UBS Group AG (UBSG) Earnings Call Transcript & Summary

Valued shareholders, ladies and gentlemen. [Foreign Language] who will publicly certify a resolution of this AGM. On January 10, 2025, we published a notice in the Swiss Official Gazette of Commerce and on our website inviting qualifying shareholders to submit their written requests for items to be placed on the agenda or motions to agenda items by the 21st of February 2025. No requests were submitted. The invitation to today's AGM was published in the Swiss Official Gazette of Commerce on the 17th of March 2025 and is also available on our website. A personal invitation was sent to the shareholders entered in our share register. I conclude that the convening of the Annual General Meeting was duly conducted in accordance with law and our Articles of Association at the Annual General Meeting, therefore, is a quorum. As usual, we keep a list of speakers. I ask shareholders who wish to take the floor to register at the speaking desk at your front left of the hall, you will then be called for the agenda item you wish to speak on. In accordance with Article 17 Paragraph 1 of the Articles of Association of UBS Group AG, at today's AGM, those will be decided by a majority of votes represented, excluding blank and invalid votes. Finally, I would like to call your attention to the fact that an audio and video recording of the AGM will be made and used as the basis for the minutes and broadcast live on the Internet. Ladies and gentlemen, esteemed shareholders, welcome to the UBS Annual General Meeting. I'm delighted to see so many of you here in Lucerne. 2025 will be a very challenging year for markets with much uncertainty. It will also be a decisive year for UBS. Key milestones will have to be achieved in the integration of Credit Suisse. Even more importantly, the course of the regulatory debate will shape the future of our firm and the Swiss financial center. This is a crucial moment in our history. Before I explain what it is at stake for you for Switzerland for UBS let us review last year. The integration of Credit Suisse is progressing well. We have completed almost all client account transfers outside of Switzerland onto UBS platforms. We have significantly cut risk-weighted assets of the noncore and legacy portfolio and have achieved more than half of the targeted cost savings. Despite the considerable progress we have already made, we are far from done with integration. There is no time for complacency. I can assure you that we remain highly focused on the tasks ahead. Very importantly, throughout the ongoing integration, our business continues to thrive and remains profitable as shown by group invested assets of $6.1 trillion up 7% year-on-year, a net profit of $5.1 billion and a 14.3% CET1 capital ratio in 2024. Sergio will provide additional information on the integration and our financial results. It is important to reiterate once more that the acquisition of Credit Suisse has not changed our strategy but rather accelerated it. We aim to be the bank of choice of the wealthy for the world. We are also a leading asset manager and support wealth and asset management with an investment bank that is top-notch in the business, it chooses to compete in. And of course, we strive to be the preeminent universal bank in Switzerland. This strategy has served us well and will continue to do so. UBS is a global Swiss bank ideally positioned to serve its growing client base. Our growth ambitions center on wealth management and asset management. These are businesses we know well and which benefit from our Swiss heritage and expertise with less risk than other business models. As we make progress in the integration of Credit Suisse, our focus is shifting to growth. Our focus areas of the U.S., the world's largest wealth market and Asia, the world's fastest-growing wealth market. You have heard me speak before about culture, and I would like to reiterate that a robust corporate culture remains the foundation of our long-term success. UBS and Switzerland have a long-standing partnership. Our global franchise is deeply rooted in our Swiss heritage. Similarly, Switzerland benefits from having a global financial center anchored by UBS. Here are a few facts to illustrate how UBS is a driver of prosperity in Switzerland. We serve 1/3 of Swiss households more than 90% of large corporations at around 200,000 small and medium-sized enterprises in Switzerland. We granted or renewed over CHF 70 billion of loans in Switzerland last year out of a total Swiss loan book of around CHF 350 billion. We support around 1,000 Swiss pension funds with asset management and we provide expertise in export financing to more than 8,000 corporate clients. We spend around CHF 4 billion in goods and services in Switzerland every year. UBS is the third largest private employer in Switzerland and a major taxpayer. Over the past 10 years, UBS and our employees and Credit Suisse have paid around CHF 25 billion in Swiss taxes, including more than CHF 2 billion in 2024 alone. As an Irishman, who has worked in the financial sector, in the U.K. and the U.S., I can say with confidence, Switzerland's successful financial sector and strong financial brand or the envy of its competitors. The Swiss financial sector is a major source of growth and prosperity. UBS is bringing value to Switzerland. UBS is a driver of prosperity. We are proud to be part of Switzerland and Switzerland can be proud of its financial sector. We have a joint interest in a robust and successful UBS. As I mentioned at the outset, the outcome of the current regulatory discussion is crucial for the future of UBS and Switzerland's financial center. It is important to recognize that the downfall of Credit Suisse was first and foremost, caused by years of strategic errors, mismanagement and reliance on substantial regulatory concessions. Concessions that UBS has never sought. This is confirmed by last year's Federal Counsel report and banking stability and this report of the Swiss Parliamentary Commission, the Investigation Commission, the . This shows that concentrating on capital requirements is the wrong lesson. The Swiss Federal Council report outlined a broad range of measures to improve the resilience of systemically important banks. UBS supports almost all of these measures. We support stricter personal accountability requirements. We support more transparency on a bank's financial situation. We support measures to enhance resolvability. We support the introduction of a public liquidity backstop. We support targeted measures to strengthen FINMA, and we support targeted adjustments to the quality of capital. However, on top of that, FINMA and the Swiss National Bank stipulate additional capital requirements, which would lead to a 50% increase in capital requirements as compared to today. It would also result in a CET1 ratio that would be 50% higher than that of our international competitors. We strongly oppose these extreme additional capital requirements. UBS is already subject to some of the most stringent capital requirements in the world. Competition amongst financial centers is fierce today, today more than ever before. Geopolitically, there has been a clear shift from multilateralism towards prioritizing national interest. To remain a leading financial sector, Switzerland must insurance regulations remain globally competitive and aligned. UBS is already hampered by the existing Swiss regulatory finish. Adding another Swiss finish on top while other financial centers are easing regulations would harm UBS, the Swiss financial center and the broader economy. I'm a historian by training. If you look at Switzerland's past, we can see that it is thrived in global competition through hard work, a lean state and sensible and pragmatic politics. At this global turning point, it is key that Switzerland build on its traditional strength to stay competitive. Stable, reliable and non-bureaucratic regulatory conditions are essential. The current discussions about adding another Swiss finish on top of the existing Swiss Finish run counter to this. They also run counter to the Federal Council's principles of targeted, proportionate and internationally aligned measures. By learning from past mistakes, we must take measures to prevent future crises. Our shared goal is a safer financial center. UBS is prepared to take such measures. If implemented in line with the Federal Council's principles, they can further improve the resilience of the Swiss financial sector. The primary goal must be to ensure that systemically important banks do not pose a risk to taxpayers and that resolution is guaranteed in the event of an extreme crisis. However, we must not throw out the baby with the bathwater. Economic success is the foundation of every healthy company. We must therefore strive to make the financial center safer whilst maintaining its competitiveness. We need both a financial center that's safe and strong. Now some stakeholders and media accuses of overdoing our lobbying efforts in burn. Let me be crystal clear on this point. Over regulation in Switzerland is a very big risk to the long-term success of UBS. On behalf of our shareholders, it is our fundamental fiduciary duty to mitigate this risk. Also, our shareholders and other stakeholders are reaching out to us to understand our position. We have been reasonable, constructive and respectful in all our interactions with the Swiss authorities, including with Switzerland's top political leaders. We have shared our analysis and discussed the consequences of extreme capital requirements. We will continue to do so, keep it in mind your interest as shareholders, but all the interests -- also the interest of all other stakeholders out of Switzerland as a whole. Dear shareholders, as mentioned earlier, 2024 was a successful year for UBS. You are the primary beneficiaries. We proposed a dividend payout of CHF 0.90 per share, an increase of 29% from last year. After buying back USD 1 billion in shares last year, we plan to repurchase another $1 billion in the first half of 2025. We also aim to repurchase up to an additional $2 billion in the second half of the year to balance dividends and share repurchases. Our share repurchases have continued upon the successful execution of our financial plans and maintaining our CET1 capital ratio target of around 14%. In the absence of any significant immediate changes to the current capital regime, we remain committed to returning capital to our shareholders. Let me also address the remuneration of our employees. We are convinced that our compensation framework is well suited and aligned with shareholders' interest. Running a major global bank while merging 2 globally significant important banks, which has never been done before, requires exceptional skills. Strong leadership is important during this critical period. We're a global bank complete globally with clients and talent and need to reward performance in a competitive manner. Salary caps with damage competitiveness and, in the end, negatively affect all stakeholders. As usual, I will provide you with more detailed information on compensation under the respective AGM agenda item. UBS has long been a leader in sustainability, and remains dedicated to maintaining this position. Banks play a key role in the transition to a low-carbon world. At the same time, our climate-related goals and targets also depend on progress made by other stakeholders and the legal and regulatory environment, which are beyond our control. Last year, the changing geopolitical and regulatory landscape prompted us to update our greenhouse gas emission targets. I encourage everyone to focus on the actual progress we have made in the key areas highlighted in our reports. That progress has also been acknowledged externally. The first fully consolidated ESG ratings following the acquisition of Credit Suisse acknowledge our sustainability efforts. MSCI reaffirmed our AA ESG rating last year and we increased our S&P Global Corporate Sustainability Assessment score. Let me conclude. We are making good progress with the integration of Credit Suisse. At the same time, we remain highly vigilant and focused on completing it. Our strategy remains unchanged. We are focused on wealth and asset management and on growing these businesses in the U.S. and Asia with the primary goal of boosting profitability in our U.S. business. Switzerland is at a critical juncture. Excessive capital requirements would harm its financial center. Much is at stake, not only for UBS, its shareholders, clients and employees, but also for Switzerland. A strong and competitive UBS and a vibrant Swiss financial center are a fundamental pillar of Swiss prosperity. I would like to express my appreciation to our clients for their continued trust, to our employees for their dedication and hard work, to Sergio Ermotti for his exemplary leadership, which is essential for this successful integration, to the Group Executive Board for its unwavering commitment and to my fellow Board of Director members for their guidance and support. Finally, I want to thank you, our shareholders, for your confidence in UBS. Thank you for your attention and for your support of the proposals before you today. Let me now hand over to Sergio Ermotti.

