follow up on the advisor side is there any timeframe you could give us where advisers should be.

Flattening out in terms of turnover.

Not exactly but is there a timeframe of first half second half of next year.

Todd Tuckner: The entirety of the rescue package or rescue transaction included things that we touched on in the paragraph above, which is quite critical: the PLB, the emergency liquidity facilities that were extended, and very importantly, the Swiss government's guarantee or loss protection agreement against losses in Credit Suisse's non-core positions, of course, and our willingness to step in. The write-down of the AT1 instruments was an integral part of the overall rescue transaction. Hopefully, that addresses your question.

And just just follow up very briefly.

Once the transaction two transactions of the acquisition or was it all done in one transaction I E. The FINMA measures and subsequent takeover.

So we cannot just to follow up on the on the first point look as I mentioned, where we're seeing turnover tapering and so we're encouraged by the trends.

Next quarter, all come out with our net new asset guidance for the division overall and could offer more color on how I see.

Core positions, of course, and our willingness to step in and the write-down of the AT1 instruments was an integral part of the overall rescue transaction. So, hopefully that addresses your question.

[Analyst]: Just quickly, on follow-up on the advisor side, is there any timeframe you could give us where advisors should be flattening out in terms of turnover? You know, not exactly, but is there a timeframe of first half, second half of next year? Just to follow up very briefly, was the transaction two transactions of the acquisition, or was it all done in one transaction, i.e., the FINMA measures and subsequent takeover?

your question.

The FAA movements, having an impact on our on our M&A our expectations for 2026.

Yeah, just quickly on the follow-up on the advisor side. Is there any time frame you could give us where advisors should be flattening out in terms of turnover?

And on and on the your look on your follow up question.

The 81 instruments as I mentioned was an integral part of the rescue transaction.

You know, not exactly. But is there a time frame for the first half, second half of next year? And just follow up very briefly.

It was part and parcel of.

The requirements that were necessary.

Necessary to inform UBS to come in and acquire credit Suisse. So that's that's everything I want to say about our about the H one right now.

Was it two transactions in the acquisition, or was it all done in one transaction? IE, the FINMA measures and the subsequent takeover.

Todd Tuckner: Kian, just to follow up on the first point, as I mentioned, we're seeing turnover tapering, and we're encouraged by the trends. Next quarter, I'll come out with our net new asset guidance for the division overall and can offer more color on how I see the FA movement having an impact on our NNA expectations for 2026. On your follow-up question, the AT1 instrument, as I mentioned, was an integral part of the rescue transaction. It was part and parcel of the requirements that were necessary to inform UBS to come in and acquire Credit Suisse. That's everything I would want to say about the AT1 write-down.

Understood very helpful. Thank you sure.

The next question comes from Jeremy <unk> from BNP Paribas. Please go ahead.

Good morning, Thanks, very much first question on Asia phenomenal flows in the quarter and it sounded like it was a bit of a mix of slightly one off but also slightly underlying pickup.

Just wondered if you could expand on that is there something that you expect to see sustained strength since just the beginning of a trend of improving flows from Asia.

So Kina just to follow up on the on the first point. Look, um, as I mentioned, we're we're seeing turnover tapering and so we're encouraged by, uh, the trends. Um, next quarter, I'll come out with our net new asset guidance for the division overall and can offer more color on how I see, you know, the, uh, the FAA movement, having an impact on uh, on our nna, um, expectations for 2026.

And then the second question very specifically on the dividend accruals from UBS AG to the group I am not sure. If you mentioned it I think the first half it was about $8 billion that you'd accrued to dividend up I Wonder if you can give us an updated number at the nine month stage. Thank you.

Yeah. Thanks, Thanks, Jeremy So I'll just quickly on the on the second one so the and in.

[Analyst]: Understood. Very helpful. Thank you.

And on and on the, your look on your follow-up question, um, the at1 instruments as I mentioned was an integral part of the rescue transaction. Uh, it was part and parcel of, uh, the requirements that were, uh, necessary to inform UBS to come in and acquire credit Swiss. So that that's, um, that's everything I want to say about, uh, about the a21 right now.

Todd Tuckner: Sure.

Operator: The next question comes from Jeremy Sigee from BNP Paribas. Please go ahead.

And the understood very helpful. Thank you. Sure.

In <unk>.

At this point, we did not accrue any additional dividends at UBS a G for upstream which went to my comments about pacing over time the level of intercompany dividends upstream to group two.

[Analyst]: Morning. Thanks very much. First question on Asia, phenomenal flows in the quarter, and it sounded like it was a bit of a mix of slightly one-off, but also slightly underlying pickup. I just wondered if you could expand on that. Is this something that you expect to see sustained strength? Is this the beginning of a trend of improving flows from Asia? The second question, very specifically on the dividend accruals from UBS AG to the group, I'm not sure if you mentioned it. I think at first half, it was about CHF 8 billion that you'd accrued to dividend up. I wonder if you can give us an updated number at the nine-month stage. Thank you.

The next question comes from Jeremy, SIGI from BMPA. Please go ahead.

To to manage some of the FX driven headwinds around the leverage ratios across group entities.

I would just comment that we did pay.

The $6 5 billion in the second tranche of the 13 billion that we accrued in the prior year.

Just just after the quarter in terms of the upstream from.

The parent bank to group.

On the on your first question in terms of Asia flows in.

Good morning, thank you very much. Um, first question on Asia: phenomenal flows in the quarter. It sounded like it was a bit of a mix of slightly one-off events, but also an underlying pickup. I just wondered if you could expand on that. Is this something that you expect to see sustained strength? Is this the beginning of a trend of improving flows from Asia? Um, and then the second question, very specifically on the dividend approvals from UBS AG to the group. I'm not sure if you mentioned it; I think in the first half, it was about $8 billion that you'd approved to dividend up. I wonder if you can give us an updated number at the 9-month stage. Thank you.

Todd Tuckner: Yeah, thanks, Jeremy. I'll just quickly on the second one. In Q3, at this point, we did not accrue any additional dividends at UBS AG for upstream, which went to my comments about pacing over time the level of intercompany dividends upstream to group to manage some of the FX-driven headwinds around the leverage ratios across group entities. I would just comment that we did pay the $6.5 billion, the second tranche of the $13 billion that we accrued in the prior year, just after the quarter in terms of the upstream from the parent bank to group. On your first question in terms of Asia flows and drivers, first, thanks for recognizing the strong performance. I'm very pleased with how the unit in Asia is performing. When I look at the quarter, for sure, there was a constructive backdrop.

And drivers first thanks for recognizing the.

The strong performance I'm very pleased with with how.

Yeah, thanks. Uh, thanks, Jeremy. So I'll just quickly address the second one. Um, so the uh, in in...

Oh the unit in Asia is performing.

You know when I look at the quarter.

You know for sure there was a constructive backdrop.

Backdrop.

Clients were quite engaged for sure in terms of their.

<unk> willingness to engage whether it was to hedge downside risks are still you know ride what they saw was positive momentum in markets for sure. We were seeing you know more APAC for APAC, So China, China Tech also the U S remains strong.

In 3Q. Um, at this point, we did not acrew any additional dividends at, uh, UBS AG for Upstream, which went to my comment about pacing over time. Uh, the level of, uh, intercompany dividends Upstream to group, uh, to uh, you know, to manage some of the FX driven, headwinds around the leverage ratios across group entities.

Strong traction from a from a U S investment standpoint, and pretty broad base, that's what we were seeing as well.

Uh, I would just comment that we, we did pay, uh, the 6 and a half billion. The second tranche of the 13 billion that we accrued in the prior year. Uh, just just after the uh, the quarter, uh, in terms of the Upstream from uh, the parent Bank to group,

But just in terms of what the team is delivering really as I commented a lot of post integration momentum. So the teams are now together, one platform and really demonstrating what.

On, uh, on your first question in terms of Asia flows, uh, and drivers. First, thanks. Thanks for recognizing the, uh,

You know what what the unit can can do so while.

The performance in the quarter was was exceptional.

Uh, the strong performance. I'm very pleased with how the unit in Asia is performing. Um, you know, when I look at the quarter,

My my expectation for the team is that they remain engaged with clients and we can we continue to.

Todd Tuckner: Clients were quite engaged, for sure, in terms of their willingness to engage, whether it was to hedge downside risks or still ride what they saw was a positive momentum in markets. For sure, we were seeing more APAC for APAC, so China, China Tech. Also, the U.S. remained strong, strong traction from a U.S. investment standpoint and pretty broad-based. That's what we were seeing as well. Just in terms of what the team is delivering, really, as I commented, a lot of post-integration momentum. The teams are now together, one platform, and really demonstrating what the unit can do. While the performance in the quarter was exceptional, my expectation for the team is that they remain engaged with clients, and we continue to perform very well in the region.

Performed very well and are in the region I would also call out as I've said in the past that what we were missing a little bit over the last couple of years from a macro perspective was monetization coming from.

