UBS CEO Sergio Ermotti on China Markets, Banking Reforms, and Global Growth

Outlook for China and Asian Markets

• 📈 China's market momentum is strong, with significant interest from both domestic and international investors, indicating a continued secular trend supporting growth in innovation, technology, and biotech.
• 🌏 There's a healthy mix of inbound and outbound deal flow, with Chinese investors expanding abroad and increasing interest from foreign investors in China.
• 🚀 Asia is a significant engine of growth for UBS, accounting for 25-30% of profits over the last five years, managing over a trillion dollars in assets.
• 💡 The IPO calendar in Hong Kong is robust, particularly for new economy companies, which is crucial for driving new money and assets into UBS's wealth management business.

UBS's Onshore Strategy and Expansion

• 🇨🇭 UBS has a long-standing presence in China, with 35 years in mainland China and 60 in Hong Kong, managing over a trillion in assets regionally.
• 🏦 Plans include launching a panda bond this year and continuing to foster its presence and leading position in investment banking and asset management through its joint venture with ICBC.
• 🎓 UBS is focused on hiring young talent from local universities, aiming to add around 100 people in China this year, alongside experienced professionals.
• 🇯🇵 In Japan, UBS sees a renewed sense of optimism and a new paradigm with rising rates, aiming to grow its wealth management, investment banking (ECM, M&A), equities, research, and asset management businesses.

Integration and Regulatory Landscape

• ✅ The integration of Credit Suisse is largely complete across Asia, with the final migration of clients in Switzerland expected by the end of the first quarter, leading to IT system shutdowns and synergies.
• 📉 UBS anticipates approximately 3,000 redundancies between now and early 2027 as part of the integration and cost-reduction efforts.
• ⚖️ Regarding Swiss banking reforms, UBS believes the current proposals go "too far" and do not accurately reflect the issues at Credit Suisse, advocating for a competitive regulatory framework to enable growth.
• 🗣️ UBS is actively contributing its views to the ongoing political debate on new regulations, aiming for clarity by the second half of the year, and emphasizes its commitment to operating as a proud Swiss bank.

Opportunities in the US and Global Strategy

• 🇺🇸 The United States is identified as a key engine of growth alongside Asia and China, with UBS aiming to remain competitive and present in the US market, particularly in wealth management.
• 🤝 UBS maintains regular dialogue with key global stakeholders, including governments and regulatory bodies, as part of its international strategy.
• 🌐 The bank's global strategy focuses on maintaining strength in its home country Switzerland, while aggressively pursuing growth opportunities in Asia and the US.