Q1 2026 UBS Group AG Earnings Call

April 29, 2026

Speaker #1: Good morning and welcome, everyone. Before we start, I'd like to draw your attention to our cautionary statement slide at the back of today's results presentation.

Sarah Mackey: Good morning and welcome, everyone. Before we start, I'd 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. Throughout our remarks, we'll refer to underlying results in US dollars and make year-over-year comparisons unless stated otherwise. On slide two, you can see our agenda for today. It's now my pleasure to hand over to Sergio Ermotti, who today reaches a notable milestone with his 50th earning call as Group CEO.

Sarah Mackey: Good morning and welcome, everyone. Before we start, I'd 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. Throughout our remarks, we'll refer to underlying results in U.S. dollars and make year-over-year comparisons unless stated otherwise. On slide two, you can see our agenda for today. It's now my pleasure to hand over to Sergio Ermotti, who today reaches a notable milestone with his 50th earning call as Group CEO.

Speaker #1: Please also refer to the risk factors included in our annual report together with additional disclosures in our SEC filings. Throughout our remarks, we will refer to underlying results in US dollars and make year-over-year comparisons unless stated otherwise.

Speaker #1: On slide 2, you can see our agenda for today. Now my pleasure to hand over to Sergio Amotti, who today reaches a notable milestone with his 50th earning call as Group CEO.

Speaker #2: Thank you, Sara, and good morning, everyone. in an increasingly complex environment with delivered excellent first quarter results with a 17% return on CT1 capital, and a 70% cost-income ratio, ke-keeping us on track, to achieve our 2026 financial objectives.

Sergio Ermotti: Thank you, Sarah, and good morning, everyone. In an increasingly complex environment, we delivered excellent first quarter results with a 17% return on CET1 capital and a 70% cost-income ratio, keeping us on track to achieve our 2026 financial objectives. Our performance this quarter reflects our leadership positions in the world's largest and fastest-growing markets with broad-based strength across all of our core businesses and regions. The quarter began against a backdrop of steady global growth and easing inflation. However, conditions quickly shifted with markets becoming more volatile amid rising uncertainty driven by concerns over AI-driven disruption and the conflict in the Middle East. As the environment became more fragile, our engagement with clients intensified as they turned to UBS to protect their assets and identify opportunities.

Speaker #2: Our performance this quarter reflects, our leadership positions in the world's largest and fastest-growing markets, with broad-based strength across all of our core businesses and regions.

Speaker #2: The quarter began against a backdrop of steady global growth and easing inflation, however, conditions quickly shifted, with markets becoming more volatile amid, rising uncertainty driven by concerns over AI-driven disruption and the conflict in the Middle East.

Speaker #2: As the environment became more fragile, our engagement with clients intensified as they turned to UBS to protect their assets and identify opportunities. Asia Pacific was a standout performer, as our unrivaled client franchises and one bank approached in the region generated around a third of the group's pro-uh, profit before tax, and drove robust net new asset growth in global wealth management.

Speaker #1: On slide 2, you can see our agenda for today. Now, it's my pleasure to hand over to Sergio Ermotti, who today reaches a notable milestone: his 50th earnings call as Group CEO.

Sergio Ermotti: Asia Pacific was a standout performer as our unrivaled client franchises and One Bank approach in the region generated around a third of the group's Profit Before Tax and drove robust net new asset growth in Global Wealth Management. The Investment Bank also delivered exceptional performance, supported by increased collaboration with wealth management and a favorable environment for our business mix and leading franchises in FX, including precious metals, Cash Equities, financing, and Equity Capital Markets. We achieved this without changing our approach towards disciplined resource allocation. More broadly, we saw strong inflows across our asset gathering platform, while facilitating elevated private, corporate, and institutional client activity and sustaining lending momentum. In Switzerland, we granted or renewed around CHF 40 billion of loans to businesses and households as clients continue to rely on our local and global expertise.

Speaker #2: Thank you, Sarah, and good morning, everyone. in an increasingly complex environment with delivered excellent first quarter results with a 17% return on CT1 capital, and a 70% cost-income ratio, keeping us on track, to achieve our 2026 financial objectives.

Speaker #2: The investment bank also delivered exceptional performance, supported by increased collaboration with, wealth management and a favorable environment for our business mix and leading franchises in FX, including precious metals, cash equities, financing, and equity capital markets.

Speaker #2: The quarter began against a backdrop of steady global growth and easing inflation. However, conditions quickly shifted, with markets becoming more volatile amid rising uncertainty driven by concerns over AI-driven disruption and the conflict in the Middle East.

Speaker #2: And we achieved this without changing our approach towards disciplined resource allocation. More broadly, we saw strong inflows across our asset-gathering platform, while facilitating elevated private-corporate and institutional client activity and sustaining lending momentum.

Speaker #2: As the environment became more fragile, our engagement with clients intensified as they turned to UBS to protect their assets and identify opportunities. Asia-Pacific was a standout performer, as our unrivaled client franchises and one bank approach in the region generated around a third of the group’s profit before tax and drove robust net new asset growth in Global Wealth Management.

Speaker #2: In Switzerland, we granted or renewed around 40 billion Swiss francs of loans to businesses and households, as clients continue to rely on our local and global expertise.

Speaker #2: Despite the ongoing uncertainties around private credit, we continue to see strong demand for alternatives. Led by our private market and hedge funds offering, unified global alternatives saw record quarterly new client commitments.

Sergio Ermotti: Despite the ongoing uncertainties around private credit, we continue to see strong demand for alternatives, led by our private market and hedge fund offering Unified Global Alternatives, saw record quarterly new client commitments. As we move through the Q2, markets have remained broadly resilient, reflecting expectations that a durable diplomatic solution to the Middle East conflict is achievable. That said, while clients remain engaged and active, risks are still elevated, and conditions could shift rapidly, impacting sentiment and activity levels. In this environment, our focus remains on supporting clients through disciplined execution as well as a prudent and selective investment approach focused on diversification and principal protection. Turning to the integration. In March, we successfully delivered one of the most critical and complex undertakings in our integration journey, the migration of Swiss book clients.

Speaker #2: The investment bank also delivered exceptional performance, supported by increased collaboration with, wealth management and a favorable environment for our business mix and lead franchises in effects including precious metals, cash equities, financing, and equity capital markets.

Speaker #2: As we move t as we move through the second quarter, markets have remained broadly resilient, reflecting expectations that a durable diplomatic solution to the Middle East conflict is achievable.

Speaker #2: That said, while clients remain engaged and active, risks are still elevated. And conditions could shift rapidly, impacting sentiment and activity levels. In this environment, our focus remains on supporting clients, through disciplined execution as well as a prudent and selective investment approach focused on diversification and principle protection.

Speaker #2: And we achieved this without changing our approach towards disciplined resource allocation. More broadly, we saw strong inflows across our asset-gathering platform, while facilitating elevated private, corporate, and institutional client activity, and sustaining lending momentum.

Speaker #2: In Switzerland, we granted or renewed around CHF 40 billion of loans to businesses and households, as clients continue to rely on our local and global expertise.

Speaker #2: Turning to the integration, in March we successfully delivered one of the most critical and complex undertakings in our integration journey. The migration of Swiss book clients.

Speaker #2: Despite the ongoing uncertainties around private credit, we continue to see strong demand for alternatives. Led by our private market and hedge fund offering, unified global alternatives saw record quarterly new client commitments.

Speaker #2: As a result, I'm happy to say that the migration of former Credit Suisse clients onto UBS platforms is now complete. Kind activation and feedback is positive and retention rates have a far exceeded our expectations.

Sergio Ermotti: I'm happy to say that the migration of former Credit Suisse clients onto UBS platforms is now complete. Client activation and feedback is positive, and retention rates have far exceeded our expectations. For this, I like to thank our clients for their continued trust and patience, and my colleagues for maintaining the highest standards of service and client focus. We now turn our efforts towards substantially completing the integration by year-end and restoring the levels of profitability we had prior to the acquisition. This is necessary to make our business even more resilient and ready for the future. Part of this will include continuing with the most painful part of the integration, reducing our workforce in line with our previously communicated plans. Finalizing the integration, including the decommissioning of the legacy infrastructure, allow us to intensify our focus on growing our businesses.

Speaker #2: As we move through the second quarter, markets have remained broadly resilient, reflecting expectations that a durable diplomatic solution to the Middle East conflict is achievable.

Speaker #2: For this, I'd like to thank our clients for their continued trust and patience. And my colleagues from for maintaining the highest standards of service and client focus.

Speaker #2: We now turn our efforts towards substantially completing the integration by year-end and restoring the levels of profitability we had prior to the acquisition. This is necessary to make our business even more resilient and ready for the future.

Speaker #2: Part of this will include continuing with the most painful part of the integration, reducing our workforce in line with our previously communicated plans. Finalizing the integration including the decommissioning of the legacy infrastructure allowed us to intensify our focus on growing our businesses.

Speaker #2: Turning to the integration, in March we successfully delivered one of the most critical and complex undertakings in our integration journey. The migration of Swiss book clients.

Speaker #2: As a result, I'm happy to say that the migration of former Credit Suisse clients to UBS platforms is now complete. Client activation and feedback are positive, and retention rates have far exceeded our expectations.

Speaker #2: We continue to invest across the group to deliver the breadth and depth of UBS to clients through a full one-bank approach, front to back.

Sergio Ermotti: We continue to invest across the group to deliver the breadth and depth of UBS to clients through a full One Bank approach, front to back. This will support enhancements to the client experience and prepare us to drive further efficiencies. The latest example is the conversion of UBS Bank USA to a national bank charter. We are also encouraged to see that our AI capabilities are being recognized. We were recently named the best wealth management firm for use of AI in the US at the Financial Times Wealth Tech Awards. At the heart of this award is our flagship AI platform, which delivers timely and personalized client insights for our financial advisors. Nearly 90% of FA teams use the platform, powering millions of AI-driven client interactions.

Sergio Ermotti: We continue to invest across the group to deliver the breadth and depth of UBS to clients through a full One Bank approach, front to back. This will support enhancements to the client experience and prepare us to drive further efficiencies. The latest example is the conversion of UBS Bank USA to a national bank charter. We are also encouraged to see that our AI capabilities are being recognized. We were recently named the best wealth management firm for use of AI in the U.S. at the Financial Times Wealth Tech Awards. At the heart of this award is our flagship AI platform, which delivers timely and personalized client insights for our financial advisors. Nearly 90% of FA teams use the platform, powering millions of AI-driven client interactions.

Speaker #2: For this, I'd like to thank our clients for their continued trust and patience. And my colleagues from for maintaining the highest standards of service and client focus.

Speaker #2: This will support enhancements to the client experience and prepare us to drive further efficiencies. The latest example is the conversion of UBS Bank USA to a national bank charter.

Speaker #2: We now turn our efforts towards substantially completing the integration by year-end, and restoring the levels of profitability we had prior to the acquisition. This is necessary to make our business even more resilient and ready for the future.

Speaker #2: We are also encouraged to see that our AI capabilities are being recognized. We were recently named the best wealth management firm for use of AI in the US, at the Financial Times Wealth Tech Awards.

Speaker #2: At the heart of this award is our flagship AI platform, which delivers timely and personalized client insights for our financial advisors. Nearly 90% of FA teams use the platform, powering millions of AI-driven client interactions.

Speaker #2: Part of this will include continuing with the most painful part of the integration, reducing our workforce in line with our previously communicated plans. Finalizing the integration, including the decommissioning of the legacy infrastructure, allowed us to intensify our focus on growing our businesses.

Sarah Mackey: On slide 2, you can see our agenda for today. It's now my pleasure to hand over to Sergio Ermotti, who today reaches a notable milestone with his 50th earnings call as Group CEO.

Sergio Ermotti: Thank you, Sarah, and good morning, everyone. In an increasingly complex environment, we delivered excellent Q1 results with a 17% return on CET1 capital and a 70% cost-income ratio, keeping us on track to achieve our 2026 financial objectives. Our performance this quarter reflects our leadership positions in the world's largest and fastest-growing markets with broad-based strength across all of our core businesses and regions. The quarter began against a backdrop of steady global growth and easing inflation. However, conditions quickly shifted with markets becoming more volatile amidst rising uncertainty driven by concerns over AI-driven disruption and the conflict in the Middle East. As the environment became more fragile, our engagement with clients intensified as they turned to UBS to protect their assets and identify opportunities.

Speaker #2: In this environment, the benefits of our balance sheet for all season were evident once again. With strong profitability and disciplined resource usage, further bolstering our capital position.

Sergio Ermotti: In this environment, the benefits of our balance sheet for all seasons were evident once again, with strong profitability and disciplined resource usage further bolstering our capital position. This, alongside our integration progress, allow us to continue executing on our capital return objectives for dividend and buybacks while maintaining our investments for the future. We now expect to complete our current $3 billion share repurchase program by the time we report Q2 results in July. We expect to provide more details on our capital returns for H2 of the year. Our intentions will be calibrated based on our financial performance and outlook, maintaining a CET1 capital ratio of around 14% at year-end, and further visibility on the parliamentary deliberation on the capitalization of foreign subsidiaries.

Speaker #2: We continue to invest across the group to deliver the breadth and depth of UBS to clients through a full one-bank approach, front to back.

Speaker #2: This, alongside our integration progress, allowed us to continue executing on our capital return objectives for dividend and buybacks while maintaining our investments for the future.

Speaker #2: This will support enhancements to the client experience and prepare us to drive further efficiencies. The latest example is the conversion of UBS Bank USA to a national bank charter.

Speaker #2: We now expect to complete our current $3 billion share repurchase program by the time we report Q2 results in July. Then we expect to provide more detail on our capital returns for the second half of the year.

Speaker #2: We are also encouraged to see that our AI capabilities are being recognized. We were recently named the best wealth management firm for use of AI in the US at the Financial Times Wealth Tech Awards.

Speaker #2: Our intentions will be calibrated based on our financial performance and outlook. Maintaining a CT1 capital ratio of around 14% at year-end and further visibility on the parliamentary deliberation on the capitalization of foreign subsidiaries.

Sergio Ermotti: Asia Pacific was a standout performer as our unrivaled client franchises and one bank approach in the region generated around a third of the group's profit before tax and drove robust net new asset growth in Global Wealth Management. The Investment Bank also delivered exceptional performance, supported by increased collaboration with Wealth Management and a favorable environment for our business mix and leading franchises in FX, including precious metals, cash equities, financing, and Equity Capital Markets. We achieved this without changing our approach towards disciplined resource allocation. More broadly, we saw strong inflows across our asset gathering platform, while facilitating elevated private, corporate, and institutional client activity and sustaining lending momentum. In Switzerland, we granted or renewed around CHF 40 billion of loans to businesses and households as clients continue to rely on our local and global expertise.

Speaker #2: Before I hand over to Todd, I want to address last week's announcement on cap on bank capital regulation and what happens next. We have been very clear and transparent about our views on the proposed measures since they were first presented last June.

Sergio Ermotti: Before I hand over to Todd, I want to address last week's announcement on bank capital regulation and what happens next. We have been very clear and transparent about our views on the proposed measures since they were first presented last June. We continue to strongly disagree with the proposed package because it is not proportionate or aligned with international standards and, as importantly, does not reflect the root causes and the key lessons learned from the Credit Suisse crisis. While there are some points that would deserve further clarification, let me just focus on what is still by far the most important one.

Speaker #2: This, alongside our integration progress, allowed us to continue executing on our capital return objectives for dividends and buybacks, while maintaining our investments for the future.

Speaker #2: We continue to strongly disagree with the proposed package because it is not proportionate or aligned with international standards, and as importantly, does not reflect the root causes and the key lessons learned from the Credit Suisse crisis.

Speaker #2: We now expect to complete our current $3 billion share repurchase program by the time we report Q2 results in July. Then, we expect to provide more detailed capital returns for the second half of the year.

Speaker #2: While there are some points that would deserve further clarification, let me just focus on what I on what is still, by far, the most important one.

Speaker #2: Our intentions will be calibrated based on our financial performance and outlook. Maintaining a CT1 capital ratio of around 14% at year-end, and further visibility on the parliamentary deliberation on the capitalization of foreign subsidiaries.

Speaker #2: Regardless on how the figures are presented, or which assumptions are applied, there is a broad agreement, including among the authorities, that the announced measures would require UBS to hold around 22 billion in additional capital.

Sergio Ermotti: Regardless on how the figures are presented or which assumptions are applied, there is a broad agreement, including among the authorities, that the announced measures would require UBS to hold around $22 billion in additional capital in CET1 terms. This is on top of the $15 billion that we already need to hold as a result of the Credit Suisse acquisition under existing regulations. If the package were to be finalized as currently drafted, that $22 billion of capital would be trapped and unproductive. At such scale, it would impact our competitive position in supporting clients, investing for growth, and delivering sustainable returns that keep UBS as an attractive investment case for shareholders. This is particularly relevant for any bank where shareholders are the first line of defense in turbulent times by providing, if needed, additional capital.

Speaker #2: In CT terms. CT1 terms. And this is on top of the 15 billion that we already need to hold as a result of the Credit Suisse acquisition under existing regulations.

Sergio Ermotti: Despite the ongoing uncertainties around private credit, we continue to see strong demand for alternatives, led by our private market and hedge fund offering Unified Global Alternatives, saw record quarterly new client commitments. As we move through Q2, markets have remained broadly resilient, reflecting expectations that a durable diplomatic solution to the Middle East conflict is achievable. That said, while clients remain engaged and active, risks are still elevated, and conditions could shift rapidly, impacting sentiment and activity levels. In this environment, our focus remains on supporting clients through disciplined execution as well as a prudent and selective investment approach focused on diversification and principal protection. Turning to the integration. In March, we successfully delivered one of the most critical and complex undertakings in our integration journey, the migration of Swiss book clients.

Speaker #2: If the package were to be finalized as currently drafted, that 22 billion of capital would be trapped and unproductive. And at such scale, it would impact our competitive position in supporting clients, investing for growth, and delivering sustainable returns that keep UBS as an attractive investment case for shareholders.

Speaker #2: This is particularly relevant for any bank where shareholders are the first line of defense in turbulent times by providing, if needed, additional capital. As the proposed treatment of foreign participation now moves to parliament, we hope that a consider the rather clear concerns raised in the democratic process by a wide range of stakeholders.

Speaker #2: While there are some points that would deserve further clarification, let me just focus on what I on what is still, by far, the most important one.

Sergio Ermotti: As the proposed treatment of foreign participation now moves to parliament, we hope that a thorough deliberation will fully consider the rather clear concerns raised in the democratic process by a wide range of stakeholders. We will continue to engage constructively and contribute to fact-based deliberations. Let me be very clear. These developments do not and will not change who we are as a firm. We remain committed to our diversified business model and our global and regional footprint. We are also fully committed to protecting our shareholders while mitigating the impact of these increased requirements, if possible, on our clients and employees and the communities where we live and work. I'm proud of all what we have achieved this quarter, and I remain extremely thankful to all of my colleagues for their dedication in this demanding environment. With that, let me hand over to Todd.

Speaker #2: In CT terms—CT1 terms. And this is on top of the $15 billion that we already need to hold as a result of the Credit Suisse acquisition under existing regulations.

Speaker #2: We will continue to engage constructively and contribute to fact-based deliberations. Let me be very clear: this developments do not and will not change who we are as a firm.

Sergio Ermotti: As a result, I'm happy to say that the migration of former Credit Suisse clients onto UBS platforms is now complete. Client activation and feedback is positive, and retention rates have far exceeded our expectations. For this, I like to thank our clients for their continued trust and patience, and my colleagues for maintaining the highest standards of service and client focus. We now turn our efforts towards substantially completing the integration by year-end and restoring the levels of profitability we had prior to the acquisition. This is necessary to make our business even more resilient and ready for the future. Part of this will include continuing with the most painful part of the integration, reducing our workforce in line with our previously communicated plans. Finalizing the integration, including the decommissioning of the legacy infrastructure, allow us to intensify our focus on growing our businesses.

Speaker #2: We remain committed to our diversified business model and our global and regional footprint. We are also fully committed to protecting our shareholders while mitigating the impact of this increased requirements if possible on our clients and employees, and the communities where we live and work.

Speaker #2: This is particularly relevant for any bank, where shareholders are the first line of defense in turbulent times by providing, if needed, additional capital. As the proposed treatment of foreign participation now moves to Parliament, we hope that a thorough deliberation will fully consider the rather clear concerns raised in the democratic process by a wide range of stakeholders.

Speaker #2: I'm proud of all what we have achieved this quarter and I remain extremely thankful to all of my colleagues for their dedication in this demanding environment.

Speaker #2: With that, let me hand over to Todd.

Speaker #1: Thank you, everyone. In the first quarter, we delivered reported net profit of $3 billion and earnings per share of 94 cents. On an underlying basis, our pre-tax profit was $4 billion, up 54% year on year, and our return on CT1 capital was 17%.

Todd Tuckner: Thank you, Sergio, and good morning, everyone. In the first quarter, we delivered reported net profit of CHF 3 billion and earnings per share of CHF 0.94. On an underlying basis, our pre-tax profit was CHF 4 billion, up 54% year on year, and our return on CET1 capital was 17%. Revenues increased to CHF 13.6 billion and were up 18% across our core franchises. Operating expenses were higher on stronger revenue performance and were down 7% when excluding variable compensation, litigation, and currency effects. Our cost-income ratio was 70.2%, with strong year-on-year improvement resulting from 11 percentage points of positive operating leverage.

Speaker #2: We will continue to engage constructively and contribute to fact-based deliberations. Let me be very clear: these developments do not, and will not, change who we are as a firm.

Speaker #1: Revenues increased to 13.6 billion and were up 18% across our core franchises. Operating expenses were higher on stronger revenue performance and were down 7% when excluding variable compensation, litigation, and currency effects.

Speaker #2: We remain committed to our diversified business model and our global and regional footprint. We are also fully committed to protecting our shareholders while mitigating the impact of these increased requirements if possible on our clients and employees, and the communities where we even work.