E C M type activities, particularly ipos.

We know that the region is quite hot at the moment and that portends upside for us as we go forward in terms of.

Flows in APAC.

Great. Thank you.

The next question comes from Shneur <unk> from Barclays. Please go ahead.

Yeah. Thank you good morning, I wanted to ask you a question on the comments you made in the report around your willingness to appeal.

Yeah. Each one ruling I just wanted to understand why you and UBS would appeal.

Todd Tuckner: I would also call out, as I've said in the past, that what we were missing a little bit over the last couple of years from a macro perspective was monetization coming from ECM-type activities, particularly IPOs. We know that the region is quite hot at the moment, and that portends upside for us as we go forward in terms of flows in APAC.

To my knowledge. This was the only to see massive fall. So do you feel like you'll potentially layer, but in this case why would you become a party and appear on your side of it as well.

And the second question is regarding the cost.

You're obviously well advanced on that.

Client migration in Switzerland.

This is supposed to lead to the I T decommissioning, our next kit and a cost income ratio boost did.

Um, you know, my, my expectation for the team is that they remain engaged with clients. Uh, and we can we continue to, uh, perform very well in, uh, in the region. I would also call out as I've said in the past that what we were missing a little bit over the last couple of years, from a macro perspective, was monetization coming from, uh, ECM type activities, particularly IPOs. Uh, we know that the region is quite hot at the moment and that portends, you know, upside for us, uh, as we go forward in terms of, uh, Flows In APAC,

[Analyst]: That's great. Thank you.

Did you have that provide actually are and then theyre an absolute number I don't I'll begin a of how much of a boost this would be to your question Heath. Thank you.

That's great. Thank you.

Operator: The next question comes from Flora Bocai from Barclays. Please go ahead.

The next question comes from Florida. Are you from Barclays? Please, go ahead.

[Analyst]: Thank you. Good morning. I wanted to ask you a question on the comment you made in the report around your willingness to appeal the AT1 ruling. I just wanted to understand why you, as UBS, would appeal, because to my knowledge, this was only FINMA so far. Do you feel like you're potentially liable in this case? Why would you become a party and appeal on your side as well? The second question is regarding the cost. You're obviously well advanced on the client migration in Switzerland. This is supposed to lead to the IT decommissioning next year and the cost income ratio boost. Did you ever provide actually a number, an absolute number in dollar billion of how much of a boost this would be to your cost base? Thank you.

Thank you thanks for.

On on the appeal.

Which we announced today that are in terms of our intention.

Yes, thank you. Good morning. I wanted to uh, ask you a question on the comments you made in the report around your willingness to appeal, uh, you know, the uh, at1 ruling.

Alongside FINMA I think it's important to understand that credit Suisse.

Requested to join the proceeding is a party before the closing of the legal merger with UBS.

And then UBS became a party to the proceeding.

In June of 2023 and has succeeded to credit Suisse. As a result of the acquisition.

Now you know.

What why is that helpful. It's in our interest to be a party.

I, I just wanted to understand why you as UVS would appeal, uh, because to my knowledge this was only the fin Mass so far. Uh, so do you feel like your potentially liable? In this case, why would you become a party and appeal on your side as well? Uh, and the second question is regarding the cost. Uh, you obviously well Advanced, you know, on the client, migration in Switzerland. Um this is supposed to uh lead to the it commissioning uh next year and the

In order to ensure that our perspective on the relevant facts relating to the acquisition is considered by the court.

As well and this is important to safeguard the credibility of 81 instruments for the key role that they play in bank recovery and resolution now being a party in the proceedings does not increase our potential legal exposure, but we do feel that it's important that we participate to bring to bear the best path.

Post income ratio boost, did you have a provide actually a number, an absolute number in dollar billion, of how much of a boost this would be to your cost base? Thank you.

Todd Tuckner: Thank you. Thanks, Flora. On the appeal, which we announced today in terms of our intention alongside FINMA, I think it's important to understand that Credit Suisse requested to join the proceeding as a party before the closing of the legal merger with UBS. UBS became a party to the proceeding in June 2023 and had succeeded to Credit Suisse as a result of the acquisition. Now, why is that helpful? It's in our interest to be a party in order to ensure that our perspective on the relevant facts relating to the acquisition is considered by the court as well, and this is important to safeguard the credibility of AT1 instruments for the key role that they play in bank recovery and resolution.

Full outcome.

On.

On the.

Your cost question.

You were asking about.

The contribution of technology, if I got you right in terms of the the bridge to $13 billion from where we are now so we.

Thank you. Uh, thanks for so, uh, on, uh, on the appeal, um, which we announced, uh, today that in terms of our intention, uh, alongside FINMA, I think it's important to understand that credit, uh, requested to join the proceeding as a party before the closing of the legal merger with UBS.

And then UBS became a party to the preceding.

We reported that we have now reached the 10 billion Mark in terms of gross a run.

In June of 2023, we succeeded Credit Suisse as a result of the acquisition.

Now.

Run rate cost saves so we have $3 billion that we expect to.

You know what? Why is that helpful? It's in our interest to be a party.

Convert to Cigna.

A significant part to net saves over the course of 2026 and drive to our underlying cost income ratio target by the end of 2026 now my expectation is when I look out and of course, we're fine tuning. This is part of the ongoing year end planning process, but my expectation as I.

Uh, in order to ensure that our perspective on the relevant facts relating to the acquisition is considered by the court.

Todd Tuckner: Being a party in the proceedings does not increase our potential legal exposure, but we do feel that it's important that we participate to bring to bear the best possible outcome. On your cost question, I think you were asking about the contribution of technology, if I got you right, in terms of the bridge to $13 billion from where we are now. We reported that we have now reached the $10 billion mark in terms of gross run-rate cost saves. We have $3 billion that we expect to convert to a significant part to net saves over the course of 2026 and drive to our underlying cost income ratio target by the end of 2026.

Look out over the last five quarters is that technology will make up.

As well. And this is important to safeguard the credibility of 81 instruments for the key role that they play in bank recovery and resolution. Now, being a party in the proceedings does not increase our potential legal exposure, but we do feel that it's important that we participate to bring to bear the best possible outcome.

A bit more than a third let's say close to 40% of the.

Gross.

Run rate cost saves of that residual 3 billion.

On on the your Cost question. Uh, I think you were asking about, uh, the the contribution of Technology if I got you right in terms of the, uh,

And head count capacity is sort of a similar level.

With the balance being you know third party and third party costs and real estate and from a divisional perspective, I expect two thirds of that benefit to our nor to global wealth management in P&C split two thirds, one third with the with the balance entering to a noncore.

And the other core businesses.

Todd Tuckner: My expectation is when I look out, and of course, we're fine-tuning this as part of the ongoing year-end planning process, but my expectation as I look out over the last five quarters is that technology will make up a bit more than a third, let's say close to 40%, of the gross run-rate cost saves of that residual $3 billion. Headcount capacity is sort of a similar level with the balance being third-party costs and real estate. From a divisional perspective, I expect two-thirds of that benefit to inure to Global Wealth Management and PNC, split two-thirds, one-third with the balance inuring to Non-Core and the other core businesses.

Very helpful. Thank you.

The next question comes from Stefan Salmon from Autonomous. Please go ahead.

Hi, Good morning, Thank you very much for taking my questions.

I would like to come back to the point on the CET one write down.

You said what are you all.

Also sit in the Q documented.

Partly in the preceding it does not increase our potential legal liability.

It should be no liability mismatch on would you be using xactly is hanging in there I mean you are.

The bridge to 13 billion from where we are now. So we, we reported that we have now reached the 10 billion, Mark, terms of gross, uh, run rate cost saves. So we have 3 billion that we expect to uh, convert to uh, uh, significant part to to net saves uh, over the course of 2026 and drive to our, underlying cost income ratio, uh, Target by the end of 2026. Now, my expectation is when I look out, uh, and of course we're fine-tuning this. As part of the ongoing year-end planning process, but my expectation is, I look out over the last 5 quarters is that technology will make up a bit more than a third. Let's say close to 40% of the, uh, gross, uh, run rate cost saves of that. Uh, residual 3 billion and, uh, headcount capacity is sort of a similar level.

Sure.

Yes.

Poses isn't it.

Do you actually have an indemnity by the governments to compensate for any damages that may arise in this case.

With the balance being, you know, third party and the third party costs in real estate. From a divisional perspective, I expect two-thirds of that benefit to go to Global Wealth Management and PNC.

And just a quick question, Brian can be brought to the question on what you see in your U S business is there any evidence that the U S things are changing their competitive behavior.

Split $23, 1/3, uh, with the balance in order to, uh, non-core and the other core businesses.

[Analyst]: Very helpful. Thank you.

Very helpful. Thank you.

Operator: The next question comes from Stefan Stalmann from Autonomous. Please go ahead.

On the backhaul.

Additionally degrees of freedom from a regulatory capital side.

Question comes from Stephan Stalman from Autonomous. Please, go ahead.

