Mr. Benamou, Axiom was long among UBS investors. How does that look today — do you still hold a stake?

We currently hold UBS bonds, but no longer any equity positions. We used to, but we reduced them over the course of the year.

How do you assess UBS’s situation after the third quarter?

Operationally, UBS is in very solid shape. Net inflows are strong, and the Credit Suisse integration — despite some recent delays in client migration — is largely progressing as planned. The bank’s three pillars — Switzerland, Asia, and the U.S. — are all developing positively. We continue to see substantial growth potential, particularly in Asia.

«The management team is strong. The bank is well led. The problem lies outside.»

Where do you see the risks?

Two issues cloud the picture. First, the legal uncertainty surrounding Credit Suisse’s AT1 bonds. The Federal Administrative Court ruled that their write-off was unlawful. Should the ruling be upheld, UBS is unlikely to emerge unscathed. The bank appeared visibly caught off guard by the verdict, and its communication came across as inadequate.

Second, the debate about Switzerland’s new capital requirements. Initially, the regulatory approach seemed excessive, but a compromise now appears to be emerging that aligns more closely with the EU. That would be a reasonable outcome and would likely limit the additional capital needs to CHF 4–7 billion, rather than the CHF 26 billion originally discussed.

So UBS is fundamentally on track?

Yes, absolutely. Operationally, everything is running smoothly. CEO Sergio Ermotti has a clear plan to position UBS long-term along the lines of Morgan Stanley — capital-light, global, and focused on wealth management. The management team is strong, from Iqbal Khan to Rob Karofsky and Sabine Keller-Busse. The bank is well led. The problem lies outside: regulation and politics are creating uncertainty that UBS cannot control.

Is the AT1 dispute a real risk for UBS?

That depends on how the legal process unfolds. In Switzerland, such proceedings are handled efficiently, so a decision can be expected within a foreseeable timeframe. Should UBS be required to compensate investors, it would have capital implications but pose no existential threat. Once clarity is achieved, the issue will likely lose its importance.

«Sergio Ermotti clearly aims to grow in the U.S. — likely through acquisitions.»

So, in your view, UBS won’t relocate its headquarters to the U.S.?

No. That discussion was more of a tactical reaction to political pressure in Switzerland. A relocation would be counterproductive in my view. UBS is a global player, but its foundation remains Swiss — not least because of the brand and the trust it enjoys worldwide. UBS without a Swiss base would no longer be UBS.

Would moving to the U.S. make sense at all?

On paper, yes — due to capital calculation advantages. But Switzerland could retaliate and make life difficult for UBS. The bank is hardly a «Swiss bank» anymore anyway — the majority of its business is in the U.S. and Asia. Switzerland is a mature market where growth has plateaued, whereas Asia and the U.S. are still expanding strongly.

Sergio Ermotti clearly aims to grow in the U.S. — likely through acquisitions. Some investors see this critically, as the U.S. is a tougher regulatory environment. Nonetheless, UBS has the team and business model to succeed there.

«The proposed capital rules went far beyond international standards and threatened the competitiveness of Switzerland’s financial center.»

Has Swiss politics gone too far with regulation?

Absolutely. The proposed capital rules went far beyond international standards and threatened the competitiveness of Switzerland’s financial center. Safety is not achieved through capital walls but through a balanced mix of risk, return, and oversight. Fortunately, political common sense now seems to be prevailing.

How do you assess the integration of Credit Suisse (CS)?

Very positively.

Were you surprised that the process has gone so smoothly?

No.

Why not?

UBS knew exactly what it was getting into. Moreover, the two banks’ business areas are very similar. The integration is being managed professionally and communicated transparently. Minor delays in client migration are normal in a project of this scale.

Would you expect such execution only from a Swiss bank?

(laughs) Well, UBS certainly works thoroughly — but also because it knew what it was taking on. Ten years of Credit Suisse crises prepared everyone. UBS’s leadership understood very well what the CS takeover would entail.

«Iqbal Khan embodies exactly the profile UBS needs.»

What happens after the integration? Will UBS shift back to growth mode?

Once integration is complete, UBS will need to take its next step. For me, it’s clear: the focus will be on the U.S. market. That’s where UBS’s future growth will be decided — possibly through acquisitions. Innovation, such as AI-driven advisory, will naturally play a role, but it won’t be the main theme. The next milestone will be U.S. expansion.

But Sergio Ermotti is cautious. He waits for stable results before announcing new moves — probably in 2026 or 2027, just before his departure.

Will Iqbal Khan be the next CEO?

Yes, I think so.

Khan embodies exactly the profile UBS needs: international, growth-oriented, and coming from wealth management — precisely what Ermotti’s »Morgan Stanley strategy» is targeting. Rob Karofsky will remain key for the U.S. business. Khan is the logical successor.

And the old «Spygate» affair involving Khan?

No longer an issue. Forgotten. Of course, politics always plays a role in CEO appointments, but I don’t think the market would view it negatively anymore.

Could an external candidate still take the top job?

Unlikely, in my opinion. UBS has strong internal candidates with credibility and experience. Only if the market were to reject the U.S. strategy might an external candidate come into play — but that would have to be a highly distinguished figure.