UBS Group (UBSG) 29th Annual Financials CEO Conference 2024 summary

Macroeconomic and industry outlook

• Economic data points to a soft landing, with consumers and clients maintaining a risk-on attitude as rates are expected to decline by year-end.

• Anticipates 100 basis points of rate cuts in the U.S. and 50 in Switzerland by year-end, barring post-election disruptions.

• Wealth management faces ongoing margin pressure, but secular trends in wealth creation and client sophistication remain supportive.

• Lower interest rates are expected, but the diversified revenue mix and client activity should offset NII declines.

• The business model is resilient to lower rates, with only 25% of revenues from net interest income.

Integration and cost management

• Integration of Credit Suisse is ahead of schedule, with legal entity mergers completed across 40 jurisdictions and 80 regulators.

• Major cost savings from Non-Core and legacy asset wind-downs; CHF 4 billion in costs removed, mostly from investment bank infrastructure.

• Significant net cost savings in core businesses expected from late 2025 into 2026 as dual systems are decommissioned.

• Cost reduction trajectory is non-linear, with true underlying cost declines materializing after further integration milestones.

• Non-Core unit has removed CHF 3 billion in costs since 2022, with 50% of targeted CHF 13 billion gross savings coming from this segment.

Business segment performance and strategy

• Investment banking has seen strong momentum, market share gains in equities, FX, and banking, especially in the U.S.

• Targeting a 15% return on allocated equity for investment banking, with risk-weighted assets capped at 25% (excluding Non-Core).

• Swiss business is a strategic pillar, aiming to return to pre-acquisition returns of 19% on allocated equity.

• U.S. wealth business prioritizes restoring profitability to mid-teens returns by leveraging combined capabilities and deepening client relationships.

• Asia remains a key growth engine, with demographic trends and cross-border wealth flows supporting continued investment.