[Analyst]: Hi, good morning. Thank you very much for taking my questions. I would like to come back to the point on the AT1 write-down. You said what you also said in the FAQ document, that being a party in the proceedings does not increase our potential legal liability, and in our view, there should be no liability in this matter. On which basis are you exactly saying that? I mean, you are a party of this process, isn't it? Do you actually have an indemnity by the government to compensate for any damages that may arise out of this case? The second question, relatively broadly questioned, on what do you see in your U.S. business, is there any evidence that the U.S. banks are changing their competitive behavior on the back of their additional degrees of freedom from a regulatory capital side, in particular in wealth management? Thank you.

And particularly in wealth management. Thank you.

Thanks.

Stefan for your questions. So in terms of.

On which basis, we've made the conclusions were acting on legal advice naturally.

That being a party in the proceedings does not increase our potential legal liability, and now you say there should be no liability in this matter. On what basis are you exactly saying that? I mean, you are a part of this.

Of course, as an accounting matter can say that.

We don't we don't believe there is a liability and therefore, if theres no liabilities no basis to provide and the R.

Um, process, isn't it? Um, do you actually have an indemnity by the government? Um, to compensate for any damages that may arise out of this case?

Our belief is based on the fact that are we believe the write down was and in accordance with the contractual terms of the 81 instruments and the applicable law and Thats been Ms decree.

Was lawful so that was the basis of our conclusion and no. We don't have an indemnity from.

Um, and the second question, um, relatively broad question on what you see in your U.S. business. Is there any evidence that the U.S. banks are changing their competitive behavior on the back of their additional degrees of freedom from a regulatory capital side?

In particular, in wealth management. Thank you.

Swiss governance.

In terms of the <unk>.

Question on U S competitive dynamics, which I guess comes off the back of.

Todd Tuckner: Thanks. Thank you, Stefan, for your questions. In terms of on which basis we've made the conclusions, we're acting on legal advice naturally. Of course, as an accounting matter, I can say that we don't believe there is a liability, and therefore, if there's no liability, there's no basis to provide. Our belief is based on the fact that we believe the write-down was in accordance with the contractual terms of the AT1 instruments and the applicable law, and that FINMA's decree was lawful. That was the basis of our conclusion. No, we don't have an indemnity from the Swiss government. In terms of the question on U.S. competitive dynamics, which I guess comes off the back of the U.S. banks indicating that they have additional capital and dry powder in that sense, is that changing the competitive dynamics?

The U S banks, indicating that they have.

Additional capital to and dry powder in that sense.

Is that changing the competitive dynamics look all we can do is control what we can control.

In terms of what's in the U S. You know I've been clear on what we are.

Doing from our U S wealth perspective been clear on what we're doing in terms of driving additional.

I b penetration and market share in the U S and the and the steps, we're taking and the success that we're having.

Thanks uh, thank you Stefan for your uh, questions. So uh, in terms of um uh, on which basis we've made the conclusions where acting on legal advice naturally, uh, of course, is an accounting. Matter can say that, uh, we don't, we don't believe there is a liability and therefore, if there's no liability, there's no basis to uh, provide and the our our belief is uh, based on the fact that uh, we believe the the right down was in

I would say that if we're talking about you know.

Balance sheet expansion that some of our peers may be able to and of course, I can't comment or speculate but may be able to bring to bear on the business. All I can do is has recognized that you know our investment bank you know year on year has broadly.

In accordance with the contractual terms of the A21 instruments and the applicable law, we conclude that Finn's decree was lawful. That was the basis of our conclusion. No, we don't have an indemnity from the Swiss government.

in terms of, um,

Flat.

<unk> balance sheet consumption or <unk> as a broadly flat in the IV and yet you know they've driven revenue increases and are well into the double digits. So we we continue to focus on our capital light strategy and execute appropriately.

Todd Tuckner: Look, all we can do is control what we can control in terms of what's in the U.S. I've been clear on what we're doing from a U.S. wealth perspective, been clear on what we're doing in terms of driving additional Investment Bank penetration and market share in the U.S. and the steps we're taking and the success that we're having. I would say that if we're talking about balance sheet expansion, that some of our peers may be able to, and of course, I can't comment or speculate, but may be able to bring to bear on the business. All I can do is recognize that our Investment Bank year on year has broadly flat balance sheet consumption. RWAs are broadly flat in the Investment Bank, and yet they've driven revenue increases well into the double digits. We continue to focus on our capital-light strategy and execute appropriately.

The question on uh us competitive Dynamics which I guess comes off the back of um, you know, the the US Banks um indicating that they have, you know, additional Capital to um and dry powder. In that sense, um, is that changing the competitive Dynamics? Look, all we can do is is control what we can control.

Very helpful.

The next question comes from Joseph Dickerson from Jefferies. Please go ahead.

Hi.

I've got a couple of questions.

Questions and then a just a clarification if I look at your global wealth management units. So if I take GW MNI I isolate the business you call global.

Over the past four quarters, that's produced about $1 1 billion of pretax loss could you discuss what that is and if there if you could.

When we get that to breakeven or sell it off which I suppose there's some complicated and it's quite an uplift to your group.

Pretax so I'm just wondering what is in global you know, what's the what's the strategy there.

Um, in terms of, what's in the US, you know, I've been clear on what we're uh doing from. Uh a US wealth perspective, been clear on what we're doing in terms of driving additional uh IB penetration and market share uh in the US and the and and and the steps we're taking and the success that uh, we're having, you know, I would say that if we're talking about, you know, balance sheet expansion that some of our peers may be able to, and of course, I can't comment or speculate but maybe able to bring to bear on the business. All I can do is um, is is recognize that, you know, our investment Bank, you know, year on year has broadly, uh, flat, uh, balance sheet consumption. Rwa is a broadly, uh, flat in the IB and yet, you know, they've driven Revenue increases and, uh,

Et cetera, and then for Q4 on the buyback are you how.

Well, into the double digits. So we continue to focus on our capitalized strategy and to execute appropriately.

[Analyst]: Anything's very helpful.

How would you think about effectively accruing for that would it be whatever you plan to conditionally.

Anything very helpful.

Operator: The next question comes from Joseph Dickerson from Jefferies. Please go ahead.

The buyback or would it be part of the year are your full year buyback I guess, how to think about that and then my point of clarification is on this 81.

The next question comes from Joseph Dickerson from Jeff. Please go ahead.

[Analyst]: Hi. Excuse me, I've got a couple of questions and then just a clarification. If I look at your Global Wealth Management unit, so if I take GWM and I isolate the business you call global, over the past four quarters, that's produced about $1.1 billion of pre-tax loss. Could you discuss what that is and if you could effectively get that to break even or sell it off, which I suppose is complicated? It was quite an uplift to your group pre-tax. I'm just wondering, what is in global? You know, what's the strategy there, etc.? For Q4 on the buyback, how would you think about effectively accruing for that? Would it be whatever you plan to conditionally buy back, or would it be part of the year or your full year buyback? I guess how to think about that.

<unk> matter, which is it is it not a fact that when you acquired <unk>.

<unk> Suisse that had no outstanding 81 instruments. Thank you.

Hi, excuse me. I've got a couple of um questions and then a just a clarification if I look at your um Global uh wealth management, um unit. So if I take gwm and I I isolate the business you call Global.

Thanks, Thanks, Joseph for your questions.

One clarification on the last one again just to be clear on what you were asking before I respond to it but on the on the others quickly.

In terms of what's in divisional items in Gws, that's the integration expenses largely driving.

Over the past 4 quarters that's produced about 1.1 billion, a pre-tax loss. Could you discuss what that is? And if there, you know, if if you could, um, effectively get that to break even or sell it off, which I suppose is some complicated, it's quite an uplift to your group, uh, pre-tax. So, I'm just wondering what is in global, you know, what's the what's the strategy there?

Uh, etc. And then for Q4 on the buyback, are you...

That performance that you're seeing that item. So we don't we don't attribute that to.

To the units, but but just you know how that overall captured in gws. So those are all the things that are.

[Analyst]: My point of clarification is on this AT1 matter, which is, is it not a fact that when you acquired Credit Suisse, it had no outstanding AT1 instruments? Thank you.

You know the effectively the cost to achieve the cost saves that will ultimately bring to bear and drive down its cost income ratio further.

In terms of Q4, and the buyback accrual as I said our.

Um, how would you think about, um, effectively a for that? Would it be whatever you plan to conditionally, um, buy back, or would it be part of the year, or your full year buyback? I guess, how to think about that? And then my point of clarification is on this AT1 matter, which is, is it not a fact that when you acquired Credit Suisse, that had no outstanding AT1 instruments? Thank you.

Our expectation at the moment is that whatever we determine to be the level of share buybacks that we are either committed or intend to do.