Sergio Ermotti: We continue to invest across the group to deliver the breadth and depth of UBS to clients through a full 1 bank approach, front to back. This will support enhancements to the client experience and prepare us to drive further efficiencies. The latest example is the conversion of UBS Bank USA to a national bank charter. We are also encouraged to see that our AI capabilities are being recognized. We were recently named the best wealth management firm for use of AI in the US at the Financial Times Wealth Tech Awards. At the heart of this award is our flagship AI platform, which delivers timely and personalized client insights for our financial advisors. Nearly 90% of FA teams use the platform, powering millions of AI-driven client interactions.

Speaker #1: Our cost-to-income ratio was 70.2%, with strong year-on-year improvement resulting from 11 percentage points of positive operating leverage. Moving to slide six, our profit growth this quarter reflects broad-based momentum across the franchise, the breadth of our geographically diversified platform, and the value of disciplined execution.

Speaker #2: I'm proud of all what we have achieved this quarter and I remain extremely thankful to all of my colleagues for their dedication in this demanding environment.

Todd Tuckner: Moving to slide six, our profit growth this quarter reflects broad-based momentum across the franchise, the breadth of our geographically diversified platform, and the value of disciplined execution. On a reported basis, our pre-tax profit of $3.8 billion included $600 million of revenue adjustments and $750 million of integration expenses. We expect integration costs in Q2 to be around $700 million and to meaningfully taper throughout the rest of the year. The effective tax rate in the quarter was 20.5%. The lower rate was driven by the gain from the sale of our interest in Swisscard completed in Q1, which resulted in a limited tax charge. We continue to expect our 2026 tax rate to be around 23%, with some quarterly volatility consistent with prior years. Turning to our cost update on slide seven.

Speaker #2: With that, let me hand over to Todd.

Speaker #1: Thank you, Sergio. And good morning, everyone. In the first quarter, we delivered reported net profit of $3.0 billion and earnings per share of $0.94.

Speaker #1: On a reported basis, our pre-tax profit of $3.8 billion included $600 million of revenue adjustments, and $750 million of integration expenses. We expect integration costs in Q2 to be around $700 million, and to meaningfully taper throughout the rest of the year.

Speaker #1: On an underlying basis, our pre-tax profit was $4 billion, up 54% year on year, and our return on CT1 capital was 17%. Revenues increased to $13.6 billion, and we're up 18% across our core franchises.

Speaker #1: The effective tax rate in the quarter was 20.5%. The lower rate was driven by the gain from the sale of our interest in Swiss card completed in Q1, which resulted in a limited tax charge.

Sergio Ermotti: In this environment, the benefits of our balance sheet for all seasons were evident once again, with strong profitability and disciplined resource usage further bolstering our capital position. This, alongside our integration progress, allows us to continue executing on our capital return objectives for dividend and buybacks while maintaining our investments for the future. We now expect to complete our current $3 billion share repurchase program by the time we report Q2 results in July. We expect to provide more detail on our capital returns for the H2 of the year. Our intentions will be calibrated based on our financial performance and outlook, maintaining a CET1 capital ratio of around 14% at year-end, and further visibility on the parliamentary deliberation on the capitalization of foreign subsidiaries.

Speaker #1: Operating expenses were higher on stronger revenue performance, and we're down 7% when excluding variable compensation, litigation, and currency effects. Our cost-to-income ratio was 70.2%, with strong year-on-year improvement resulting from 11 percentage points of positive operating leverage.

Speaker #1: We continue to expect our 2026 tax rate to be around 23%, with some quarterly volatility consistent with prior years. Turning to our cost update on slide seven, during the first quarter, we delivered an additional $800 million of gross cost reductions bringing cumulative savings since the end of 2022 to 11.5 billion.

Todd Tuckner: During Q1, we delivered an additional CHF 800 million of gross cost reductions, bringing cumulative savings since the end of 2022 to CHF 11.5 billion. This represents 85% of our total gross cost save ambition and keeps us firmly on track to achieve our CHF 13.5 billion target by the end of 2026. The total headcount at the end of March was 117,000, 2% lower sequentially, and approximately 25% below our 2022 baseline. Over the same period, we've reduced the group's operating expenses by 27% when excluding litigation, variable compensation, and currency effects. Since we started, we've incurred cost to achieve of around CHF 13.7 billion at constant FX and remain on track to deliver on our gross cost save ambition at an efficient 1.1x multiple. Turning to slide 8.

Speaker #1: Moving to slide six, our profit growth this quarter reflects broad-based momentum across the franchise, the breadth of our geographically diversified platform, and the value of disciplined execution.

Speaker #1: This represents 85% of our total gross cost save ambition and keeps us firmly on track to achieve our 13.5 billion target by the end of 2026.

Speaker #1: The total headcount at the end of March was 117,000, 2% lower sequentially and approximately 25% below our 2022 baseline. Over the same period, we've reduced the group's operating expenses by 27% when excluding litigation, variable compensation, and currency effects.

Speaker #1: The effective tax rate in the quarter was 20.5%. The lower rate was driven by the gain from the sale of our interest in Swisscard, completed in Q1, which resulted in a limited tax charge.

Sergio Ermotti: Before I hand over to Todd, I want to address last week's announcement on bank capital regulation and what happens next. We have been very clear and transparent about our views on the proposed measures since they were first presented last June. We continue to strongly disagree with the proposed package because it is not proportionate or aligned with international standards and, as importantly, does not reflect the root causes and the key lessons learned from the Credit Suisse crisis. There are some points that would deserve further clarification, let me just focus on what is still by far the most important one. Regardless on how the figures are presented or which assumptions are applied, there is a broad agreement, including among the authorities, that the announced measures would require UBS to hold around CHF 22 billion in additional capital in CET1 terms.

Speaker #1: Since we've started, we've incurred cost-to-achieve of around 13.7 billion at constant effects, and remain on track to deliver on our gross cost save ambition at an efficient 1.1 times multiple.

Speaker #1: We continue to expect our 2026 tax rate to be around 23%, with some quarterly volatility consistent with prior years. Turning to our cost update on slide seven, during the first quarter, we delivered an additional $800 million in gross cost reductions, bringing cumulative savings since the end of 2022 to $11.5 billion.

Speaker #1: Turning to slide eight, as of the end of March, our balance sheet for all seasons consisted of 1.7 trillion in total assets. Within that, we saw a 1% sequential increase in our loan book: 85% of which consisted of mortgages with an average LTV of around 50% and fully collateralized lombard loans.

Todd Tuckner: As of the end of March, our balance sheet for all seasons consisted of $1.7 trillion in total assets. Within that, we saw a 1% sequential increase in our loan book, 85% of which consisted of mortgages with an average LTV of around 50% and fully collateralized Lombard loans. Private credit exposures at quarter end comprised a very modest portion of our total balance sheet and were predominantly senior secured positions with prudent LTVs, supported by diversified collateral pools and conservative borrowing-based structures. Credit-impaired exposures in our lending books stood at 90 basis points, and the cost of risk declined sequentially. Group credit loss expense totaled $70 million, largely as a result of a build in allowances on performing loans in light of the uncertain macro backdrop.

Speaker #1: This represents 85% of our total gross cost save ambition, and keeps us firmly on track to achieve our $13.5 billion target by the end of 2026.

Speaker #1: Private credit exposures at quarter end comprised of very modest portion of our total balance sheet, and were predominantly senior secured positions with prudent LTVs supported by diversified collateral pools and conservative borrowing-based structures.

Speaker #1: The total headcount at the end of March was 117,000, 2% lower sequentially, and approximately 25% below our 2022 baseline. Over the same period, we've reduced the group's operating expenses by 27% when excluding litigation, variable compensation, and currency effects.

Speaker #1: Credit impaired exposures in our lending book stood at 90 basis points and the cost of risk declined sequentially. Group credit loss expense totaled $70 million, largely as a result of a build in allowances on performing loans in light of the uncertain macro backdrop.

Speaker #1: Since we've started, we've incurred cost-to-achieve of around 13.7 billion at constant FX, and remain on track to deliver on our gross cost save ambition at an efficient 1.1 times multiple.

Sergio Ermotti: This is on top of the CHF 15 billion that we already need to hold as a result of the Credit Suisse acquisition under existing regulations. If the package were to be finalized as currently drafted, that CHF 22 billion of capital would be trapped and unproductive. At such scale, it would impact our competitive position in supporting clients, investing for growth, and delivering sustainable returns that keep UBS as an attractive investment case for shareholders. This is particularly relevant for any bank where shareholders are the first line of defense in turbulent times by providing, if needed, additional capital. As the proposed treatment of foreign participation now moves to parliament, we hope that a thorough deliberation will fully consider the rather clear concerns raised in the democratic process by a wide range of stakeholders. We will continue to engage constructively and contribute to fact-based deliberations.

Speaker #1: Stage three in the quarter reflected a small net release after we recorded a repayment across both the investment bank and non-core legacy. Our tangible book value per share grew sequentially by 2% to $27.50, primarily from our net profit, which was partly offset by share repurchases.

Todd Tuckner: Stage 3 in the quarter reflected a small net release after we recorded a repayment across both the Investment Bank and Non-core and Legacy. Our tangible book value per share grew sequentially by 2% to $27.50, 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 CHF 198 billion, a Net Stable Funding Ratio of 117%, and an LCR of 178%. We also made strong progress on funding during the quarter, completing our 2026 AT1 issuance plan by mid-February. Our additional tier-one capital increased to 4.7% of RWA, aligned with our goal to optimize our AT1 levels within the broader tier-one capital stack.

Speaker #1: Turning to slide eight, as of the end of March, our balance sheet for all seasons consisted of $1.7 trillion in total assets. Within that, we saw a 1% sequential increase in our loan book, 85% of which consisted of mortgages with an average LTV of around 50%, and fully collateralized Lombard loans.

Speaker #1: Overall, we continue to operate with a highly fortified and resilient balance sheet, with total loss-absorbing capacity of $198 billion, a net stable funding ratio of 117%, and an LCR of 178%.

Speaker #1: Private credit exposures at quarter end comprised a very modest portion of our total balance sheet and were predominantly senior secured positions with prudent LTVs, supported by diversified collateral pools and conservative borrowing-based structures.

Speaker #1: We also made strong progress on funding during the quarter, completing our 2026 AT1 issuance plan by mid-February. As a result, our additional Tier 1 capital increased to $4.7% of RWA, aligned with our goal to optimize our AT1 levels within the broader Tier 1 capital stack.

Speaker #1: Credit-impaired exposures in our lending book stood at 90 basis points, and the cost of risk declined sequentially. Group credit loss expense totaled $70 million, largely as a result of a build in allowances on performing loans in light of the uncertain macro backdrop.

Speaker #1: Turning to capital on slide nine, our CT1 capital ratio at the end of March was 14.7%. And our CET1 leverage ratio was 4.4%, both up sequentially.

Todd Tuckner: Turning to capital on slide 9. Our CET1 capital ratio at the end of March was 14.7%, and our CET1 leverage ratio was 4.4%, both up sequentially. Our common equity tier-one capital in the quarter increased by CHF 2 billion, principally due to earnings accretion that was partly offset by dividend accruals of CHF 0.9 billion and currency translation effects of CHF 0.2 billion. RWA and LRD both increased sequentially by low single-digit percentages, demonstrating disciplined balance sheet deployment despite elevated client activity. Turning to UBS AG. As of the end of March, the parent bank's standalone CET1 capital ratio on a fully applied basis stood at 13.9%, broadly reflecting its Q1 operating results and a CHF 1.8 billion accrual to the dividend intended to be upstreamed to group in 2027.

Speaker #1: Stage three in the quarter reflected a small net release after we recorded a repayment across both the investment bank and non-core and legacy. Our tangible book value per share grew sequentially by 2% to $27.50, primarily from our net profit, which was partly offset by share repurchases.

Sergio Ermotti: Let me be very clear. These developments do not and will not change who we are as a firm. We remain committed to our diversified business model and our global and regional footprint. We are also fully committed to protecting our shareholders while mitigating the impact of these increased requirements, if possible, on our clients and employees and the communities where we live and work. I'm proud of all what we have achieved this quarter, and I remain extremely thankful to all of my colleagues for their dedication in this demanding environment. With that, let me hand over to Todd.

Speaker #1: Our common equity Tier 1 capital in the quarter increased by $2 billion, principally due to earnings accretion that was partly offset by dividend accruals of 0.9 billion and currency translation effects of 0.2 billion.

Speaker #1: RWA and LRD both increased sequentially by low single-digit percentages, demonstrating disciplined balance sheet deployment despite elevated client activity. Turning to UBS AG, as of the end of March, the parent bank's standalone CET1 capital ratio on a fully applied basis stood at 13.9%, broadly reflecting its first quarter operating results and a 1.8 billion accrual for the dividend intended to be upstream to group in 2027.

Speaker #1: We also made strong progress on funding during the quarter, completing our 2026 AT1 issuance plan by mid-February. As a result, our Additional Tier 1 capital increased to 4.7% of RWA, aligned with our goal to optimize our AT1 levels within the broader Tier 1 capital stack.

Todd Tuckner: Thank you, Sergio. Good morning, everyone. In Q1, we delivered reported net profit of $3 billion and earnings per share of $0.94. On an underlying basis, our pre-tax profit was $4 billion, up 54% year on year, and our return on CET1 capital was 17%. Revenues increased to $13.6 billion, and were up 18% across our core franchises. Operating expenses were higher on stronger revenue performance and were down 7% when excluding variable compensation, litigation, and currency effects. Our cost income ratio was 70.2%, with strong year-on-year improvement resulting from 11 percentage points of positive operating leverage. Moving to slide 6. Our profit growth this quarter reflects broad-based momentum across the franchise, the breadth of our geographically diversified platform, and the value of disciplined execution.

Todd Tuckner: Thank you, Sergio. Good morning, everyone. In Q1, we delivered reported net profit of $3 billion and earnings per share of $0.94. On an underlying basis, our pre-tax profit was $4 billion, up 54% year- on- year, and our return on CET1 capital was 17%. Revenues increased to $13.6 billion, and were up 18% across our core franchises. Operating expenses were higher on stronger revenue performance and were down 7% when excluding variable compensation, litigation, and currency effects. Our cost income ratio was 70.2%, with strong year-on-year improvement resulting from 11 percentage points of positive operating leverage. Moving to slide 6. Our profit growth this quarter reflects broad-based momentum across the franchise, the breadth of our geographically diversified platform, and the value of disciplined execution.

Speaker #1: Turning to our business divisions and starting on slide 10 with global wealth management. GWM delivered a pre-tax profit of almost $2 billion, up 28% year over year, with double-digit growth across all regions.

Todd Tuckner: Turning to our business divisions and starting on slide 10 with Global Wealth Management. GWM delivered a pre-tax profit of almost $2 billion, up 28% year over year, with double-digit growth across all regions. This performance once again highlights the breadth and diversification of the franchise, underpinned by a well-balanced regional mix. Supported by the 7th consecutive quarter of positive operating jaws of at least 4 points, GWM achieved a cost-income ratio of 72%. Net new assets totaled $37 billion, representing a 3% annualized growth rate. In a more uncertain environment, clients increasingly turn to our advisors for guidance and CIO-led solutions. This drove 7% growth in net new fee-generating assets, which came in at $38 billion.

Speaker #1: Turning to capital on slide nine, our CET1 capital ratio at the end of March was 14.7%, and our CET1 leverage ratio was 4.4%, both up sequentially.

Speaker #1: This performance once again highlights the breadth and diversification of the franchise, underpinned by a well-balanced regional mix. Supported by the seventh consecutive quarter of positive operating jaws of at least four points, GWM achieved the cost-income ratio of 72%.

Speaker #1: Our common equity Tier 1 capital in the quarter increased by $2 billion, principally due to earnings accretion that was partly offset by dividend accruals of $0.9 billion and currency translation effects of $0.2 billion.

Speaker #1: RWA and LRD both increased sequentially by low single-digit percentages, demonstrating disciplined balance sheet deployment despite elevated client activity. Turning to UBS AG, as of the end of March, the parent bank's standalone CET1 capital ratio on a fully applied basis stood at 13.9%, broadly reflecting its first-quarter operating results and a $1.8 billion accrual for the dividend intended to be upstreamed to group in 2027.

Speaker #1: Net new assets totaled $37 billion, representing a 3% annualized growth rate. In a more uncertain environment, clients increasingly turned to our advisors for guidance and CIO-led solutions.

Speaker #1: This drove 7% growth in net new fee-generating assets, which came in at 38 billion. Strong demand for our discretionary mandates, including SMA and MyWay, our flagship modular offering, resulted in record mandate penetration underscoring the value clients place on trusted expert advice.

Todd Tuckner: Strong demand for our discretionary mandates, including SMA and MyWay, our flagship modular offering, resulted in record mandate penetration, underscoring the value clients place on trusted expert advice. Turning to wealth's balance sheet flows, the releveraging trend seen in recent quarters continued in Q1 with net new loans of CHF 5 billion. While net new deposits of CHF -2 billion largely reflect outflows from fixed-term deposits, partially offset by inflows into current and savings accounts. From a regional perspective, Asia Pacific delivered another quarter of standout performance, generating a pre-tax profit of CHF 600 million, up 40% year-on-year. The region recorded double-digit growth across all revenue lines and achieved a pre-tax margin of 49%. Together with net new asset inflows of CHF 19 billion, representing a 9% growth rate, these results underscore the competitive advantages of our Asian franchise.

Todd Tuckner: On a reported basis, our pre-tax profit of $3.8 billion included $600 million of revenue adjustments and $750 million of integration expenses. We expect integration costs in Q2 to be around $700 million to meaningfully taper throughout the rest of the year. The effective tax rate in the quarter was 20.5%. The lower rate was driven by the gain from the sale of our interest in Swisscard, completed in Q1, which resulted in a limited tax charge. We continue to expect our 2026 tax rate to be around 23%, with some quarterly volatility consistent with prior years. Turning to our cost update on slide 7. During Q1, we delivered an additional $800 million of gross cost reductions, bringing cumulative savings since the end of 2022 to $11.5 billion.

Speaker #1: Turning to our business divisions and starting on slide 10 with Global Wealth Management. GWM delivered a pre-tax profit of almost $2 billion, up 28% year over year, with double-digit growth across all regions.

Speaker #1: Turning to wealth's balance sheet flows, the re-leveraging trend seen in recent quarters continued in the first quarter with net new loans of $5 billion, while net new deposits of -2 billion largely reflect outflows from fixed-term deposits, partially offset by inflows into current and savings accounts.

Speaker #1: This performance once again highlights the breadth and diversification of the franchise, underpinned by a well-balanced regional mix. Supported by the seventh consecutive quarter of positive operating draws of at least four points, GWM achieved a cost-income ratio of 72%.

Speaker #1: From a regional perspective, Asia-Pacific delivered another quarter of standout performance, generating a pre-tax profit of $600 million up 40% year on year. The region recorded double-digit growth across all revenue lines and achieved a pre-tax margin of 49%.

Speaker #1: Together, with net new asset inflows of $19 billion, representing a 9% growth rate, these result underscore the competitive advantages of our Asian franchise. Looking ahead, we'll continue to invest in our talent and capabilities across key growth markets, such as Australia, Taiwan, and Japan, while leveraging our strongholds in Greater China, Singapore, and Southeast Asia.

Todd Tuckner: Looking ahead, we'll continue to invest in our talent and capabilities across key growth markets such as Australia, Taiwan, and Japan, while leveraging our strongholds in Greater China, Singapore, and Southeast Asia. In the Americas, broad-based revenue momentum drove profit growth of 26% and a pre-tax margin of 13.7%, reflecting our continued focus on structural improvements in profitability and stronger outcomes for clients, advisors, and the wealth franchise overall. Net new loans were $2 billion, the eighth consecutive quarter of lending growth, demonstrating continued progress in enhancing our banking capabilities in the region. Supported by strong same-store performance, net new assets were +$5 billion. For Q2, we expect NNA to be impacted by seasonal US tax-related outflows in the low double-digit billions.

Todd Tuckner: This represents 85% of our total gross cost save ambition and keeps us firmly on track to achieve our CHF 13 and a half billion target by the end of 2026. The total headcount at the end of March was 117,000, 2% lower sequentially, and approximately 25% below our 2022 baseline. Over the same period, we've reduced the group's operating expenses by 27% when excluding litigation, variable compensation, and currency effects. Since we started, we've incurred cost to achieve of around CHF 13.7 billion at constant FX and remain on track to deliver on our gross cost save ambition at an efficient 1.1x multiple. Turning to slide 8. As of the end of March, our balance sheet for all seasons consisted of CHF 1.7 trillion in total assets.

Speaker #1: In the Americas, broad-based revenue momentum drove profit growth of 26% and a pre-tax margin of 13.7%, reflecting our continued focus on structural improvements and profitability and stronger outcomes for clients, advisors, and the wealth franchise overall.

Speaker #1: Turning to wealth's balance sheet flows, the re-leveraging trend seen in recent quarters continued in the first quarter, with net new loans of $5 billion, while net new deposits of -$2 billion largely reflect outflows from fixed-term deposits, partially offset by inflows into current and savings accounts.

Speaker #1: Net new loans were $2 billion, the eighth consecutive quarter of lending growth, demonstrating continued progress in enhancing our banking capabilities in the region. Supported by strong same-store performance, net new assets were positive at $5 billion.

Speaker #1: From a regional perspective, Asia-Pacific delivered another quarter of standout performance, generating a pre-tax profit of $600 million, up 40% year on year. The region saw double-digit growth across all revenue lines and achieved a pre-tax margin of 49%.

Speaker #1: For the second quarter, we expect NNA to be impacted by seasonal US tax-related outflows in the low double-digit billions. For the full year, we continue to expect net new assets in the Americas to be positive supported by both same-store growth and a healthy recruiting pipeline.

