UBS CEO Ermotti on Earnings, Headwinds, Net New Money, Rates

The transcript covers a discussion on quarterly profits, market normalization, and the impact of interest rates on business performance. It highlights investor sentiment, cash balances, and strategic business outlooks amidst competitive pressures. The conversation also delves into future interest rate expectations, monetary policy impacts, and market risks, emphasizing the need for strategic adjustments in a volatile environment.

What was the market condition at the beginning of the year?

• Normal and consistent

• Booming and prosperous

• Weak and volatile

• Strong and stable

What trend was observed in investor sentiment according to the survey?

• Increased optimism

• Decreased cash balances

• Muted sentiment

• High risk appetite

How did the market rally affect investor behavior?

• More aggressive investments

• Increased market redeployment

• Higher cash balances

• Reduced asset allocation

What was the impact of seasonality on new money inflows?

• Outflows for tax payments

• Increased inflows

• Decreased outflows

• Stable inflows

What is the target return on CT1 mentioned in the transcript?

• 10%

• 5%

• 20%

• 15%

What strategy is being used to handle the challenges of low interest rates?

• Expanding into new markets

• Cutting costs

• Increasing lending rates

• Reducing client base

What is the main challenge faced by investment banks according to the transcript?

• Regulatory issues

• High operational costs

• Revenue pressure

• Lack of clients

What is the effect of restructuring in other banks on the market?

• Increased market share for all

• Decreased competition

• Stable market conditions

• Redistribution of share of wallet

What is the potential risk of maintaining negative interest rates?

• Asset bubbles

• Stronger currency

• Increased savings

• Higher inflation

What global factor is affecting client behavior according to the transcript?

• US-China trade tensions

• Brexit negotiations

• European Union policies

• Middle East conflicts