Thank you, Colm. Ladies and gentlemen, esteemed shareholders, a warm welcome to all of you here in Lucerne and to everyone joining us online. 2002 (sic) [ 2024 ] marked another 12 months of change for UBS and the world. In the first full financial year since the acquisition of Credit Suisse, we stabilized a precarious situation and made significant strides toward integration. Thanks to the successful delivery of our key objectives in 2024, we are on track with our plan to substantially complete the integration of Credit Suisse by the end of 2026. This will enable us to bring the full benefits of the combined firm to our clients and turn our focus to the future. Last year, our global and diversified business model once again demonstrated its strength. This is also reflected in our financial results for 2024, exceeding both our expectations and those of the market. Our full year 2024 net profit reached USD 5.1 billion with an underlying return on CET1 capital of 8.7%. While this is still below our pre-acquisition levels of profitability, we are well on track to meeting our target of reaching an annualized underlying return on CET1 capital of 15% by the end of 2026. By 2028, we expect to achieve a return on CET1 capital of around 18%, similar to what we reported prior to the acquisition with a cost/income ratio below 70%. We're fully committed to ensuring that everything at UBS continues to run smoothly day by day, month by month. However, the global macroeconomic and geopolitical environment is less stable and running less smoothly as we observed in the last few days. This is precisely why we are focusing on what we can control. As I mentioned, the integration is progressing well, and we have significantly reduced the risk associated with it. We accomplished more than 4,000 milestones last year. Chief among them was the completion of all major legal entity mergers, but also successful migration of client accounts in Hong Kong, Italy, Japan, Luxembourg and Singapore to UBS, the UBS platform. In some areas like noncore and legacy, the integration has even picked up speed with a sizable reduction of risk-weighted assets, costs and optimization of our balance sheet. From this year, we are bringing together all client accounts in Switzerland on the UBS platform. This is the beginning of the final major stage of integration which we expect to be completed in the first half of 2026. We will move more than 1 million clients and 95 petabytes of data in what will be the largest amount of data ever to be integrated in a banking merger. To give you an idea of what this means, in terms of magnitude. One petabyte equals 500 billion pages of printed standard text or the equivalent of a movie that runs for 2.5 years. While this will entail change for some clients, we will do our best to make the experience as smooth as possible for them. After the migration, they will have access to an enhanced offering, including here in Switzerland. And I'm sure that some of you esteemed shareholders will be part of this migration exercise. So I want to thank you in advance for your patience. Apart from managing the integration, our focus continues to be on sustainable and strategic growth. A particular focus is on our core asset gathering activities in the Asia Pacific and Americas regions. However, our capital discipline will remain unchanged. With the client account migrations finalized in APAC, we are even better placed to leverage our #1 position in the world's fastest-growing wealth market. In APAC, we have USD 700 billion of invested assets in Global Wealth Management, and we're almost 3x larger than our nearest competitor. In the Americas region, we're making targeted investments in our Wealth Management business to deepen and expand our client relationships. We're also taking concrete steps to accelerate growth in the high net worth and core affluent segments, in the United States, the world's largest wealth pool, which we already serve with nearly 6,000 financial advisers, we are also working toward expanding our loan and deposit offering. In our wealth management business in the Europe, Middle East and Africa, EMEA region, we are the #1 player with around USD 700 billion of invested assets, and we plan to reinforce our position there. We aim to gain market share in our areas of strategic focus, by seizing additional opportunities through even closer collaboration. In Switzerland, we're leveraging approximately CHF 350 billion loan book to deliver a comprehensive suite of services. We are committed to remaining a strong pillar of the Swiss economy and serving more than 30% of households in our country that bank with UBS. We want to use our position and strengthen our position as the preferred bank for companies. We are reinforcing our transaction advisory capabilities and financing solutions. And apart from serving our around 200,000 SME clients, we're looking to the next generation of entrepreneurs. As early as today, we have more than 900 Swiss start-ups and scale-ups among our Swiss customer base. In Asset Management, we will continue to capture opportunities where we have a differentiated and scalable offering. A good example is the launch of our unified global alternatives unit last year. Today, it's already one of the top 5 players in alternative investments with nearly CHF 300 billion in invested assets. And in the investment bank, we are gaining market share in areas of strategic significance as we continue to deploy our products and services across our broader client base through even closer collaboration with our institutional clients and with Global Wealth Management and Personal and Corporate Banking. All our businesses are fully aligned with our strategy and practice or risk-aware culture. As early as today, we are actively shaping our future. We are investing in our people while expanding and improving our offering of products and capabilities and services. This will allow us to better serve our clients and position UBS for sustainable success. UBS has long been a pioneer in adopting new technologies, i.e., including artificial intelligence, which we've been using for more than a decade. We've integrated AI into our processes and have been utilizing it across our businesses and functions. Among other things, we have rolled out around 50,000 Microsoft 365 Copilot licenses to our employees, representing the largest deployment within the global financial services sector. Another good example is in the U.S., where in 2024, our advanced analytics platform supported our financial advisers with over 13 million automated recommendations. Such solutions improve productivity and enable us to deliver consistently personalized solutions to our clients. And we're already thinking about the next generation of AI applications. Our focus is on further scaling generative AI throughout the firm. Ladies and gentlemen, esteemed shareholders, you have now heard how we are moving towards fully integrating Credit Suisse while positioning ourselves to capture growth in all our businesses and geographies. I am convinced that UBS can continue to play an important role in Switzerland and for Switzerland, which will benefit from a globally competitive, diversified UBS at the heart of the financial center that brings jobs, taxes and other opportunities. This is why we will continue to participate in the debate on future banking regulation both proactively and reactively. We want to highlight the benefits that a risk-aware globally competitive large bank offers to Switzerland. UBS and Switzerland can and should remain strong partners. This is why it is both our right and obligation to participate in that discussion. And I can reassure you, we will not rest in making our case for the good of all stakeholders in our country and abroad. It is critical that facts, not personal opinions, shape the debate and the decisions. At the same time, the commitment, our Chairman and I made to the Swiss public at the close of the acquisition of Credit Suisse on the 12th of June 2023 remains unchanged. We will stay focused on what really matters. The safety and security of our clients' assets and helping them achieve their goals. We will work together as we combine our strengths and capabilities. We will make decisions based on facts and with the bigger picture, top of mind, we will never compromise on UBS' strong culture, conservative risk approach and quality service. And we are not going to make any compromises whatsoever. Ladies and gentlemen, let me close by thanking our Board of Directors and in particular, our Chairman, Colm Kelleher; and our Vice Chairman, Lukas Gahwiler for their excellent partnership and collaboration. I would also like to thank our clients for their trust and support in the course of the integration. My special thanks go to all my colleagues on the Executive Board and all colleagues in the bank for their great commitment, hard work and dedication. UBS employees have remained focused throughout the integration process. And I know they will continue to do so in the next important phase of this journey. And last but not least, above all, I would like to extend a big thank you to you, esteemed shareholders, for your ongoing support and patience. We are firmly committed to restoring our profitability in line with pre-acquisition levels. As we do that, I'm convinced we will create value for all stakeholders in the communities where we live and work. Thank you very much.

Thank you, Sergio. I ask Markus Baumann to provide information on the attendance.

Good morning, and a cordial welcome to Lucerne. Check of the tickets revealed the following: There are 1,620 shareholders and the independent proxy you elected present in the room. In total, you represent 1,974,651,962 votes -- voting rights. This accounts for 79.2% of all registered shares at a par value of USD 0.10. Pursuant to Article 689 of Paragraph 2 of the Swiss Code of Obligations I hereby announced the following. The independent proxy represents 1.965 billion. Let me begin again 1,965,510,354 votes and shareholders in the room represent 9,141,608 votes. We are keeping a constant tally of these figures.

Thank you. Well done. Before we start with the discussion of the individual agenda items, I would like to inform you on behalf of Mr. Zeltner, the independent proxy that he informed the Board of Directors last Monday, an aggregated form about the voting instructions received. This brings us to the individual agenda items. I will present the first 3 agenda items one after the other, then open the discussion on these agenda items, and then we will vote on all 3 items in 1 voting process. . We start with agenda item 1, the approval of the UBS Group AG management report and consolidated and stand-alone financial statements for the 2024 financial year. As usual, the detailed annual report for 2024 is available on our website. The reports of the statutory auditors, Ernst & Young Limited for the 2024 financial year are included in the financial information and do not contain any reservations. We continue with Agenda Item 2, the advisory vote on the UBS Group AG compensation report for 2024. Dear shareholders, compensation remains a subject of significant public interest. The feedback we received from our shareholders about compensation-related topics is very important to us. We are committed to maintaining a strong link between the interests of our employees and those of our shareholders. Our compensation philosophy focuses on balancing performance with appropriate risk-taking retaining talented employees and supporting shareholder loans. In 2024, we continued to receive overall positive feedback from our shareholders and our compensation framework and we have retained it broadly unchanged. It aligns compensation with the execution of our strategy, sustainable performance and the delivery of our integration goals. In addition, we have embedded clear commitments to fair and consistent pay practices in our compensation practice policies, pay equity and the equal opportunity are fundamental to support our strategy, we pay for performance, and we pay equity seriously. At the last AGM, I highlighted that we will never pay what U.S. banks pay and indeed, the differences have increased significantly further in 2024. But I also made it clear to the Board and I are responsible to do everything to make UBS successful and ensure long-term competitiveness and attractiveness including for the CEO position. As last year, I will provide further comments on the compensation topics ahead of the respective agenda items want to again address 1 subject already now the CEO compensation. When the Board determines the compensation of the group's CEO, it considers multiple factors. This includes the financial performance, the achievements against nonfinancial objectives and behaviors. For 2024, the Board recognized Sergio's strong and effective leadership and his continued excellent performance. This includes delivering the highly complex integration of Credit Suisse in line with very ambitious plans and achieving a strong financial performance. Under his leadership, we completed over 4,000 integration milestones in 2024. All of these efforts supported our ability to capture almost 60% of our targeted cost savings of USD 13 billion by the end of 2024. At the same time, he successfully positioned the organization for future growth with investments in our people, products and capabilities. Last year, I told you that Sergio's compensation was in the basis -- was awarded on the basis of full year award. This is in light of the fact that we came in a very critical moment in the history of the bank and delivered outstanding results from day 1. His award this year is in line with last year. With this, we have once more proven that we live up to our statements and commitments. We continue with Agenda Item 3, the advisory vote on the UBS Group AG Sustainability Report for 2024. Dear shareholders, in 2024, we made further progress in advancing our sustainability and culture agenda. We have done so based on our commitment to further evolving UBS' culture as well as our continued ambition to be a leader in sustainability. Our progress was recognized in our first fully consolidated sustainability ratings following the acquisition of Credit Suisse. MSCI, as I said earlier, reaffirmed our AA rating. S&P increased our global corporate sustainability assessment score and CDP confirmed that UBS continues to be in the leadership band on climate. We are proud of the very practical and tangible results achieved as is evidenced by selected facts and figures, which are displayed behind me. We support our clients in the transition to a low-carbon world and consider climate change risks and opportunities across our bank for the benefit of our clients, shareholders and all our stakeholders. We made key progress on key components of our climate action plan, reducing our firm's direct and indirect net greenhouse gas emissions and energy consumption. We also remain committed to our lending sector decarbonization targets to address our financed emissions in specified sectors and have progressed on these. The say on nonfinancial reporting brochure that is published on our website, provides you with a summary of nonfinancial matters, including environmental matters, social concerns, employee-related issues, the respect for human rights and anticorruption measures. More information can be found in the UBS Group AG Sustainability Report 2024, which can also be accessed online on our website. Dear shareholders, I herewith open the discussion on Agenda Item 1, 2 and 3. I would ask speakers to keep to a maximum speaking time of 5 minutes. The time pieces are installed to keep an eye on the time. I will take 3 questions as I did last year and then answer individually to each of those questions. The first speaker is Mr. Fredrik Donker, please.

