[ad_1]
Your prospect for the second half of the year does not show much confidence. What makes you so cautious?
I do not think my point of view is prudent. I would call it realistic. You only need to surf and flip through the media every day to see where the uncertainties are everywhere. In addition, seasonality in the banking sector: The third and fourth quarters are generally lower than the first half.
We interpret your perspective as meaning that the growth of UBS reached its peak in the current year.
This is your interpretation. The fact is that the environment is demanding, and of course I would prefer a better one. But there is also a positive message behind our perspectives …
… with what content?
As difficult and exciting as the external situation may be, we are always able to add value to our shareholders and our clients. Until here, at least, we did very well.
Can you estimate how increasing global and trade tensions are influencing UBS's growth?
We have already felt these influences in the first and second quarters. For us, this has gone pretty well, but we are living in an environment that is not ideal. If you think of nascent protectionism – which in turn slows growth in China – if you look at developments in Europe with Brexit in mind – all of this helps investors to act with caution.
How does this express itself?
Take, for example, changes in the asset mix in the United States. According to a study we have just done with very wealthy investors, a lot more cash is being used again. The liquidity portion goes from 19% to 24% over the previous year – it's a huge difference and atypical for the United States. As an asset manager, we feel it because people make fewer transactions
And that goes against profit as a result.
That's right. After all, we in the United States today can offset some of the decline in profits because interest rates have gone up and we can now earn something with deposits. We are still far from that in Switzerland and in Europe: money still costs us money.
What is the magnitude of client outflows in US asset management for you?
Of course, we are not satisfied. This should not be repeated in the third and fourth quarters. However, we must also take into account that the fourth quarter of 2017 was very strong and the first quarter of 2018 was again good. In any case, we will be able to reach our growth target of 2 to 4% this year.
"Those who want more imagination can invest in biotechnology companies."
Are expectations met?
Yes. But it will take one to two years to see the full effect. An example of what we expect to grow a lot is our American customers and US citizens living around the world. New, we will serve these customers much better internationally. We can therefore keep in touch with our US competitors with these customers. Since the automatic exchange of information, the case has become easier for us.
Even though the UBS stock gained in value after the quarterly earnings announcement, it has stagnated in recent years. Are investors putting pressure on them?
We are one of the few banks in Europe to compete with US institutions. We have a clear advantage over our European competitors. If we deliver our results, they will appear over time in a higher score.
Should you defend the bank today to be boring?
A certain amount of boredom belongs to a well-run bank. Those who want more imagination can invest in biotechnology companies or start-ups.
Do you present a new story on Investor Day in October to get the stock out of its lethargy?
If our stock is lethargic, then those of some banks are almost in deep sleep. During Investor Day, we will not introduce a new strategy. We have clearly defined goals and we will explain how we achieve them. There are new goals only when we reach the old ones.
US banks lose in investment bank. Can you just watch?
No, of course, we do not do it. But we focus. In three quarters of all business units in which our investment bank operates, it ranks among the top five in the world.
US banks are not only growing rapidly. They also pay huge salaries. Is UBS at a disadvantage?
There is a disadvantage. From time to time, someone goes to the competition, but not necessarily because there is more money out there, but because it is easier to win customers with a large balance sheet. We need to be more agile and smarter to create value for our clients as well as our shareholders.
What is missing from European banks?
The critical mass is missing. We are behind the United States and Asia. The size of banks is an important factor.
JP Morgan is five times more valuable than UBS. Do you think that during sleepless nights, UBS could be supported?
I do not have sleepless nights, and certainly not because of that. It makes no sense to comment on such scenarios.
US President Donald Trump recently attacked the US Federal Reserve. The National Bank is barely criticized. How do you judge the difference?
What may not be enough in Switzerland is exaggerated in the United States today. But I do not think that much will be done with such an intervention. If anything, the US Federal Reserve will probably do the opposite now to emphasize its independence.
Should politicians further discuss the SNB's policy?
Certainly not in monetary policy. But certainly on issues such as stability and regulation.
(Tages-Anzeiger)
Created: 24.07.2018, 21:55
Costly trial settled favorably
Result UBS gained more in the second quarter of 2018 than the previous year . Global asset management as a core business and investment bank performed better than a year ago. The only drawback was the slight outflow of funds. Overall, the largest Swiss bank gained between April and June before taxes of 1.7 billion francs, 12% more than the year before.
The big bank was also doing well in asset management. During the quarter under review, UBS generated more than CHF 1 billion in its largest division. This is an increase of 18 percent. The rise in client assets and the improvement of the interest margin were driving forces.
Although funds of 1.2 billion francs have passed in the unit, the special effects are responsible. Overall, however, the bank raised money costs of 17.7 billion Swiss francs in the first six months. Not only wealth management was doing well, but also the investment bank. The division achieved a pre-tax profit of 569 million Swiss francs, up 25%.
UBS can also handle a major legal case. He has agreed with the US authorities in connection with Mortgage Backed Securities (RMBS). Under the terms of the agreement, UBS will pay $ 850 million and enter into the deal, announced today. A substantial portion of the amount will be paid by third parties who indemnify UBS. The agreement still needs to be approved by the competent court, the UBS. (SDA)
Source link