Todd Tuckner: Thanks, Joseph, for your questions. I may want clarification on the last one again, just to be clear on what you were asking before I respond to it. On the others, quickly, in terms of what's in divisional items in GWM, that's the integration expenses largely driving that performance that you see in that item. We don't attribute that to the units, but just, you know, have that overall captured in GWM. Those are all the things that are, you know, effectively the cost to achieve the cost saves that will ultimately bring to bear and drive down its cost income ratio further.

Thanks, uh, thanks, Joseph, for your, uh, questions. Um,

In 2026, we will accrue in our capital in.

In the fourth quarter.

Which is in line with the capital adequacy ordinance rules and and in Switzerland, So that'll be that of course.

The ultimate level of what we determined is subject to all the things that I mentioned on the call are ongoing.

Our planning process continues continued successful integration.

Steps, particularly with the Swiss platform and then you know as.

As well.

Todd Tuckner: In terms of Q4 and the buyback accrual, as I said, our expectation at the moment is that whatever we determine to be the level of share buybacks that we are either committed or intend to do in 2026, we will accrue in our capital in the fourth quarter, which is in line with the capital adequacy ordinance rules in Switzerland. That'll be that. Of course, the ultimate level of what we determine is subject to all the things that I mentioned on the call, our ongoing planning process, continued successful integration steps, particularly with the Swiss platform, and then, as well, whether there's more visibility or any further visibility around the shape and timing of the capital rules here in Switzerland. All that will inform what we come out and say we're intending to do in the fourth quarter, and that will inform the accrual.

Um, that's the integration expenses largely driving uh that uh that performance that you see in that item. So we don't we don't attribute that uh, to uh, to the units but but just, you know, have that overall captured in gwm. So those are all the things that are um, you know, the effectively, the cost to achieve, the cost saves, that will ultimately uh bring to bear and drive down, its cost income ratio further.

Theres more visibility or any further visibility around the shape and timing of the capital rules here in Switzerland. So all of that will inform.

What we come out and say, where we're intending to do.

In the in the fourth quarter and that will inform the the accrual. In addition of course, our full year.

2025 dividend will also be accrued in the capital.

Can I just ask you just to if you wouldn't mind restating the last question yes.

Yes, just I just wanted to clarify that at the time that you acquired credit Suisse.

At that point credit Suisse have no outstanding 81 instruments.

That is correct.

Um, in terms of Q4 and the buyback acral, you know, as I said, um, our expectation, at the moment, um, is that whatever we determine to be the level of share BuyBacks, that we are either committed or intend to do uh in uh in 2026. We will accrue in our Capital uh, in the fourth quarter uh which is in line with the capital adequacy ordinance, uh rules in uh, in in Switzerland. So you know, that will be that, of course. Um, the ultimate level of what we determine is subject to all the things that I mentioned on the call, our ongoing, uh,

Thank you.

Uh, planning process.

Yeah.

The next question comes from.

From RBC. Please go ahead.

Hi, yes, thank you for taking my questions.

Continues continued successful integration, um, steps particularly with the Swiss, um, platform. And then, you know,

One last question on Joe's question about the buyback.

Tennessee is that.

When you publish your opinion pay part that.

You don't expect further visibility on.

As well. Uh, whether there's more visibility or any further visibility around the shape and timing of the capital rules here in Switzerland. So, all that will inform.

The regulation I guess.

Nothing has really changed on that aspect.

Todd Tuckner: In addition, of course, our full-year 2025 dividend will also be accrued in the capital. Now, can I just ask you just to, if you wouldn't mind restating the last question?

And then I guess would you be able to announce another buyback in the course of the year. Once you have more clarity.

That would be basically excluded by.

What we come out and say we're, we're intending to do uh, in the, in the fourth quarter and that will inform the uh, the acral. In addition, of course, our full year, uh, 2025 dividend will will also be acred, uh, in in the capital

My Hum back approach to buybacks in 2026.

[Analyst]: I just wanted to clarify that at the time that you acquired Credit Suisse, at that point, Credit Suisse had no outstanding AT1 instruments.

Now, can I just ask you, uh, just to, if you wouldn't mind restating the last question? Yeah.

And secondly, can you talk a bit about the integration that's that's operations.

Yeah, I just wanted to clarify that at the time you acquired Credit Suisse.

Todd Tuckner: That is correct.

At that point, Credit Suisse has no outstanding AT1 instruments.

That's been going I guess have been some press articles about some system I guess, what do you think that's E T.

[Analyst]: Thank you.

That is correct.

Thank you.

Operator: The next question comes from Anke Rangan from RBC. Please go ahead.

The integration or is it just.

Just kind of like part of the helmet business.

[Analyst]: Thank you for taking my questions. The first is just a follow-up question on Joe's question about the buyback. Previously you said when you published your opinion paper that with full-year results, you don't expect full visibility on the regulation. I guess nothing has really changed on that aspect. Would you be able to announce another buyback in the course of the year once you have more clarity, or would that be basically excluded by your approach to buybacks in 2026? Secondly, can you talk a bit about the integration of the Swiss operations, how that's been going? There have been some press articles about some system failures. Would you think that's due to the integration, or is it just part of the normal business? I think you had some quite attractive deposit rates out there. Are they basically part of your Q4 NII guidance? Thank you very much.

The next question comes from RBC. Please go ahead.

You had some quite attractive deposit rates out there and that is a key part of your Q4 NII guidance.

How much.

Thank you for the question so I think that it's at.

Uh, yeah, thank you for taking my questions. Um, the first is just a follow-up question on those questions about the buyback. Um, I guess previously, when you published your opinion paper with the full-year results, you mentioned that you don't expect full visibility on...

Maybe.

I remind that you know what I've mentioned in the last few quarters as we.

Um, the regulation. Um, I guess nothing has really changed on that aspect. Um.

We're answering the question on capital return stats.

Our capital return policies, and particularly around share buyback will not be stopped.

Um, and then I guess would you be able to sort of announce another buyback in the course of the year once you have more clarity? Or would that be basically excluded by, um,

And go policy so.

As you heard from Todd, we're going to complete our current outstanding share buyback plan.

And.

At year end, all things being equal, we expect to accrue for a share buyback to be executed.

During 2026.

The size of the share buyback will be determined as we complete our process and as we have.

More visibility both on how the integration is progressing.

By your, um, sort of like approach to buybacks in 2026. Um, and then, secondly, um, can you talk a bit about the, um, integration of the Swiss operations? Um, how that's been going? I guess I've been reading compressed articles about, um, some system failures. Would you think that's due to, um, the integration or is it, um, just sort of like part of the normal business? And I think you had some quite attractive deposit rates out there. Um, are they basically part of your Q4 guidance? Um, thank you very much.

[Analyst]: Thank you for the question, Anke. I think that let me maybe remind, you know, what I mentioned in the last few quarters as we were answering the question on capital returns. That's our capital return policies, and in particular around share buyback, will not be a stop and go policy. As you heard from Todd, we're going to complete our current outstanding share buyback plan. At year end, all things being equal, we expect to accrue for share buyback to be executed during 2026. The size of the share buyback will be determined as we complete our process and as we have more visibility both on how the integration is progressing and also on any potential developments on the capital requirements topic in Switzerland. Yes, we're going to have a share buyback in 2026, all things being equal.

And also on any potential.

Developments on the capital requirements are.

Topic in Switzerland.

You know, yes, we're going to have a share buyback in 2026, all things being equal.

So.

Yeah, I'll, let you know on the <unk>.

Integration side I I'll, let you know.

Does he makes you mean, but you know I would say that you know.

Of course, when you go through such an enormous we are we have been migrating 40 petabytes of data.

Writing 700000 clients out of our $1 2 million clients. So I think that's.

What we try to do is always try to make it as smooth as possible for everybody I would say that so far the vast majority.

Thank you for the question. Thank you. So I think that's uh let me uh maybe re re re re, you know what? I mentioned in in the last few quarters as we were answering the question on Capital returns that uh our Capital return policies and in particularly around shared by back will not be stopped. Uh, and go policy. So, you know, as you heard from Todd, we're going to complete our current outstanding. Uh, share. Bye, back plan and uh, uh, at your end, all things being equal. We expect to a crew for, uh, share. Bye. Back to be executed, uh, during 2026.

Of the clients that are now part of the UBS platform are happy about the migration of course, you always ask so.

I'm kind of people not being up is like if I ask you to move from iOS.

Telephone to an Android or the other way around the first couple of days, maybe you are not so pleased but I.

I don't think that we have any major issues here actually things are going pretty well and you know we are now very focused on completing that.

[Analyst]: On the integration side, Todd, you may chime in, but I would say that, of course, when you go through such an enormous, we have been migrating 40 petabytes of data, migrating 700,000 clients out of 1.2 million clients. I think that's, you know, what we try to do is always try to make it as smooth as possible for everybody. I would say that so far, the vast majority of the clients that are now part of the UBS platform are happy about the migration. Of course, you always have some kind of people not being happy. It's like if I ask you to move from iOS telephone to an Android or the other way around, the first couple of days, maybe you are not so pleased, but I don't think that we have any major issues here.