Good morning, ladies and gentlemen. Mr. Chairman of the Board of Directors, distinguished Executive Board, distinguished shareholders and distinguished UBS employees. I am standing here as a representative of the Employee Association of the UBS. It was founded last year, when merging the representation of the UBS employees and the representation of the Credit Suisse and for your presentation. So we've also done some steps of integration to be able to be united here as employees in Switzerland. I'd like to thank all that have contributed to this effort. It was 2 years ago that I was here and said the financial work has changed significantly since March '19. And again, a lot has changed. The UBS has developed well in a challenging environment and is making rapid progress with integration. Despite this positive development, the cost pressure within the company remains high and the speed of integration is quite fast paced. The challenges have not diminished. And the workload remains quite high in some areas. Employees really do go the extra mile. In addition to this continued high workload, the emotional tensions are also running high and are very palpable. These observations are causing great concern for the personnel representation of UBS, which is why it is all the more important that UBS actively promote a healthy working environment for its employees. Not only to promote the health of the employees but also to ensure that any errors that could cause high cost could be avoided. This creates a good working environment in which everyone can give their best. Another positive aspect is that we at UBS have a good internal social partnership, and we do have a fair prudent social plan that is valid until the end of 2026. In the context of restructuring, we work well with the employer. In many cases, we're able to find good solutions. In 2024, many of the open positions were filled with internal candidates as the employer relies on internal recruitment, which we strongly support. This really demonstrates the great commitment of the personnel representation and the colleagues in the HR department, who have worked hard to achieve this, and I'd also like to thank them and express my sincere gratitude at this point. I'd also like to thank the external social partners. On this path of integration, the Swiss Bank Employees Association, the Swiss Association of Commercial employees as well as the employers in banking for their support on this path. The cooperation between the internal and external and social partnerships is very well executed. Integration is always also a cultural achievement. It takes time and patience to develop a shared sense of togetherness and which all colleagues feel equally at home and at ease. Many teams are already successfully working hand in hand. And employees are achieving milestones together. This is thanks to the great commitment of both our colleagues from UBS and former Credit Suisse. They've been and continue to deliver first-class performance in the best interest of our clients. Nevertheless, these teams do not grow into 1 unit overnight. Behind every desired synergy effect are people who support these changes. This is why integration should always be designed with people in mind with clear information, training and a sympathetic year for concerns. The employer has a responsibility here to actively and socially support employees in this process of change. Ladies and gentlemen, in his open letter, our CEO emphasized the strong partnership between UBS and Switzerland. Many people in Switzerland, especially families, are connected to Switzerland's third largest private employer in many different ways. They rely on the 3 cross keys from UBS. And UBS is therefore expected to continue to perform a large portion of its work in Switzerland in order to offer attractive, sustainable jobs and support Switzerland social systems, amongst other things, with the aim of employing staff until their regular retirement age whenever possible. Swiss society and politicians will have to decide whether they want to bear the risk of an internationally competitive UBS and the associated gain in prosperity. And this decision will determine whether many thousands of jobs are created and retained in Switzerland in the long term. Maybe this is another important point of interaction between UBS and Switzerland. This diversity is a living thing. For this reason, we advocate equal opportunities for all employees at all levels and support for families. We don't just play in the Champions League. We play at all levels and in mix teams, because diversity is not just sports in that sense, but it's also an integral part of UBS. Ladies and gentlemen, we have to take great care in shaping this integration process. This includes maintaining the employability of all employees by creating sustainable jobs at UBS in Switzerland, especially in view of major new challenges such as artificial intelligence, then a responsible approach to the restructuring measures involved in the integration. Every job lost is painful. Restructuring and the associated job cuts must continue to be carried out with caution, respect and in favor of long-term necessity. UBS should continue to focus on filling advertised positions with internal candidates wherever possible. And let us also ensure a healthy working environment that takes into account the well-being and health of our employees and let us take care of our employees, particularly in these hugely challenging times and show them our appreciation. So thank you because we all know, banking is people. Thank you for your attention.

Mr. Kaufman from Ethos, please.

Dear Mr. Chairman, dear members of the board, dear shareholders, I speak today on behalf of the Ethos Foundation and many Swiss pension funds representing a community of long-term institutional investors of UBS committed to responsible ownership, sustainable finance and sound governance. As responsible shareholders, we support an integration of Credit Suisse that leads not only to a bigger bank but a bank that is better governed, more sustainable and more accountable to all stakeholders. In light of its new size, it is actually important that the mistakes of the past are not repeated. UBS total assets now represent more than 1.7x the Swiss GDP, a new bailout by the Swiss Confederation or any other state becomes de facto impossible. We, therefore, expect that the Board will act with all due care in 3 key areas. First, it shall limit excessive variable remuneration to avoid triggering behavior, focusing solely at maximizing the beneficiaries on wealth and not the long-term interest of shareholders and stakeholders. Second, it shall stop buyback programs to reinforce the core equity and limit the risk-weighted asset of the investment bank. Third, it strengthens the bank's commitment to sustainability. So that UBS plays a more active role in shifting the capital flow towards a much-needed energy transition. Regarding executive compensation, it has already conveyed its main concern last year. First, the massive possible leverage of the variable remuneration is not aligned with the interest of the long-term shareholders. It potentially leads to excessive remuneration and risk taking. Second, shareholders vote today on an undervalued total amount of remuneration. The bonus paid in equity is arbitrarily set at only half of its potential value. Furthermore, the interest rate paid on the bonus deferred in the deferred contingent convertible plan is not included in the remuneration figures nor in the remuneration budget on which we are voting today. Despite of the fact that the interest could represent 5 million over 5 years for the 15 members of the management. We have 3 questions regarding compensation. Will the Board submit in 3 years a new proposal in case the realized remuneration vest above the 50% value of the equity requested today. Second question, why is the interest rate on the so-called DCCP plan paid, not included in the remuneration package that we are voting today. And third, how does the Board substantiate that 800 employees the so-called risk takers, received a variable remuneration of CHF 1.1 billion in 2024, which corresponds actually to a bonus of CHF 1.3 million per person on average and to 25% of the total variable remuneration pool distributed to the 100,000 employees. We urge the Board to reform the remuneration policy by reducing the weight of variable pay. And meanwhile, we recommend you dear shareholders to refuse all our remuneration-related items at today's AGM. Regarding capital, in the context of intense political discussion, requesting today a share buyback in excess of CHF 3 billion seems to be a provocation. As long-term risk investor, we remember very well, not only the recent collapse of Credit Suisse but also the financial crisis 2008, taking UBS to the brink. Returning capital to shareholders may be appealing to artificially support capital return ratio. Later metric being also part of the executive compensation. Yet given UBS mainstay in wealth management and the green geopolitical risk, we consider long-term financial stability key to the bank's long-term success. Now it's a time for strategic caution, reserving capital for stability should take precedence. Therefore, we consider capital restriction inappropriate and urge the board to stop its buyback activities which only benefits the variable remuneration of the executive and short-term investors. Sustainability. You base in sending the wrong single when postponing the net zero operational target, waiving the diversity program and diluting its exclusion criteria for investment into weapons, for instance, while still providing capital and facilitating investment activities of high polluters. We ask the Board to restore the credibility of UBS' climate strategy by providing much more transparency on the finance emission by respecting the PCAF recommendation. Furthermore, UBS shall introduce strict criteria to limit fossil fuel exposure and adopt a fossil fuel exclusion policy aligned with the 1.5-degree pathway. Dear, shareholders, in conclusion we would like to remind about that trust is earned through transparency, discipline and long-term accountability. The success of this new UBS must not be measured only in scale, but also in how responsible it serves its clients, employees, shareholders and the stability of our country. I thank you for your attention.

Thank you. [ Mr. Arthur Albrecht, ] please.

Ladies and gentlemen. I think UBS has become a risk. If you believe the press, UBS doesn't know -- want to know anything about higher capital requirements. The bank has believed that competitiveness could be at stake. The bank is considered to be too big to fail. But nobody in the C-suite of UBS seems to be interested in that. So it's alarming because we know that a major bank can get into trouble very quickly. The demise of Credit Suisse has demonstrated that speculation too small provisions and excessive salaries and bonuses have triggered the demise of Credit Suisse. Bonuses were paid even when the bank reported high losses. And UBS wants to do the very same. They don't want to have further provisions and are paying far too high bonuses and salaries to the top managers after having acquired Credit Suisse at a rock bottom price. Now if UBS is going down the drain, the state cannot possibly rescue it. This would destroy the credibility of the Swiss financial industry. So it is absolutely necessary to raise capital requirements. It is alarming that they even are even launching a share buyback program that triggers the shrinking of capital. If the bank is going to move to another country, why shouldn't they do it? The Swiss clients can leave the bank without paying taxes or charges right away. And I think it would be for the Swiss government to protect the Swiss banking clients. I don't want to have to transfer to an American-based or a Singapore-based or a Dubai-based bank. As a forced UBS clients, I was struck that Mr. [ Mortis ] salaries to be paid by excessive fees and charges. Credit Suisse debit cards were used at all ATMs in Switzerland without charges. Now UBS penalizes the use of non-UBS ATMs with CHF 2 and the renewal of a mortgage is CHF 300. If you think that this process only takes 5 minutes, this really amounts to an hourly wage of CHF 3,600. And this service was free of charge at Credit Suisse. I'm asking myself whether this is in a breach of contract. In a company takeover, existing contracts have to be adopted, have to be taken over. I wasn't informed by the massively excessive fees, and I haven't agreed to any change of contracts. It is high time for salaries and bonuses to be capped to CHF 2 million. Furthermore, in the business reports, the number of meetings of the Board of Directors and their duration need to be listed. And of course, we need to have competitive elections. What's the use of filling vacant positions with just as many candidates? We could do without the votes and elections because everyone will be elected anyway. I would like to ask you, dear shareholders, to say no on compensation and no on the share buybacks and don't vote for any of the members of the Board of Directors. It is my opinion that UBS is breaching existing contracts with its regulations on fees and charges. I would have to be let go from all the contracts without having to pay anything and I would be ready to sell my shares. Should this not be possible, I reserve the right to speak again at the next Annual General Meeting. I hope to get an answer soon without having to ask back several times as it has been the case up to now. Customer service looks different than that. This is the end of my statement.

