Financial Data and Key Metrics Changes - The company reported a CHF 9 billion dividend, with CHF 4.5 billion to be upstreamed to the group for share buybacks and dividends, while the remaining CHF 4.5 billion will stay at UBS AG to prepare for potential capital rule strengthening [3][5][10] - The underlying cost income ratio is expected to be delayed below 50% by the end of 2026 due to Swiss franc interest rate headwinds [4] Business Line Data and Key Metrics Changes - The company experienced some loss of market share during the integration of Credit Suisse, which was anticipated due to client diversification needs [23] - The company expects net new assets to grow to CHF 125 billion by 2026, up from CHF 100 billion, as headwinds from balance sheet optimization have been resolved [41] Market Data and Key Metrics Changes - The company noted that equity markets are showing higher dispersion and lower correlation, which is favorable for trading businesses [18] - There is potential for event-driven volatility due to geopolitical issues and market conditions, which could impact future performance [19] Company Strategy and Development Direction - The company is focused on sustainable returns and building resilience in its business, emphasizing the importance of risk-reward balance in pricing [24] - The management is optimistic about achieving revenue doubling in Global Banking by 2026, contingent on favorable market conditions [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the constructive engagement with U.S. regulators regarding the licensing process, expecting final approval within the year [14] - The company is committed to transparency in legacy matters inherited from Credit Suisse and is collaborating with authorities to resolve these issues [31][32] Other Important Information - The company is managing a reduction in force, with layoffs expected to be more pronounced in the second half of the year, while also focusing on minimizing proactive redundancies through attrition [68][69] - The company clarified that the capital repatriation does not affect the previously outlined CHF 26 billion capital buildup requirement [45][46] Q&A Session Summary Question: Clarification on P&C unit's combined ratio target - Management indicated optimism about achieving a combined ratio below 50% without further cost-cutting efforts, although interest rate headwinds may delay this target [3][4] Question: U.S. licensing process timeline - Management expects to move from conditional to final approval during the year, with constructive engagement from regulators [14] Question: Client attrition during integration - Management acknowledged some client losses were expected but noted that the majority of relationships were retained [23][25] Question: AI-triggered sell-off impact - Management is monitoring market volatility and its potential impact on client navigation through current market conditions [30] Question: O'Connor sale loss implications - The loss indicates that the sale proceeds were less than the cost basis, attributed to changes in sale perimeter [55][56] Question: Global Banking revenue doubling confidence - Management remains confident in achieving revenue doubling by 2026, citing a strong pipeline and favorable market conditions [63][64]

UBS Group (NYSE:UBS) Q4 2025 Earnings call February 04, 2026 05:15 AM ET Speaker0Good morning, and thank you for joining our media call. As usual, we're joined this morning by our Group CEO, Sergio Ermotti, and our Group CFO, Todd Stuckner. You would have seen that in addition to our fourth quarter and full year results for 2025, we've also presented an investor update earlier today. Let's now open it up for question. Operator, please go ahead.Speaker3The first question comes from the line of Holger Alich f ...