Go. The size of the share buyback will be determined as we complete our process and as we have more visibility both on the how the integration is progressing and uh and also on any potential. Um uh uh developments on on on the capital requirements. Uh uh um Topic in Switzerland. But uh you know yes we're going to have a share by back in 2026. All things being equal.

so, um,

The rest of the deposit outflows I think that was more yeah.

Yes, Serge Thanks, just to pick up agreed so you know just to pick up on surges point.

Any any system issue is unrelated to our to the client migration in terms of.

I mean, you asked sort of maybe a broader question or maybe a more specific question, but I'll answer it in the the most important thing to remember.

Is that where we're managing our net interest income anchor in an environment of zero interest rates. So.

It's fair to say that the balance sheet dynamics play quite an important role in enhancing the NII as best as we can and you could even see that a bit in the quarter on quarter.

[Analyst]: Actually, things are going pretty well, and we are now very focused on completing that. The rest of the deposit outflows, I think that was more, you know.

This this quarter. So you know where we're pricing to be competitive in the market since you know where where we want high value ore.

Todd Tuckner: Yeah, Sergio, thanks. Just to pick up, you agreed. Just to pick up on Sergio's point, any system issue is unrelated to the client migration. In terms of, I mean, you asked a sort of maybe a broader question or maybe a more specific question, but I'll answer it. The most important thing to remember is that we're managing our net interest income, Anke, in an environment of zero interest rates. I think it's fair to say that the balance sheet dynamics play quite an important role in enhancing the NII as best as we can. You could even see that a bit in the quarter on quarter, this quarter. We're pricing to be competitive in the market since where we want high value or deposits of high funding value. I wouldn't call out anything unusual about what we're doing other than to enhance our NII wherever possible.

We try to do is always try to make it as smooth as possible for everybody. I would say that so far. The vast majority, uh, of the clients that are now part of the UBS platform are happy about the migration. Of course, you always have, uh, some kind of, uh, people not being happy. It's like, if I asked you to move from IOS, uh, telephone to an Android, or the other way around at the first couple of days, maybe you are not so pleased, but, uh, I don't think that we have any major issues here, actually, uh, things are going pretty well. And, you know, we are now very focused on completing that. So, uh, the rest of, uh, the deposit outflows, I think that was more, you know,

Deposits of high funding value, but you know I wouldn't call out anything unusual about what we're doing other than to enhance our NII wherever possible.

Okay.

Thank you.

The next question comes from Chris <unk> from Goldman Sachs. Please go ahead.

Yes, good morning, just two.

Quick follow ups really for me left.

You mentioned that you expect to receive approval for the National Bank charter in 2026.

From the point about approval, how do you see the timeline on the content for the PBT margin improvement in U S. Wealth, just I would assume that that's additive to the FY 'twenty six Ara C. T. One exit rate. So just any color that would be super helpful.

Yeah. Sergio thanks just to, uh, pick up, uh, your greed. So, you know, just to pick up on Sergio's Point. Uh, you know, any, any, any system issue is, is unrelated, uh, to, uh, to, to the client migration in terms of, um, you know, in I mean you you asked to sort of, maybe a broader question or maybe a more specific question, but I'll, I'll answer it in the, the most important thing to remember, uh, is that, um, we're, we're managing our net interest income Anka in an environment of zero interest rates. So, um, you know, I think it's fair to say that the balance sheet, Dynamics play, quite an important, uh, role uh, in enhancing the knee as best as we can. And you can

And then second you also flagged that a prolonged U S government shutdown may delay U S capital markets activities in the fourth quarter.

Even see that a bit and the quarter on quarter, uh, this this quarter. So, you know, we're we're pricing to be competitive, uh, in the markets since, uh, uh, you know, where, where we want high value or

Could you just give us a sense of materiality on that so I guess, if we assume that that's the.

Q2 accounts deadline is missed for potential listings, how 'bout may impact the IV numbers for Q for you. Thank you.

Deposits of high funding value. Um, but you know, I wouldn't call out anything unusual about what we're doing, other than to, you know, enhance our need wherever possible.

[Analyst]: Thank you.

Thank you.

Operator: The next question comes from Chris Hallam from Goldman Sachs. Please go ahead.

Thanks for your questions. So look on the I think the important thing on on the.

[Analyst]: Yeah, morning. Just two quick follow-ups really from me left. First, you mentioned that you expect to receive approval for the US national bank charter in 2026. From the point of that approval, how do you see the timeline and the quantum for the PBT margin improvement in US wealth? I would assume that that's additive to the FY26 ROC CET1 exit rate. Just any color there would be super helpful. Second, you also flagged that a prolonged US government shutdown may delay US capital markets activities in the fourth quarter. Could you just give us a sense of materiality on that? I guess if we assume that the Q2 accounts deadline is missed for potential listings, how that may impact the IB numbers for Q4 for you. Thank you.

The next question comes from Chris Halam from Goldman Sachs. Please go ahead.

National Charter in terms of when we get it and what it means for first of all it's been priced into our longer term plans since its been something that we have been intending to do I think it's important to understand that.

Yeah, morning. Just to, um, quick follow-ups. Really, from me left. Um, first, you mentioned that you expect to receive approval for the National Bank Charter in 2026.

And as I mentioned.

In response to an earlier question, we're very focused on building out our NII and banking capabilities in the U S. Now.

From the point of that approval, how do you see the timeline? And the quantum for the PBT margin Improvement in US wealth. Just I would assume that that's additive to the FY. 26, rho, C1, exit rate. So just any color there would be super helpful.

And the National Charter is a natural add on to that this is not just a.

Wait for that and then it's going to be a transformational, but rather it's going to be part of an evolution.

And it's going to you know obviously, if we want our clients.

And then second, um, you also flagged that a prolonged US Government shutdown, may delay US, capital markets activities in the fourth quarter. Um, could you just give us a sense of materiality on that. So I guess if we assume that the the Q2 account deadline is missed for potential listings. How about may impact? The IB numbers for for Q for you? Thank you.

You know that the great majority of whom are doing their banking with other banks our peers largely in the U S and we want to have.

Todd Tuckner: Thanks for your questions. On the, I think the important thing on the US national bank charter in terms of when we get it and what it means, first of all, it's been priced into our longer-term plan since it's been something that we have been intending to do. I think it's important to understand that, as I mentioned in response to an earlier question, we're very focused on building out our NII and banking capabilities in the US now. The national charter is a natural add-on to that. This is not just a wait for that and then it's going to be transformational, but rather it's going to be part of an evolution.

Uh, thanks for your questions. So I'll look on the, uh, I think the important thing on the, uh,

As clients start to bank with us that's going to take time, so, but we can't do it until we have the charter the charter the license approved.

So you know that's going to enhance things, but I would just say it's going to take time, we'll we'll keep you up and give you color as to expectations, but right now from where I sit.

That's something where you know I'm much more focused on ensuring that we're doing the right things to drive NII expansion now.

National Charter, uh, in terms of when we get and what it means. F, first of all, it's been, you know, priced into our longer term plans since it's been something that we have been intending to, uh, to do. I think it's important to understand that, um, you know, and I, as I mentioned, uh, in response to an earlier question, we're very focused on building out our knee and banking capabilities in the US now.

And and to use the charter as an enhancement to that in terms of the U S government shutdown.

Shut down.

Difficult to frame that in a materiality context, we just wanted to flag it as a potential headwind given that you know if at some point if the IPO calendar really does get delayed across the street it'll have you know ultimately an impact on on ECM.

Todd Tuckner: Obviously, if we want our clients, the great majority of whom are doing their banking with other banks, our peers largely in the US, and we want to have those clients start to bank with us, that's going to take time. We can't do it until we have the charter, the license approved. That's going to enhance things, but I would just say it's going to take time. We'll keep you up and give you color as to expectations. Right now, from where I sit, that's something where I'm much more focused on ensuring that we're doing the right things to drive NII expansion now and to use the charter as an enhancement to that. In terms of the US government shutdown, very difficult to frame that in a materiality context.

Revenues potentially even other capital markets revenues. So we just wanted to flag it as a risk factor that we see but very difficult to frame in terms of materiality at this point.

Okay. Thanks very much.

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

Uh, and the national Charter is a natural add-on to that, you know, this is not just a, uh, wait for that. And then it's going to be, uh, transformational but rather it's going to be, you know, part of an evolution. Uh, and it's going to, you know, obviously if we want our clients, uh, you know, the, the, the great majority of whom are doing their banking, with other Banks, our peers largely uh, in the US. And we want to, to have, you know, those clients start to bank with us. That's going to take time. Uh, so you know, but we we can't do it until we have the the, the charge, the charter, the license approved. Uh, so, um, you know, that's going to enhance things, but I would just say it's going to take time. Uh, we'll, we'll keep you up and give you color as the expectations. But, right now from where I sit, you know, that, that's something where

Good morning, if I could have one on litigation.