Thank you very much for those questions. Mr. [ Duncan, ] thank you for your ongoing collaboration and partnership. You raised some very interesting points. The challenges of AI, in particular, are preoccupying us, and we take into account what you're saying to us and we continue to engage with you on these emerging topics. So thank you for that. Mr. Kaufman, Question one, shareholders vote on the awarded amount, reflecting the 50% long-term incentive plan value, which is aligned with the accounting value and the cost to shareholders. The final value realized is based on long-term performance and metrics as disclosed, which may actually result in a 0 value. It's not just one-way traffic. Question two, the interest on DCCP reflects the market environment and is comparable to returns in similar AT1 instruments. Similar to the long-term incentive plan, we vote today on awarded compensation. The interest will only be earned in the future as disclosed. On question three, financial services is a highly competitive marketplace for talent. And in order to support a sustainable organization, we must pay competitive compensation to all our employees. Now every year, we review market developments as well as review our compensation framework for competitors to support our business. We also consider shareholder feedback in all our reviews. As regards the size of UBS, UBS, I think comparing the balance sheet of UBS to GDP is a false indicator. It is about the nature of our balance sheet and the revenue and low-risk characteristics of our balance sheet that matter, which make us considerably different to Credit Suisse. I personally find the comparison of us to Credit Suisse as insulting. We are a very different bank with a very different model. In terms of size, Switzerland is punching above its weight. Switzerland is the 20th largest GDP in the world. UBS is the 20th largest bank. They are correlated. So I think in that sense, we're quite reasonable. And Mr. Albrecht, I take your questions. Clearly, I disagree with some of your points, but you are entitled to those views, and we've heard them here. I suspect that you will be coming back next year to ask the same questions. So thank you very much with that. What I would like to do now is to -- and I've been ticked off by my Company Secretary. We have [ Skiya ] from [ Peterland ] coming up, and I would ask Mr. [ Stefan Zurflu ] to get ready for the next question, if that's okay. So -- Yes, please.

Mr. Ermotti, CEO of UBS. Ladies and gentlemen, members of the Board of Directors of UBS, ladies and gentlemen, shareholders of UBS. It's a special honor for me to speak on behalf of the European brass music organization and to address a few words to you. Allow me to say a few words on the Federal Music Festival 2026 in Biel-Bienne. After the unexpected cancellation at the end of November 2024 by the Organizing Committee of EMF '26, the Bernese Politician [ Nadia Guor ] has taken over the presidency of the Chairmanship of the Organizing Committee of the new Federal Music Festival 2026 and has taken only 14 months to organize the event, musical tradition meeting the future. Your personal commitment to the EMF 2026 in Biel. The EMF Europe Federal Music Festival, EMF 2026 is the largest brass music festival in Switzerland, the most significant worldwide. It takes place every 5 years. It's a highlight of Brass Music, where thousands of musicians visit, 60,000 in total, from all parts of Switzerland and from all age groups in Switzerland. The original place was Interlaken that was selected. But in November 2024, the organizing committee there unexpectedly and handed over -- handed back its mandate to the Swiss Brass Music Association. With a great deal of courage and a lot of passion and a deep sense of tradition, the new organizing committee has taken up the challenge to organize the EMF 2026 at the watchmaking place of Biel-Bienne. The objective is to provide musical diversity and a high degree of quality, but also to set a clear sign, demonstrating that brass music is an integral part of Swiss cultural heritage. It deserves to be maintained and to be led in a future with pride. Switzerland is a place where tradition is practiced and the EMF, the Federal Music Festival 2026 is a unique opportunity to take care of cultural values and pass them on. At the same time, we are creating space for youth to re-trigger enthusiasm for brass music, while people from all generations and all -- from all walks of life will gather to celebrate music and being together in Biel-Bienne. 511 brass music associations have already signed on more than 25,000 musicians and several tens of thousands of visitors will come to Biel and around 1 million persons interested in the festival will be watching this unique event in Switzerland. There will be a diversity of language and cultures and promotion of cohesion in Switzerland. It's an event of this size. However, it can only be organized by major financial support, including from UBS. Please bear in mind that the last EMF in 2016 took place 10 years ago in Montrose. We invite you as an institution and as individuals, we invite you cordially to actively support the organizing committee of the EMF '26 as a partner and to be part of an unforgettable and unique event and brass music spectacle that will emotionally involve Switzerland. The Swiss broadcasting company, SRG SSR has already agreed to transmitting the EMF '26, and there will be live coverage by radio and television. Popular music shows on Swiss TV will cover the EMF in Biel-Bienne, giving the event nationwide media coverage. It won't take a lot longer. The organizing committee, the helpers, the city of Biel-Bienne and the entire region are looking forward to this great festival to design it to carried out on the weekend from 14th to 17th of May 2026 to see you for 4 days. It's a huge festival that requires major financial support in the amount of CHF 2.4 million. I'll be there for answering your questions. Currently, it's not easy to find the support money. And after the AGM, I'll be personally available for you to have a debate with you and to provide information to you on this unique project and to discuss with you potential sponsoring. You will find further information and my address at [ emf26.ch ] for any queries you may have. Thank you very much for your attention, your interest and your very appreciated support. I hope I will also hear from Mr. Ermotti. Thank you very much.

I think we finally got the question. Mr. Ermotti, do you want to respond now?

As you know, we are very committed in Switzerland in sponsorships and cultural and sporting events. We're talking about triple-digit figure in the millions that we invest for such events in the field of music. We are also working, sponsoring the festival of Lucerne, which we've done for several years. And all I can say is, well, you gave me your address. My e-mail address is [email protected], and you can certainly submit a request. But we're already pretty committed in terms of sponsoring, but we look into all possibilities, and we want to keep committed in this regard. Thank you very much.

So Mr. [ Zofu ] please and could Mr. [ Rothlisberger ] make himself ready for -- after this.

Good morning. Outdoors we see the sun shining, and I'd like to ask you to just come outside and play some music. I'll pack up my guitar and I'll then leave because you know what, I'm not being paid by UBS. I don't want any money from UBS, but I am here to advocate for the public space. Public space cannot -- must not have a price. I know a building that is owned by UBS. I actually have filed a claim. I was rejected many, many times. I had to find over 1 year to now be able to have a decision taken by an arbitrator. The UBS is a bit like a camp commander. I have a song on this actually -- I could sing the entire song, actually have 5 songs prepared regarding these different topics that I think are problematic the -- for instance, ownership is very difficult. It's not transparent. But in the end, it's always a fun, some sort of funds of -- the wealthy. And the people just blindly accept that the entire country will at some point be owned by UBS. We could have the power, but it is a cult today. The media is just trying to get people to sleep and I'd say you have to take action. We have to take action. Then the next song is about leaving rich people be. They are just askers of rich people. That's what the Swiss do, slaves of the system. And I'm tired of it because I'm also trying to advocate for more fairness and justice, but most people don't care. I know you don't want to hear any music. I know most of you don't appreciate music and you only care about money. And the country, Mozambique was ruined by Credit Suisse. I mean, you can't come and argue with me about this, about Mozambique. The people in Mozambique are screwed. They are starving because of Switzerland, because of Credit Suisse and UBS took on that debt. And you only think about your stupid dividends, sorry, period. And the next song is called crazy. Mr. Ermotti, he had compared his salary to artists, but is he an artist? Or is he just a bureaucrat? Is he really creating something? And people criticizing me. I mean, I ask the question, do you really create something? It's easy to be loud and just talk. So should I be seeing now for which verse, all of them, 1, 2, 3, 4, I should stop. Okay, but just come outside with me. You can argue with me outside. But just shut up for now period. So the sound crazy. And yes, just stay here sitting in this hall, the sun is waiting outside. I have a couple of points that I've addressed. I know Mr. Kelleher, Mr. Ermotti will not respond. I already know that. They will just leave it be, not take on this criticism, but I now I leave this deplorable AGM, and thank you for your applause.

Thank you. Mr. Rothlisberger, please, then if Mr. Lutz could get ready. Thank you.

Yes. It's difficult to be standing here in this moment, but I'm still actually -- I'm happy, and I'm glad that I have the possibility to be here, and that is not to be taken for granted that is Swiss democracy. And then I'd also like to express my gratitude for the fact that Mr. Ermotti lives in Switzerland, and he pays tax in Switzerland and actually I don't live too far away from him. And I know he's actually a good person. And I know he gets along well with the people in Ticino. However, I do have a small point that is something that really worries me. The statement I heard just now on June 12, two years ago, what you said, yes, you're implementing that. You're doing that well, of course. And I'm just taking a little break. Let's just have a -- I have a black tie because I'm warning Credit Suisse, and let's just take a minute and warn that. Thank you. I'm not going to wait for an entire minute actually, but I just wanted to take that moment. But now on the topic of UBS, Credit Suisse was taken over. That really is disownments, public disownments. And UBS is yes, doing buzz thing possible, and there's no way back. I'm aware of that. However, so far, we've spent CHF 1.5 billion or even more to deal with litigation with Credit Suisse, creditors or shareholders and those 1.5 billion just wasted money, I reject that. I can't accept that, can't accept the financial statements. But yes, there is no way back. Credit Suisse is debt for good. And I am very sorry about that.

Thank you. Mr. Lutz, please?

I'm Martin Lutz. I'm Martin Lutz, Export Manager of Bulach, Canton of Zurich, Mr. Chairman, Directors, male and female, members of the Executive Board, dear shareholders, dear guests, greed is the route of all evil. It is in the Bible. I am one of the 10,000 of victims who were former Credit Suisse shareholders, the offer of the Chairman of the Board wasn't even pathetic and it was highly unfair. Dozens of pension funds lost millions and the same goes for 10,000s of shareholders. Now I'm clear that the value of CHF 32 billion, of course, not the full amount could have been given away, but 50% to 60% would have been appropriate. The Chairman of the Board has a different nationality. Thank you very much for your kind attention.

Well, thank you very much. There's not a lot to answer on those questions. I would just repeat one thing, UBS is not Credit Suisse, UBS cannot be compared to what happened at Credit Suisse. UBS runs a very different model to the model Credit Suisse rank. But thank you very much for your trust. With that, we move to the next agenda item. So Mr. [ Nicholas Gutzman, ] only I have from [ Actares. ] You would come up, please. Thank you.

Ladies and gentlemen, I'm Nicholas Gutzman, representative of [ Actares ] at this general meeting. [ Actares ] is an association of individual shareholders, committed to a dialogue with companies to make sure that they operate sustainably and responsibly. [ Actares ] has 3 questions on UBS's climate policy. And one question on the CEO's salary. First question. Fossil energies and rethinking of your strategy. You mentioned that your risk management in connection with sustainability and climate was not substantially changed in 2024 despite the development of climate change. Given the challenges of climate change, and given the urgency to take action, the question is, will you rethink when will you adjust your policies regarding the exclusion of fossil fuels such as carbon, LNG and mining projects in the Arctic to drive ahead the energy transition. Second question, refusal to impose the clients' durable strategy. Several players in the financial industry have introduced restrictions on the funding of harmful projects. So they even refuse to finance certain projects related to fossil fuels, UBS; however, says that they do not impose any restrictions regarding sustainability to their clients. Why are you refusing to take similar measures to suppress or limit investment in harmful projects? And how are you going to comply with your ESG commitments? Thirdly, postponement of the net 0 objectives and revision of commitments UBS has postponed their net 0 goals from 2025 to 2023, citing the Credit Suisse acquisition is the main reason. In addition, the objective of using 20% of assets under management in relation with net 0 by 2023 has been removed. Are you losing interest in climate goals? Do you think that your current objectives will be sufficient to achieve your climate-related goals? Or are you ready to adjust your goals again? Final question about the excessive paid to the CEO, given the loss reported at Credit Suisse. Mr. Chairman, a number of clients, employees and Swiss taxpayers were affected by the demise of Credit Suisse. Don't you think that the amount of CHF 14.9 million or 285x the median salary in Switzerland paid for Mr. Ermotti is indecent and not in line with social responsibility that UBS actually has today. Will you introduce a clear salary cap for the years to come? [ Actares ], thank you for your attention.

