UBS CEO Sergio Ermotti on Market Volatility, US Economy, and Integration

Market Volatility and Diversification

• ⚠️ The current market setup is troubling due to an accumulation of unresolved issues, suggesting continued volatility and rapid changes.
• 📌 Staying diversified in financial markets is crucial in the current environment.
• 🇺🇸 While diversifying away from the US is considered a dangerous bet, strategic overweight or underweight positions in US assets are possible.

The Strength of the US Economy

• 💡 Despite current bumps, the US remains the strongest economy globally, with high levels of innovation.
• 📈 Surveys indicate the US is the top destination for capital investment, with 25 million new millionaires created in the US last year.
• 🚀 For a wealth manager like UBS, the US presents significant opportunities for increasing market share and wealth creation.

UBS Growth and Integration

• 🌱 UBS is focusing on organic growth, enhancing product capabilities, and expanding interactions between its investment bank and wealth management divisions.
• 🇨🇭 The integration of Credit Suisse is nearing completion, with the vast majority of the job done and a focus on cost savings and restructuring.
• ⚙️ UBS is investing in efficiencies, AI, and topline growth to become a stronger bank.

Leadership and Legacy

• 🏦 Capital requirements are a political process, with a direction of travel expected in the second quarter, but this has not hindered UBS's current operations.
• 🤝 Regarding succession, UBS prioritizes finding the best person for the moment, whether internal or external, with the board evaluating candidates.
• ✨ Ermotti views his legacy as stepping in to stabilize Credit Suisse during a tragic moment for Switzerland and the banking industry, ultimately creating a stronger, growth-ready UBS.