I'm much more focused on ensuring that we're doing the right things to drive knee expansion. Now,

One on net interest income.

On litigation.

Okay.

Okay.

You did talk about <unk>.

Respect to terrorist attacks in Iraq.

Todd Tuckner: We just wanted to flag it as a potential headwind given that, if at some point, if the IPO calendar really does get delayed across the street, it'll have ultimately an impact on ECM revenues, potentially even other capital markets revenues. We just wanted to flag it as a risk factor that we see, but very difficult to frame in terms of materiality at this point.

Can you talk about model.

Luxembourg Company calls I'm sure.

We see the events, we see in Paraguay.

Thanks, Steve.

So.

We can see HSBC.

Cool.

Restitution.

No.

Is there any points of comparison that you would make and tenacity.

[Analyst]: Okay, thanks very much.

These differences maybe outstanding.

Sense, even other capital markets' revenues. So we just wanted to flag it as a risk factor that we see, but it's very difficult to frame in terms of materiality at this point.

Okay, thanks very much.

Operator: The next question comes from Andrew Coombs from Citi. Please go ahead.

You have flagged in May 14, new accounts.

<unk>.

And then separately net interest income trajectory wolfcamp, Greg in Q3 better than anticipated.

The next question comes from. Andrew kums from City. Please go ahead.

[Analyst]: Morning. If I could have one on litigation and one on names of things on litigation, if I look at note 14 in your accounts, you do talk about APA with respect to terrorist attacks in Iraq. You also talk about Madoff and Luxembourg funds and courts. I'm sure you've seen the events with BNP Paribas with respect to Sudan and more recently seen HSBC and the Luxembourg court ruling on cash restitution on Madoff. Is there any points of comparison that you would make, any similarities versus differences to the outstanding cases that you have and flag in note 14 in your accounts? Completely separately, net interest income trajectory, you obviously had good growth in Q3, better than anticipated, largely seems to be due to the deposit mix and pricing, but you're then guiding to stable net interest income in Q4 again.

Some of it mix and pricing.

Guiding to stable net interest income in Q4 again.

Is there any additional headwind coming through.

In Q4.

Right.

Uh huh.

Mean that you are slightly more conservative on the Q4 guide path experienced in Q3. Thank.

Thank you.

Yeah. Thanks, Andy so on the on the second question in terms of NII.

And the and the outlook, let me first just maybe unpack it.

From from our P&C perspective, I think they're it's pretty clear that you know.

Morning. Um, if I can have 1 on mitigation, uh, and 1 on millions of income, um, I'm litigation if I look at know, 14 in your accounts and you do talk about APA with respect to terrorist attacks in Iraq. Uh, you also talk about Maddox uh and Luxembourg funds in quartz. Uh I'm sure you see the events with BMP power uh with with respect to um Sudan and more recently seen HSBC uh and the Luxemburg Court ruling on cash. Restitution on Mad off. So is there any points of comparison that you would make and similarities? There are some differences to the outstanding, uh, cases that you have and flag in note, 14 in your accounts.

Notwithstanding the point I made talk around balance sheet.

Management.

You know the NII is going to be difficult to move out of our out of this.

This is sort of flat trajectory with with interest rates not having.

[Analyst]: Is there an additional headwind coming through that you're foreseeing in Q4? Is it just a function of Fed rates? What are the moving parts that mean that you are slightly more conservative on your Q4 guide versus the experience in Q3? Thank you.

Anywhere to go.

At this point when they move as I've said, given the positive convexity.

In the.

And in the in the curve whether rates move up or down that will benefit us in in P&C NII in wealth. It's always you know the dynamics with rates going down are always somewhat difficult to model because as the you know the impact of.

Um, and then complete you separately, no interest income. Trajectory, you also have good growth in Q3, uh, better than anticipated. Largely seems to be due to the deposit mix and pricing, but you're then guiding to stable relative income into Q4 again. So is there an additional headwind coming through that you're expecting? Is it just a functional third-rate? Um, what are the moving parts that mean that you are slightly more conservative on your Q4 guide versus the experience in Q3?

Thank you.

Todd Tuckner: Yeah, thanks, Andy. On the second question in terms of NII and the outlook, first, just to maybe unpack it. From a PNC perspective, I think there it's pretty clear that, notwithstanding the point I made to Anke around balance sheet management, the NII is going to be difficult to move out of this sort of flat trajectory with interest rates not having anywhere to go at this point. When they move, as I've said, given the positive convexity in the curve, whether rates move up or down, that will benefit us in PNC NII. In wealth, it's always the dynamics with rates going down are always somewhat difficult to model because of the impact. Of course, we are still pushing to see continued releveraging. We've had our third quarter of releveraging. That's a positive trend that can help.

Of course, we are.

Yeah, thanks, Andy. So, on the, uh, on the second question, uh, in terms of knee.

Or are still pushing to see continued re leveraging so we've had our third quarter of re leveraging so that's a positive trend that can help also as rates ticked down low enough. You know then you start to see even a re leveraging take a much more significant uptick just given our interest in.

uh, and the and the Outlook, let me first, just to maybe unpack it

um,

In the carry trade, but we're not yet seeing that at a at the levels are at at the moment of course as well as rates go down then you have some mix shift dynamics that have been favorable but are also difficult to call, especially given the rate levels were at so no we think that.

from from a PNC perspective, I think there it's pretty clear that, uh, you know, notwithstanding the point I made Toca around balance sheet, uh, management. Um, you know, the knee is going to be difficult to move out of, uh, you know, out of, uh, this this sort of flat trajectory with, with interest rates, not having, uh, uh, anywhere to go, uh, at, at this point when they move, as I've said, given the positive convexity, uh, in the, uh,

We will continue to manage our the.

The downward pressure on NII from lower rates, you know rates are already very low on half hour.

On half our balance sheet, just given euro and Swissie and.

And those dollars come down that'll have some downward pressure on deposit NIM, but we'll continue to manage everything and naturally as our NII is only a quarter of gws revenues of course, potentially a lower rate environment also portends favorable things around transactional activity.

Todd Tuckner: Also, as rates tick down low enough, then you start to see even releveraging take a much more significant uptick just given interest in the carry trade, but we're not yet seeing that at the levels at the moment. Of course, as well as rates go down, then you have some mixed shift dynamics that have been favorable, but are also difficult to call, especially given the rate levels we're at. We think that we'll continue to manage the downward pressure on NII from lower rates. Rates are already very low on half our balance sheet, just given euro and Swiss franc. As dollars come down, that'll have some downward pressure on deposit NIM, but we'll continue to manage everything. Naturally, as NII is only a quarter of GWM's revenues, potentially a lower rate environment also portends favorable things around transactional activity and even potentially recurring fees.

And even potentially a recurring fees.

Sure.

On.

Oh look on on your litigation questions broadly.

First of all we're not going to comment on our other firms cases, and do read across us and comment whether on a T a or an unmade off so.

Uh, in, in the, in the curve, um, whether rates move up or down, that will benefit us in, uh, in PNC and II in wealth. It's always, you know, the Dynamics, um, with rates going down are always somewhat difficult to, to model because of the, you know, the impact. Um, of course, we we, uh, uh, are are still pushing to see continued relever. So, we've had our third quarter of relever. So that's a positive trend that uh can help also is rates, you know, tick down low enough, you know, then you start to see even uh, relever in. Take a much more significant uptick just given uh uh interest in uh, in the carry trade. But we're not yet seeing that at uh, at the levels. Uh, at at the moment, of course, as well as rates, go down. Then the, you have some mixed shift dynamics that have been favorable, but are also difficult to call, um, especially given the the rate levels we're at so, um, you know, we we

We we have our disclosure in the litigation note and I would just direct you to.

Read in <unk>.

we think that uh we'll continue to manage uh the downward pressure on knee from lower rates, you know, rates are already very low on half our um,

<unk> form your own conclusions, but we're not we're not going to speculate on what.

What we don't know about other institutions are legal cases.

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

Yes, hi, good morning, two questions for me.

First it looks like you didn't upstream capital out of you in New York or credit Suisse International entities in this quarter, but last year, we did a significant ones in Q4.

uh, on on half our balance sheet is given Euro and swissy, um, and as dollars come down, that'll have some, uh, downward pressure on deposit Nim but we'll continue to to manage everything and naturally as uh, knee is only a quarter of gwm's revenues, of course, um, you know, potentially a lower rate environment, also portends, favorable, things around, transactional activity, uh and and and even potentially, uh, recurring fees

Todd Tuckner: On your litigation questions broadly, first of all, we're not going to comment on other firms' cases and do read acrosses and comment whether on ATA or on Madoff. We have our disclosure in the litigation note, and I would just direct you to read and form your own conclusions, but we're not going to speculate on what we don't know about other institutions' legal cases.

On. Um,

Something similar this year, maybe you can shed some color on that and then secondly asset quality remains solid.

In the U S is killing it and we see that your exposure to non deposit take advantage institutions, it's been quiet no but any.