Before we move on to the other agenda items, Mr. [ Gushman, ] let me reemphasize our commitment to supporting our clients in the transition to a low-carbon world and that we have significantly reduced our exposure to fossil fuels. We take our commitments seriously as evidenced by, for instance, our strong sustainability and climate risk policy framework with clear minimum standards. As I noticed in my speech, our climate targets reflect a realistic view of geopolitical and regulatory developments, and let me reemphasize that we have made good progress in 2024. On CEO pay, the total compensation of our CEO reflects his continued excellent performance in 2024. We have delivered on our financial ambitions and in many cases, exceeded market expectations. In the past, I have said that the morality of pay is a discussion for elsewhere. We are a commercial enterprise and have a responsibility to our shareholders and the Board represent the pay paid to our CEO, having listened to those shareholders. One thing I do want to point out is that forfeiture -- furthermore, 80% of the CEO compensation is deferred and is at risk of forfeiture for up to 5 years. Restricted pay caps in future years, as described in our compensation report, we have several payor performance safeguards for [ GEP ] members, compensation, including a maximum incentive of 7x base salary. As noticed previously, each year, we review our compensation framework for effectiveness in the context of the market we operate in to support our business. We move to the next set of questions. I'm going to begin with [ Ms. Fruwd ]. old and then if [ Ms. Konganarat ] could get ready, please. Thank you.

Thank you. Dear Board members and shareholders, my name is [ Johanna Fruwd, ] and I'm asking this question on behalf of ShareAction. I would like to ask whether UBS will commit to improving the ambition and granularity of its sustainability finance strategy to support its decarbonization aims. It is positive that UBS stated in its latest annual report that for Scope 3, you remain committed to your lending sector decarbonization targets. In addition to these targets and fossil fuel finance restriction policies, UBS should now set a robust and ambitious sustainable finance targets at the overarching and sector level. In a recent letter to the CEO, Mr. Ermotti, ShareAction highlighted that bank's current decarbonization and sustainable finance targets rarely complement each other and are disconnected from their impact on the real economy. Disappointingly, ShareAction didn't receive a detailed response to their recommendations to UBS even following publication of the bank's latest disclosures, which was in contrast to most of your peers who responded fully. In the letter, ShareAction highlighted that UBS previously set a target to facilitate 100 green, social, sustainability and sustainability-linked bonds deals in 2024. And the bank reported this year, it ended up making 96 deals. It was not clear how UBS came to this figure nor exactly how this bond facilitation strategy was meant to support its wider decarbonization aims. UBS now has an opportunity to devise a more granular and ambitious strategy. UBS should set an overarching ambitious sustainable finance target, which is grounded in a clear robust methodology, disclosing how it is quantified relative to the bank's decarbonization commitments or credible scenarios. It should also set sectoral targets to underpin an overarching sustainable finance target, starting with renewable energy. Peer bank PNB Paribas demonstrates leading practice in this area. The bank aims to have renewable make up at least 66% of its power generation portfolio and electric vehicles at least 25% of its automotive portfolio by 2025. BNP Paribas underpins both the sectoral targets by the IEA net zero emission scenario consistent to its decarbonization targets. Now that your bond facilitation target has expired, will UBS commit this year to set an overarching sustainable target and one specifically for the renewable energy sector underpinned by a credible climate scenario. And maybe if I may ask to be a bit more concrete on these questions.

Thank you very much. [ Ms. Konganarat ], please.

Dear Board members, shareholders and fellow attendees, my name is [ Mandal Konganarat. ] I come from Thailand, and I speak to you today, not just as concerned individual, but also on behalf of communities across Asia who cannot be here yet whose lives are being shaped by the decision made in this room. I speak for the fishermen in Batangas, the coastal families in Rayong and the farmers in East Java. I speak for the women who rise before dawn to gather shell fish to feed their families, but now return home with empty baskets. I speak for the children who are forced to leave school because their families can no longer afford it. All because the waters they once relied on have been polluted and the land they lived on has been taken for fossil gas infrastructure. And I raised my voice for many others who are still waiting, anxious, uncertain because new gas projects like LNG import terminals and power plants are being planned across Asia. These communities fear they will suffer the same fate, losing their livelihoods, their health, their future, all in the name of energy that serve others but cost them everything. To you and to banks like UBS, these projects may be just numbers on your balance sheet, but for those living with the consequences, they mean real loss and real destruction. We are also deeply concerned about the conduct of certain companies that continue to receive significant financing and investment from UBS. There has been report from human rights organizations, highlighting traveling patterns, including the use of legal actions against civil society members who speak out about corporate activities. UBS has publicly committed to align with the Paris Agreement to reach net zero by 2050 and to finance a more sustainable world. But these commitments are difficult to reconcile with the continued investment in fossil gas projects across the region from the Philippines to Thailand to Japan and beyond. Through your financing companies that push gas expansion across Asia, you are enabling this damage. You are financing fossil gas dependency of some of the most climate vulnerable country on earth. And you are helping to lock them in, in decades of emissions, price volatility, stranded assets and suffering. Gas is not a bridge fuel. If anything, it is a bridge to destruction. What Asia truly needs is renewable energy. And on their behalf, I ask with the urgency and dignity that they deserve that you choose a different path, one rooted in justice, in sustainability and also through accountability. And before I close, I would like to leave you with 3 important questions. First, what is your investment strategy in the energy sector for Asia? Will you be taking concrete steps to phase out fossil gas investment in the region? Second, are you still committed to the Net Zero Banking Alliance? And finally, how do you engage with companies that are still expanding fossil fuel business? And is there a date where UBS will be refusing to provide any financial services to coal and oil and gas developers?

Thank you very much. I have addressed our decarbonization approach before. With regard to setting sustainability-related targets, we have clear governance in place to determine, including the Board's Corporate Culture and Responsibility Committee, which I chair. The governance is already clearly set out in our sustainability report. I do not, however, make any forward-looking statements on which targets we arrive at in our comprehensive process. I've addressed decarbonization. I don't think I can add to what I've said. Our strong governance is also applied to sustainability-related memberships, specifically on the Global Banking Alliance, we are still a member. We know that all the American and Canadian banks have pulled out. We're waiting to see what the revised charters are for these associations. But we need to ensure that such memberships do support our strategy. We have to place a regular and rigid process for reassessing our membership of these associations. That also includes an active role on the Board of those associations. As these associations evolve, we will carefully consider how we align with their goals and targets. Let me finally reemphasize our client focus in sustainability matters. We support our clients, including, of course, in Asia, in understanding the impact of climate change in their business models, their supply chains and their investments, including risks and opportunities. And what I would also specifically say is madam where you have specific evidence that there are bad actors, you will all edge who we are financing, we need to hear from you on that. So let's substantiate these things so we can follow up. We take this very seriously. With that, we're going to have Mr. [ Bartolini ] followed by [ Ms. Dacanay ] and then [ Mr. Garrigues, ] please. So [ Mr. Bartolini? ]

Thank you. Dear Board members, dear shareholders, ladies and gentlemen, good morning. My name is [ Bartolini Florian, ] and I am a marine biologist working with Geneva Ocean Academy, an organization dedicated to raising awareness among the Swiss public about the impact on the ocean and fostering admiration for the marine environment. Today, I'm here to speak on the behalf of those who cannot. The countless species whose futures are threatened by irresponsible investments. Last year, at your last AGM, my colleague, Mr. Katz, stood before you and asked a straightforward question to Mr. Kelleher. Why does UBS have a biodiversity charter for terrestrial environments but none for marine ecosystems? Mr. Kelleher replied by pointing to UBS' biodiversity statement, which claims to highlight the company's commitment to marine conservation aligning with the United Nations Sustainable Goals 14 and 15. And I must say it's admirable to see financial giants like UBS embrace these recommendations. Protecting life below water and on land is essential for sustainable development, and it's good to know that UBS recognizes this; however, and forgive me if my economics knowledge is a bit rusty, but aren't we literally defining here a bad investment by pouring resources into something unsustainable. You see UBS' investments in offshore oil platforms in the Philippines, in the Verde Island passage, the most biodiverse marine area per square meter on the planet seems to contradict this very commitment. Destruction of such vital ecosystem will not only tarnish UBS' reputation, but also pose severe ecological and social consequences. Without healthy oceans, humanity simply cannot survive. And I'm pretty sure no one's life goal is to be the richest corps in the century. So I stand here, not just to question your intentions, but to encourage a reflection. Is the short-term gain truly worth when it is done at the expense of the very environment that supports life itself. And so why is UBS and therefore, Switzerland still investing in such a devastating industry. Now the world is watching, and it's not just about environmental responsibility. It's about the future we are choosing to invest in. Thank you.

Thank you. Thank you very much [ Ms. Dacanay ], then [ Mr. Garrigues, ] please.

Dear Board members and shareholders, good day. My name is Angelica, and I come from the Philippines representing the Protect Verde Island Passage network. And I am seeking your attention. This is my third visit in Switzerland, and it has been very impressed by how beautiful your country is. But the more I see the beauty of this country, it stands in a stark contrast, knowing that these people who are here may not fully grasp or perhaps even disregard the impact of the financial decisions that you do on the lives of the Filipino people [indiscernible] away from here in which I call home. I speak to you again today, not only about the situation of the Verde Island passage, but about a broader issue where your investments are demonstrably affecting communities far beyond your borders. This is not my first time at the UBS AGM, I was here last year. And yes, we have been engaging with you, UBS, and shared evidences -- solid evidences that there are bad actors that are investing in the Philippines. UBS, you are the sixth largest European financier in Southeast Asia of fossil gas. With these investments totaling to 574 million, you are actively fueling environmental destruction in our region through different fossil fuel companies such as PT Pertamina in Indonesia, Tenaga Nasional in Malaysia, San Miguel of the Philippines and Gulf Energy of Thailand. Key biodiversity areas such as the Coral Triangle and the whole marine ecosystem of Southeast Asia is under threat. Your financial support for these gas projects outweigh many of the benefits that you perceive when weighed against the devastating costs to our climate, environment and the people. The situation in the Philippines and the VIP or the Verde Island passage serves a clear case for this destruction. Fossil gas is neither natural nor a clean energy source. It is not the answer to a genuine energy transition. Instead, gas projects are causing significant harm to our people, our oceans and the environment. Furthermore, gas is a risky business and a risk that will eventually extend to your own interest. For clients such as the Philippines San Miguel Corporation, which still persists in its plans to expand coal operations, this demonstrates a lack of commitment from such companies to an energy transition in the Philippines and hindering our progress of energy transition. Despite the significant success of renewable energy in the Philippines, San Miguel remains absent in this development. Based on your policy, companies who generate greater than 20% of their revenues from thermal coal generation are excluded. Does this apply to all of your clients? What data do you use for your coal share of revenue? And what date will you finally phase out coal financing? Given the specific companies within our portfolio are actively expanding fossil fuel operations, both coal and gas, I ask you what concrete measures and actions are you taking to address this? Lastly, how do you think you would be able to live up as to what you've written in your report that UBS is a bank for society, went behind UBS financial transactions or harming people in the environment. Thank you for your attention.

