Bloomberg Audio Studios, podcasts, radio news. Overarching all of this is the trade narrative that we're watching so carefully. It is reaching into every single one of these stories and having an impact upon it. UBS is absolutely no exception this morning, the numbers dropping a little bit earlier on second quarter pre tax profit that has exceeded expectations. Net income also beating up two point four at two point four billion dollars versus two point two billion the estimate there.
There's a bunch of technical factors in there relating to the wind down of Credit SUITEE, also some provisioning there. What is interesting though, is looking forward, what we're hearing is that actually, with some certainty, clients are starting to transact.
A little bit more.
And it was those earnings that Francine Laquar kicked off in her conversation with Sergio and Mozzi a few minutes ago.
If I look at the overall profitability, particularly when looking at the core underlying profits being up twenty five percent or a year with wealth management businesses in in every region growing on a PbD basis double digit, very strong, and uh I see good inflows in a in our alternative business in as management reaching three hundred billions.
Of of assets in markets.
We delivered the second best quarter h on in in in the on the records.
So I think that UH.
Across the board in Switzerland we continue to be a strong partner to our clients, you know, with forty billions of UH credits or new credits.
So across the board, making good progress on the integration. Big milestones was achieved.
Four hundred thousand clients were migrated in Switzerland in a smooth way, and we are now working on UH delivering the second wave in the in the in the in the third quarter UH and in non core and legacy assets we are making good program and taking down cost and so I can very please so Eve.
Even your head of expectations in terms of integration.
No, we are online. We are on track.
I mean the integration. I think the next We already achieved nine billions of cost savings out of the thirteen UH, so we we believe back between now and your end, we're gonna achieve another billion or so, and then three billions are gonna come in two thousand and twenty six as we basically shut down all the legacy systems and and we.
Also complete all the logistical migrations.
The relationship between UBS and Switzerland l looks from the outside to be a rock botty do you need Switzerland?
I think that we have a very strong and solid relationship with our clients and you know, the broader, the broaders.
With.
Business community and and and and and client space. We we serve more than two and a half billion clients, probably even higher two hundred thousand SMEs, So we we have a very solid and imbedded a relationship with the communities where we live and work in Switzerland.
So I think that's you.
Know, I will not really extrapolate some kind of issues to the broader Swiss Switzerland. The vast majority of people recognize our value and we recognize the value Switzerland brings to.
Us when you look at the market views. Of course, it's a big week for trade. I think we also have GDP a little bit later in the U wants. But how do you see that going forward?
Well, I mean the good use is then now we have probably a higher degree of predictability on what.
The outcome of the start discussion will be.
If we land at around fifteen percent on average is a base case scenario which in any case is something that needs to be digested.
This is six times higher than what we had at the beginning of the year. This brings some kind of inflation.
If you think from an exporter standpoint of view, if you're a Swiss or you'll be an exporter, you are basically as seeing your clients in the US have to pay fifteen percent more because of tarists, plus another ten to fifteen percent more because of effanks, and this is a quite big change. So there remains to be seen what's happening in Europe in terms of economic effect, but also what is the consequences for inflation in the US.
And this will then.
Translate into potentially consequences for the monetary policies of central banks.
Our clients saying, look, they're also worried that this is not it for terror, so that they can always move back, So actually the uncertainty is remain.
That's a fair point.
I think that's what investors and clients, corporate and institutional investor private investors.
Want to see is stability.
I mean, first of all, we need to reach agreements, and then they need to see that there is a degree of predictability and stability in disagreements. Uh, there is a degree of news fatigue, fatigue in the in the in the market, so people are wanting to be able to act with
Certainly a little bit of fatigue, certainly feeling that U B S is CEO, of course, Sergio Motti in conversation with Boomberg's Francis Laquas over in Zurich,