Recent details so that supporters of private credit private equity and hedge funds will be appreciated and potentially also brought us thoughts on the on the credit.

Concerns in the market and our testing okay. So thank you.

Yeah.

On look on on your litigation questions. Uh, broadly. Um, where when first of all, we're not going to comment on uh, other firms cases and do read across and and comment, um, whether on ATA or on, on maid off. So, um, you know, we we we we, we have our disclosure in the litigation note and um, I would just direct you to uh, read and and inform your own conclusions. But we're we're we're not we're not going to speculate on uh on what we don't know about. Uh other institutions uh legal cases.

Thanks. Thanks.

Sergio Ermotti: Next question comes from Benjamin Goy from Deutsche Bank. Please go ahead.

Benjamin so in terms of upstream.

Upstream capital from a hour.

Todd Tuckner: Yes, hi, good morning. Two questions remain. First, it looks like you didn't upstream capital out of your New York or Credit Risk International entities in this quarter, but last year you did a significant one in Q4. Should we expect something similar this year? Maybe you can share some color on that. Secondly, as equality remains rock solid, at least in the U.S. disclosure, we see that your exposure to non-deposit taking financial institutions is quite low, but any additional details of exposure to private credit, private equity, and hedge funds would be appreciated and potentially also broader thoughts on the credit concerns in the market outside of single cases. Thank you.

The next question comes from Jen, Benjamin goy from Deutsche Bank, please go ahead.

Subsidiaries in particular, the U K subsidiary, where I've guided in the past still expectation over.

The rest of this year into next year, we don't control the timing or what we control is continuing to derisk the balance sheet and.

But ultimately the timing to to upstream requires regulatory.

Regulatory approval, so we don't control that but I am still.

<unk> that the U K.

Uh huh.

The the capital repatriation from the U K will happen over the near to midterm I in the U S and I've I've mentioned in the past our expectation is to.

Yes. Hi good morning to questions remain. So first it looks like you didn't Upstream Capital out of your New York, um, or criticized International entities and this quarter, but last year did a significant ones in Q4. So should we expect something similar this year? Maybe you can share some color on that and then, secondly, as a quality remains Rock Solid at least in the US disclosure. We see that your exposure to non-deposit taking financial institutions is um quite low but any um additional details of exposure to private credit private equity and hedge funds would be appreciated and potentially also broader thoughts on the on the credit um concerns in the market um outside of single case and thank you.

Reduce the capital ratios to levels that were pre ECS levels of CET. One capital you can see this quarter still elevated with a two handle.

Operator: Thanks, thanks, Benjamin. In terms of upstreaming capital from our subsidiaries, in particular the UK subsidiary where I've guided in the past, it's still expectation over the rest of this year into next year. We don't control the timing. What we control is continuing to de-risk the balance sheet, but ultimately the timing to upstream requires regulatory approval. We don't control that, but I'm still expecting that the UK, the capital repatriations from the UK, will happen over the near to mid-term. In the U.S., and I've mentioned in the past, our expectation is to reduce the capital ratio to levels that were pre-Credit Suisse levels of CET1 capital. You can see this quarter, still elevated, with a two-handle, in terms of CET1. We're working as well to reduce the capital levels there, and that will also result in there being upstream of capital from the U.S.

In terms of CET, one, we're working as well to to reduce.

Thanks. Uh, thanks, uh, Benjamin. So, uh, in terms of um, upstreaming capital from, uh, our, uh, subsidiaries, um, in particular the UK subsidiary where I've got, in the past, you know, still expectation over.

Reduce the capital levels, there and that will also.

The result in there being upstream of of capital from the U S to the parent bank I will give more color next quarter on the expectations around what I see for the full year 2026.

Uh, the rest of this year, into next year, we don't control the timing. Or what we can control is continuing to de-risk the balance sheet and, um, but ultimately the timing to, uh, to Upstream, you know, requires, um, regulatory approval. So we don't control that, but I'm still, you know, expect.

thing that the UK, uh,

At this stage, but we continue to work to upstream as much as as much as we can as a function of derisking the balance sheet from the CFS acquisition.

And on the second question in terms of N V. F is look I'm very.

<unk> with our on balance sheet exposure from a credit standpoint, I think that's pretty clear if you.

Take for me my updates each quarter on where our balance sheet is what it consists of cost of risk R. N V. F O counterparties are.

The the the capital repatriations from the UK, uh, will happen over, you know, the the near to mid-term uh in the US. And I've, I've mentioned in the past, our expectation is to uh, reduce the capital ratio to levels that, uh, were precis levels of ct1 capital. You can see this quarter, you know, still elevated with the 2 handle, uh, in terms of ct1, we're working, uh, as well to, um, to reduce, uh, reduce the capital levels there. And that will also, um,

Our largely investment.

Operator: to the parent bank. I will give more color next quarter on the expectations around what I see for the full year 2026 at this stage, but we continue to work to upstream as much as we can as a function of de-risking the balance sheet from the Credit Suisse acquisition. On the second question in terms of NBFIs, look, I'm very comfortable with our on-balance sheet exposure from a credit standpoint. I think that's pretty clear. If you take from me my updates each quarter on where our balance sheet is, what it consists of, cost of risk, our NBFI counterparties are largely in investment grade, strong protection in terms of collateralized positions. I have no concerns about the broader credit environment impacting on UBS at this stage.

Investment grade a strong protection in terms of collateralized positions. So I have no no concerns about the broader credit environment impacting on UBS at this stage I'm seeing nothing that would.

Suggest any issues beyond what I report regularly on which is in our Swiss environment.

Just you know the working through the back book from the Credit Suisse acquisition that we've been doing and bringing our two two you all my thoughts around the impact say of.

Uh, result in there being upstream of, uh, of capital from the U.S. to the parent bank. Um, I will give, you know, more color, uh, next quarter, you know, on the expectations around what I see for the full year 2026, uh, at this stage. But we continue to, uh, to work to upstream as much as, uh, as we can, as a function of the risk in the balance sheet from the CS acquisition.

The ongoing and emerging you know trade policy effects on on the whether the back or the front book are in the in the Swiss business. So those are the things that I think are relevant and we will continue to focus on and see no broader stress you know in.

And on, uh, the second question in terms of NBFI, look, I'm very comfortable with our on-balance-sheet exposure from our credit standpoint. I think that's pretty clear if you, uh, take from me my updates each quarter on, uh, where our balance sheet is and what it can do.

In the a and the credit market that I would and particularly in the private credit market that I would call out.

Thank you.

The last question comes from Amit Glenn from Mediobanca. Please go ahead.

Operator: I'm seeing nothing that would suggest any issues beyond what I report regularly on, which is in our Swiss environment, just the working through the backbook from the Credit Suisse acquisition that we've been doing and bringing to you all my thoughts around the impact, say, of the ongoing and emerging trade policy effects on whether the back or the front book in the Swiss business. Those are the things that I think are relevant and we'll continue to focus on and see no broader stress in the credit market, particularly in the private credit market, that I would call out.

Alright, Thank you and.

Two questions from me and just funnel of opportunity and but one and say just on the coming back to the U S wealthy.

And I, just really wanted to understand and I appreciate you'll give more guidance with full year, but then you know within the changes to the green tea.

To try and get a bit more attention to kind of.

Stabilize the flies and could we see the operating margin, then again and kind of decline a little bit.

Before he'd before you had to get that improving again.

Consists of cost of risk. Um, our you know, nbfi counterparties are, um, uh, are, uh, largely, uh, in investment grade, uh, strong protection in terms of collateralized positions. So I I have no no concerns, uh, about the, the broader credit environment impacting, uh, on UBS at this stage, I'm seeing nothing that would, um, suggest any issues beyond what I report regularly on, which is, in our Swiss environment. Uh, just, you know, the, the working through the bakbuk from the credit Swiss acquisition that we've been doing and bringing, uh, to, to you all my thoughts, around the impact, say of, um, the ongoing and emerging, uh, you know, trade policy effects on, on the, uh, whether the back or the front book, uh, in the, in the Swiss business. So, those are the things that I think are relevant and we'll continue.

And then secondly, and just on the PCB business and I guess in the comments and say that the deposit than it used to call outside plant.

Todd Tuckner: Good to hear. Thank you.

To focus on and see no broader stress, you know, in the credit market that I would, uh, in the pick in the private credit market that I would call out.

Sergio Ermotti: The last question comes from Amit Goel from Mediobanca. Please go ahead.

Okay, yeah, thank you.

Some balance sheet optimization, but I was a bit confused about then why there would be some slightly more favorable at chipotle offerings in.

Todd Tuckner: Hi. Thank you. Two questions from me. Just follow-ups, really. One, just on coming back to the U.S. wealth piece, I just really wanted to understand, I appreciate you'll give more guidance with full year, but with the changes to the grid to try and get a bit more attention and to kind of stabilize the flows, could we see the operating margin then again decline a little bit before you look to get that improving again? Secondly, just on the PCB business, I guess in the comments, the net new deposit outflow reflected some balance sheet optimization, but I was a bit confused about why there would be some slightly more favorable deposit offerings being made. Just wanted to understand that a bit better. Essentially, with the outlook being a bit more cloudy for Switzerland, just curious how you're seeing the balance sheet development there going into next year.