Thank you very much [ Mr. Garrigues, ] please. I apologize, [ Father Garrigues. ] Thank you.

Thank you. Good morning. I'm Edwin Garrigues. I'm a Catholic priest, and I'm representing the Protect Verde Island passage network. I have traveled all the way from the Philippines, specifically from my home province in Oriental Mindoro, which is part of the Verde Island passage or VIP. This is a marine biodiversity corridor where countless individuals, mostly fisher communities depend on its rich marine biodiversity for their livelihoods. This very ecosystem is now under threat and the decisions made within this room directly contribute to this peril, impacting the lives and livelihoods of our people. This is not the first time that we have come to you about Verde Island passage. But despite the discussions, you have continued your investment with San Miguel Corporation. This is the largest fossil gas expansion in the Philippines. But the environmental and climate damage continues to escalate. Every day, Filipino Fisher folk and coastal communities that rely on Verde Island passage are increasingly affected. And this global biodiversity hotspot is alarmingly being threatened due to fossil gas proliferation funded by your investment in San Miguel Global Power. In the 77th session of UN Commission on economic culture and social rights, the plight of the communities affected by the impacts of fossil fuel business in Verde Island passage was specifically mentioned as an alarming issue to be addressed. Now Verde Island passage has become a global issue. UBS is huge, very powerful, a formidable financial institution yet it must be said with moral urgency. The suffering of our poor communities and the destruction of our marine ecosystems in the Philippines must never be the prize for your pursuit of greater profit. When I received the Goldman Award in 2012, I categorically stated and I also again state, protecting the rights of the poor must take precedence over corporate greed. Channel development must prioritize the need to ensure ecological sustainability over market profitability. We should never sacrifice people and the environment for the short-term benefit of the few. As of November 2024, we have information that the total UBS investment in San Miguel Global Power is USD 16.3 million. This gas project in VIP being supported by our investment undermines the Philippines' promising energy transition. The Philippines has a renewable energy potential that aligns with the 1.5 centigrade goal -- 1.5 centigrade goal. In a particular case, the government-led renewable energy auctions have already totaled 15 gigawatts, equivalent to half of our current national installed power capacity. Therefore, I ask the Board and the shareholders, how can you justify your continued investment in fossil gas and renewable energy is demonstrably viable, rapidly expanding and it presents a better option for the people and the climate.

Thank you, [ father, Garrigues. ] [ Mr. Dahlman ] could get ready and I'll answer these questions. Let me, first of all, thank [ Mr. Bartolini ] for recognizing our commitment to including nature and biodiversity-related matters in our processes, including in our sustainability and climate risk policy framework. We will continue to explore ways to develop nature-related products and solutions in our wealth and asset management businesses. While for our financing clients, we include nature considerations alongside other topics as part of our ambition to be a sustainable finance partner of choice. With regard to the Verde Island passage matter, I'm glad to note that you, [ Ms. Dacanay ] and [ father, Garrigues ] in your delegation will be discussing your concerns with us tomorrow. Let me reemphasize our strong approach to decarbonization. With regard to the specific matter that you both raised, as you know, we cannot comment on any actual or potential client interactions or relationships. However, looking at the available figures, your allegation that UBS is a top investor in the company, we believe, is wrong. But nevertheless, we are obviously discussing these things with you tomorrow. With that, can we have [ Mr. Dahlman, ] please?

My name is [ Ulf Dahlman, ], I'm an independent investment adviser, and I have a few questions. I want to get started with sustainability. Zurich Insurance, I found out the same question. One person in the Board and the Executive Committee came here on the train. And I would know whether we can beat Zurich Insurance. How many persons sitting up there have come here by car? How many have taken the bus or the train? Next question on AI. Wonderful subject matter, highly exciting, will keep us on our toes for a long time, but AI requires a lot of power. All the computing centers consume as much power as entire countries. How about power consumption we have due to the use of AI. It's good to produce it ecologically, wind and solar, but the best power consumption is the one that we don't have in the first place. That would be for us to protect the environment better than transferring sources of energy. Another question I have is the rise of personnel cost. I think we went up 15% from CHF 24 billion to CHF 27 billion. If I saw that properly. I would like to know why such a high increase and what the details are. This brings us to salaries. On salaries, I have a question. If I take all the variable compensations and add them up, how much is that and compare to profit? Because in my opinion, variable compensation should be a small amount, a small share of profit. If we pay more in terms of variable compensation, then we have profit or a high share of the profit, then there is no balance. Variable compensation should be profit sharing because of good work. But what's the real situation? And I mean all of UBS, all the people there, not only the ones represented on stage. As far as the high salaries for the persons on stage is concerned, I mean it sort of a dilemma. If Mr. Ermotti renounced on his salaries in total, and we would be paid out as a dividend to us. I mean it would be ridiculous. It's not really relevant how much he's getting. I'm happy for him to do a good job. But at the same time, some other -- Chairman of the Board of another company said, well, there is a risk. What happens when salaries are so high that the general population fails to understand it. One of the previous speakers said that we have this Minder initiative, the referendum on executive pay and somebody asked for it to cap salaries of CHF 2 million. That's not good because we would have problems being profitable with this company running it in Switzerland. So we always have to watch the balance. How much do we need to draw good people, qualified people and how do we balance it to the rest of the compensations salaries. Let me also say a word about capital requirements, the money that we need to have determined by FINMA and others. Well, it's going to hurt us. And of course, our return is going to go down if we have to have more capital, that's correct. But at the same time, I say I don't want to be like American bank that doesn't have enough equity. I want to have a solid basis and use it as a marketing tool and say, people, if you bring your money to UBS, it's going to be safe. So what FINMA and the Swiss government are planning, yes, it's going to hurt. But at the same time, it's going to increase the strength and solidity of UBS. And that's why I'm saying, even if I don't want to have that much capital, I think it would be good and reasonable. And my ultimate question, and then I'll be through. How about cost/income ratio. What's the detail? We've become better. We were at 95% the year before, and now we're at 87%. Do we want to remain at 70%? Or do we want to be even more profitable? So what would be your desired ambition for 10 to 25 years from now? Do we want to focus on 5 years only? And the final request I have, it's great to see in the business report when the lead auditors are exchanged, but maybe you could tell us how long we've had EY. I haven't been able to find it just at a quick glance. Thank you very much.

Well, thank you very much for that. Your question gives me a good opportunity to emphasize our strong approach to reducing our environmental footprint also with regard to travel. We have, for instance, strengthened our reporting to provide comprehensive insights into travel-related emissions to measure and manage our travel footprint. We have also to give another example, updated our travel policy to encourage employees to offer eco-friendly transportation options wherever possible. All in all, in 2024, our travel volumes for the integrated organization were substantially below the UBS-only pre-pandemic levels of 2019. With regard to artificial intelligence, our development and deployment is underpinned by our commitment to responsible innovation and long-term sustainability. And whilst you're absolutely right that a large degree of power is used in computation, a lot of these will be replacing other processes which are even more intensive in resource allocation. Let me end with the general comment on our firm's electricity consumption. We want to source 100% of the electricity we use from renewable sources by 2026. I'm proud to say that for 2024, we were at 99.8%. Your question on why personnel expenses increased. Total personnel expenses disclosed increased by just under 10% due to the inclusion of Credit Suisse employees for the full year in 2024 versus the partial year in 2023. And what is the ratio of variable compensation to profit -- based on the underlying figures is disclosed for 2024, the group performance award pool is circa 40% of profit before tax and before the performance award pool. Please note that profitability is an important metric, where we do not have a strict formulaic approach. This ratio reflects the businesses and industries we operate in. Thank you. Are there any more questions? We'll come back to you on EY and their length of service. I don't have that at the top of my head, but we will come back to you on that. Since no further speakers have registered, I close the discussion on Agenda Items 1, 2 and 3. Thank you for those questions. Thank you. I ask Markus Baumann to briefly explain our voting device before our first electronic vote.

Esteemed shareholders. As soon as a new ballot is open, the screen will automatically switch on. The touch screen will then dim after 3 minutes and will after that completely turn off. You can by pressing the red button on the side or touching the screen, turn it on at any time under the language symbol, you can change the language. And under the symbol my vote, you can see the way you voted on the individual agenda items. And under the info symbol you can call up your personal shareholder information and see how many votes you represent. Shortly before a ballot, the relevant agenda item is displayed on your televoter. If you touch the green area on the screen, you vote yes, by pressing the red area, you vote no. And by pressing the yellow area, you abstain. As soon as you have made a choice, this is confirmed by a vibration of the televoter. The selected area is then also marked with a tick and the unselected areas are dimmed. If you advertise pressed the wrong button, made the wrong selection, you can correct your vote within the voting time by directly selecting another area or another button. Once the voting time has expired, you can no longer correct the votes cast. After the ballot is closed, you'll see on the screen the choices you've made.

Thank you. We proceed to the votes on Agenda Items 1, 2 and 3. Agenda item 1. The Board of Directors proposes that the management report of the 2024 financial year and the UBS Group AG consolidated and stand-alone financial statements for the 2024 financial year be approved. Agenda Item 2, the Board of Directors proposes that the UBS Group AG compensation report 2024, be ratified in an advisory vote and Agenda Item 3, the Board of Directors proposes that the UBS Group AG Sustainability Report for 2024, be ratified in an advisory vote. Thank you.

I now open the ballot on agenda items 1, 2, 3, which we will conduct in one go. The voting time of 12 seconds starts now. [Voting]

The time is up in a few seconds will see the results displayed on the screen behind me. You can see from the results displayed 99.3% of votes were in favor of the approval of the report -- management reports and the financial statements and consolidated financial statements. And you've seen the consultative vote 86% and 89% in favor of the compensation report and the sustainability report effectively.

Approved all 3 motions of the Board of Directors. And as always, we will study these votes. We continue with Agenda Item 4, and the appropriation of total profit and distribution of ordinary dividend out total profit and capital contribution reserve. The course of the business for 2024 is described in detail in our annual report, and the CEO has provided a summary in his address. The appropriation of profits proposed by the Board of Directors can be found in the invitation to the AGM. On this base, the Board of Directors proposed an ordinary dividend of USD 0.9 in cash per share. This distribution has to be made in equal parts from the total profit and from the capital contribution reserve. I will open the discussion on agenda Item 4. We have 2 questions scheduled. Mr. Rothlisberger again; and Mr. Neil after him, please.

