UBS Group CEO Sergio Ermotti says that he won’t make the bank smaller to mitigate the impact of future Swiss capital requirements https://t.co/OUOCKF2CGo ...

Financial Performance & Integration Progress - Core underlying profits increased by 25% year-on-year, with wealth management businesses in every region growing on a PBT basis in double digits [1] - Alternative business in asset management reached 300 billion in assets under management [1] - Achieved 9 billion in cost savings out of the targeted 13 billion, with an additional 1 billion expected by year-end and 3 billion in 2026 from shutting down legacy systems [3] - Successfully migrated 400,000 clients in Switzerland and is progressing with the second wave in the third quarter [2] - UBS is accruing for a double-digit increase in dividends and executing capital return plans through share buybacks [15] Strategic Outlook & Regulatory Landscape - Shrinking is not an option, as diversification benefits both UBS and Switzerland [9][10][11] - The combination of UBS and Credit Suisse creates a stronger bank globally in core activities [13] - UBS is fully implementing Basel III in Switzerland, effective January 1st of this year [17] - A tariff discussion outcome around 15% on average is a base case scenario, which is six times higher than at the beginning of the year [22] Client Relations & Risk Management - Serves over 250万 (2.5 million) clients, including over 20万 (200,000) SMEs in Switzerland, indicating a solid relationship with the community [5] - Addressed an issue affecting less than 200 clients related to FX packages and compensated affected clients, which was reflected in Q2 results [27][28]

Nigeria’s central bank said about a third of lenders have met its new capital requirements threshold ahead of a March deadline https://t.co/42yEJzsGA8 ...

Wall Street lenders and their lobbyists are descending on the Fed’s first-of-its kind banking conference Tuesday with a broad ask of the new vice chair for supervision: steer clear of stricter capital requirements https://t.co/NBa1gfAtOU ...

Capital Requirement Adjustment - The Fed proposed easing capital requirements for the largest banks in the US [1] - The proposal aims to address banks' concerns about intervening in treasury markets during stress or taking additional deposits during crises [3] - Dissenters argue the proposal weakens the banking system by reducing capital buffers [3] Financial Impact - The proposal reduces Tier 1 capital requirements by 140 basis points (1.4%) for the biggest banks [1] - It is estimated to release approximately $13 billion in capital [2] - Depository institution subsidiaries' capital requirement would decline by $210 billion in aggregate [2] Regulatory Context - The proposal involves the Supplementary Leverage Ratio (SLR), where capital is the numerator and total assets (including risk-free assets) are the denominator [2] - The change is not a unanimous decision within the Fed [4]

Capital Requirement Changes - The Fed is announcing a proposal to ease capital requirements for the biggest banks [2] - The proposal would reduce tier one capital requirements by 1.4% for the biggest banks [2] - This reduction is expected to release approximately 13 billion USD in capital [3] - Capital requirement would decline in aggregate by 210 billion USD at their depositories institution subsidiaries [3] Supplementary Leverage Ratio (SLR) - The SLR, or supplementary leverage requirement, involves a ratio where the numerator is capital requirement and the denominator includes all assets, including risk-free assets like treasuries [3] - Banks have argued that the SLR restricts their ability to intervene in treasury markets during stress or take additional deposits during crises [4] Dissent and Potential Risks - Some Fed members, like Michael Barr, argue that the proposal weakens the banking system by releasing capital requirements and reducing buffers during times of stress [4] - The decision to ease capital requirements was not unanimous within the Fed [5]