Speaker #1: Together with net new asset inflows of $19 billion, representing a 9% growth rate, these results underscore the competitive advantages of our Asian franchise. Looking ahead, we'll continue to invest in our talent and capabilities across key growth markets such as Australia, Taiwan, and Japan, while leveraging our strongholds in Greater China, Singapore, and Southeast Asia.

Todd Tuckner: For the full year, we continue to expect net new assets in the Americas to be positive, supported by both same-store growth and a healthy recruiting pipeline. EMEA also performed very well with profit growth of 44% and an 8 percentage point improvement in the cost-income ratio to 62%. Switzerland increased its pre-tax profit by 20%. Looking ahead, we expect our EMEA and Swiss franchises to see continued profitability growth underpinned by sustained client momentum and supported by cost efficiencies as the Credit Suisse wealth platform in Switzerland is decommissioned over the coming months. Turning to divisional revenues, which increased in the quarter by 12%. Recurring net fee income grew by 10% to CHF 3.6 billion, supported by positive market performance and more than CHF 60 billion of net new fee-generating assets over the 12 months.

Todd Tuckner: Within that, we saw a 1% sequential increase in our loan book, 85% of which consisted of mortgages with an average LTV of around 50% and fully collateralized Lombard loans. Private credit exposures at quarter end comprised a very modest portion of our total balance sheet and were predominantly senior, secured positions with prudent LTVs supported by diversified collateral pools and conservative borrowing-based structures. Credit-impaired exposures in our lending book stood at 90 basis points, and the cost of risk declined sequentially. Group credit loss expense totaled CHF 70 million, largely as a result of a build in allowances on performing loans in light of the uncertain macro backdrop. Stage three in the quarter reflected a small net release after we recorded a repayment across both the Investment Bank and Non-core and Legacy.

Speaker #1: IMEA also performed very well, with profit growth of 44% and an 8 percentage point improvement in the cost-income ratio to 62%. Switzerland increased its pre-tax profit by 20%.

Speaker #1: Looking ahead, we expect our IMEA and Swiss franchises to see continued profitability growth underpinned by sustained client momentum and supported by cost-efficiencies as the Credit Suisse Wealth Platform in Switzerland is decommissioned over the coming months.

Speaker #1: Turning to divisional revenues, which increased in the quarter by 12%. Recurring net fee income grew by 10% to $3.6 billion, supported by positive market performance and more than $60 billion of net new fee-generating assets over the 12 months.

Speaker #1: Transaction-based income rose 17% to $1.7 billion, with APAC, IMEA, and the Americas delivering double-digit growth, reflecting strong momentum in structured products and precious metals.

Todd Tuckner: Transaction-based income rose 17% to $1.7 billion, with APAC, EMEA, and the Americas delivering double-digit growth, reflecting strong momentum in Structured Products and precious metals. This underscores our continued outperformance in transaction revenues, driven by strong client engagement and differentiated Investment Bank collaboration as clients actively rebalance portfolios. Net interest income of $1.7 billion rose by 12% year-over-year and 2% sequentially, with the quarter-on-quarter trend reflecting favorable deposit mix shifts. Looking ahead to Q2, we expect GWM net interest income to remain broadly flat as higher loan volumes are offset by lower deposit reinvestment yields. Operating expenses in GWM rose by 6%. When excluding variable compensation, litigation, and currency effects, costs declined by 2%. Turning to Personal & Corporate Banking on slide 11.

Todd Tuckner: Our tangible book value per share grew sequentially by 2% to $27.50, 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 $198 billion, a net stable funding ratio of 117%, and an LCR of 178%. We also made strong progress on funding during the quarter, completing our 2026 AT1 issuance plan by mid-February. As a result, our additional Tier One capital increased to 4.7% of RWA, aligned with our goal to optimize our AT1 levels within the broader Tier One capital stack. Turning to capital on slide 9.

Speaker #1: This underscores our continued outperformance in transaction revenues, driven by strong client engagement and differentiated investment bank collaboration as clients actively rebalanced portfolios. Net interest income of $1.7 billion rose by 12% year over year and 2% sequentially, with the quarter-on-quarter trend reflecting favorable deposit mix shifts.

Speaker #1: EMEA also performed very well, with profit growth of 44% and an 8-percentage-point improvement in the cost-income ratio to 62%. Switzerland increased its pre-tax profit by 20%.

Speaker #1: Looking ahead, we expect our EMEA and Swiss franchises to see continued profitability growth underpinned by sustained client momentum and supported by cost-efficiencies as the credit suisse wealth platform in Switzerland is decommissioned over the coming months.

Speaker #1: Looking ahead to Q2, we expect GWM net interest income to remain broadly flat as higher loan volumes are offset by lower deposit reinvestment yields.

Speaker #1: Operating expenses in GWM rose by 6%, when excluding variable compensation, litigation, and currency effects, costs declined by 2%. Turning to personal and corporate banking on slide 11.

Todd Tuckner: Our CET1 capital ratio at the end of March was 14.7%, and our CET1 leverage ratio was 4.4%, both up sequentially. Our common equity Tier 1 capital in the quarter increased by CHF 2 billion, principally due to earnings accretion that was partly offset by dividend accruals of CHF 0.9 billion and currency translation effects of CHF 0.2 billion. RWA and LRD both increased sequentially by low single-digit percentages, demonstrating disciplined balance sheet deployment despite elevated client activity. Turning to UBS AG. As of the end of March, the parent bank's standalone CET1 capital ratio on a fully applied basis stood at 13.9%, broadly reflecting its Q1 operating results and a CHF 1.8 billion accrual to the dividend intended to be upstreamed to group in 2027.

Speaker #1: P&C delivered a first-quarter pre-tax profit of $710 million up 19%, with revenue growth in disciplined cost management combining to generate positive operating leverage of 10 percentage points.

Speaker #1: Transaction-based income rose 17% to $1.7 billion, with APAC, EMEA, and the Americas delivering double-digit growth, reflecting strong momentum in structured products and precious metals.

Todd Tuckner: P&C delivered a Q1 pre-tax profit of CHF 710 million, up 19%, with revenue growth and disciplined cost management combining to generate positive operating leverage of 10 percentage points. Having largely completed the client account migration in P&C as we entered the year, freed-up capacity is now supporting even deeper client engagement. This resulted in net new deposits of CHF 3.5 billion, net new loans of CHF 2.4 billion, and net new investment product growth of 11%. Total revenues were 3% higher, with 10% growth in non-net interest income, more than offsetting NII headwinds. Across Personal & Corporate Banking and Corporate & Institutional Clients, non-NII growth was broad-based, with similar contributions from both franchises. In our retail business, positive momentum in net new investment flows, together with supportive market trends, continue to drive custody and mandate fee growth.

Speaker #1: This underscores our continued outperformance in transaction revenues, driven by strong client engagement and differentiated investment bank collaboration, as clients actively rebalanced portfolios. Net interest income of $1.7 billion rose by 12% year-over-year and 2% sequentially, with the quarter-on-quarter trend reflecting favorable deposit mix shifts.

Speaker #1: Having largely completed the client account migration in P&C as we entered the year, freed up capacity is now supporting even deeper client engagement. This resulted in net new deposits of $3.5 billion, net new loans of $2.4 billion, and net new investment product growth of 11%.

Speaker #1: Total revenues were 3% higher, with 10% growth in non-net interest income, more than offsetting NII headwinds. Across personal banking and corporate and institutional clients, non-NII growth was broad-based, with similar contributions from both franchises.

Speaker #1: Looking ahead to Q2, we expect GWM net interest income to remain broadly flat as higher loan volumes are offset by lower deposit reinvestment yields.

Todd Tuckner: Turning to our business divisions and starting on slide 10 with Global Wealth Management. GWM delivered a pre-tax profit of almost CHF 2 billion, up 28% year over year, with double-digit growth across all regions. This performance once again highlights the breadth and diversification of the franchise, underpinned by a well-balanced regional mix. Supported by the 7th consecutive quarter of positive operating jaws of at least 4 points, GWM achieved a cost-income ratio of 72%. Net new assets totaled CHF 37 billion, representing a 3% annualized growth rate. In a more uncertain environment, clients increasingly turn to our advisors for guidance and CIO-led solutions. This drove 7% growth in net new fee-generating assets, which came in at CHF 38 billion. Strong demand for our discretionary mandates, including SMA and MyWay, our flagship modular offering, resulted in record mandate penetration, underscoring the value clients place on trusted expert advice.

Todd Tuckner: Turning to our business divisions and starting on slide 10 with Global Wealth Management. GWM delivered a pre-tax profit of almost CHF 2 billion, up 28% year- over- year, with double-digit growth across all regions. This performance once again highlights the breadth and diversification of the franchise, underpinned by a well-balanced regional mix. Supported by the 7th consecutive quarter of positive operating jaws of at least 4 points, GWM achieved a cost-income ratio of 72%. Net new assets totaled CHF 37 billion, representing a 3% annualized growth rate. In a more uncertain environment, clients increasingly turn to our advisors for guidance and CIO-led solutions. This drove 7% growth in net new fee-generating assets, which came in at CHF 38 billion. Strong demand for our discretionary mandates, including SMA and MyWay, our flagship modular offering, resulted in record mandate penetration, underscoring the value clients place on trusted expert advice.

Speaker #1: In our retail business, positive momentum in net new investment flows together with supportive market trends continue to drive custody and mandate fee growth. While in C&IC, revenue expansion largely reflected strong activity in structured and syndicated finance.

Todd Tuckner: In C&IC, revenue expansion largely reflected strong activity in structured and syndicated finance. The quarter also included a credit of CHF 27 million related to the completed Swisscard transaction. Net interest income declined by 3% year-on-year, reflecting the ongoing impact of the zero rate environment in place since last June. As highlighted previously, changes in Swiss franc interest rates in either direction would benefit P&C's revenues. On a sequential basis, NII was stable, with this trend expected to continue in Q2. Credit loss expense totaled CHF 55 million. While the quarter reflected the lowest net Stage 3 charges since the Credit Suisse acquisition, we continue to expect CLE to average around CHF 75 million per quarter given ongoing macroeconomic uncertainty.

Speaker #1: P&C delivered a first-quarter pre-tax profit of $710 million, up 19%, with revenue growth and disciplined cost management combining to generate positive operating leverage of 10 percentage points.

Speaker #1: The quarter also included accredited 27 million related to the completed Swiss card transaction. Net interest income declined by 3% year on year, reflecting the ongoing impact of the zero-rate environment in place since last June.

Speaker #1: Having largely completed the client account migration in P&C as we entered the year, freed-up capacity is now supporting even deeper client engagement. This resulted in net new deposits of $3.5 billion, net new loans of $2.4 billion, and net new investment product growth of 11%.

Speaker #1: As highlighted previously, changes in Swiss franc interest rates in either direction would benefit P&C's revenues. On a sequential basis, NII was stable, with this trend expected to continue.

Speaker #1: In the second quarter. Credit loss expense totaled $55 million while the quarter reflected the lowest net stage III charges since the Credit Suisse acquisition, we continue to expect CLE to average around $75 million per quarter given ongoing macroeconomic uncertainty.

Speaker #1: Total revenues were 3% higher, with 10% growth in non-net interest income, more than offsetting NII headwinds. Across Personal Banking and Corporate and Institutional Clients, non-NII growth was broad-based, with similar contributions from both franchises.

Speaker #1: In our retail business, positive momentum in net new investment flows together with supportive market trends continue to drive custody and mandate fee growth. While in C and IC, revenue expansion largely reflected strong activity in structured and syndicated finance.

Speaker #1: Operating expenses declined by 7%, demonstrating continued effective cost management. We expect further efficiencies as the legacy Credit Suisse platform is progressively decommissioned over the course of 2026.

Todd Tuckner: Operating expenses declined by 7%, demonstrating continued effective cost management. We expect further efficiencies as the legacy Credit Suisse platform is progressively decommissioned over the course of 2026. Turning to Asset Management on slide 12. Pre-tax profit increased by 21% to CHF 252 million, driven by revenue growth alongside ongoing tight cost management. Total revenues rose 4%. Net management fees were up 6%, driven primarily by higher average invested assets despite secular margin pressure. Performance fees declined year on year, primarily due to lower contributions from SIG and the absence of O'Connor following the completion of its sale during the quarter. This was partly offset by higher performance fees in Unified Global Alternatives. By the end of March, we delivered CHF 14 billion of net new money, representing 3% annualized growth as we continue to benefit from our strategic focus on scalable, differentiated capabilities.

Todd Tuckner: Turning to wealth's balance sheet flows, the re-leveraging trend seen in recent quarters continued in Q1 with net new loans of $5 billion, while net new deposits of -$2 billion largely reflect outflows from fixed-term deposits, partially offset by inflows into current and savings accounts. From a regional perspective, Asia Pacific delivered another quarter of standout performance, generating a pre-tax profit of $600 million, up 40% year-on-year. The region recorded double-digit growth across all revenue lines and achieved a pre-tax margin of 49%. Together with net new asset inflows of $19 billion, representing a 9% growth rate, these results underscore the competitive advantages of our Asian franchise. Looking ahead, we'll continue to invest in our talent and capabilities across key growth markets such as Australia, Taiwan, and Japan, while leveraging our strongholds in Greater China, Singapore, and Southeast Asia.

Speaker #1: Turning to asset management on slide 12. Pre-tax profit increased by 21% to $252 million, driven by revenue growth alongside ongoing tight cost management. Total revenues rose 4%.

Speaker #1: The quarter also noted a credit of $27 million related to the completed Swiss card transaction. Net interest income declined by 3% year on year, reflecting the ongoing impact of the zero-rate environment in place since last June.

Speaker #1: Net management fees were up 6%, driven primarily by higher average invested assets despite secular margin pressure. Performance fees declined year on year, primarily due to lower contributions from SIG and the absence of O'Connor, following the completion of its sale during the quarter.

Speaker #1: In the second quarter. Credit loss expense totaled $55 million while the quarter reflected the lowest net stage three charges since the credit suisse acquisition, we continue to expect CLE to average around $75 million per quarter given ongoing macroeconomic uncertainty.

Speaker #1: This was partly offset by higher performance fees in unified global alternatives. By the end of March, we delivered $14 billion of net new money, representing 3% annualized growth, as we continue to benefit from our strategic focus on scalable, differentiated capabilities.

Speaker #1: Operating expenses declined by 7%, demonstrating continued effective cost management. We expect further efficiencies as the legacy credit suisse platform is progressively decommissioned over the course of 2026.

Speaker #1: Flows were led by $13 billion into ETFs, reflecting sustained demand for our core product range launched last year, alongside robust net inflows of $5 billion into our SMA offering in the US.

Todd Tuckner: Flows were led by $13 billion into ETFs, reflecting sustained demand for our core product range launched last year, alongside robust net inflows of $5 billion into our SMA offering in the US. UGA continued to build momentum, ending the quarter with $344 billion of invested assets and attracting new commitments of $12 billion, split three and nine between Asset Management and Global Wealth Management. Inflows were broad-based across the platform, with notably strong demand for private equity and hedge funds. Operating expenses were 2% lower as we maintain cost rigor while continuing to invest in the platform to support operational efficiency. On to slide 13 in the Investment Bank. The IB delivered its most profitable Q1 on record, with pre-tax profit of $1.2 billion, up 75%, and a pre-tax ROE of 25%.

Todd Tuckner: In the Americas, broad-based revenue momentum drove profit growth of 26% and a pre-tax margin of 13.7%, reflecting our continued focus on structural improvements in profitability and stronger outcomes for clients, advisors, and the wealth franchise overall. Net new loans were CHF 2 billion, the eighth consecutive quarter of lending growth, demonstrating continued progress in enhancing our banking capabilities in the region. Supported by strong same-store performance, net new assets were at CHF +5 billion. For Q2, we expect NNA to be impacted by seasonal US tax-related outflows in the low double-digit billions. For the full year, we continue to expect net new assets in the Americas to be positive, supported by both same-store growth and a healthy recruiting pipeline. EMEA also performed very well, with profit growth of 44% and an 8 percentage point improvement in the cost-income ratio to 62%.

Speaker #1: UGA continued to build momentum ending the quarter with $344 billion of invested assets and attracting new commitments of $12 billion, split $3 and $9 between asset management and global wealth management.

Speaker #1: Turning to asset management on slide 12. Pre-tax profit increased by 21% to $252 million, driven by revenue growth alongside ongoing tight cost management. Total revenues rose 4%.

Speaker #1: Inflows were broad-based across the platform, with notably strong demand for private equity and hedge funds. Operating expenses were 2% lower as we maintain cost rigor while continuing to invest in the platform to support operational efficiency.

Speaker #1: Onto slide 13 in the investment bank. The IB delivered its most profitable first quarter on record, with pre-tax profit of $1.2 billion, up 75%, and a pre-tax ROE of $25%.

Speaker #1: The performance this quarter reflected a market environment that played directly to our strengths, as the business successfully captured opportunities while maintaining a disciplined approach to resource deployment.

Todd Tuckner: The performance this quarter reflected a market environment that played directly to our strengths as the business successfully captured opportunities while maintaining a disciplined approach to resource deployment. Revenues climbed 31% to $4 billion, with both Global Banking and Global Markets contributing proportionately to top-line growth. Global Banking revenues rose by 30% to $733 million. Advisory revenues were 8% higher, driven by our strongest first quarter in M&A, with notable performances in the Americas and EMEA. Capital markets grew 45% with growth across products and geographies. We continue to benefit from our strategic investments in ECM, where revenues more than doubled year on year, outperforming fee pools across all regions, supported by higher IPO, follow-on, and convertible issuance. In DCM, we delivered double-digit growth, while LCM increased modestly against a lower fee pool.

Todd Tuckner: Switzerland increased its pre-tax profit by 20%. Looking ahead, we expect our EMEA and Swiss franchises to see continued profitability growth underpinned by sustained client momentum and supported by cost efficiencies as the Credit Suisse wealth platform in Switzerland is decommissioned over the coming months. Turning to divisional revenues, which increased in the quarter by 12%. Recurring net fee income grew by 10% to CHF 3.6 billion, supported by positive market performance and more than CHF 60 billion of net new fee-generating assets over the 12 months. Transaction-based income rose 17% to CHF 1.7 billion, with APAC, EMEA, and the Americas delivering double-digit growth, reflecting strong momentum in structured products and precious metals. This underscores our continued outperformance in transaction revenues, driven by strong client engagement and differentiated investment bank collaboration as clients actively rebalanced portfolios.

Speaker #1: Revenues climbed 31% to $4 billion, with both global banking and global markets contributing proportionately to top-line growth. Global banking revenues rose by 30% to $733 million.

Speaker #1: UGA continued to build momentum, ending the quarter with $344 billion of invested assets attracting new commitments of $12 billion, split $3 and $9 between asset management and global wealth management.

Speaker #1: Advisory revenues were 8% higher, driven by our strongest first quarter in M&A, with notable performances in the Americas and EMEA. Capital markets grew 45%, with growth across products and geographies.

Speaker #1: Inflows were broad-based across the platform, with notably strong demand for private equity and hedge funds. Operating expenses were 2% lower, as we maintain cost rigor while continuing to invest in the platform to support operational efficiency.

Speaker #1: We continue to benefit from our strategic investments in ECM, where revenues more than doubled year on year, outperforming fee pools across all regions supported by higher IPO, follow-on, and convertible issuance.

Speaker #1: Onto slide 13 in the investment bank. The IB delivered its most profitable first quarter on record, with pre-tax profit of $1.2 billion, up 75%, and a pre-tax ROE of $25%.

Speaker #1: In DCM, we delivered double-digit growth, while LCM increased modestly against a lower fee pool. Turning to global markets, the business posted its best quarterly performance on record.

Todd Tuckner: Turning to Global Markets, the business posted its best quarterly performance on record. Revenues reached $3.3 billion as each of the Americas, APAC, and EMEA, including Switzerland, generated more than $1 billion in revenues. Equities revenues increased by 28%, driven by strength across Cash Equities, Prime Brokerage, and Equity Derivatives. While FRC revenues rose 38%, led by a strong performance in FX, including precious metals. Sustained investment in technology, our globally diversified footprint, and close integration with Global Wealth Management continue to support high levels of client engagement and momentum across the platform. Consistent with the strong revenue growth in the quarter, operating expenses increased by 17%. On slide 14, Non-core and Legacy's pre-tax loss was -$97 million, as negative revenues of -$11 million and operating expenses of $160 million were partly offset by the credit loss release referenced earlier.

Speaker #1: Revenues reached $3.3 billion as each of the Americas, APAC, and EMEA, including Switzerland, generated more than $1 billion in revenues. Equities revenues increased by 28%, driven by strength across cash equities, prime brokerage, and equity derivatives, while FRC revenues rose 38%, led by a strong performance in FX, including precious metals.

Todd Tuckner: Net interest income of CHF 1.7 billion rose by 12% year-over-year and 2% sequentially, with the quarter-on-quarter trend reflecting favorable deposit mix shifts. Looking ahead to Q2, we expect GWM net interest income to remain broadly flat as higher loan volumes are offset by lower deposit reinvestment yields. Operating expenses in GWM rose by 6%. When excluding variable compensation, litigation, and currency effects, costs declined by 2%. Turning to Personal and Corporate Banking on slide 11. P&C delivered a Q1 pre-tax profit of CHF 710 million, up 19%, with revenue growth and disciplined cost management combining to generate positive operating leverage of 10 percentage points. Having largely completed the client account migration in P&C as we entered the year, freed-up capacity is now supporting even deeper client engagement.

Speaker #1: Revenues climbed 31% to $4 billion, with both global banking and global markets contributing proportionately to top-line growth. Global banking revenues rose by 30% to $733 million.

Speaker #1: Sustained investment in technology, our globally diversified footprint, and close integration with global wealth management continue to support high levels of client engagement and momentum across the platform.

Speaker #1: Consistent with the strong revenue growth in the quarter, operating expenses increased by 17%. On slide 14, non-core and legacies pre-tax loss was $97 million, as negative revenues of $11 million and operating expenses of $160 million were partly offset by the credit loss release referenced earlier.