Ladies and gentlemen, I think I don't just represent the voices of the very small shareholders. I think there are also many other voices amongst us from institutional shareholders or the 14% that we just saw cast or vote earlier. I believe that the UBS received a gift 2 years ago from Credit Suisse or from the government on the CHF 200 million in dividends that weren't paid out at the time. We're only 5 per share, but still it adds up to CHF 200 million more or less. So I feel like this year, we could do 60% to maybe 61% of that profit that could be paid out, then we would reach about CHF 1 dividends. And then talking in Swiss francs, not dollars, CHF 1 per share, I think that would be very nice, a nice gesture by UBS. I will refrain from formulating an official motion because I'm very aware that, that would be rejected by those who don't know that I'm currently presenting or would be presenting that motion. However, I'd like to really remind the Board of Directors to not forget about that gift and to, at some point, give back. So don't silence shareholders forever.

Thank you.

Good morning. My name is Franco [indiscernible]. I'm from Winterthur. We don't need a large bank or more specifically, not a large bank, but a strong bank. A large bank, well, there was a large bank in the '90s. Rainer E. Boot at the time, Head of Credit Suisse participation in First Boston, they wanted to go that path, and I thought that was a bad idea. So I sold my Credit Suisse shares. So I believe that the Americans are just an obstacle and I think today, these times prove that. Just before Credit Suisse went bankrupt, I had bought shares of Credit Suisse in the hopes that the banks would be saved, but for reason unbeknown to me, that did not happen. I lost over 50% of what I had invested and the U.S. really made a big bargain. I am willing to just take 80% of the suggested dividend and to reduce that by 50% as well. And I hope you have a wonderful day.

Well, thank you very much. I think we can close the discussion there, and we proceed to the vote on agenda item 4. The vote is the Board of Directors proposed to allocate USD 1.436 billion of the total profit of UBS Group AG for 2024 of $2.994 billion to the voluntary earnings reserve. The Board of Directors proposes in addition the distribution of an ordinary dividend of USD 0.90 in cash per share of USD 0.10 nominal value, half from the total profit and half from the capital contribution reserve.

I now open the ballots. The voting time of 10 seconds starts now. [Voting]

The results will be displayed on the screen behind me shortly. As you can see from the results displayed, we have yes votes amounting to 99.77% in favor of the suggested appropriation of profits and the distribution of ordinary dividends.

Thank you. The AGM approved the motion of the Board of Directors. We proceed to agenda item 5, the discharge of the members of the Board of Directors and the Group Executive Board for the 2024 financial year. The Board of Directors proposes that the discharge be granted to the members of the Board of Directors and the Group Executive Board for the 2024 financial year. The discharge resolution for the '23 financial year excluded all members of the Board of Directors and the Executive Board of Credit Suisse Group AG for conduct prior to the 12th of June 2023. That exclusion was necessary due to the merger with UBS Group AG in 2023, accounting for uncertainty surrounding the Credit Suisse crisis and ongoing reviews. Since the merger was completed in '23, there is no need for such exclusion in the 2024 financial year. However, this does not affect the exclusion from the discharge for the 2023 financial year and this exclusion remains effective at the general meeting adopts the discharge resolution as proposed. The names of the person who sat on the Board of Directors or the Group Executive Board of UBS Group AG in the 2024 financial year and whose discharge will therefore be voted are now displayed. I opened the discussion on Agenda item 5. There are no questions table for agenda item 5. So with that, I close the discussion, and we'll proceed to the vote on Agenda Item 5, the effective members of the Board of Directors of the Group Executive Board of UBS Group AG are excluded from this vote. The motion is that the Board of Directors proposes that discharge the members of the Board of Directors and the Group Executive Board for the 2024 financial year be granted.

The voting is open. Countdown begins now. [Voting]

The results will be projected will be shown on the screen shortly. As you can see from the results on the screen, 96.1% of the votes are in favor of the Board's proposal.

The AGM has approved the motion of the Board of Directors. We proceed to Agenda Item 6, the reelections and elections of the members of the Board of Directors because the term of office of members of the Board of Directors is 1 year, all members who make themselves available for a further term of office must be reelected. I would like to thank all colleagues who are standing for reelection. Before we get to the reelections, I would like to say goodbye to 2 colleagues. Claudia Böckstiege, who was elected to the Board of Directors 4 years ago and is not standing for reelection today. On behalf of the entire Board of Directors, I would like to thank her for her collaboration and distinguished service to our firm. During her tenure on the Board of UBS, Claudia was a member of the Corporate Culture and Responsibility Committee, which she has contributed significantly to the sustainability efforts at UBS. Nathalie Rachou who was elected to the Board of Directors 5 years ago and is not standing for reelection today. On behalf of the entire Board of Directors, I would like to thank her for her precious cooperation and dedication to the Board, but also to the Risk Committee, the Governance and Nomination Committee and the Audit Committee, all of which she's made a significant contribution. We will now briefly present all members of the Board of Directors who are standing for reelection. The detailed CVs and mandates in listed and unlisted companies held by members of the Board of Directors standing for reelection can be found in the Corporate Governance section of our Annual Report 2024. We will then proceed directly to agenda item 7 and then open the joint discussion on agenda item 6 and 7. Okay. I asked Lukas, our Vice Chairman to conduct the procedure for my reelection as member of the Board of Directors and the same time as Chairman of the Board of Directors. Lukas?

Esteemed shareholders, ladies and gentlemen, Colm Kelleher's term of office expires at today's Annual General Meeting. He is prepared to continue to stand for this office as Chairman of the Board of Directors. Colm was elected Chairman of the Board of Directors of UBS Group AG 3 years ago. If reelected, he would remain Chairman of the Governance and Nominating Committee and the Corporate Culture and Responsibility Committee. The Board of Directors is delighted that Colm is willing to continue in his capacity as Chairman of the Board of Directors. He has done an excellent job over the past 3 years, and we therefore recommend his reelection.

Thank you, Lukas. We're here with proceed to agenda Item 6 2, the reelection of Lukas Gahwiler. Lukas was elected 3 years ago after his reelection, he would be reappointed as Vice Chairman and remain a member of the Risk Committee and the Governance and Nominating Committee. Agenda Item 6.3, the reelection of Jeremy Anderson. Jeremy was elected 7 years ago after his reelection, he would remain chairperson of the Audit Committee, a member of the Governance and Nominating Committee. Agenda Item 6.4, the reelection of William Dudley. William was elected 6 years ago, after his reelection, he would remain a member of the Corporate Culture and Responsibility Committee and the Risk Committee. Agenda Item 6.5, the reelection of Patrick Firmenich. Patrick was selected 4 years ago. After his reelection, he would remain a member of the Corporate Culture and Responsibility Committee and the Audit Committee. Agenda Item 6.6, the reelection of Fred Hu, I apologize, Fred is quite ill at the moment and could not travel here. He was elected 7 years ago. After his reelection, he would remain a member of the Governance and Nominating Committee. Agenda Item 6, 7 the reelection of Mark Hughes. Mark was elected 5 years ago. After his reelection, he would remain Chairperson of the Risk Committee and a member of the Corporate Culture and Responsibility Committee. Agenda item 6.8, the reelection of Gail Kelly. Gail was elected 1 year ago and to her reelection should remain a member of the Governance and Nomination Committee and be newly appointed as a member of the Compensation Committee or election to the Compensation Committee is on the agenda under Item 7.3. Agenda Item 6.9, the reelection of Julie Richardson. Julie was elected 8 years ago after her reelection, she will remain Chairperson of the Compensation Committee and a member of the Risk Committee. Her reelection to the Compensation Committee is on the agenda under Item 7.1. Agenda item 6.10, the reelection of Jeanette Wong. Jeanette was elected 6 years ago. After her reelection, she would remain a member of the Audit and the Compensation Committee for reelection to the compensation is on the agenda under Item 7.2. We finally proceed to item 6.11 and 6.12, the elections of Renata Jungo Brüngger and Lila Tretikov. The Board is pleased and proud to dominate Renata and Lila, who will bring very valuable experience. As a general counsel and leading global firms, coupled with extensive nongovernance and sustainability on the one hand and profound expertise in digital topics, including AI and cybersecurity on the other hand. Renata was born in 1961. She is a Swiss citizen. Lila was born in 1978 and as an American and French citizen, both CVs are uploaded in the invitation to the AGM. The Board of Directors intends to appoint Renata as a member of the Corporate Culture and Responsibility Committee and to appoint Lila as a member of the Audit Committee. I would now like to hand over to Renata, so she can briefly introduce herself to you. Renata the floor is yours.

Ladies and gentlemen, dear shareholders, despite we said, I'm very pleased to have this opportunity today to present myself to you. At the moment, I am a member of the Board of Mercedes-Benz Group AG in Stuttgart and I'm in charge of integrity, governance and sustainability there. The unit, the department there includes legal and compliance organizations and internal audit, data protection and coordination of all sustainability-related issues around the world. I grew up a near free bore in the Western part of Switzerland, went to Grammer school there and studied law at the University of Freeborn in 2 different languages, and I became a lawyer of the Canton of Fribu. Following this education, I transferred to Zurich and started my business career in a renowned law firm. We say in a corporate lawyer in managing positions in various internationally active businesses. Now the big change was in 2011 when I was hired by Daimler, and Chief Counsel, and in 2016, I was appointed member of the Executive Committee, the second woman in the history of this company of Daimler AG and the first Swiss. At the end of October of this year, I will step down from the Mercedes-Benz Group Board after almost 10 years, and we'll be happy to live in Switzerland, again, work in Switzerland again and perhaps get the chance to go to the mountains. I would say, as a legal person, I have broad base of knowledge and experience that I gathered in international companies. And as a long-standing management member in the automotive industry, I think in the past few years, I've been involved and challenged in a variety of areas and have to cope with difficult and highly challenging situations. Since 2017, I've been a member of the Supervisory Board of Munich Re, and I've always been a member of the Personnel and Compensation Committee. And since the last AGM 2024. I've been the Chairwoman of the Compensation Committee. Now with all this experience. I would like to contribute to my activity that contribute to the work of the Board of Directors and of course, with a great deal of responsibility, and I'm willing for your trust. Thank you very much.

Thank you, Renata. I would now like to hand over to Lila so she can briefly introduce herself to you. Lila, the floor is yours. Thank you.

