UBS CEO Sergio Ermotti spoke to Bloomberg's Tom Mackenzie regarding the bank's performance and strategy. He highlighted the strong results in the first quarter, noting progress on the integration of Credit Suisse clients onto the UBS platform. The bank also reported maintaining a capital level of 14.7%, which he views as robust.
Ermotti announced an accelerated share buyback program, now aiming to complete $3 billion by the end of July, a significant increase from the previously stated $2 billion. He linked this change to the bank's strong financial performance and its ability to maintain healthy capital levels. This accelerated buyback demonstrates confidence in the bank's trajectory and capital management.
A significant portion of the discussion revolved around the ongoing uncertainty surrounding new regulatory proposals in Switzerland, specifically concerning capital requirements for foreign subsidiaries. Ermotti expressed concerns that a 100% capital requirement for foreign subsidiaries could lead to $30-50 billion in unproductive, dormant capital. He emphasized the importance of a fact-based discussion to ensure regulations are internationally aligned and do not disadvantage UBS's shareholders, clients, and 30,000 employees in Switzerland.