Speaker #1: Within revenues, funding costs of around $70 million were largely compensated by gains in the credit and securitized products portfolio. Excluding litigation, expenses in the quarter declined 70% year on year and 26% sequentially, bringing cumulative cost reductions versus the 2022 baseline to 84%.

Todd Tuckner: Within revenues, funding costs of around $70 million were largely compensated by gains in the credit and securitized products portfolio. Excluding litigation, expenses in the quarter declined 70% year-on-year and 26% sequentially, bringing cumulative cost reductions versus the 2022 baseline to 84%. Looking ahead, we continue to expect to exit 2026 with annualized operating expenses, excluding litigation, of approximately $500 million and annualized net funding costs of less than $200 million. In addition to strong cost management, NCL has continued to successfully reduce and de-risk its balance sheet since being established shortly after the Credit Suisse acquisition. Including an $800 million reduction in the Q1, the team has exited around 93% of its credit and market risk RWA, bringing the March-end balance substantially in line with its full-year 2026 ambition.

Todd Tuckner: This resulted in net new deposits of CHF 3.5 billion, net new loans of CHF 2.4 billion, and net new investment product growth of 11%. Total revenues were 3% higher, with 10% growth in non-NII, more than offsetting NII headwinds. Across Personal Banking and Corporate and Institutional Clients, non-NII growth was broad-based, with similar contributions from both franchises. In our retail business, positive momentum in net new investment flows, together with supportive market trends, continue to drive custody and mandate fee growth. While in C&IC, revenue expansion largely reflected strong activity in structured and syndicated finance. The quarter also included a credit of CHF 27 million related to the completed Swisscard transaction. Net interest income declined by 3% year-on-year, reflecting the ongoing impact of the zero-rate environment in place since last June.

Speaker #1: Looking ahead, we continue to expect to exit 2026 with annualized operating expenses excluding litigation of approximately $500 million, and annualized net funding costs of less than $200 million.

Speaker #1: In addition to strong cost management, NCL has continued to successfully reduce and de-risk its balance sheet since being established shortly after the Credit Suisse acquisition.

Speaker #1: Including an $800 million reduction in the first quarter, the team has exited around 93% of its credit and market risk RWA, bringing the March-end balance substantially in line with its full-year 2026 ambition.

Speaker #1: To sum up, our 1Q performance demonstrates the progress we're making across the group. We delivered strong financial results, completed client account migrations on the Swiss platform, and continued to execute with discipline.

Todd Tuckner: To sum up, our Q1 performance demonstrates the progress we're making across the group. We delivered strong financial results, completed client account migrations on the Swiss platform, and continue to execute with discipline. As we move on to the final phases of integration, we are increasingly focused on positioning the firm for sustainable growth beyond 2026. With that, let's open for questions.

Speaker #1: Within revenues, funding costs of around $70 million were largely compensated by gains in the credit and securitized products portfolio. Excluding litigation, expenses in the quarter declined 70% year on year, and 26% sequentially, bringing cumulative cost reductions versus the 2022 baseline to 84%.

Todd Tuckner: As highlighted previously, changes in Swiss franc interest rates in either direction would benefit P&C's revenues. On a sequential basis, NII was stable, with this trend expected to continue in Q2. Credit loss expense totaled CHF 55 million. While the quarter reflected the lowest net Stage Three charges since the Credit Suisse acquisition, we continue to expect CLE to average around CHF 75 million per quarter given ongoing macroeconomic uncertainty. Operating expenses declined by 7%, demonstrating continued effective cost management. We expect further efficiencies as the legacy Credit Suisse platform is progressively decommissioned over the course of 2026. Turning to asset management on slide 12. Pre-tax profit increased by 21% to CHF 252 million, driven by revenue growth alongside ongoing tight cost management. Total revenues rose 4%.

Speaker #1: As we move on to the final phases of integration, we are increasingly focused on positioning the firm for sustainable growth beyond 2026. With that, let's open for questions.

Speaker #1: We will now begin the question and answer session. Participants are requested to use only handset while asking a question. Anyone with a question may press star and one at this time.

Operator: We will now begin the question and answer session. Participants are requested to use only hands up while asking a question. Anyone with a question may press star and one at this time. Our first question comes from Flora Bocahut from Barclays. Please go ahead.

Speaker #1: Our first question comes from Flora Bocau from Barclays. Please go ahead.

Speaker #1: In addition to strong cost management, NCL has continued to successfully reduce and de-risk its balance sheet since being established shortly after the credit suisse acquisition.

Speaker #3: Yes. Good morning, and thank you for taking my question. So the first question I have is on the buyback. Obviously, you've changed the wording.

Flora Bocahut: Yes, good morning, and thank you for taking my question. The first question I have is on the buyback. Obviously you've changed the wording today on the buyback plan. You now intend to complete the $3 billion by the end of July, so by Q2 results. The question is, what exactly drove the change? Can you maybe help us understand what are the key catalysts that you're gonna watch into Q2 results to decide, and what kind of magnitude should we have in mind should you be able to top up the buyback with Q2 results? The second question is on GWM, specifically on APAC, because the quarter was quite strong, both in terms of net new money, but also in terms of the loan deleveraging that we saw this quarter, the second in a row.

Speaker #3: Today, on the buyback plan, you now intend to complete the $3 billion by the end of July, so by Q2 results. So the question is, what exactly drove the change?

Speaker #3: And can you maybe help us understand what are the key catalysts that you're going to watch into Q2 results to decide and what kind of magnitude should we have in mind?

Todd Tuckner: Net management fees were up 6%, driven primarily by higher average invested assets despite secular margin pressure. Performance fees declined year-on-year, primarily due to lower contributions from SIG and the absence of O'Connor following the completion of its sale during the quarter. This was partly offset by higher performance fees in Unified Global Alternatives. By the end of March, we delivered CHF 14 billion of net new money, representing 3% annualized growth as we continue to benefit from our strategic focus on scalable, differentiated capabilities. Flows were led by CHF 13 billion into ETFs, reflecting sustained demand for our core product range launched last year, alongside robust net inflows of CHF 5 billion into our SMA offering in the US.

Speaker #3: Should you be able to top up the buyback with Q2 results? The second question is on GWM. Specifically on APAC, because the quarter was quite strong.

Speaker #1: As we move on to the final phases of integration, we are increasingly focused on positioning the firm for sustainable growth beyond 2026. With that, let's open for questions.

Speaker #3: Both in terms of net new money, but also in terms of the loan deleveraging that we saw this quarter, the second in a row.

Speaker #1: We will now begin the question-and-answer session. Participants are requested to use only hands as well as asking a question. Anyone with a question may press star and one at this time.

Speaker #3: So can you maybe talk a little more about the strength in APAC? What's driving it, and how sustainable do you think it is? Thank you.

Flora Bocahut: Can you maybe talk a little more about the strength in APAC, what's driving it, and how sustainable do you think it is? Thank you.

Speaker #1: Our first question comes from Flora Bocau from Barclays. Please go ahead.

Speaker #4: So thank you for the question. Yeah, I mean, of course, we changed the language. And it's basically the reflection of two of the three, four conditions that we set or we described for the capital return plans for 2026.

Sergio Ermotti: Thank you for the question. Yeah, I mean, you know, of course, we changed the language and it's basically the reflection of two of the three, four conditions that we set or we described for the capital return plans for 2026. I.e., the successful progress in the integration, which was a major milestone was achieved with the migration of the Credit Suisse clients into onto the UBS platform. This is now allowing us to basically decommission and realize the full synergies for that we have we have envisaged. Then second is the very strong business performance, which as you saw is allowing us to generate further capital.

Speaker #3: Yes, good morning, and thank you for taking my question. So the first question I have is on the buyback. Obviously, you've changed the wording.

Todd Tuckner: UGA continued to build momentum, ending the quarter with 344 billion of invested assets and attracting new commitments of 12 billion, split 3 and 9 between asset management and Global Wealth Management. Inflows were broad-based across the platform, with notably strong demand for private equity and hedge funds. Operating expenses were 2% lower as we maintain cost rigor while continuing to invest in the platform to support operational efficiency. On to slide 13 in the Investment Bank. The IB delivered its most profitable Q1 on record, with pre-tax profit of CHF 1.2 billion, up 75%, and a pre-tax ROE of 25%. The performance this quarter reflected a market environment that played directly to our strengths as the business successfully captured opportunities while maintaining a disciplined approach to resource deployment.

Speaker #3: Today, on the buyback plan, you now intend to complete the $3 billion by the end of July, so by Q2 results. So the question is, what exactly drove the change?

Speaker #4: I.e., the successful progress in the integration which was a major milestone was achieved. With the migration of the Credit Suisse clients into onto the UBS platform, and this is now allowing us to basically decommission and realize the full synergies for that we have envisaged.

Speaker #3: And can you maybe help us understand what are the key catalysts that you're going to watch into Q2 results to decide and what kind of magnitude should we have in mind?

Speaker #3: Should you be able to top up the buyback with Q2 results? The second question is on GWM. Specifically on APAC, because the quarter was quite strong.

Speaker #4: And then second is the very strong business performance. Which, as you saw, is allowing us to generate further capital. I think that these two conditions are making us comfortable that we can accelerate the current share buyback program by the execution of that by the end of July, when we report Q2 results.

Speaker #3: Both in terms of net new money, but also in terms of the loan releveraging that we saw this quarter, the second in a row.

Speaker #3: So can you maybe talk a little more about the strength in APAC? What's driving it, and how sustainable do you think it is? Thank you.

Sergio Ermotti: I think that these two conditions are making us comfortable that we can accelerate the current share buyback program by the execution of that by the end of July, when we report Q2 results, while still keeping open the other two conditions. We want to continue to operate by year-end at around 14% CET1 capital. Of course, we are also watching the developments around the, the capital requirements. These two conditions are still out there and, you know, I say that it's premature to talk about the magnitude of what are we gonna do in H2 of the year.

Todd Tuckner: Revenues climbed 31% to $4 billion, with both Global Banking and Global Markets contributing proportionately to top-line growth. Global Banking revenues rose by 30% to $733 million. Advisory revenues were 8% higher, driven by our strongest first quarter in M&A, with notable performances in the Americas and EMEA. Capital markets grew 45% with growth across products and geographies. We continue to benefit from our strategic investments in ECM, where revenues more than doubled year-on-year, outperforming fee pools across all regions, supported by higher IPO, follow-on, and convertible issuance. In DCM, we delivered double-digit growth, while LCM increased modestly against a lower fee pool. Turning to Global Markets, the business posted its best quarterly performance on record. Revenues reached $3.3 billion as each of the Americas, APAC, and EMEA, including Switzerland, generated more than $1 billion in revenues.

Speaker #4: While still keeping open the other two conditions, we want to continue to operate by year-end at around 14% CT1 capital. And of course, we are also watching the developments around the capital requirements.

Speaker #4: The successful progress in the integration which was a major milestone was achieved. With the migration of the Credit Suisse clients into the UBS platform, and this is now allowing us to basically decommission and realize the full synergies for that we have envisaged.

Speaker #4: So these two conditions are still out there, and I say that it's premature to talk about the magnitude of what we're going to do in the second half of the year.

Speaker #5: I floor on the second question. Regarding GWM and APAC, so clearly the power of the integrated franchise is clearly contributing to growth and profitability.

Todd Tuckner: Hi, Flor, on the second question, regarding GWM and APAC. Clearly, the power of the integrated franchises is clearly contributing to growth and profitability, and you could just see that in the numbers that we have been printing quarter on quarter. Our focus, as you know, has been on growing assets across the region by deepening share of wallet, by accelerating strategic partnerships, and also by strengthening high net worth feeder channels, you know, particularly through investments in digital, and also by ramping up the impact hiring of select advisors.

Speaker #5: And you could just see that in the numbers that we have been printing quarter on quarter. Our focus as you know has been on growing assets across the region by deepening share of wallet, by accelerating strategic partnerships, and also by strengthening high net worth feeder channels.

Speaker #5: Particularly through investments in digital and also by ramping up the impact hiring of select advisors. So we think the evidence of this is apparent in the 1Q 26 results.

Speaker #4: While still keeping open the other two conditions, we want to continue to operate by year-end at around 14%, CT1 capital. And of course, we are also watching the developments around the capital requirements.

Todd Tuckner: Equities revenues increased by 28%, driven by strength across cash equities, prime brokerage, and equity derivatives. FRC revenues rose 38%, led by a strong performance in FX, including precious metals. Sustained investment in technology, our globally diversified footprint, and close integration with Global Wealth Management continue to support high levels of client engagement and momentum across the platform. Consistent with the strong revenue growth in the quarter, operating expenses increased by 17%. On slide 14, Non-core and Legacy's pre-tax loss was CHF -97 million, as negative revenues of CHF -11 million and operating expenses of CHF 160 million were partly offset by the credit loss release referenced earlier. Within revenues, funding costs of around CHF 70 million were largely compensated by gains in the credit and securitized products portfolio.

Todd Tuckner: We think the evidence of this is apparent in the Q1 2026 results, double-digit NNA and NFGA growth, with very strong mandate penetration, while also continuing to drive its bellwether, which is transactional revenues, in an environment where our advice and structuring expertise are clearly differentiated. I would also say that, on your question regarding lending, lower US dollar rates, are also supportive of the lending growth that we've seen.

Speaker #5: Double-digit NNA and NNFGA growth with very strong mandate penetration while also continuing to drive its bellwether which is transactional revenues in an environment where our advice and structuring expertise are clearly differentiated.

Speaker #4: So, these two conditions are still out there, and I say that it's premature to talk about the magnitude of what we're going to do in the second half of the year.

Speaker #5: I would also say that on your question regarding lending, lower US dollar rates are also supportive of the lending growth that we've seen.

Speaker #5: I have four on the second question. Regarding GWM and APAC, so clearly the power of the integrated franchise is clearly contributing to growth and profitability, and you could just see that in the numbers that we have been printing quarter on quarter.

Speaker #1: The next question comes from Kian Abu Hussein from JP Morgan. Please go ahead.

Operator: The next question comes from Kian Abouhossein from J.P. Morgan. Please go ahead.

Speaker #3: Yes, thank you very much for taking my question. First of all, a shout-out to Sergio. Thanks for answering all our questions for, if by my math is right, 12 and a half years, and hopefully longer to go.

Speaker #5: Our focus, as you know, has been on growing assets across the region by deepening share of wallet, by accelerating strategic partnerships, and also by strengthening high net worth feeder channels.

Kian Abouhossein: Yes, thank you very much for taking my question. First of all, a shout-out to Sergio. Thanks for answering all our questions for, if my math is right, 12.5 years and hopefully longer to go. Now my two questions are, first of all, in relations to US wealth management, you had positive net new assets in America. You talked prior about potential outflows in H1, and you indicated in Q2, clearly due to tax situation that could happen. I just try to understand how we should think about what happened in Q1 relative to your earlier guidance in particular. Secondly, in that context also, advisor departures. Are we done with that? As you mentioned, acceleration of hiring.

Todd Tuckner: Excluding litigation, expenses in the quarter declined 70% year on year and 26% sequentially, bringing cumulative cost reductions versus the 2022 baseline to 84%. Looking ahead, we continue to expect to exit 2026 with annualized operating expenses, excluding litigation, of approximately CHF 500 million and annualized net funding costs of less than CHF 200 million. In addition to strong cost management, NCL has continued to successfully reduce and de-risk its balance sheet since being established shortly after the Credit Suisse acquisition. Including a CHF 800 million reduction in Q1, the team has exited around 93% of its credit and market risk RWA, bringing the March end balance substantially in line with its full year 2026 ambition. To sum up, our Q1 performance demonstrates the progress we're making across the group.

Speaker #5: Particularly through investments in digital, and also by ramping up the impact hiring of select advisors. So, we think the evidence of this is apparent in the Q1 2026 results.

Speaker #3: Now, my two questions are first of all, in relation to US wealth management, you had positive net new assets in America. You talked prior about potential outflows in the first half.

Speaker #5: Double digit in A and NNFGA growth with very strong mandate penetration while also continuing to drive its bellwether which is transactional revenues. In an environment where our advice and structuring expertise are clearly differentiated, I would also say that on your question regarding lending, lower US dollar rates also supportive of the lending growth that we've seen.

Speaker #3: And you indicated in the second quarter clearly due to tax situation that could happen. But I just try to understand how we should think about what happened in the first quarter relative to your earlier guidance in particular.

Speaker #3: And secondly, in that context also, advisory departures. Have we done with that? As you mentioned, acceleration of hiring. So should we expect net new hires to come through second half?

Kian Abouhossein: Should we expect net new hires to come through H2? The second question is coming back to parent bank capital. You mentioned the $1.8 billion accrual. I'm interested in the cumulative reserves in the parent bank at the moment, and how much have you actually upstreamed in Q1? Thank you.

Speaker #1: The next question comes from Kian Abu Hussein from JP Morgan. Please go ahead.

Speaker #3: And then the second question is coming back to parent bank capital. You mentioned the 1.8 billion accrual. I'm interested in the cumulative reserves, cumulative reserves in the parent bank.

Speaker #6: Yes, thank you very much for taking my question. First of all, shout out to Sergio. Thanks for answering all our questions for, if by my math is right, 12 and a half years, and hopefully longer to go.

Todd Tuckner: We delivered strong financial results, completed client account migrations on the Swiss platform, and continue to execute with discipline. As we move on to the final phases of integration, we are increasingly focused on positioning the firm for sustainable growth beyond 2026. With that, let's open for questions.

Speaker #3: At the moment, and how much have you actually upstreamed in the first quarter? Thank you.

Speaker #6: Now, my two questions are: first of all, in relation to US Wealth Management—you had positive net new assets in America. You talked prior about potential outflows in the first half.

Speaker #4: Again, thanks. Thanks for the questions. On the second one, just quickly, so we, if you recall, we had accrued 9 billion last year. And we have paid up the first half of that in the first half of the year, the 4 and a half billion actually just earlier this month.

Todd Tuckner: Kian, thanks. Thanks for the questions. On the second one, just quickly. We, if you recall, we had accrued CHF 9 billion last year, and we have paid up the H1 of that in H1 of the year, the CHF 4.5 billion. Actually just earlier this month. The CHF 1.8 is an accrual, as I mentioned, that we would distribute in 2027. On the question regarding US Wealth and flows. First, let me just back up a little bit and mention that importantly, the US business is continuing to work on the various levers to drive profitability growth, with pre-tax margin improving now for 6 consecutive quarters.

Operator: We will now begin the question and answer session. Participants are requested to use only hands up while asking a question. Anyone with a question may press star 1 at this time. Our first question comes from Flora Bocahut from Barclays. Please go ahead.

Speaker #6: And you indicated in the second quarter, clearly due to the tax situation that could happen. But I'm just trying to understand how we should think about what happened in the first quarter, relative to your earlier guidance in particular.

Flora Bocahut: Yes, good morning, and thank you for taking my question. The first question I have is on the buyback. Obviously, you've changed the wording today on the buyback plan. You now intend to complete the $3 billion by the end of July, so by Q2 results. The question is, what exactly drove the change? And can you maybe help us understand what are the key catalysts that you're gonna watch into Q2 results to decide, and what kind of magnitude should we have in mind should you be able to top up the buyback with Q2 results? The second question is on GWM, specifically on APAC, because the quarter was quite strong, both in terms of net new money, but also in terms of the loan releveraging that we saw this quarter, the second in a row.

Speaker #4: And the 1.8 is in accrual, as I mentioned, that we would distribute in 2027. On the question regarding US wealth and flows. So first, let me just back up a little bit.

Speaker #6: And secondly, in that context also, advisory departures. Have we done that? As you mentioned, acceleration of hiring. So should we expect net new hires to come through second half?

Speaker #6: And then the second question is come back to parent bank capital. You mentioned the 1.8 billion accrual. I'm interested in your cumulative reserves, cumulative reserves in the parent bank at the moment, and how much have you actually upstreamed in the first quarter?

Speaker #4: And mention that importantly, the US business is continuing to work on the various levers to drive profitability growth with pre-tax margin improving now for six consecutive quarters.

Speaker #6: Thank you.

Speaker #4: That momentum is being driven by stronger banking capabilities, which is evidenced in, by the way, continued growth in net new lending eight consecutive quarters.

Todd Tuckner: That momentum is being driven by stronger banking capabilities, which is evidenced in, by the way, continued growth in net new lending, 8 consecutive quarters, and by the strength in transaction revenues, including through greater collaboration with the Investment Bank in delivering the full breadth of our capabilities to clients. Onto flows this quarter. You know, we're encouraged by the outcome, particularly because flows were driven by same-store production. That tells me the strategy is working. At the same time, you know, in terms of guidance, it's 1 quarter. I guided on Q2 tax outflows. We're staying focused on continuing to invest in our advisor workforce, in our platform, in our capabilities to drive sustainable profitability improvement.

Speaker #4: Again, thanks. Thanks for the questions. On the second one, just quickly, so if you recall, we had accrued 9 billion last year, and we have paid up the first half of that in the first half of the year, the four and a half billion actually just earlier this month.

Speaker #4: And by the strength in transaction revenues, including through greater collaboration with the investment bank in delivering the full breadth of our capabilities to clients.

Flora Bocahut: Can you maybe talk a little more about the strength in APAC, what's driving it, and how sustainable do you think it is? Thank you.

Speaker #4: Now, on to flows this quarter. We're encouraged by the outcome. Particularly because flows were driven by same-store production. So that tells me the strategy is working.

Sergio Ermotti: Thank you for the question. Yeah, I mean, you know, of course, we changed the language, and it's basically the reflection of two of the three, four conditions that we set or we described for the capital return plans for 2026. I.e., the successful progress in the integration, which was a major milestone achieved with the migration of the Credit Suisse clients onto the UBS platform. This is now allowing us to basically decommission and realize the full synergies for that we have envisaged. Second is the very strong business performance, which as you saw is allowing us to generate further capital.

Speaker #4: And the $1.8 billion is in accrual, as I mentioned, that we would distribute in 2027. On the question regarding US wealth and flows—so first, let me just back up a little bit and mention that, importantly, the US business is continuing to work on the various levers to drive profitability growth.

