Financial Data and Key Metrics Changes - The company reported a 9% growth in profit before tax, supported by a 5% increase in operating income, reaching $5.1 billion [1][2] - Operating expenses increased by 4%, while credit impairment stood at $195 million, leading to a profit before tax of $2 billion [2][4] - The tangible net asset value per share rose by $0.175 year on year, and the return on tangible equity is now expected to be around 13% in 2025, a year earlier than previously guided [2][10] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking (CIB) income was $3 billion, up 2% year on year, driven by a 23% increase in global banking income [7][9] - Wealth and Private Banking (WRB) income increased by 7% to $2.3 billion, with a record performance in wealth solutions, which saw a 27% rise [9][10] - Underlying loans and advances to customers grew by 1% or $2 billion quarter on quarter, primarily from wealth lending and mortgages [5][6] Market Data and Key Metrics Changes - Underlying customer deposits increased by 2% or $11 billion quarter on quarter, largely driven by WRB [6] - Risk-weighted assets decreased by $1 billion in the quarter, with a CET1 ratio of 14.2%, up 32 basis points quarter on quarter [6][7] Company Strategy and Development Direction - The company is focusing on servicing clients' cross-border and affluent banking needs, with a strategic emphasis on wealth management and digitalization [2][10] - The company plans to continue investing in its differentiated areas of strength to drive income growth and improve returns [10][11] - The management highlighted the importance of adapting to a multipolar world and the digitization of money as key trends for future growth [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting strong performance across various business lines and a positive start to Q4 [10][11] - The company is tracking towards the upper end of its income growth guidance for 2025, with expectations of continued strong performance in wealth solutions [10][11] - Management acknowledged the potential challenges posed by interest rate fluctuations but remains focused on managing net interest income effectively [34][39] Other Important Information - The company achieved $566 million in run-rate savings from its Fit for Growth program and has taken $454 million in restructuring charges since its inception [4][5] - The company is committed to maintaining a cost cap of below $12.3 billion on a constant currency basis for 2026 [4][48] Q&A Session Summary Question: Discussion on wealth business margin pickup - Management noted that net new money is migrating into wealth products, and the return on assets has improved due to a conversion from assets under custody to assets under management [13][15][18] Question: Future trends in wealth management - Management discussed the importance of AI and digitization in shaping the future of wealth management, emphasizing the bank's preparedness for these changes [25][26][27] Question: Clarification on net interest income expectations - Management expressed optimism for Q4 net interest income, highlighting better-than-expected performance and effective management of pass-through rates [34][37][38] Question: Insights on Fit for Growth program - Management confirmed that the bulk of cost savings from the Fit for Growth program will be realized in 2026, with a commitment to the cost cap remaining unchanged [48][49] Question: CASA ratio stability - Management explained that the CASA ratio remains stable due to affluent customers moving funds into investment products, which is a positive trend [51][53] Question: Credit impairment and sovereign risks - Management reassured that there are no significant signs of stress in sovereign credit, despite some fluctuations in sovereign ratings [55][56]