Key points for investors:
- Strong AUM and net new money: Assets under management reached a record CHF 521bn (monthly average AUM CHF 499bn). Net new money was CHF 14.4bn (≈2.9% annualized) despite derisking; management aims to gradually increase NNM to ~4–5% p.a. by 2028.
- Underlying revenue and operating leverage: Underlying operating income (excluding net credit losses) rose ~6% to CHF ~4.073bn. Underlying cost growth was modest (+1%), producing positive operating leverage and a 3ppt improvement in the underlying cost/income ratio to 67.6%.
- Credit review and loan loss allowances: A comprehensive credit review led to increased loan loss allowances (gross CHF 279m; net credit losses for the year CHF 213m). Management says this allows them to “turn the page” on legacy credit issues.
- Capital and liquidity: CET1 ratio strengthened to 17.4% (pro forma Basel III final fully implemented). Tier 1 leverage ratio stable at 4.9%. Liquidity metrics strong (loan-to-deposit ~62%, LCR ~261%). Dividend proposal unchanged at CHF 2.6/share; any buybacks remain subject to FINMA approval.
- Cost program and efficiency: Delivered CHF 130m gross run-rate savings in 2025 (overachieved target), with an additional CHF 130m of structural efficiencies planned by 2028 (cost-to-achieve largely in 2026–27; benefits back-ended to 2028).
- Strategy and execution: Management completed governance/risk upgrades, simplified organization, launched a new strategy focused on profitable organic growth, cost discipline, risk/compliance and technology modernization (Swiss core banking renewal, new global finance platform). A 3-year dedicated revenue & growth program was launched to drive product adoption and front productivity.
- Recruitment and growth initiatives: Plan to hire >150 relationship managers in 2026 (gross), with renewed emphasis on RM enablement, product-led growth (structured products, alternatives, discretionary mandates) and regional priorities (Switzerland, Asia, LatAm).
- Near-term guidance and cadence: For 2026, management expects slightly better NNM than 2025 and a modestly higher cost/income in the near term (due to front-loaded investments) but targeting <67% cost/income by 2028 and return on CET1 above 30% (with a 14% underpin). Assumptions include an 80bp gross margin input and USD/CHF assumptions noted by management.
- Regulatory & other items: Ongoing dialogue with FINMA regarding potential capital distributions; FINMA timing remains uncertain. Management believes legacy regulatory and compliance remediation steps are largely complete or in execution.
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