Speaker #4: At the same time, in terms of guidance, at the same time, it's one quarter. I guided on second quarter tax outflows. So we're staying focused on continuing to invest in our advisor workforce.

Speaker #4: In our platform, in our capabilities to drive sustainable profitability improvement.

Speaker #4: With pre-tax margin improving now for six consecutive quarters, that momentum is being driven by stronger banking capabilities, which is evidenced in, by the way, continued growth in net new lending consecutive quarters.

Speaker #3: I'm sorry. Should we think about net advisors increasing as of second half?

Kian Abouhossein: Sorry. Should we think about net advisors increasing as of H2?

Speaker #4: So on that, Kian, I just say we're comfortable with the steps we're taking to drive positive full year. NNA. While recognizing there's a lag effect from previously announced FA movement that will continue to show up in flows for a few quarters.

Todd Tuckner: On that, Kian, I'd just say we're comfortable with the steps we're taking to drive positive full year NNA. You know, while recognizing there's a lag effect from previously announced FA movement that will continue to show up in flows for a few quarters. That said, we're actively recruiting and investing in teams aligned with our profitability ambitions. I'd also point out that rotation among FAs remains elevated across the industry, given record valuations. You know, we continue to expect these dynamics to normalize in our own book over the course of 2026.

Speaker #4: And by strength in transaction revenues, including through greater delivering the full breadth of our capabilities to clients. Now, onto this quarter, we're encouraged by the outcome, particularly because flows were driven by same-store production.

Speaker #4: That said, we're actively recruiting and investing in teams aligned with our profitability ambitions. I'd also point out that rotation among FAs remains elevated across the industry.

Sergio Ermotti: I think that these two conditions are making us comfortable that we can accelerate the current share buyback program by the execution of that by the end of July, when we report Q2 results, while still keeping open the other two conditions. We want to continue to operate by year-end at around 14% CET1 capital. Of course, we are also watching the developments around the capital requirements. These two conditions are still out there and, you know, I say that it's premature to talk about the magnitude of what are we gonna do in H2.

Speaker #4: So that tells me the strategy is working. At the same time, in terms of guidance, at the same time, it's one quarter. I guided on second quarter tax outflows.

Speaker #4: Given record valuations. But we continue to expect these dynamics to normalize in our own book. Over the course of 2026.

Speaker #4: So we're staying focused on continuing to invest in our advisor workforce, in our platform, and our capabilities of sustainable profitability improvement.

Speaker #3: Okay. And just on reserves, can you just remind me what the cumulative reserve is in the parent bank now?

Kian Abouhossein: Okay. Just on reserves, can you just remind me what the cumulative reserve is in the parent bank now?

Speaker #6: Sorry, should we think about net advisors increasing as of second half?

Speaker #4: So on that, Kian, we're comfortable with the steps we're taking. Positive full year NNA, while recognizing there's a lag effect from previously announced FA movement that will continue to show up in flows from quarters.

Speaker #4: So we have 10.8 billion of capital in reserve less the 4.5 paid up in April that I mentioned.

Todd Tuckner: We have CHF 10.8 billion of capital in reserve, less the CHF 4.5 billion paid up in April that I mentioned.

Todd Tuckner: Hi, Flora, on the second question, regarding GWM and APAC. Clearly, the power of the integrated franchises is clearly contributing to growth and profitability, and you could just see that in the numbers that we have been printing quarter-on-quarter. Our focus as you know has been on growing assets across the region by deepening share of wallet, by accelerating strategic partnerships, and also by strengthening high net worth feeder channels, you know, particularly through investments in digital, and also by ramping up the impact hiring of select advisors.

Speaker #3: Thank you.

Kian Abouhossein: Thank you.

Speaker #1: The next question comes from Stefan Stallmann from Autonomous Research. Please go ahead.

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

Speaker #4: That said, we're actively recruiting and investing in teams aligned with our profitability ambitions. I'd also point out that rotation among FAs remains elevated across the industry.

Speaker #5: Good morning. Thank you very much for taking my questions. I wanted to ask, please, whether you have actually seen or whether you expect to see any benefits from wealthy clients in the Middle East potentially shifting their assets into Swiss or maybe Asian booking centers.

Stefan Stalmann: Morning. Thank you very much for taking my questions. I wanted to ask please whether you have actually seen or whether you expect to see any benefits from wealthy clients in the Middle East potentially shifting their assets into Swiss or maybe Asian booking centers. Also on your Unified Global Alternatives platform, there's obviously been quite a lot of news flow during the quarter and maybe already starting last year about private markets, in particular private credit. Are you seeing any impact of all of that market talk in your clients' behavior and your clients' preferences in that area? Thank you very much.

Speaker #4: Given record valuation, but we continue to expect these dynamics to normalize in our own book. Over the course of 2026.

Speaker #6: Okay, just on reserves, can you just remind me what the cumulative reserve is in the parent bank?

Speaker #5: And also on your unified global alternatives platform, there's obviously been quite a lot of news flow during the quarter and maybe already starting last year about private markets in particular, private credit.

Todd Tuckner: We think the evidence of this is apparent in the Q1 2026 results, double-digit NNA and NFGA growth, with very strong mandate penetration, while also continuing to drive its bellwether, which is transactional revenues, in an environment where our advice and structuring expertise are clearly differentiated. I would also say that on your question regarding lending, lower US dollar rates are also supportive of the lending growth that we've seen.

Speaker #5: Are you seeing any impact of all of that market talk in your clients' behavior and your clients' preferences in that area? Thank you very much.

Speaker #4: So, $10.8 billion of capital in reserve, less the $4.5 billion paid up in April that I mentioned.

Speaker #6: Thank you.

Speaker #4: 11. So I think it's fair to say in respect of the Middle East conflict that safety and balance sheet trust remain decisive factors in wealth management, as you know.

Todd Tuckner: Stefan. So I think it's fair to say in respect of the Middle East conflict that, you know, safety and balance sheet trust remain decisive factors in wealth management, as you know, and the Gulf War is reinforcing these priorities. While it's very early to see any meaningful movement, you know, we believe it's leading some clients at least to reassess booking center options. We believe that, you know, our deep and long-standing relationships with Middle Eastern clients position us well. You know, we're there to be movement to benefit from any shifting dynamics over time. At this stage, clearly too early to see anything coming through the numbers. On your question regarding private credit.

Speaker #1: The next question comes from Stefan Stallmann from Autonomous Research. Please go ahead.

Speaker #7: I wanted to ask, please, whether you have actually seen, or whether you expect to see, any benefits from wealthy clients potentially shifting their assets into Swiss or maybe Asian booking centers.

Operator: The next question comes from Kian Abouhossein from J.P. Morgan. Please go ahead.

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

Speaker #4: And the Gulf conflict is reinforcing these priorities. And while it's very early to see any meaningful movement, we believe it's leading some clients at least to reassess booking center options.

Kian Abouhossein: Yes, thank you very much for taking my question. First of all, a shout-out to Sergio. Thanks for answering all our questions for, if my math is right, 12 and a half years, and hopefully, longer to go. My two questions are, first of all, in relations to US wealth management, you had positive net new assets in America. You talked prior about potential outflows in H1, and you indicated in Q2 clearly due to tax situation that could happen. I just try to understand how we should think about what happened in Q1 relative to your earlier guidance in particular. Secondly, in that context also, advisor departures. Are we done with that? As you mentioned, acceleration of hiring.

Speaker #7: And also on your unified global alternatives platform, there's obviously been quite a lot of news flow during the quarter and maybe already starting last year about private markets and particularly private credit.

Speaker #4: And we believe that our deep and long-standing relationships with Middle Eastern clients position us well. We're there to be movement to benefit from any shifting dynamics over time.

Speaker #7: Are you seeing any impact of all of that market talk in your clients' behavior and your clients' preferences in that area? Thank you very much.

Speaker #4: But at this stage, clearly too early to see anything coming through the numbers. On your question regarding private credit, I think it's fair to say that interest in private credit among our wealthy clients has been more measured in the current environment.

Speaker #4: Definitely. So I think it's fair to say, in effect of the Middle East conflict, that safety and balance sheet trust remain decisive factors in wealth management, as you know, and the Gulf conflict is reinforcing these priorities.

Todd Tuckner: You know, I think it's fair to say that, you know, interest in private credit among our wealthy clients, you know, has been more measured in the current environment that they're clearly reflecting macro uncertainty and a preference for liquidity and capital preservation. You know, we have seen, as I think you're pointing out, elevated redemption requests that are driven by either profit-taking or residual gating or even liquidity alignment considerations. You know, that being said, engagement does still remain high, and we continue to see demand building for well-structured strategies in private credit as part of this income sleeve, albeit with more caution and selectivity.

Speaker #4: That clearly reflecting macro uncertainty and a preference for liquidity and capital preservation. We have seen as I think you're pointing out elevated redemption requests that are driven by either profit taking or residual gating or even liquidity alignment considerations.

Speaker #4: And while it's very early to see any meaningful movement, we believe it's leading some clients at least to reassess booking center options. And we believe that we are deep in long-standing relationships with Middle Eastern clients position us well.

Kian Abouhossein: Should we expect net new hires to come through H2? The second question is coming back to parent bank capital. You mentioned the CHF 1.8 billion accrual. I am interested in the cumulative reserves in the parent bank at the moment, and how much have you actually upstreamed in Q1? Thank you.

Speaker #4: That being said, engagement does still remain high. And we continue to see demand building for well-structured strategies in private credit as part of this income sleeve.

Speaker #4: We're there to be movement to benefit from any shifting dynamics over time. But at this stage, clearly too early to see anything coming through the numbers.

Speaker #4: Albeit with more caution and selectivity it is also worth pointing out that when you look at the level of exposure our clients have in private credit in their portfolio it's quite minor.

Todd Tuckner: Hi, Kian. Thanks, thanks for the questions. On the, on the second one, just quickly. If you recall, we had accrued CHF 9 billion last year, and we have paid up the first half of that in H1 of the year, the CHF 4.5 billion, actually just earlier this month. And the CHF 1.8 is an accrual, as I mentioned, that we would distribute in 2027. On the question regarding US wealth and flows. First, let me just back up a little bit and mention that, importantly, the US business is continuing to work on the various levers to drive profitability growth with pre-tax margin improving now for 6 consecutive quarters.

Todd Tuckner: It is also worth pointing out that, you know, when you look at the level of exposure our clients have in private credit in their portfolios, it is quite minor. While you may have sort of mid-single digit % in alternatives more broadly, it is a fraction of that in private credit. That said, we still see that there is demand for that type of investment when structured properly.

Speaker #4: On your question regarding private credit, I think it's fair to say that interest in private credit among our wealthy clients has been more measured in the current environment, reflecting macro uncertainty and a preference for liquidity and capital preservation.

Speaker #4: So while you may have sort of mid-single digit percentage in alternatives more broadly, it's a fraction of that in private credit. But that said, we still see that there is demand for that type of investment when structured properly.

Speaker #4: We have seen, as I think you're pointing out, elevated redemption requests that are driven by either profit-taking, or residual gating, or even liquidity alignment considerations.

Speaker #5: All right. Awesome. Thank you very much.

Stefan Stalmann: All right. Absolutely. Thank you very much.

Speaker #1: The next question comes from Anke Reingen from RBC. Please go ahead.

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

Speaker #4: That being said, engagement does still remain high, and we continue to see demand building for well-structured strategies in private credit as part of this income sleeve, albeit with more cost and selectivity.

Speaker #6: Yeah. Good morning. And thank you for taking my questions. The first is just on the ordinance impact. And I was wondering when look on a face then or on a fully loaded basis?

Anke Reingen: Yeah, good morning, thank you for taking my questions. The first is just on the ordinance impact. I was wondering, when you assess your capital ratio, do you look on a phase-in or on a fully loaded basis? There's the CHF 2 billion already coming in 1 January 2027, then 2029. If you can just tell us fully loaded or phase-in what the assessment is. With Q4 results, you gave us some net interest income guidance for the full year for Global Wealth Management and P&C. I just wonder if this has changed given the interest rate outlook. Thank you very much.

Speaker #4: It is also worth pointing out that when you look at the level of exposure our clients have in private credit in their portfolioes, it's quite minor.

Todd Tuckner: That, that momentum is being driven by stronger banking capabilities, which is evidenced in, by the way, continued growth in net new lending, 8 consecutive quarters, and by the strength in transaction revenues, including through greater collaboration with the Investment Bank in delivering the full breadth of our capabilities to clients. Now, onto the flows quarter. You know, we're encouraged by the outcome, particularly because flows were driven by same-store production. That tells me the strategy is working. At the same time, you know, in terms of guidance. At the same time, it's one quarter. I guided on Q2 tax outflows. We're staying focused on continuing to invest in our advisor workforce, in our platform, and our capabilities to drive sustainable profitability improvement.

Speaker #6: I guess the 2 billion already coming in 1st of January 2027 and then 29. So if you can just tell us fully loaded or face then what the assessment is.

Speaker #6: And then with Q4 results, you gave us some net interest income guidance for the full year for global wealth And I just wonder if this has changed given the interest rate outlook.

Speaker #4: So while you may have sort of mid-single-digit percentage in alternatives more broadly, it's a fraction of that in private credit. But that said, we still see that there is demand for that type of investment when structured properly.

Speaker #6: Thank you very much.

Speaker #4: Thank you. Thanks, Anke. So on the ordinance impact, so just unpack it. So the changes to Prudential valuation adjustments come in on 1 January 2027.

Todd Tuckner: Thank you. Thanks, Anke. On the ordinance impact, let me just unpack it. The changes to Prudential Valuation Adjustment come in on 1 January 2027, so there is no phase-in. You know, when we get there, we'll be reflecting that in our capital as the expectation immediately. On software, there is a transition period permitted to 1 January 2029, which at this point is our intention to fully utilize. That's subject to seeing the full package develop in the intervening period. We are considering that and at this point, that's the intention is to use the transition period and therefore have the impact of capitalized software hit through our capital ratio on 1 January 2029.

Speaker #7: Absolutely. Thank you very much.

Speaker #1: The next question comes from Anke Ryan from RBC. Please go ahead.

Speaker #5: Yeah, good morning, and thank you for taking my questions. The first is just on the ordinance impact. And I was wondering when you assess your capital issue, do you look on a face then or on a fully loaded basis?

Speaker #4: So there is no phase in. So when we get there, we'll be reflecting that in our capital as the expectation. Immediately. On software, there is a transition period permitted to 1 Jan 2029, which at this point is our intention.

Speaker #5: I guess the $2 billion already coming in 1st of January 2027. And then clients, if you can just tell us, fully loaded or face, then what the assessment is.

Kian Abouhossein: Sorry, should we think about net advisors increasing as of H2?

Speaker #5: And then with Q4 results, you gave us some net interest income guidance for the full year for global wealth management and P&C. And I just wonder if this has changed given the interest rate outlook.

Todd Tuckner: On that, Keen, I'd just say we're comfortable with the steps we're taking to drive positive full year NNA, you know, while recognizing there's a lag effect from previously announced FA movement that will continue to show up in flows for a few quarters. That said, we're actively recruiting and investing in teams aligned with our profitability ambitions. I'd also point out that rotation among FAs remains elevated across the industry, given record valuations. You know, we continue to expect these dynamics to normalize in our own book over the course of 2026.

Speaker #4: To fully utilize. But that's subject to seeing the full package develop in the intervening period. But we are considering that. And at this point, that's the intention is to use the transition period.

Speaker #5: Thank you very much.

Speaker #4: And therefore, have the impact of capitalized software hit through our capital ratio on 1 January 2029. On NII guidance, I would just say that in 2Q, the my outlook for the second quarter really reflects in global wealth management.

Speaker #4: Thank you. Thanks, Anke. So, on the ordinance impact, I mean, just unpack it. So, the changes to Prudential Valuation Adjustments come in on 1 January 2027.

Todd Tuckner: On NII guidance, you know, I would just say that in Q2, my outlook for the second quarter really reflects in Global Wealth Management. In any case, lower US dollar rates that, as I mentioned in my comments, have some downward pressure on deposit margin. Why is that? Because, you know, asset yields, as reflected in our replicating portfolios, reprice down faster than deposits, you know, when rates are lower. Now, any further upside in the quarter can come from favorable deposit mix shifts, as we saw in Q1, and even stronger net new lending growth. There is that upside.

Speaker #4: So there is no phase-in. So when we get there, we'll be reflecting that in our capital as the expectation immediately. On software, there is a transition period permitted to 1 Jan 2029, which at this point is our intention to fully utilize.

Kian Abouhossein: Okay. Just on reserves, can you just remind me what the cumulative reserve is in the parent bank now?

Speaker #4: In any case, lower US dollar rates. That as I mentioned in my comments, that have some downward pressure on deposit margin. Why is that?

Speaker #4: Because asset yields as reflected in our replicating portfolios repriced down faster than deposits when rates are lower. Now, any further upside in the quarter can come from favorable deposit mix shifts as we saw in 1Q.

Speaker #4: But that's subject to seeing the full package develop in the intervening period. But we are considering that and at this point that the intention is to use the transition period.

Todd Tuckner: We have CHF 10.8 billion of capital in reserve, less the CHF 4.5 billion paid up in April that I mentioned.

Speaker #4: And therefore, have the impact of capitalized software hit through our capital ratio on January 1, 2029. On NII guidance, I would just say that in Q2, my outlook for the second quarter really reflects in Global Wealth Management.

Kian Abouhossein: Thank you.

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

Speaker #4: And even stronger net new lending growth. So there is that upside. But again, because of the impact on rates that's what informed my guided flat quarter on quarter.

Todd Tuckner: Again, because of the impact on rates, that's what informed my guide at flat quarter-on-quarter. Now, the longer-term prospects for any pickup in GWM would be based on continued loan growth and greater US dollar rate stability. That would lead to higher swap rates that would start to help ease the reinvestment headwinds from the replicating portfolio that is reflected in the current sequential outlook. You know, that coupled with expected deposit growth without any meaningful dilution in our sweep and current account balances could offer some longer-term upside for NII in GWM.

Stefan Stalmann: I wanted to ask, please, whether you have actually seen or whether you expect to see any benefits from wealthy clients in the Middle East potentially shifting their assets into Swiss or maybe Asian booking centers. Also on your Unified Global Alternatives platform, there's obviously been quite a lot of news flow during the quarter and maybe already starting last year about private markets, in particular private credit. Are you seeing any impact of all of that market talk in your clients' behavior and your clients' preferences in that area? Thank you very much.

Speaker #4: Now, the longer-term prospects for any pickup in GWM would be based on continued loan growth and greater US dollar rate stability. And that would lead to higher swap rates that would start to help ease the reinvestment headwinds from the replicating portfolio that is reflected in the current sequential outlook.

Speaker #4: In any case, lower US dollar rates, as I mentioned in my comments, have some downward pressure on deposit margin. Why is that?

Speaker #4: Because asset yields, as reflected in our replicating portfolios, repriced down faster than deposits when rates are lower. Now, any further upside in the quarter can come from favorable deposit mix shifts, as we saw in Q1.

Speaker #4: So that coupled with expected deposit growth without any meaningful dilution in our sweeping current account balances could offer some longer-term upside for NII in GWM.

Speaker #4: And even stronger net new lending growth, so there is that upside. But again, because of the impact on rates, that's what informed my guided flat quarter-on-quarter.

Todd Tuckner: Stefan. I think it's fair to say in respect of the Middle East conflict that, you know, safety and balance sheet trust remain decisive factors in wealth management, as you know, the Gulf conflict is reinforcing these priorities. While it's very early to see any meaningful movement, you know, we believe it's leading some clients at least to reassess booking center options. We believe that, you know, our deep and long-standing relationships with Middle Eastern clients position us well. You know, we're there to be movement to benefit from any shifting dynamics over over time. At this stage, clearly too early to see anything coming through the numbers. On your question regarding private credit.

Speaker #1: The next question comes from Joseph Dickinson from Jefferies. Please go ahead.

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

Speaker #5: Hi. Thank you for taking my question. Just on the parliamentary process that is obviously quite key to the shape of prospective buybacks this year and beyond.

Joseph Dickerson: Hi, thank you for taking my question. Just on the parliamentary process that is obviously quite key to the shape of prospective buybacks this year and beyond. I guess, what is the outcome that you're looking for from this process? Many thanks.

Speaker #5: I guess what is the outcome that you're looking for from this process? Many thanks.

Speaker #4: Well, thank you. Well, we keep that we fully understand that all the lessons learned from the Great Swiss crisis have to be reflected in how we adapt the regulatory framework in Switzerland.

Sergio Ermotti: Thank you. Well, you know, we fully understand that all the lessons learned from the Credit Suisse crisis have to be reflected in how we adapt the regulatory framework in Switzerland. We continue to believe that the guiding principle should be to have something that is internationally aligned and as allow us to continue to be competitive as a bank based in Switzerland. I think that the framework are quite clear. We are not asking for anything, you know, that I would say is exceptional. I think that's, you know. The most important issue is that when we go through this process, as I reiterated, is not only to address, you know, the quality of capital and how we look at improving that part.

Speaker #4: So that, coupled with expected deposit growth without any meaningful dilution in our sweeping current account balances, could offer some longer-term upside for NII in GWM.

Speaker #4: But we continue to believe that the guiding principle should be to have something that is internationally aligned. And as allow us to continue to be competitive as a bank based in Switzerland.

Speaker #1: The next question comes from Joseph Dickinson from Jefferies. Please go ahead.

Speaker #4: So I think that the framework are quite clear. So we are not asking for anything that's I would say is exceptional. I think that's and the most important issue is that when we go through this process, as I address the quality of capital and how we look at improving that part.

Todd Tuckner: You know, I think it's fair to say that, you know, interest in private credit among our wealthy clients, you know, has been more measured, in the current environment that they're clearly reflecting macro uncertainty and a preference for liquidity and capital preservation. You know, we have seen, as I think you're pointing out, elevated redemption requests that are driven by either profit-taking or residual gating or even liquidity alignment considerations. You know, that being said, engagement does still remain high, and we continue to see demand building for well-structured strategies in private credit as part of this income sleeve, albeit with more caution and selectivity.

