Financial Data and Key Metrics Changes - The company reported a net profit of CHF 1.2 billion and earnings per share of CHF 0.37 for the fourth quarter, with total revenues increasing by 10% year-over-year, driven by strong growth in global wealth management and the investment bank [3][5] - Underlying pre-tax profit was CHF 2.9 billion, up 62% year-over-year, reflecting positive jaws of 9 percentage points [3][4] - The cost-income ratio improved to 75%, and return on CET1 capital was 11.9% [4] Business Line Data and Key Metrics Changes - Global Wealth Management (GWM) delivered pre-tax profit of CHF 1.6 billion, up from CHF 1.1 billion in the prior year, with revenues increasing by 11% [12] - Personal and Corporate Banking (P&C) reported a pre-tax profit of CHF 543 million, down 5%, primarily due to lower interest rates impacting net interest income [17] - Asset Management saw a pre-tax profit increase of 20% to CHF 268 million, driven by higher revenues and lower costs [18] Market Data and Key Metrics Changes - GWM's invested assets reached CHF 4.8 trillion, with net new assets of CHF 101 billion for the full year, representing 2.4% growth [14] - The Americas experienced a decline in net new assets due to recruiting-related impacts, while EMEA and APAC regions showed strong growth [14][33] - The investment bank achieved record revenues of CHF 11.8 billion, up 18% year-over-year, with a pre-tax profit of CHF 703 million, increasing by 56% [20] Company Strategy and Development Direction - The company aims to complete the integration of Credit Suisse by the end of 2026, with a focus on achieving a cost-income ratio below 70% and a return on CET1 capital of around 15% [27][45] - Strategic investments in technology and AI are prioritized to enhance operational efficiency and client experience [30][31] - The company plans to increase gross cost savings to CHF 13.5 billion, with a focus on simplifying operations and retiring legacy infrastructure [49] Management's Comments on Operating Environment and Future Outlook - The management highlighted a constructive market environment with steady global growth and easing inflation, but acknowledged potential volatility due to geopolitical uncertainties [28] - The company remains committed to its diversified model and aims to leverage its global capabilities to capture growth opportunities [29] - Management expressed confidence in achieving long-term profitability and value creation through strategic investments and operational improvements [43][44] Other Important Information - The effective tax rate for the fourth quarter was 29%, with a full-year rate of 12% [6] - The company plans to repurchase CHF 3 billion in shares in 2026, maintaining a progressive dividend policy [42][43] - Integration-related expenses totaled CHF 1.1 billion, reflecting ongoing efforts to migrate Swiss client accounts [6][10] Q&A Session Summary Question: What are the expectations for net new assets in Global Wealth Management? - The company expects GWM's net new assets to exceed $125 billion in 2026, supported by strong growth across various regions [33] Question: How is the integration of Credit Suisse progressing? - The management confirmed that the integration is on track to be completed by the end of the first quarter, with significant synergies expected to be realized [25][26] Question: What are the anticipated challenges in the upcoming year? - Management noted that while the macroeconomic backdrop is supportive, geopolitical uncertainties could lead to volatility affecting client activity levels [28]