UBS Group AG (NYSE:UBS) Q4 2023 Earnings Conference Call February 6, 2024 3:00 AM ET

Company Participants

Sarah Mackey - Head, Investor Relations

Sergio Ermotti - Group Chief Executive Officer

Todd Tuckner - Group Chief Financial Officer

Conference Call Participants

Kian Abouhossein - JPMorgan

Chris Hallam - Goldman Sachs

Jeremy Sigee - BNP Paribas Exane

Andy Coombs - Citigroup

Anke Reingen - RBC

Alastair Ryan - Bank of America

Giulia Miotto - Morgan Stanley

Stefan Stalmann - Autonomous

Adam Terelak - Mediobanca

Ben Goy - Deutsche Bank

Tom Hallett - KBW

Andrew Lim - Société Générale

Nicolas Payen - Kepler Cheuvreux

Piers Brown - HSBC

Sarah Mackey

Good morning, and welcome, everyone. Before we start, I would like to draw your attention to our cautionary statement slide at the back of today’s results presentation. Please also refer to the risk factors filed with our Group results today, together with our additional disclosures in our SEC filings.

On slide two, you can see our agenda for today. It’s now my pleasure to hand over to Sergio Ermotti, Group CEO.

Sergio Ermotti

Thank you, Sarah, and good morning, everyone. 2023 was a defining year for UBS as we acquired Credit Suisse in one of the largest transactions in banking history, setting a new long-term trajectory for our franchise. It was also an intense year that required exceptional focus from all of our colleagues during periods of significant change and uncertainty.

We stayed close to our clients, helping them manage a rapidly evolving geopolitical and macroeconomic backdrop, as well as the turmoil that occurred in the financial system last March. The strength and stability of UBS provides is a direct result of our decade-long sustainable strategy, an unwavering commitment to maintaining a balance sheet for all seasons and a focus on risk and capital efficiency.

For these reasons, clients reward UBS with their extended trust and confidence during periods of volatility and market uncertainty. And it allowed UBS to credibly step in and stabilize the Swiss and wider financial system by taking over Credit Suisse.

We have acquired an enterprise that has suffered from many years of unsustainable capital allocation and underinvestment in its businesses and control framework. This resulted in cost and capital inefficiencies, significant losses, and ultimately, substantial franchise erosion.

However, the acquisition accelerates our strategic priorities by providing UBS with a complementary client base, stronger regional presence, more products and services, as well as many talented people. This gives us great confidence in our ability to meet our ambitions and deliver long-term growth and consistently higher returns.