Speaker #6: Hi. Thank you for taking my question. Just on the parliamentary process that is obviously quite key to the shape of prospective buybacks this year and beyond.

Speaker #6: I guess, what is the outcome that you're looking for from this process? Many thanks.

Speaker #4: It's to fully reflect the lessons learned of the Great Swiss crisis, the root causes we all know that huge concessions were given to Great Swiss.

Sergio Ermotti: Is to fully reflect the lessons learned of the Credit Suisse crisis, the root causes. We all know that huge concessions were given to Credit Suisse, and this is the reason why, at the end, they had a problem with their the foreign subsidiaries. This element is actually never mentioned in the public debate. We need to make sure that, you know, the people that will make decision fully understand how strong the current and regulatory framework is, and which, by the way, is the one that allowed a G-SIB to absorb a G-SIBs, prepay all guarantees and emergency liquidity provisions granted to Credit Suisse within five months.

Speaker #4: Well, thank you. We fully understand that all the lessons learned from the Great Swiss crisis have to be reflected in how we adapt the regulatory framework in Switzerland.

Speaker #4: And this is the reason why at the end, they had a problem with their foreign subsidiaries. And this element is actually never mentioned in the public debate.

Speaker #4: But we continue to believe that the guiding principle should be to have something that is internationally aligned and has allowed us to continue to be competitive as a bank based in Switzerland.

Todd Tuckner: It is also worth pointing out that, you know, when you look at the level of exposure our clients have in private credit in their portfolios, it's quite minor. While you may have sort of mid-single-digit percentage in alternatives more broadly, it's a fraction of that in private credit. That said, we still see that there is demand for that type of investment when structured properly.

Speaker #4: So we need to make sure that the people that will make decisions fully understand how strong the current regulatory framework is and which, by the way, is the one that allowed a GC to absorb a GC prepay all guarantees and emergency liquidity provisions granted to Great Swiss within five months.

Speaker #4: So I think that the framework is quite clear. So we are not asking for anything that's, I would say, exceptional. I think that's, and the most important issue is that when we go through this process, as I reiterated, it's not only to address the quality of capital and how we look at improving that part.

Speaker #4: And while keeping you investors fairly confident about our ability to manage our business. So one has to reflect this kind of true lessons learned from the crisis.

Sergio Ermotti: While keeping you investors, you know, fairly confident about our ability to manage our business. One has to reflect this kind of true lessons learned from the crisis, rather than just looking at absolute level of capital and go to extreme solutions that are not helping at the end of the day, not only the bank, but most importantly our clients, because at the end of the day, it's gonna make the bank less competitive and in serving households, corporate clients, and it's not very good for the country as well, I believe.

Speaker #4: It's to fully reflect the lessons learned of the Great Swiss crisis. The root causes—we all know that huge concessions were given to Great Swiss.

Stefan Stalmann: All right. Absolutely. Thank you very much.

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

Speaker #4: Rather than just looking at absolute level of capital and a go-to-extreme solutions that are not helping at the end of the day, not only the bank, but most importantly, our clients.

Speaker #4: And this is the reason why, at the end, they had a problem with their foreign subsidiaries. And this element is actually never mentioned in the public debate.

Anke Reingen: Yeah, good morning, and thank you for taking my questions. The first is just on the ordinance impact. I was wondering, when you assess your capital ratio, do you look on a phased-in or on a fully loaded basis? I guess the 2 billion already coming in 1 January 2027, and then 2029. So if you can just tell us fully loaded or phased in what the assessment is. Then with Q4 results, you gave us some net interest income guidance for the full year for Global Wealth Management and P&C. I just wonder if this has changed given the interest rate, like, outlook. Thank you very much.

Anke Reingen: Yeah, good morning, and thank you for taking my questions. The first is just on the ordinance impact. I was wondering, when you assess your capital ratio, do you look on a phased-in or on a fully loaded basis? I guess the two billion already coming in 1 January 2027, and then 2029. So if you can just tell us fully loaded or phased in what the assessment is. Then with Q4 results, you gave us some net interest income guidance for the full year for Global Wealth Management and P&C. I just wonder if this has changed given the interest rate, like, outlook. Thank you very much.

Speaker #4: So we need to make sure that the people that will make decisions fully understand how strong the current regulatory framework is and, by the way, the one that allowed a GCIP to absorb a GCIP's, repay all gains, and emergency liquidity provisions granted to Great Swiss within five months.

Speaker #4: Because at the end of the day, it's going to make the bank less competitive and in serving households, corporates, clients. And it's not very good for the country as well, I believe.

Speaker #5: Great. Thank you.

Joseph Dickerson: Great. Thank you.

Speaker #1: The next question comes from Chris Hallman from Goldman Sachs. Please go ahead.

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

Speaker #4: Yeah. Good morning. Two questions. First, on capital. So I guess I agree on the 22 billion number on slide 25 is cleaner. To look at than the 9 billion.

Chris Hallam: Yeah, good morning. Two questions. First, on capital. I guess I agree on the CHF 22 billion number on slide 25 is cleaner to look at than the CHF 9 billion, and also that CET1 versus peer requirements is probably more logical than versus peer-reported ratios. When it comes to contingency planning and the decisions that need to be taken, the foreign participations process should stretch well into the H1 of next year. Given the transition period on those potential changes, can you wait for full clarity on the outcome of that process before making any decisions on how to adjust your operating footprint or your focus areas? Or are you going to have to start making real-world business decisions earlier than the point at which you get full and final clarity on foreign subs? That's the first question. Secondly, broader one, on cyber risk.

Speaker #4: And while keeping you investors fairly confident about our ability to manage our business. So one has to reflect this kind of true lessons learned from the crisis.

Todd Tuckner: Thank you. Thanks, Anke Reingen. On the ordinance impact. Let me just unpack it. The changes to Prudential valuation adjustments come in on 1 January 2027, so there is no phase-in. You know, when we get there, we'll be reflecting that in our capital as the expectation immediately. On software, there is a transition period permitted to 1 January 2029, which at this point is our intention to fully utilize. That's subject to seeing the full package develop in the intervening period. We are considering that, and at this point, that's the intention is to use the transition period and therefore have the impact of capitalized software hit through our capital ratio on 1 January 2029.

Speaker #4: And also that CEP1 versus peer requirements is probably more logical than versus peer reported ratios. But when it comes to contingency planning and the decisions that need to be taken, the foreign participations process should stretch well into the first half of next year.

Speaker #4: Rather than just looking at absolute level of capital and go to extreme solutions that are not helping at the end of the day, only the bank, but most importantly, our clients.

Speaker #4: Given the transition period on those potential changes, can you wait for full clarity on the outcome of that process before making any decisions on how to adjust your operating footprint or your focus areas?

Speaker #4: Because at the end of the day, it's going to make the bank less competitive in serving households and corporate clients. And it's not very good for the country, as I believe.

Speaker #4: Or are you going to have to start making real-world business decisions earlier than the point at which you get full and final clarity on foreign subs?

Speaker #4: That's the first question. And secondly, broader one. On cyber risk, it's sort of against the backdrop of the recent acceleration we've seen in AI-enabled threat detection and attack sophistication.

Speaker #6: Great. Thank you.

Chris Hallam: It's sort of against the backdrop of the recent acceleration we've seen in AI-enabled threat detection and attack sophistication. Could you talk a little bit about how you're managing cyber resilience, both on your own platforms as well as through the CS integration? Have those sort of AI-driven threat models changed how you assess residual risks in your legacy systems? Should we expect any incremental investment or operational constraints as a result of that evolving threat landscape? Thank you.

Speaker #1: The next question comes from Chris Hallman from Goldman Sachs. Please go ahead.

Speaker #5: Yeah, good morning. Two questions. First, on capital. So, I guess I agree that the $22 billion number on slide 25 is cleaner to look at than the $9 billion.

Speaker #4: Could you talk a little bit about how you're managing cyber resilience, both on your own platforms as well as through the integration through the CS integration?

Speaker #4: Have those sort of AI-driven threat models changed how you assess residual risks in your legacy systems? And should we expect any incremental investment or operational constraints as a result of that evolving threat landscape?

Speaker #5: And also that CEP1 versus peer requirements is probably critical, and versus peer-reported ratios. But when it comes to contingency planning and the decisions that need to be taken, the foreign participations process should stretch well into the first half of next year.

Todd Tuckner: On NII guidance, you know, I would just say that in Q2, my outlook for the second quarter really reflects in Global Wealth Management. In any case, lower US dollar rates that, as I mentioned in my comments, that have some downward pressure on deposit margin. Why is that? Because, you know, asset yields, as reflected in our replicating portfolios, reprice down faster than deposits, you know, when rates are lower. Now, any further upside in the quarter can come from favorable deposit mix shifts, as we saw in Q1, and even stronger net new lending growth. There is that upside, but again, because of the impact on rates, that's what informed my guide at flat quarter-on-quarter.

Speaker #4: Thank you. Well, thank you. Chris, I guess for to be fair, we have been going through two years of uncertainty around this topic. And by now, it's something that is almost embedded in the way we have to operate and accept it as a modus operandi.

Speaker #5: Given the transition period on those potential changes, can you wait for full clarity on the outcome of that process before making any decisions on how to adjust your operating footprint or your focus areas?

Sergio Ermotti: Well, thank you, Chris. I guess for, you know, to be sure, we have been going through 2 years of uncertainty around this topic. By now it's something that is almost embedded in the way we have to operate and accept it as a modus operandi. It's not ideal, because of course, the environment out there is quite challenging. I think that we are pleased that we at least completed the integration and we created the resilience in terms of profitability that allow us to basically accept the fact that a democratic process has now to go through.

Speaker #5: Or are you going to have to start making real-world business decisions earlier than the point at which you get full and final clarity on foreign subs?

Speaker #4: It's not ideal. Because, of course, the environment out there is quite challenging. But I think that we are pleased that we at least completed the integration.

Speaker #5: That's the first question. And secondly, a broader one on cyber risk. It's sort of against the backdrop of the recent acceleration we've seen in AI-enabled threat detection and attack sophistication.

Speaker #4: And we created the resilience in terms of profitability that allow us to basically accept the fact that a democratic process has now to go through.

Speaker #5: Could you talk a little bit about how you're managing cyber resilience, both on your own platforms as well as through the integration through the CS integration?

Speaker #5: Have those sort of AI-driven threat models changed how you assess residual risks in your legacy systems? And should we expect any incremental investment or operational constraints as a result of that evolving threat landscape?

Speaker #4: This is a very complex matter. And it's not reasonable now to expect that the parliament will take decision in a very short period of time on such a situation considering also the extreme different views on how this is playing out.

Sergio Ermotti: This is a very complex matter, and it's not reasonable now to expect that the parliament will take decision in a very short period of time on such a situation, considering also the extreme different views on how this is playing out. I think that one thing is clear: We're not gonna jump into conclusions or taking decisions that have a strategic impact in any sense before having the final outcome. It's not ideal, I know, but we have to really think about what is the best things for the bank for the next 5, 10, 20 years, not what is good for the next few quarters. That uncertainty, unfortunately, is something that we have to live with.

Speaker #5: Thank you.

Speaker #4: Well, thank you, Chris. I guess for sure we have been going through two years of uncertainty around this topic, and by now it's something that is embedded in the way we have to operate and accept as a source of R&D.

Speaker #4: So I think that one thing is clear. We're not going to jump into conclusions or taking decisions that have a strategic impact in any sense.

Todd Tuckner: Now, the longer-term prospects for any pickup in GWM would be based on continued loan growth and greater US dollar rate stability. That would lead to higher swap rates that would start to help ease the reinvestment headwinds from the replicating portfolio that is reflected in the current sequential outlook. You know, that coupled with expected deposit growth without any meaningful dilution in our sweep and current account balances could offer some longer-term upside for NII in GWM.

Speaker #4: Before having the final outcome. It's not ideal, I know. But we have to really think about what is the best things for the bank for the next 5, 10, 20 years.

Speaker #4: It's not ideal. Because, of course, the environment out there is quite challenging. But I think that we are pleased that we at least completed the integration and we created the resilience in terms of profitability that allow us to basically accept the fact that a democratic process has now to go through.

Speaker #4: Not what is good for the next few quarters. And that uncertainty unfortunately is something that we have to live with. We are not in control of that.

Sergio Ermotti: We are not in control of that, but we are hopeful that the situation can get resolved very quickly. In terms of cyber, well, look, you know, of course, cyber is not something that we, it has been on the, you know, the center of the radar screen for the last few years for all of us in the industry, but not only in the financial services industry. We are investing a lot of resources, technology, but also human resources to really identify the best way to protect our assets, the, our clients' assets and the data. We continue to do so as we see also these recent in developments. Believe me, we are staying very close, talking to our technology partners.

Speaker #4: But we are hopeful that the situation can get resolved very quickly. In terms of cyber, well, look, of course, cyber is not something that we has been on the center of the radar screen for the last few years, for all of us in the industry, but not only in the financial services industry.

Speaker #4: This is a very complex matter, and it's not reasonable now to expect that the parliament will take a decision in a very short period of time on such a situation.

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

Speaker #4: Considering also the extremely different views on how this is playing out. So, I think that one thing is clear: we're not going to jump to conclusions or take decisions that have a strategic impact in any sense.

Speaker #4: And we are investing a lot of resources technology, but also human resources to really identify the best way to protect our assets our clients' assets and the data.

Speaker #4: Before having the final outcome—it's not ideal, I know—but we have to really think about what is best for the bank for the next five and 20 years.

Speaker #4: And we continue to do so as we see also this recent developments believe me, we are staying very close talking to our technology partners.

Sergio Ermotti: Thank you. Well, we keep that, you know, we fully understand that all the lessons learned from the Credit Suisse crisis have to be reflected in how we adapt the regulatory framework in Switzerland. We continue to believe that the guiding principle should be to have something that is internationally aligned and allow us to continue to be competitive as a bank based in Switzerland. I think that the framework are quite clear, we are not asking for anything, you know, that I would say is exceptional. I think that's, you know. The most important issue is that when we go through this process, as I reiterated, is not only to address, you know, the quality of capital and how we look at improving that part.

Speaker #4: Not what is good for the next few quarters. And that uncertainty, unfortunately, is something that we have to live with. We are not in control of that.

Speaker #4: As you can imagine, we are a client of the major technology providers, also the one that are very deep involved in this recent discovery.

Sergio Ermotti: As you can imagine, we are a client of the major technology providers, also the one that are very deep involved in this recent discovery. We get indirectly also the benefits of being able to implement all the necessary steps to protect our assets. This is gonna continue to be a big issue, and one that will continue to necessitate a lot of investment and resources, both in technology, but also in people. You know, you look through, you know, cyber risk is as important as credit and market risk nowadays.

Speaker #4: But we are hopeful that the situation can get resolved very quickly. In terms of cyber, well, look, cyber is not something that has been at the center of the radar screen for the last few years, for all of us in the industry—not only in the financial services industry.

Speaker #4: And so we get indirectly also the benefits of being able to implement all the necessary steps to protect our assets. So this is going to continue to be a big, big issue.

Speaker #4: And one that will continue to necessitate a lot of investments and resources both in technology, but also in people. So you look through cyber risk is as important as created and market risk nowadays.

Speaker #4: And we are investing a lot of resources—technology, but also human resources—to really identify the best way to protect our assets, our clients' assets, and the data.

Speaker #4: And we continue to do so, as we see also these recent developments. Believe me, we are staying very close, talking to our technology partners.

Sergio Ermotti: Is to fully reflect the lessons learned of the Credit Suisse crisis, the root causes. We all know that huge concessions were given to Credit Suisse, and this is the reason why, at the end, they had a problem with their the foreign subsidiaries. This element is actually never mentioned in the public debate. We need to make sure that, you know, the people that will make decision fully understand how strong the current regulatory framework is, and which, by the way, is the one that allowed a G-SIB to absorb a G-SIBs, prepay all guarantees and emergency liquidity provisions granted to Credit Suisse within 5 months. While keeping you investors, you know, fairly confident about our ability to manage our business.

Speaker #5: Thanks very much.

Chris Hallam: Thanks very much.

Speaker #1: The next question comes from Andrew Coombs from Citi. Please go ahead.

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

Speaker #4: As you can imagine, we are a client of the major technology providers, also the ones that are very deep in this recent discovery. And so we get indirectly also the benefits of being able to implement all the necessary steps to protect our assets.

Speaker #6: Good morning. One on investment bank and one coming back on Asia Wealth Management, please. Firstly, on the investment bank, just putting the legislation to one side we've had the bargaining game proposals in the US.

Andrew Coombs: Morning. One on the Investment Bank and one coming back on Asia Wealth Management, please. Firstly, on the Investment Bank, just putting the legislation to one side, we've had the Basel III Endgame proposals in the US. Intrigued what you think that means in terms of the level of competition that you're gonna see from the US investment banks in that space. Also, if I go back all the way to your 2018 Investor Day, I recall you had this ambition of having 40% of the division's profits from advisory and execution, and 60% from financing and structured derivatives. Obviously more capital intensive. A lot's moved on since then. Is that 40% to 60% split still a fair assumption or is it very different now? Then my second question on APAC GWM.

Speaker #4: So, this is going to continue to be a big, big issue, and one that will continue to necessitate a lot of investments and resources, both in technology but also in people.

Speaker #6: So intrigued what you think that means in terms of the level of competition that you're going to see from the US investment banks in that space.

Speaker #6: And also, if I go back all the way to 2018 investor day, I recall you had this ambition of having 40% of the division's profits from advisory and execution and 60% from financing and structured derivatives.

Speaker #4: So you look through cyber risk is as important as created and market risk nowadays.

Speaker #5: Thanks very much.

Speaker #1: The next question comes from Andrew Coombs from Citi. Please go ahead.

Speaker #6: Obviously, more capital intensive. A lot moved on since then. So is that 40, 60 percent split still a fair assumption? Or is it very different now?

Sergio Ermotti: One has to reflect this kind of true lessons learned from the crisis rather than just looking at absolute level of capital and go to extreme solutions that are not helping at the end of the day, not only the bank, but most importantly our clients, because at the end of the day, it's gonna make the bank less competitive and in serving households, corporate clients, and is not very good for the country as well, I believe.

Speaker #7: Morning. One on the investment bank, and one coming back on Asia Wealth Management, please. Firstly, on the investment bank—just putting the legislation to one side—we've had the bargaining game proposals in the US.

Speaker #6: And then my second question on APAC. TWM, you specifically called out Australia-Taiwan-Japan as some of the reasons regions where you're making selective hires. Could you just talk a bit more about onshore versus offshore trends you're seeing and how that's influencing your investment decision process?

Andrew Coombs: You specifically called out Australia, Taiwan, Japan, as some of the regions where you're making select hires. Can you just talk a bit more about onshore versus offshore trends you're seeing and how that's influencing your investment decision process? Thank you.

Speaker #7: So intrigued what you think that means in terms of the level of competition that you're going to see from the US investment bank in that space.

Speaker #6: Thank you.

Speaker #7: And also, if I go back all the way to a 2018 Investor Day, I recall you had this ambition of having 40% of the division's profits from advisory and execution, and 60% from financing and structured derivatives.

Benjamin Goy: Great. Thank you.

Speaker #4: Any. So in terms of Basel III and the endgame, in on capital in the US, at least the proposals look, I think it's fair to say that the US banks have a fair bit of dry powder.

Todd Tuckner: Andy, in terms of Basel III and the Endgame on capital in the US, at least the proposals. Look, I think it's fair to say that the US banks have a fair bit of dry powder when it comes to capital deployment. That seems pretty apparent to anyone watching. We're, you know, we're obviously competing in that globally. Our global footprint, you know, we think differentiates us. Our capital light approach differentiates us. You know, we're competing really well in that, you know, in the environment, in the Investment Bank sectors in which we're choosing to play.

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

Chris Hallam: Yeah. Good morning. Two questions. First, on capital. I guess I agree on the $22 billion number on slide 25 is cleaner to look at than the $9 billion, and also that CET1 versus peer requirement is probably more logical than versus peer-reported ratios. When it comes to contingency planning and the decisions that need to be taken, the foreign participations process should stretch well into H1 of next year. Given the transition period on those potential changes, can you wait for full clarity on the outcome of that process before making any decisions on how to adjust your operating footprint or your focus areas? Or are you going to have to start making real-world business decisions earlier than the point at which you get full and final clarity on foreign subs? That's the first question.

Speaker #7: Obviously, more capital intensive. A lot has moved on since then. So, is that 40/60 percent split still a fair assumption, or is it very different now?

Speaker #4: When it comes to capital deployment, that seems pretty apparent to anyone watching. And we're we're obviously competing in that globally. Our global footprint we think differentiates us.

Speaker #7: And then, my second question on APAC TWM: You specifically called out Australia, Taiwan, and Japan as some of the regions where you're making selective hires. Could you just talk a bit more about onshore versus offshore trends you're seeing, and how that's influencing your investment decision process?

Speaker #4: Our capital light approach differentiates us. And we're competing really well in that in the environment, in the investment bank sectors in which we're choosing to play.

Speaker #7: Thank you.

Chris Hallam: Secondly, broader one, on cyber risk, sort of against the backdrop of the recent acceleration we've seen in AI-enabled threat detection and attack sophistication. Could you talk a little bit about how you're managing cyber resilience, both on your own platforms as well as through the integration, through the CS integration? Have those sort of AI-driven threat models changed how you assess residual risks in your legacy systems? Should we expect any incremental investment or operational constraints as a result of that evolving threat landscape? Thank you.

Speaker #4: So for us, we recognize what's we recognize the fierce competition. But we like our chances. In terms of the split from years ago, on your question, I think I'd go back and check myself and do the math.

Speaker #4: Andy, so in terms of Basel III and the endgame, in on capital in the US, at least the proposals look, I think it's fair to say that the US banks have a fair bit of dry powder when it comes to capital deployment.