The last question comes from Amit Guell from Medio Banker. Please go ahead.

Hi, thank you. Um,

Being being made.

Wanted to understand that the veterans and essentially you know with the outlook and being a bit more cloudy for Switzerland, just curious how you're seeing the balance sheet development, there and going into next year. Thank you.

Two questions from me, um, just follow-ups, really. Um, one, um, so just coming back to the U.S. wealth piece.

Got it so maybe just taking your second question first so on on the balance sheet, we continue to.

And we we disclose that.

To extend significant levels of credit to our clients here in Switzerland, 40 billion Swiss franc.

Very focused on on a on that.

And in terms of how we're thinking about the balance sheet. The balance sheet is critical for us in our in our Swiss business as I mentioned.

You don't want to just manage the franchise now, particularly you know post as we move into a post integration state, we're going to lean in more and more on the balance sheet to help our clients into AR to drive NII even if.

The rates are not are not helping.

Todd Tuckner: Thank you.

So the dynamics here in Switzerland, and around balance sheet remained quite important to us.

Before you look to get that improving again. Um, and then secondly, um, just on the PCV business, then I guess in the comments, then so that the deposit, the net new deposit outflow reflected some balance sheet optimization. But I was a bit confused about then why there would be some slightly more favorable deposit offerings than being made? So just wanted to understand that a bit better. And essentially, you know, with the outlook being a bit more cloudy for Switzerland, just curious how you're seeing the balance sheet development there, um, going into next year. Thank you.

Operator: Got it. Maybe just taking your second question first. On the balance sheet, we continue to, you know, we disclose that, continue to extend significant levels of credit to clients here in Switzerland, CHF 40 billion, very focused on that. In terms of how we're thinking about the balance sheet, the balance sheet is critical for us in our Swiss business, as I mentioned, to just manage the franchise. Now, particularly as we move into a post-integration state, we're going to lean in more and more on the balance sheet to help our clients and to drive NII even if the rates are not helping. The dynamics here in Switzerland around balance sheet remain quite important to us.

And you know ensuring that were.

You know seen as a trusted lender to our Counterparties is quite quite critical to us and that's why we talk about the level of of credit that we're extending our rolling over on a on a regular basis to show the levels that we're maintaining here are in the in the Swiss market.

In terms just quickly on the out flow as part of the optimization I think it's all it's important to understand that you.

We're also looking to maximize funding value.

Around our deposits and that's pretty critical how we price and how we term out deposits in particular is important just to also manage.

Some across the group some of the FX driven headwinds I've I've touched on that you don't make leverage more constraining. So just important its just a tool we are using across the group.

Got it. So, maybe just taking your second question first. So on, on the balance sheet, we continue to. Um, you know, and we we disclose that um, continue to extend significant levels of credit to, uh, clients here in Switzerland, 40 billion, Swiss franc, uh, very focused on on, uh, on that, um, you know, in in, in terms of how we're thinking about, uh, the balance sheet, the balance sheet is, is critical for us in our, in our, Swiss business, as I mentioned, uh, you know, 1 to just manage the, the franchise. Um, now particularly, you know, post as we move into a post integration State, we're going to lean in more and more on, on the balance sheet to help our clients and to, uh, to drive nii even if, um, you know, the rates are not, uh, are not helping. Um,

Operator: Ensuring that we're seen as a trusted lender to our counterparties is quite critical to us and is why we talk about the level of credit that we're extending or rolling over on a regular basis to show the levels that we're maintaining here in the Swiss market. In terms just quickly on the outflow as part of the optimization, I think it's important to understand that we're also looking to maximize funding value around our deposits. That's pretty critical. How we price and how we term out deposits in particular is important, just to also manage, across the group, some of the FX-driven headwinds I've touched on that make leverage more constraining. It's just a tool we're using across the group to improve or increase funding value along our deposits and just to ensure that we're maximizing it in that respect. You asked about the U.S.

To to improve or increase funding value along our deposits and just to ensure that we're maximizing and in that respect.

On you asked about the U S wealth business and the changes to the grid and the impacts.

I've mentioned the.

The impacts in terms of the the outlook on the pretax margin.

From from the changes.

<unk> if I isolate.

The the pretax margin effects.

From the changes that we've made there pretax margin accretive and they're helpful. They're supportive.

And that's not just what's happened life to date, but also you know as we model out what we might see you know naturally we're working quite hard to ensure that the oh the outflows taper as I've said, we will see some lag effect is likely just given the movement that we've seen.

So the Dynamics here in Switzerland, around balance sheet, remain quite important, uh, to us. Uh, and um, you know, ensuring that we're, uh, uh, you know, seen as a trusted lender to, uh, our counterparties is quite, uh, quite critical, uh, to us. And is why we we talk about the level of, um, of credit that we're extending or rolling over on a, on a regular basis, to show the levels that we're maintaining here, uh, in the, in the Swiss market terms just quickly on the outflow as part of the optimization. I think it's all it's important to understand that. Um, you know, we're all we're also looking to maximize funding value, uh, around our deposits. And that's pretty critical how we price, and how we term out deposits. Uh, in particular is important, uh, just to also manage, uh, some, uh, across the group, some of the FX driven headwinds, I've I've touched on that, um, you know, make leverage more

And given the time that it takes before you know.

Constraining. So, just important. It's just a tool we're using across the group, um, to, uh, you know, to, uh, improve or increase funding value along our deposits and just to ensure, uh, that we're maximizing it in that respect.

Advisors off our platform.

Operator: wealth business and the changes to the grid and the impacts. I've mentioned the impacts. In terms of the outlook on the pre-tax margin from the changes, if I isolate the pre-tax margin effects from the changes that we've made, they're pre-tax margin accretive and they're helpful. They're supportive, and that's not just what's happened life to date, but also as we model out what we might see. Naturally, we're working quite hard to ensure that the outflows taper. As I've said, we'll see some lag effect is likely just given the movement that we've seen, and given the time that it takes before, you know, advisors are off our platform. We're, you know, that remains a focus for us. I would say it is pre-tax margin accretive in the way we see it.

But.

Where you know that that's that remains a focus for us so that I would say is pretax margin accretive in the way. We are we see it and therefore the changes to the grid that we made by the way. This most recent year that we announced.

You know it did not go backwards.

You are incentivizing growth and they're resonating really well the things that we have introduced are resonating well with our with advisors.

So we don't see that going backwards, though because some of the things that we had changed.

Changed and the year before were not things that we reinstated.

Okay. Thank you.

Yeah.

I think we have no further questions. So thank you everyone for joining and asking questions and we look forward to updating you with our fourth quarter results in February. Thank you.

On, um, you asked about the US wealth business and the changes to the grid and the, the impacts, you know, I've, I've, I've mentioned, uh, the impacts in terms of the, uh, the outlook on the pre-tax margin, uh, from from the changes the the, if I isolate, uh, the um, the pre-tax margin effects, uh, from the changes that we've made their pre-tax margin creative and they're helpful. Uh, they're supportive. Uh, and that's, you know, not just what's happened life to date. But but also, you know, as we model out what we, we might see, you know, naturally, we're working quite hard to ensure that the, uh, uh, the outflows taper. As I've said, we'll see some lag effect is, is likely just given the movement that we we've seen, uh, and and given the time that it takes before, uh, you know, advisors off our platform. Uh, but um, uh, where you know,

Operator: Therefore, the changes to the grid that we made, by the way, this most recent year that we announced, do not go backwards. They are incentivizing growth, and they're resonating really well. The things that we have introduced are resonating well with advisors. We don't see that going backwards, though, because some of the things that we had changed in the year before were not things that we reinstated.

That remains a focus for us, so I would say that the pre-tax margin is a key metric in the way we see it. Therefore, the changes to the grid that we made are important. By the way, this most recent year that we announced...

You know did not go backwards. Uh they are incentivizing growth uh and they're resonating really well the things that we have introduced or resonating well with uh with advisors uh so we we don't see that going backwards though because some of the things that we had uh changed in the year before were not things that we reinstated.

Todd Tuckner: Okay. Thank you.

Okay, thank you.

Sergio Ermotti: I think we have no further questions. Thank you, everyone, for joining and asking questions. We look forward to updating you with our fourth quarter results in February. Thank you.

I think we have no further questions. So, thank you, everyone for joining and, um, asking questions. We look forward to updating you with our fourth quarter results in February. Thank you.

[Analyst]: Ladies and gentlemen, the webcast and Q&A session for analysts and investors is over. You may now disconnect your lines. We will now take a short break and continue with the media Q&A session at 10:45 A.M. Thank you.

A session of 10:45. Thank you.

Anyone who wishes?