Todd Tuckner: You know, for us, we recognize what's, you know, we recognize the fierce competition, but, you know, we like our chances. In terms of the split from years ago on your question, I think I'd go back and check myself and do the math, but I don't think that that's massively off. I'd probably flip the ratios a bit if I had to offer a guess, but I think it's probably not terribly off. It's also important to, you know, mention a lot of the financing also could be done in quite resource-efficient ways. 'Cause you had mentioned that the latter is much more resource intense and doesn't have to be that way in some of the activities vis-à-vis prime.

Speaker #4: But I don't think that that's massively off. I'd probably flip the ratios a bit. If I had to offer a guess. But I think it's probably not terribly off.

Speaker #4: That seems pretty apparent to anyone watching. And we're obviously competing in that globally. Our global footprint, we think, differentiates us. Our capital-light approach differentiates us.

Speaker #4: It's also important to mention a lot of the financing also could be done in quite resource-efficient ways. And so because you had mentioned that the latter is much more resource-intense and doesn't have to be that way in some of the activities vis-à-vis prime.

Sergio Ermotti: Well, thank you, Chris. I guess for, you know. To be sure, we have been going through two years of uncertainty around this topic, and by now is something that is almost embedded in the way we have to operate and accept it as a modus operandi. It's not ideal, because of course, the environment out there is quite challenging. I think that we are pleased that we at least completed the integration and we created the resilience in terms of profitability that allow us to basically accept the fact that a democratic process has now to go through.

Speaker #4: And we're competing in that, in the environment, in the investment bank sectors in which we're choosing to play. So for us, we recognize—we recognize the fierce competition.

Speaker #4: So but my instinct is I'd flip the ratio the other way. In terms of APAC, yeah, I mean, I've been pretty clear that investing already to build out on our strongholds, I touched on already in a prior response to things that we're doing.

Todd Tuckner: My instinct is I'd flip the ratio the other way. In terms of APAC, yeah, I mean, I've been pretty clear that, you know, investing already to build out on our strongholds. I touched on already in a prior response the things that we're doing to drive further performance and growth in the region. We're, you know, we're looking to leverage our leadership position into these jurisdictions where, you know, we're doing the parts of Asia-Pacific where we can even grow faster and further. That's why, you know, we call out some of these growth markets within Asia-Pacific on top of our own stronghold.

Speaker #4: But we like our chances. In terms of the split from years ago, I think I'd go back and check myself and do the math.

Speaker #4: But I don't think that that's massively off. I'd probably flip the ratios a bit. If I had to offer a guess, but I think it's probably not terribly off.

Sergio Ermotti: This is a very complex matter, and it's not reasonable now to expect that the parliament will take decision in a very short period of time on such a situation, considering also the extreme different views on how this is playing out. I think that one thing is clear. We're not gonna jump into conclusions or taking decisions that have a strategic impact in any sense before having the final outcome. It's not ideal, I know, but we have to really think about what is the best things for the bank for the next five, 10, 20 years, not what is good for the next few quarters. That uncertainty, unfortunately, is something that we have to live with.

Speaker #4: To drive further performance and growth in the region. We're looking to leverage our leadership position into these jurisdictions where we're doing the parts of Asia Pacific where we can even grow faster and further.

Speaker #4: It's also important to mention a lot of the financing also coming quite because you had mentioned that the latter is much more resource-intensive—doesn't have to be that way in some of the activities, vis-à-vis Prime.

Speaker #4: And that's why we call out some of the some of these growth markets within Asia Pacific on top of our own stronghold. And we see look, the onshore, offshore dynamic still for sure exists.

Speaker #4: So, but I think as I'd flip the ratio the other way. In terms of APAC, yeah, I mean, I'm pretty clear that investing already to build out on our strongholds—I touched on already in a prior response to things that we're doing.

Todd Tuckner: We see, look, the onshore-offshore dynamic still for sure exists. We're also so well-positioned in Greater China that, you know, we're able to leverage both sides of that.

Speaker #4: But we're also so well positioned in Greater China that we're able to leverage both sides of that.

Speaker #4: To drive further performance and growth in region, we're looking to leverage our leadership position into these jurisdictions where we're doing—the parts of Asia Pacific where we can even grow faster and further.

Speaker #1: The next question comes from Jeremy Sigi from BNP Paribas. Please go ahead.

Sergio Ermotti: We are not in control of that, but we are hopeful that the situation can get resolved very quickly. In terms of cyber, well, look, you know, of course, cyber is not something that we, it has been on the, you know, the center of the radar screen for the last few years for all of us in the industry, but not only in the financial services industry. We are investing a lot of resources, technology, but also human resources to really identify the best way to protect our assets, our clients' assets and the data. We continue to do so as we see also these recent in developments. Believe me, we are staying very close talking to our technology partners.

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

Speaker #5: Good morning. Thank you. Just a couple of follow-ups on continuing on wealth management, please. Firstly, on the US business, you touched on you had another 50 advisor reduction in the quarter.

Jeremy Sigee: Morning, thank you. Just a couple of follow-ups on continuing on wealth management, please. Firstly on the US business, you touched on you had another 50 advisor reduction in the quarter. Is that a lag effect from the sort of exits you were seeing last year? Is it fresh departures, fresh poaching that you're suffering this year? That's my first question. Then second question is just continuing on the strength that is phenomenal in Asia and in EMEA in wealth management. I just wonder what client conversations you're having and to what extent that's driven by fear factors, you know, such as macro risks or whether it's more, you know, a pickup in wealth creation and animal spirits and investment appetite coming from that.

Speaker #4: And that's why we call out some of these growth markets within Asia Pacific on top of our own strongholds. And we see, look, the onshore, offshore dynamic still for sure exists.

Speaker #5: Is that a lag effect from the sort of exits you were seeing last year? Or is it fresh departures, fresh poaching that you're suffering this year?

Speaker #5: That's my first question. And then second question is just continuing on the strength that is phenomenal in Asia and in India. In wealth management, I just wondered what client conversations you're having and to what extent that's driven by fear factors such as macro risks or whether it's more a pickup in wealth creation and animal spirits and investment appetite coming from that.

Speaker #4: But we're also so well positioned in Greater China that we're able to leverage both sides of that.

Speaker #1: The next question from Jeremy Sigi from BNP Paribas. Please go ahead.

Sergio Ermotti: As you can imagine, we are a client of the major technology providers, also the one that are very deep involved in this recent discovery. We get indirectly also the benefits of being able to implement all the necessary steps to protect our assets. This is gonna continue to be a big, big issue, and one that will continue to necessitate a lot of investment and resources, both in technology, but also in people. You know, you look through, you know, cyber risk is as important as credit and market risk nowadays.

Speaker #5: Thank you. Simple follow-ups on continuing on wealth management, please. Firstly, on the US business, you touched on—you had another 50 advisor reduction in the quarter. Is that a lag effect from the sort of exits you were seeing last year?

Speaker #4: Hey, Jeremy. So on the US on the US business side, yeah, the headcount metrics you see are actuals. So what that means is there's a lag effect built in, i.e., when advisors leave the roles.

Todd Tuckner: Yeah, Jeremy. On the US business side, yeah, the headcount metrics you see are, you know, are actual. What that means is there's a lag effect built in, i.e., when advisors leave the roles. There's also it's very similar to flows themselves, which was the point I mentioned earlier, I think, in response to Kian's question. There is a lag effect in some of the measures we print around headcount and flows, and that's why, you know, I've been also giving a broader picture on the topic so that there's also an outlook and people can understand the broader dynamic.

Speaker #5: Or is it fresh departures, fresh poaching that you're suffering this year? That's my first question. And then second question is just continuing on the strength that is phenomenal in Asia and in India.

Speaker #4: So there's also it's very similar to flows themselves, which was the point I mentioned earlier, I think, in response to Keenan's question. So there is a lag effect in some of the measures we print around headcount and flows and that's why I've been also giving a broader picture on the topic.

Speaker #5: In wealth management, I just wondered what client conversations you're having and to what extent that's driven by fear factors such as macro risks or whether it's more a pickup in wealth creation and animal spirits and investment appetite coming from that.

Chris Hallam: Thanks very much.

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

Speaker #4: Hey, Jeremy. So on the US on the US business side, yeah, the headcount that you see are actual so what that means is there's a lag effect in IE when advisors leave the roles.

Speaker #4: So that there's also an outlook and people could understand the broader dynamic. Across so across the wealth management business, look, the you asked about the environment and the sentiment.

Andrew Coombs: Morning. One on the investment bank and one coming back on Asia Wealth Management, please. Firstly, on the investment bank, just putting the legislation to one side, we've had the Basel Endgame proposals in the US, so intrigued what you think that means in terms of the level of competition that you're gonna see from the US investment banks in that space. Also, if I go back all the way to your 2018 investor day, I recall you had this ambition of having 40% of the division's profits from advisory and execution and 60% from financing and structured derivatives, obviously more capital intensive. A lot's moved on since then. Is that 40%, 60% split still a fair assumption, or is it very different now?

Todd Tuckner: Across Global Wealth Management business, you know, look, you asked about the environment and the sentiment. Clearly, what we've been seeing is the backdrop, if I characterize Q1, especially the latter part. You know, once the Gulf War got underway, you know, that has led clients to remain invested while actively rebalancing and hedging their portfolios. That's supporting strong demand for structured products, FX solutions, and equity derivatives. With healthy volumes and disciplined risk usage. It's important to also add that, you know, our advisors are following the CIO blueprint, the conversations are, you know, often reflecting CIO views, direction, and that's informing transactional preferences.

Speaker #4: So clearly, what we've been seeing is the backdrop, if I characterize the first quarter, especially the latter part, once the Gulf conflict got underway, that has led clients to remain invested while actively rebalancing and hedging their portfolios.

Speaker #4: So there’s also—it’s very similar to flows themselves, which was the point I mentioned earlier, I think, in response to Keenan’s question. So there is a lag effect in some of the measures we print around headcount, and that’s why I’ve been also giving a broader picture on the topic.

Speaker #4: And that's supporting strong demand for structured products, FX solutions, and equity derivatives. With healthy volumes and disciplined risk usage, it's important to also add that our advisors are following the CIO blueprint.

Speaker #4: So that there's also a look and people can understand the broader dynamic. Across so across the wealth management business, look, the you asked about the environment and the sentiment.

Speaker #4: And so the conversations are often reflecting CIO views and direction. And that's informing transactional preferences and also as you see a lot of people entrusting us to manage on an advisory or discretionary basis their wealth.

Andrew Coombs: My second question on APAC GWM, you specifically called out Australia, Taiwan, Japan, as some of the regions where you're making select hires.

Speaker #4: So clearly, what we've been seeing is the backdrop—if I characterize the first quarter, especially the latter part, once the Gulf conflict got underway—that has led clients to remain invested while actively rebalancing and hedging their portfolios.

Todd Tuckner: Also, you know, as you see a lot of people entrusting us to manage on an advisory or discretionary basis, you know, their wealth, and we see mandate penetration at a record high. You know, in that sense, the discussions that we're having with clients are resonating.

Andrew Coombs: Can you just talk a bit more about onshore versus offshore trends you're seeing and how that's influencing your investment decision process? Thank you.

Speaker #4: And we see mandate penetration at a record high. So in that sense, the discussions that we're having with clients are resonating.

Todd Tuckner: Andy, in terms of Basel III and the Basel Endgame on capital in the US, at least the proposals, look, I think it's fair to say that the US banks have a fair bit of dry powder when it comes to capital deployment. That seems pretty apparent to anyone watching. We're, you know, we're obviously competing in that globally. Our global footprint, you know, we think differentiates us. Our capital-light approach differentiates us and, you know, we're competing really well in that, you know, in the environment, in the Investment Bank sectors in which we're choosing to play.

Speaker #5: That's really helpful. Thank you very much.

Jeremy Sigee: That's very helpful. Thank you very much.

Speaker #1: The next question comes from Goel Amit from Mediobanca. Please go ahead.

Operator: The next question comes from Amit Goel from Mediobanca. Please go ahead.

Speaker #4: And the conversations are often reflecting CIO views, direction. And that's informing transactional preferences and also as you see a lot of people entrusting us to manage on an advisory or discretionary basis their wealth.

Speaker #6: Hi. Yeah, thank you. So two questions for me. On capital, the first one is just on actually the C21 leverage ratio and buffer. So I'm just wondering what kind of buffer would you be looking to run at versus end-state requirements?

Amit Goel: Hi. Yeah, thank you. Two questions for me on capital. The first one is just on actually the CET1 leverage ratio and buffer. Just wondering what kind of buffer would you be looking to run at versus end state requirements. You know, it looks to me like that's going to about 3.9%. Post the ordinances as being kind of written pro forma, the current or the kind of the buffer looks like it won't be particularly big. Just curious what kind of level you're thinking about there. Secondly, just in terms of share buyback capacity this year. I appreciate, you know, it's subject to parliamentary debate in terms of, you know, what may or may not happen.

Speaker #4: And we see mandate penetration at a record high. So in that sense, the discussions that we're having with clients are resonating.

Speaker #6: It looks to me like that's going to about 3.9%. Post the ordinances has been kind of written pro forma that the current or the kind of the buffer looks like it won't be particularly big.

Todd Tuckner: You know, for us, we recognize what's, you know, we recognize the fierce competition, but, you know, we like our chances. In terms of the split from years ago on your question, I think I'd go back and check myself and do the math, but I don't think that that's massively off. I'd probably flip the ratios a bit if I had to offer a guess. I think it's probably not terribly off. It's also important to, you know, mention a lot of the financing also could be done in quite resource-efficient ways. 'Cause you had mentioned that the latter is much more resource intense and doesn't have to be that way in some of the activities vis-à-vis prime.

Speaker #5: That's really helpful. Thank you very much.

Speaker #6: So just curious what kind of level you're thinking about there. And then secondly, just in terms of share buyback capacity, this year, I appreciate it's subject to parliamentary debate in terms of what may or may not happen.

Speaker #1: The next question comes from Goel Amit from Mediobanca. Please go ahead.

Speaker #6: Hi, yeah, thank you. So, two questions from me. On capital, the first one is just on the C21 leverage ratio buffer. So I'm just wondering what kind of buffer you would be looking to run at versus end-state requirements?

Speaker #6: But it looks like there's about $5 billion left of the standalone AG reserve. After dividends and employee share repurchase, so just curious whether you're then happy to continue to run then equity double leverage at the group at 104% and/or if you would be happy to increase that to give yourself capacity to pay more.

Amit Goel: It looks like there's about CHF 5 billion left of the standalone AG reserve, after dividends and employee share repurchase. Just curious whether you're then happy to continue to run then equity double leverage, at the group at 104%, and/or if you'd be happy to increase that, you know, to give yourself capacity to pay more. Are you still looking to bring that closer to the 100% mark? Thank you.

Speaker #6: It looks to me like that's going to about 3.9%. Post the answers has been kind of written pro forma that the current or the kind of the buffer looks like it won't be particularly big.

Speaker #6: Or are you still looking to bring that closer to the 100% mark? Thank you.

Todd Tuckner: My instinct is I'd flip the ratio the other way. In terms of APAC, yeah, I mean, I've been pretty clear that, you know, investing already to build out on our strongholds. I touched on already in a prior response the things that we're doing to drive further performance and growth in the region. We're, you know, we're looking to leverage our leadership position into these jurisdictions where, you know, we're doing the parts of Asia Pacific where we can even grow faster and further. That's why, you know, we call out some of these growth markets within Asia Pacific on top of our own stronghold.

Speaker #4: Yeah, Amit. So first on the leverage ratio, I mean, I think it's fair to say that at the moment, the tier one leverage ratio at the group and UBS AG consolidated is marginally the most marginally constraining metric that we have when you look at buffers relative to minimum requirements.

Todd Tuckner: My instinct is I'd flip the ratio the other way. In terms of APAC, yeah, I mean, I've been pretty clear that, you know, investing already to build out on our strongholds. I touched on already in a prior response the things that we're doing to drive further performance and growth in the region. We're, you know, we're looking to leverage our leadership position into these jurisdictions where, you know, we're doing the parts of Asia Pacific where we can even grow faster and further. That's why, you know, we call out some of these growth markets within Asia Pacific on top of our own stronghold.

Todd Tuckner: Yeah, Amit. First on the leverage ratio. I think it's fair to say that at the moment, the Tier 1 leverage ratio at the group and UBS AG consolidated is marginally, you know, the most marginally constraining metric that we have when you look at buffers relative to minimum requirements. You know, if you think about it, the risk density under the Swiss systemically relevant bank capital rules would suggest about a third of density. You know, we're running around 30%. Why is that?

Speaker #4: So while if you think about it, the risk density under the Swiss systemically relevant bank capital rules would suggest about a third of density.

Speaker #6: Or are you still looking to bring that closer to the 100% mark? Thank you.

Speaker #4: We're running around 30%. Why is that? Just given that the FX sensitivity, so dollar weakness, is more pronounced vis-à-vis leveraged. Vis-à-vis leverage and so and we're obviously able to run the bank with significant RWA efficiency in the business despite Basel III and op risk.

Todd Tuckner: Just given that, you know, FX sensitivity, so dollar weakness, is more pronounced vis-à-vis leveraged, vis-à-vis leverage and, you know. We're obviously able to run the bank with significant RWA efficiency in the business despite Basel III and op risk. That's where we are at this point. We're managing. My expectation and hope is always to manage both of those ratios where possible, as no more marginally constraining than the other. Given the FX movements over the last year, you know, that's made leverage ratio more constraining, and so we're very focused on ensuring we manage that well.

Speaker #4: Yeah, I mean, so first on the leverage ratio, I mean, I think it's fair to say that at the moment, the tier one leverage ratio at the group and UBS AG consolidated is marginally the most marginally constraining metric that we have when you look at buffers relative to minimum requirements.

Todd Tuckner: We see, look, the onshore-offshore dynamic still for sure exists, but we're also so well-positioned in Greater China that, you know, we're able to leverage both sides of that.

Speaker #4: So that's where we are at this point. So we're managing my expectation and hope is always to manage both of those ratios where possible as no more marginally constraining than the other.

Speaker #4: So while if you think about it, the risk density under the Swiss systemically relevant bank capital rules would suggest about a third of density.

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

Jeremy Sigee: Morning. Thank you. Just a couple of follow-ups on continuing on wealth management, please. Firstly, on the US business, you touched on you had another 50 advisor reduction in the quarter. Is that a lag effect from the sort of exits you were seeing last year? Is it fresh departures, fresh poaching that you're suffering this year? That's my first question. Second question is just continuing on the strength that is phenomenal in Asia and in EMEA in wealth management. I just wonder what client conversations you're having and to what extent that's driven by fear factors, you know, such as macro risks, or whether it's more, you know, a pickup in wealth creation and animal spirits and investment appetite coming from that.

Speaker #4: But given the FX movements over the last year, that's made leverage ratio more constraining and so we're very focused on ensuring we manage that well.

Speaker #4: Running around 30%. Why is that? Just that the FX sensitivity—so dollar weakness—is more pronounced vis-à-vis leveraged, vis-à-vis leverage, and so on. And we're obviously able to run the bank with significant RWA efficiency in the business, despite Basel III and op risk.

Speaker #4: You see that in how we pace intercompany dividends from AG to group, how we're building our AT1 stack and also how we are transforming deposit liabilities wherever possible to maximize funding value.

Todd Tuckner: You see that in how we pace intercompany dividends from AG to group, how we're building our AT1 stack, and also how we are transforming deposit liabilities wherever possible to maximize funding value. Listen, on the share buyback capacity and ultimately equity double leverage, it's premature to talk about where we would go on this. We have to wait and see where, as Sergio just mentioned in response to Chris's question, we have to take those few quarters and see where this plays out. Once we have that visibility, that clarity, then we can come back and talk about things like the equity double leverage ratio. For now, our expectation is still to have that, you know, move towards pre-Credit Suisse acquisition levels.

Speaker #4: Listen, on the share buyback capacity and ultimately equity double leverage, it's premature to talk about where we would go on this. We have to wait and see where Sergio just mentioned in response to Chris's question, we have to take those few quarters and see where this plays out.

Speaker #4: But given the FX movements over the last year, that's made leverage ratio more constraining. And so we're very focused on ensuring we manage that well.

Todd Tuckner: Yeah, Jeremy. So on the US business side, yeah, the headcount metrics you see are, you know, actual. What that means is there's a lag effect built in, i.e., when advisors leave the roles. There's also it's very similar to flows themselves, which was the point I mentioned earlier, I think, in response to Kian's question. There is a lag effect in some of the measures we print around headcount and flows. That's why, you know, I've been also giving a broader picture on the topic so that there's also an outlook and people can understand the broader dynamic.

Speaker #4: And then once we have that visibility, that clarity, then we can come back and talk about things like the equity double leverage ratio. For now, our expectation is still to have that move towards pre-credit Swiss acquisition levels that remains the base case for us.

Speaker #4: You see that in how we pace intercompany dividends from AG to Group, how we're building our AT1 stack, and also how we are transforming deposit liabilities wherever possible to maximize funding value.

Todd Tuckner: That remains, the base case for us.

Speaker #1: The next question comes from Giulia Aurora Miotto from Morgan Stanley. Please go ahead.

Operator: The next question comes from Giulia Aurora Miotto from Morgan Stanley. Please go ahead.

Speaker #7: Yes, hi. Good morning. Thank you for taking my questions. I have two both on the PBT margins in GWM, one on the US, one on Asia.

Giulia Aurora Miotto: Hi, good morning. Thank you for taking my questions. I have two, both on the PBT margins in GWM, one on the US, one on Asia. In the US, basically UBS got the final approval on the banking license late in the quarter, 20 March. Yet we saw good progress on loans and deposits and PBT margins already close to 14%. I'm wondering, how does this last approval change the pace of improvement in your profitability metrics in the US? Can we see now a step up in depositing loan growth and ultimately in profitability, or will that be gradual? First question. Second question. The PBT target, excluding the US in terms of margin, is to be about 40%, Asia is a standout close to 49% in the quarter.

Speaker #7: So in the US, basically UBS got the final approval on the banking license late in the quarter 20th of March. And yet we saw good progress on loans and deposits and PBT margins already close to 14%.

Speaker #4: And then, once we have that visibility, that clarity, we can come back and talk about things like the equity double leverage ratio. For now, our expectation is still to have that move towards pre-Credit Suisse acquisition levels—that remains the base case for us.

Todd Tuckner: Across the wealth management business, you know, look, you asked about the environment and the sentiment. Clearly, what we've been seeing is the backdrop, if I characterize the first quarter, especially the latter part, you know, once the Gulf conflict got underway. You know, that has led clients to remain invested while actively rebalancing and hedging their portfolios. That's supporting strong demand for structured products, FX solutions, and equity derivatives, with healthy volumes and disciplined risk usage.

Speaker #7: So I'm wondering how does this last approval change the pace of improvement in your profitability metrics in the US? So can we see now a step up in deposit in loan growth and ultimately in profitability, or will that be gradual?

Speaker #1: The next question comes from Giulia Aurora Miotto from Morgan Stanley. Please go ahead.

Speaker #7: First question. Second question, the PBT target excluding the US in terms of margin, is to be about 40%. And Asia is a standout close to 49% in the quarter.

Speaker #7: Yes, hi. Good morning. Thank you for taking my questions. I have two both on the PBT margins in GWM. One on the US, one on Asia.

Speaker #7: So in the US, basically UBS got the final approval on the banking license late in the quarter 20th of March. And yet we saw good progress on loans and the PBT margins already close to 14%.

Speaker #7: Would you say that there is still room to improve or at least maintain this level of margins, or perhaps it was an extraordinary quarter and we would go back to close to 40 going forward?

Giulia Aurora Miotto: Would you say that there is still room to improve or at least maintain this level of margins? Perhaps it was an extraordinary quarter and, you know, we would go back to close to 40 going forward. Thank you.

Todd Tuckner: It's important to also add that, you know, our advisors are following the CIO blueprint. The conversations are, you know, often reflecting CIO views, direction, and that's informing transactional preferences. Also, you know, as you see, a lot of people entrusting us to manage on an advisory or discretionary basis, you know, their wealth, and we see mandate penetration at a record high. You know, in that sense, the discussions that we're having with clients are resonating.

Speaker #7: Thank you.

Speaker #7: So I'm wondering how does this last approval change the pace of improvement in your profitability metrics in the US? So can we see now a step up in depositing loan growth and ultimately in profitability, or will that be gradual?

Speaker #4: Thanks, Julia. Just to maybe on the second one, first, we're obviously quite encouraged by our 1Q performance across the board, including in APAC Wealth.

Todd Tuckner: Thanks, Giulia. Just to maybe on the second one, you know, first, we're obviously quite encouraged by our Q1 performance across the board, including in APAC Wealth, and it demonstrates the capacity in the franchises I've mentioned. You know, at the same time, the overall performance for the group, it's one quarter. The quarter was exceptionally strong and, you know, the macro environment remains uncertain. If the environment's supportive, there's potential upside for some of these measures. Generally, you know, I wouldn't be extrapolating Q1 per se for a full year, and it's just premature to reflect any of that in our guidance at this stage. On the banking license point, I think.

Speaker #7: First question. Second question, the PBT target excluding the US in terms of margin, is to be about 40%. And Asia is a standout close to 49% in the quarter.

Speaker #4: And it demonstrates the capacity and the franchises I've mentioned at the same time, the overall performance for the group. It's. Quarter, the quarter was exceptionally strong and the macro environment remains uncertain.

Speaker #4: So if the environment's supportive, there's potential upside for some of these measures. But generally, I wouldn't be extrapolating 1Q per se for a full year.

Benjamin Goy: That's really helpful. Thank you very much.

Operator: The next question comes from Amit Goel from Mediobanca. Please go ahead.

Speaker #7: Thank you.

Amit Goel: Hi. Yeah, thank you. Two questions for me on capital. The first one is just on actually the CET1 leverage ratio and buffer. Just wondering what kind of buffer would you be looking to run at versus end state requirements. You know, it looks to me like that's going to about 3.9%. Post the ordinances as being kind of written pro forma, the current or the kind of the buffer looks like it won't be particularly big. Just curious what kind of level you're thinking about there. Secondly, just in terms of share buyback capacity this year, I appreciate, you know, subject to parliamentary debate in terms of, you know, what may or may not happen.

Speaker #4: Thanks, Julia. Just to maybe on the second one, first, we're obviously quite encouraged by our 1Q performance across the board, including in APAC Wealth.

Speaker #4: And it's just premature to reflect any of that in our guidance at this stage. On the banking license point, I think, well, first, we're pleased that you see the progress that we're making, also in the pre-tax margins.

Todd Tuckner: Well, first, you know, we're pleased that you see the progress that we're making, also in the pre-tax margins. You know, we're delighted that we have the license now. Those have always been in our plan. The team has been very effective in being able to land it. It has been in our plan and our outlook, and it's what helps to drive the pre-tax margin improvement, over, you know, over time. You know, what I would say about it is, we're already doing the things.

Speaker #4: And it demonstrates the capacity and the franchises I've mentioned at the same time, the overall performance for the group. It's one quarter. The quarter was exceptionally strong and the macro environment remains uncertain.

Speaker #4: We're delighted that we have the license now. Those have always been in our plan. The team has been very effective in being able to land it.

Speaker #4: So if the environment's supportive, there's potential upside for some of these measures. But generally, I wouldn't be extrapolating 1Q per se for a full year.

Speaker #4: But it has been in our plan and our outlook, and it's what helps to drive the pre-tax margin improvement over time. What I would say about it is we're already doing the things we're building out the capabilities.

Todd Tuckner: We're building out the capabilities, but also more, the focus across the advisor group in the US around the banking capabilities that we have, I think has been an eye-opener for a lot of advisors who haven't leaned into our ability to support them on that side of the business. It really has helped. That's, you know, been driving some of the results that we keep seeing quarter on quarter in banking. Having the license will only, you know, accelerate that.

Speaker #4: But also more the focus across the advisor group in the US around the banking capabilities that we have. I think has been an eye-opener for a lot of advisors who haven't leaned into our ability to support them on that side of the business.

Amit Goel: It looks like there's about CHF 5 billion left of the standalone AG reserve, after dividends and employee share repurchase. Just curious whether you're then happy to continue to run then equity double leverage, at the group at 104%, and/or if you would be happy to increase that, you know, to give yourself capacity to pay more. Are you still looking to bring that closer to the 100% mark? Thank you.

Speaker #4: We're delighted that we have the license now. That's always been in our plan; the team has been very effective in being able to land it.

Speaker #4: And it really has helped. And that's been driving some of the results that we keep seeing quarter on quarter in banking. Having the license will only accelerate that.

Speaker #4: It will also help to shape the deposit side of the balance sheet even better because it'll create the opportunity to have more operational deposits and reshape the loan-to-deposit ratio in a way that will help to create pre-tax margin accretion.

Todd Tuckner: It will also help to shape the deposit side of the balance sheet even better because it'll create the opportunity to have more operational deposits and reshape the loan to deposit ratio in a way that will help to create a pre-tax margin accretion.

Todd Tuckner: Yeah. Amit. First on the leverage ratio. I think it's fair to say that at the moment, the Tier 1 leverage ratio at the group and UBS AG consolidated is marginally, you know, the most marginally constraining metric that we have when you look at buffers relative to minimum requirements. You know, if you think about it, the risk density under the Swiss systemically relevant bank capital rules would suggest about a third of density. You know, we're running around 30%. Why is that?

Speaker #4: But also more the focus across the advisor group in the US around the banking capabilities that we have, I think, has been an eye-opener for a lot of advisors who haven't leaned into our ability to support them on that side of the business.

Speaker #7: Thank you.

Giulia Aurora Miotto: Thank you.

Speaker #1: The last question comes from Benjamin Goy from Deutsche Bank. Please go ahead.

Sarah Mackey: The last question come from Benjamin Goy from Deutsche Bank. Please go ahead.

Operator: The last question come from Benjamin Goy from Deutsche Bank. Please go ahead.

Speaker #4: And it really has helped. And that's been driving some of the results that we see quarter on quarter in banking. Having the license will only accelerate that.

Speaker #8: Hang on. Maybe just two follow-up questions. And the first is on geopolitical uncertainty. Normally, that was negatively correlated to your transaction activity of clients.

Benjamin Goy: Hi. Maybe just two follow-up questions. The first is on geopolitical uncertainty. Normally, that was negatively correlated to your transaction activity of clients. It seems like there's more a buy the dip mentality or just holding onto risk assets. Just interesting how this might have changed over the last couple of years. You touched on your capitalized focus in Investment Bank, but is it possible somewhere to give a flavor and look at the leverage exposure expansion in the double digits? How much was the market underlying opportunities, so call it cyclical, and how much is just more competition from US players? Thank you.

Speaker #4: It will also help to shape the deposit side of the balance sheet even better, because it'll create the opportunity to have more operational deposits and reshape the loan-to-deposit ratio in a way that will help to create pre-tax margin accretion.

Speaker #8: But it seems like there is more of a vital bit mentality or just holding onto risk assets, just interesting how this might have changed over the last couple of years.

Todd Tuckner: Just given that, you know, FX sensitivity, so dollar weakness, is more pronounced vis-a-vis leverage and, you know. We're obviously able to run the bank with significant RWA efficiency in the business despite Basel III and Operational Risk. That's where we are at this point. My expectation and hope is always to manage both of those ratios where possible, as no more marginally constraining than the other. Given the FX movements over the last year, you know, that's made leverage ratio more constraining. We're very focused on ensuring we manage that well.

Speaker #8: And then you touched on your capital life focus and investment bank. But is it possible somewhere to give a flavor and look at the leverage exposure expansion in the double digits?

Speaker #7: Thank you.

Speaker #8: How much was the market underlying opportunities, so call it cyclical, and how much is just more competition also from US players? Thank you.

Speaker #1: The last question comes from Benjamin Goy from Deutsche Bank. Please go ahead.

Speaker #8: And maybe just to follow up questions. And the first is on geopolitical uncertainty. Normally, that was negatively correlated to a transaction activity of clients.

Speaker #4: I do not get the first question. Sorry. It may have been me. Sorry. But let me answer the second one. I was able, I think, to glean the increase in leverage at the investment bank, a simple, it was just the activity levels in the quarter that informed sort of traditional liquidity needs, vis-à-vis clients.

Todd Tuckner: I did not get the first question. Sorry. It may have been me. Sorry, but let me answer the second one. I was able, I think, to glean the increase in leverage at the Investment Bank. Simple, it was just the activity levels in the quarter that informed sort of traditional liquidity needs vis-a-vis clients. That's what drove the balance sheet higher was the very active levels that we saw with clients over the course of the quarter. Do you mind repeating the first? Sorry.

Speaker #8: But it seems like there is more of a bit mentality, or just holding onto risk assets. It's just interesting how this might have changed over the last couple of years.

Speaker #8: And then you touched on your capital life focus and investment bank. But is it possible somewhere to give a flavor and look at the leverage exposure expansion in the double digits?

Todd Tuckner: You see that in how we pace intercompany dividends from AG to group, how we're building our AT1 stack, and also how we are transforming deposit liabilities wherever possible to maximize funding value. Listen, on the share buyback capacity and ultimately equity double leverage, it's premature to talk about where we would go on this. We have to wait and see where, as Sergio just mentioned in response to Chris's question, we have to take those few quarters and see where this plays out. Then once we have that visibility, that clarity, then we can come back and talk about things like the equity double leverage ratio. For now, our expectation is still to have that, you know, move towards pre-Credit Suisse acquisition levels.

Speaker #4: And so that's what drove the balance sheet higher, was the very active levels that we saw with clients over the course of the quarter.

Speaker #8: How much was the market underlying opportunities, so call it cyclical, and how much is just more competitive from US players? Thank you.

Speaker #4: Do you mind repeating the first? Sorry.

Speaker #8: And thank you for that. And then the first one is geopolitical uncertainty is probably as high as in decades. Nevertheless, the transaction activity remains very positive.

Speaker #4: I do not get the first question. Sorry. It may have been me. Sorry. But let me answer the second one. I was able, I think, to glean the increase in leverage at the investment bank.

Benjamin Goy: Thank you for that. The first one is geopolitical uncertainty is probably as high as in decades. Nevertheless, the transaction activity remains very positive. Wondering whether that fundamental negative correlation between the two has changed and your clients are more engaged in risk assets sustainably? Maybe too concluding with the data line, no worries.

Speaker #8: So wondering whether that fundamental negative correlation between the two has changed and your clients are more engaged in risk assets. Sustainably. Or maybe two confusing data offline.

Speaker #4: Simple, it was just the activity levels in the quarter that informed sort of traditional liquidity needs vis-à-vis clients. And so that's what drove the balance sheet higher, was the very active levels that we saw with clients over the course of the quarter.

Speaker #8: No worries.

Speaker #4: Yeah. Thanks, Ben. We just forgot the question. Sorry. I think it may be the audio. So yeah, in respect of geopolitical uncertainty, look, I mean, in the near term, and we've seen this just in recent times, when there are sort of events that create volatility in the markets, we saw that a year ago, when the US tariffs were announced in early April, when this conflict started and you could probably go back and on a timeline and see, there is volatility.

Todd Tuckner: Yeah, thanks, Ben. We just forgot the question. Sorry. I think it may be the audio. In respect of geopolitical uncertainty, look, I mean, in the near term, and we've seen this just in recent times, you know, when there are sort of events that create volatility in the markets. We saw that a year ago, when the US tariffs were announced in early April, you know, when this conflict started, you could probably go back on a timeline and see, you know, there is volatility.

Todd Tuckner: That remains the base case for us.

Speaker #4: Do you mind repeating the first? Sorry.

Speaker #8: Thank you for that. And then the first one is geopolitical uncertainty, probably at higher than decades. Nevertheless, the transaction activity remains very positive. So wondering whether that fundamental negative correlation between the two has changed clients are more engaged in risk asset sustainably.

Operator: The next question comes from Giulia Aurora Miotto from Morgan Stanley. Please go ahead.

Giulia Aurora Miotto: Yes. Hi, good morning. Thank you for taking my questions. I have two, both on the PBT margins in GWM, one on the US, one on Asia. In the US, obviously, UBS got the final approval on the banking license late in the quarter, 20 March. Yet we saw good progress on loans and deposits and PBT margins already close to 14%. I'm wondering, how does this last approval change the pace of improvement in your profitability metrics in the US? Can we see now a step up in deposit and loan growth and ultimately in profitability, or will that be gradual? First question. Second question. The PBT target, excluding the US in terms of margin, is to be about 40%, and Asia is staying out close to 49% in the quarter.

Speaker #8: Or maybe it's too confusing—we can take it offline. No worries.

Speaker #4: And the question really comes down it really boils down to whether the volatility remains constructive or it is a front-running what is going to be a quite a difficult market environment and risk off.

Todd Tuckner: The question really comes down, it really boils down to whether the volatility remains constructive or it is a front running what is going to be, you know, quite a difficult market environment and risk off. I think, you know, and you'll have, you'll have your own views on this as well. But I think as, you know, the market is priced in a nearer term, diplomatic solution to the conflict, you know, I think people have stayed invested, albeit, you know, there's been some caution, maybe, investing strategies have changed, more protecting principle, more from a, you know, looking at things from a hedging transaction perspective. But by and large, people are, you know, staying invested despite all the geopolitical uncertainty.

Speaker #4: Yeah, thanks. Just forgot the question, sorry. I think maybe the audio. So, yeah, in respect of geopolitical uncertainty—look, I mean, in the near term, we've seen this just in recent times.

Speaker #4: And so I think and you'll have your own views on this as well. But I think as the market is priced in a near-term diplomatic solution to the conflict, I think people have stayed invested, albeit there's been some caution, maybe investing strategies have changed more protecting principle more from looking at things from a hedging transaction perspective.

Speaker #4: When there are sort of events that create volatility in the markets, we saw that a year ago, when the US tariffs were announced in early April, when this conflict started and you could probably go back and timeline and see, there is uncertainty.

Speaker #4: But by and large, people are staying invested despite all the geopolitical uncertainty. As we say, even in our outlook, things could change quickly. And we recognize that when you look at the outlook when you look at the environment, for example, if a diplomatic solution was not seen as something that can be enduring and achievable in the near term, that can change.

Todd Tuckner: Thanks, Julie. Just to maybe on the second one, you know, first, we're obviously quite encouraged by our Q1 performance across the board, including in APAC Wealth, and it demonstrates the capacity in the franchises I've mentioned. You know, at the same time, the overall performance for the group, it's one quarter. The quarter was exceptionally strong and the macro environment remains uncertain. If the environment's supportive, there's potential upside for some of these measures. Generally, you know, I wouldn't be extrapolating Q1 per se for a full year, and it's just premature to reflect any of that in our guidance at this stage. On the banking license point, I think.

Todd Tuckner: As we say, even in our outlook, things could change quickly, and we recognize that when you look at the outlook. When you look at the environment, for example, if a diplomatic solution was not seen as something that can be enduring and achievable in the near term, you know, that can change. At that point, you know, we'd have to see. Certainly, near-term volatility, you know, created opportunities as long as clients remained engaged in seeking the advice we provide.

Speaker #4: And then at that point, we'd have to see. But certainly, near-term volatility created opportunities as long as clients remained engaged in seeking the advice we provide.

Speaker #8: Thanks so much.

Benjamin Goy: Thanks a lot.

Speaker #7: Thank you. I think that ends all the questions. I just thank you very much for joining. And we look forward to updating you with our second quarter results at the end of July.

Sarah Mackey: Thank you. I think that ends all the questions. I'll just thank you very much for joining, and we look forward to updating you with our Q2 results at the end of July. Thank you.

Speaker #4: As we say, even in our outlook, things could change quickly. And we recognize that when you look at the outlook, when you look at the environment, for example, if a diplomatic solution was not seen as something that can be enduring and achievable in the near term, that can change.

Todd Tuckner: Well, first, you know, we're pleased that you see the progress that we're making also in the pre-tax margins. You know, we're delighted that we have the license now. Those have always been in our plan. The team has been very effective in being able to land it. It has been in our plan and our outlook, and it's what helps to drive the pre-tax margin improvement over, you know, over time. You know, what I would say about it is, we're already doing the things.

Speaker #4: And then, at that point, we'd have to see. But certainly, near-term volatility created opportunities as long as clients remained engaged in seeking the advice we provide.

Speaker #8: Thanks so much.

Speaker #7: Thank you. I think that ends all the questions. I just thank you very much for joining, and we look forward to updating you with our second quarter results at the end of July.

Todd Tuckner: We're building out the capabilities, but also more, the focus across the advisor group in the US around the banking capabilities that we have, I think has been an eye-opener for a lot of advisors, who haven't leaned into our ability to support them on that side of the business. It really has helped. That's, you know, been driving some of the results that we keep seeing quarter on quarter in banking. Having the license will only, you know, accelerate that.

Speaker #7: Thank you.

Speaker #1: Ladies and gentlemen, the webcast and Q&A session for the analysts and investors may disconnect your line. We will take a short break and continue with the media Q&A session at 10:45.

Giulia Aurora Miotto: Thank you.

Operator: The last question comes from Benjamin Goy from Deutsche Bank. Please go ahead.

Benjamin Goy: Hi. Maybe just two follow-up questions. The first is on geopolitical uncertainty. Normally, that was negatively correlated to your transaction activity with clients. It seems like there's more of a buy the dip mentality or just holding onto risk assets. Just interesting how this might have changed over the last couple of years. Then, you touched on your capitalized focus in Investment Bank, but is it possible somewhere to give a flavor and look at the leverage exposure expansion in the double digits? How much was the market underlying opportunities for call it cyclical, and how much is just more competition or from US players? Thank you.

Todd Tuckner: I did not get the first question. Sorry. It may have been me. Sorry, let me answer the second one. I was able, I think, to glean the increase in leverage at the investment bank. Simple, it was just the activity levels in the quarter that informed sort of traditional liquidity needs vis-a-vis clients. That's what drove the balance sheet higher was the very active levels that we saw with clients over the course of the quarter. Do you mind repeating the first? Sorry.

Benjamin Goy: Thank you for that. The first one is geopolitical uncertainty is probably as high as in decades. Nevertheless, your transaction activity remains very positive. Wondering whether there's fundamental negative correlation between the two have changed and your clients are more engaged in risk assets sustainably. Maybe too confusing with the data line, no worries.

Todd Tuckner: Yeah. Thanks, Ben. We just forgot the question. Sorry. I think it may be the audio. In respect of geopolitical uncertainty, look, I mean, in the near term, we've seen this just in recent times, you know, when there are sort of events that create volatility in the markets. We saw that a year ago, when the US tariffs were announced in early April, you know, when this conflict started, you could probably go back and in on a timeline and see, you know, there is volatility in the uncertainty.

Todd Tuckner: As we say, even in our outlook, things could change quickly, and we recognize that, when you look at the environment, for example, if a diplomatic solution was not seen as something that can be enduring and achievable in the near term, you know, that can change. Then at that point, you know, we'd have to see. Certainly, near-term volatility, you know, created opportunities as long as clients remained engaged in seeking the advice we provide.

Benjamin Goy: Thanks a lot.

Sarah Mackey: Thank you. I think that ends all the questions. I just thank you very much for joining, and we look forward to updating you with our Q2 results at the end of July. Thank you.

Operator: Ladies and gentlemen, the webcast and Q&A session for the analyst and investor day is over. You may disconnect your lines. We will take a short break and continue with the media Q&A session at 10:45 CEST.

Operator: Ladies and gentlemen, the webcast and Q and A session for the analyst and investor day is over. You may disconnect your lines. We will take a short break and continue with the media Q and A session at 10:45 CEST.

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