Good afternoon. Esteemed Board members, UBS employees, all shareholders, the Chairman. It is an honor and a privilege to address you today. UBS stands as an iconic global institution, trusted and respected worldwide with legacy build on strength, innovation and adaptability. Isolux tends far beyond finance. It is a leader shaping global economic landscapes, influencing industries and setting standards of excellence. I could not be more proud to contribute to this legacy, and there is no more critical time than today. We stand at a cost of an unprecedented technical era marked by rapid scientific breakthroughs, particularly in artificial intelligence. We expect AI to have impact greater to that we've seen with the advance of the Internet itself. And we are already seeing it transform industries, redefine competitive landscapes and reshape the future of finance. Adopting this effectively will not only streamline operations, but profoundly enhance customer trust and value. Over the decades, my career as CEO and CTO of iconic brands have been dedicated to technological transformation and its impact on industries, economies and people. Most recently, I was Deputy CTO at Microsoft, where we were the first technology leader to recognize and execute on the importance of AI as innovation. I led the group that TKI out of the laboratory and turn it into the product. Prior to that, I was the CEO of terawatt subsidiary organization to ENGIE, one of the largest power providers in the world, and that organization was responsible for energy transition and decarbonization. And prior to that, I led Wikipedia, which is the organization in charge of Wikipedia, the largest information website on the world for disseminating public knowledge to everyone globally. I have also been a member of numerous private and public boards participating in audit and compensation committees and am currently on public boards, and Xylem. I have guided organizations through significant technoeconomic shifts, leveraging cutting-edge developments to deliver sustainable growth and strategic advantage. I am grateful to the opportunity to bring this experience and insights to UBS and help us lead in technology, risk management and customer engagement reinforcing our position in the financial world. I am grateful for an opportunity to support the journey at this important junction of integration and securing not just our competitive edge, but our leadership role in Global Banking. Thank you.

Thank you Very much, Lila. We now proceed to agenda Item 7, the reelections and elections of the members of the Compensation Committee. The Board of Directors proposed that Julie Richardson and Jeanette Wong be reelected and Gail Kelly be elected as members of the Compensation Committee for a term of office for a year. I would open the discussion on the reelection, election of the members of the Board of Directors as well as members of the compensation committee, but we have no questions. So with that, I close the discussion and we've received the votes on the agenda item 6 and 7, I'll start with the votes on agenda Items 6.1 to 6.12. The Board of Directors proposed that Colm Kelleher, Lukas Gahwiler, Jeremy Anderson, William C. Dudley, Patrick Firmenich, Fred Hu, Mark Hughes, Gail Kelly, Julie G. Richardson and Jeanette Wong, each of whom whose term of office expires with the conclusion of the 2025 AGM be reelected and that Renata Jungo Brüngger and Lila Tretikov, be elected for a 1-year term of office. I ask Markus to explain the voting procedure.

With the televoter, we will carry out a new and reelections of the Board of Directors in one voting process. All the names of the members of the Board of Directors standing for election and reelection will now be displayed on your televoter screen. The 12 members of the Board of Directors are divided over a total of 4 screens on your televoter. You can use the arrow at the bottom right to get to the next side or the arrow on the left to go back. Those arrows will continue to flash until you have made all selections on the previous and next screen pages. Since we will be dealing with 12 individual votes the voting window will remain open for 40 seconds, and the voting period starts now. [Voting]

While time to vote is up, the ballots closed. And in a brief moment, we'll see the results displayed on the screen behind me. As you can see on the screen here, we have, in a large majority confirmed the proposals by the Board of Directors.

The AGM has confirmed all members of the Board of Directors standing for reelection and me as Chairman and elected Renata Jungo Brüngger and Lila Tretikov as new members of the Board of Directors. I congratulate all members on their election, and I'm pleased that we will continue to support the Board of Directors in the future. Prior to this AGM, the reelected and newly elected members of the Board of Directors informed me that they would accept their reelection and election in the event of a positive vote. We can now proceed to the items, Agenda Items 7.1 to 7.3. The Board of Directors proposes that Julie G. Richardson and Jeanette Wong be reelected and Gail Kelly be elected for a 1-year term of office as members of the Compensation Committee at its constitutional meeting, the Board of Directors intends to reappoint Julie G. Richardson as Chairperson of the Compensation Committee.

We will also conduct this election in one voting round in one go. So as soon as voting time is open, the 3 people standing for election or reelection will display on your televoter screen. The voting window will remain open for 12 seconds, and the time is running now. [Voting]

The results will be displayed on the screen shortly. As you can see from the results displayed on the screen, you again approve the proposals by the Board of Directors by a large majority.

The AGM confirmed Julie Richardson and Jeanette Wong and elected Gail Kelly as members of the Compensation Committee. I congratulate all 3 members on their election, and I'm pleased that you will continue to support the Compensation Committee in the future. Prior to this AGM, the reelected and newly elected members of the Compensation Committee informed me that they would accept their reelection and election in the event of a positive vote. We now proceed to Agenda Item 8, the approval of compensation for the members of the Board of Directors and the Group Executive Board. For the following 3 compensation votes, I refer to the compensation report 2024 of UBS Group AG and the supplementary brochure say-on-pay that was published on our AGM website. In both reports, the total compensation amounts to be voted on are explained in detail. We will first cover and discuss all 3 compensation votes and only then vote individually on all 3 total compensations in a single vote. After these introductory remarks, we begin with agenda Item 8.1, the approval of the maximum amount of compensation for the members of the Board of Directors from the 2025 AGM to the 2026 AGM. The proposed maximum aggregate amount of compensation for the members of the Board of Directors of CHF 15 million for the period from the 2025 AGM to the 2026 AGM is a CHF 1.5 billion lower compared with the previous period, driven by a far lower spend for subsidiary Board fees. The UBS Group AG Board fees for all just reelected and elected members of the Board of Directors remain the same as in the previous year. We continue with agenda Item 8.2, the approval of the aggregate amount of variable compensation for the members of the Group Executive Board for the 2024 financial year. The proposed GEB performance Board pool of CHF 114.2 million reflects the financial performance of the firm, the significant progress with the integration of Credit Suisse and also the changes in GEB composition during 2024. Overall, the GEB pool increased by 1% compared to the adjusted 2023 GEB pool. We proceed to agenda Item 8.3, the approval of the maximum aggregate amount of fixed compensation for the members of the Group Executive Board for the 2026 financial year. The Board of Directors proposes a maximum aggregate amount of fixed compensation for the members of the Group Executive Board of CHF 32 million for the 2026 financial year. The proposed amount is CHF 1 million lower compared with the approved amount for 2025. This reduction is driven by the elimination of role-based allowances for U.K. regulated GEB members. The proposed amount includes the GEB-based salaries and a reserve that offers flexibility with regards to potential changes in the composition of the roles of the Group Executive Board. The reserve also covers other factors, for example, exchange rates for example, changes in exchange rates or benefit. I now open the discussion of the approval of compensation for the members of the Board of Directors and the Group Executive Board. The first and only speaker is Mr. Guido Rothlisberger, please.

Please allow me to speak to you one last time today. So we see CHF 15 million for the Board of Directors in 1 year. So that corresponds more or less 30 salaries of member of executive government in Switzerland a year. So as an average that we have here and what that means per person, well, we don't see that. And this is really just provocation. And it is difficult for people who have to work hard for their money and maybe make up to what, CHF 0.25 million. I mean -- and I'm mentioning actually, this is a salary that's far from what I've ever earned. But even for these people, and in this context, I'd like to also talk about the variable compensation of the Executive Committee. Here, we see the figure of CHF 114 million and a fixed compensation of CHF 32 million. So the variable compensation is about 3.5x higher than the basic salary. So that would mean that a manager actually would have to work 12 to 14 hours a day times 3.5. So I don't think I ever learned at school in math class, how that really fits into 1 day. And in, yes, we speak Italian. So it's not easy to understand that kind of math, right? So it's just some sort of provocation towards the people. And what about policymakers? What are we expecting of policymakers? Are they the ones who tell us how much money we're allowed to make? Wouldn't it be appropriate to be reasonable today? Let's just be reasonable. The infamous Swiss reason, let's not copy what the U.S. does. I mean not everything coming from the U.S. has to be a good thing. I think a lot of people would agree. And I think here, it would really be good to call upon Swiss values. And again, just be reasonable. The Board of Directors, well, I think CHF 7.5 million a year would be enough. And when it comes to the Executive Committee, I think including bonuses that doesn't surpass the 100%, then I would say CHF 31.5 million, just under the CHF 32 million you mentioned. So that just as food for thought, maybe you can take this into account, can discuss this seriously on the Board. And then I think you'll have a lot more happy people on Swiss Streets.

Thank you very much for those comments. The Board will certainly deliberate on them. I think we've explained our compensation strategy before. With that, I will close this discussion down as there are no more questions. We proceed to the vote on agenda items 8.1 to 8.3. 8.1, the Board of Directors proposes that the maximum aggregate amount of compensation of CHF 15 million for the members of the Board of Directors for the period from the 2025 AGM to the 2026 AGM be approved. Item 8.2, the Board of Directors proposes that the aggregate amount of variable compensation of CHF 114,185,176 for the members of the Group Executive Board for the 2024 financial year be approved. And the Board of Directors 8.3 proposes that the maximum aggregate amount of fixed compensation of CHF 32 million for the members of the Group Executive Board for the 2026 financial year be approved.

We're going to vote on these 3 agenda items in one single round. As soon as the voting time is open, the 3 compensation votes will be displayed on one screen page of your televoter. The voting window will remain open for 12 seconds. Voting time is on now. [Voting]

Results are going to be shown on screen in a minute. As you can see from the figures on the screen, vast majorities have approved the Board's proposals.

The AGM approved the motions of the Board of Directors. We continue to Agenda Item 9, the reelections. We start with agenda Item 9.1, the reelection of the independent proxy, ADB Altorfer Dos and Bastein AG Zurich for a 1-year term of office expiring after completion of the AGM in 2026. In accordance with Article 15 of the Articles of Association, the AGM elects the independent proxy. The Board of Directors proposed the reelection of ADB Altorfer Duss and Bastein AG Zurich as independent proxy for a further term of office of 1 year. ADP Altorfer Dos and Bastein AG Zurich has confirmed to the Board of Directors that it has the independence required to exercise its mandate. Agenda Item 2, 9.2, the reelection of the auditors, Ernst & Young Limited Basel for the 2025 financial year as auditors for the consolidated and stand-alone financial statements of UBS Group AG. With Ernst & Young, we have a professional and efficient partner who fully meets the high requirements of a global financial company. The long-standing partnership has the decisive advantage that Ernst & Young is familiar with the structures, products and services of our company and can exercise its control function in an accordingly effective manner. In response to a question earlier in this meeting, I can confirm that Ernst & Young has been our statutory auditors since 1998. Ernst & Young confirmed to the Audit Committee that it has the independence required to perform its mandate. I open the discussion on items 9.1 and 9.2. There are no questions. So with that, I close the discussion and we proceed to the vote on agenda items 9.1 and 9.2. The Board of Directors 9.1 proposes that ADB Altorfer Duss Bastein AG Zurich be reelected as the independent proxy for a 1-year term of office expiring after the completion of the AGM in 2026. And 9.2, the Board of Directors proposed that Ernst & Young Limited Basel be reelected for the 2025 financial year as auditors for the consolidated and stand-alone financial statements of UBS Group AG.

We're going to vote on these 2 agenda items in a single round. As soon as the voting time is open, the 2 items will be displayed on screen of your televoting device. The voting window will remain open for a period of 10 seconds. Voting time is on now. [Voting]

Bear with me until the results are shown on screen. As you can see from the results on the screen, 99.8% have approved reelection of the independent proxy and 89.8% have approved reelection of the auditors.

I congratulate Altorfer Duss & Beilstein AG and Ernst & Young AG on their reelections. We continue with agenda Item 10, the ordinary reduction of share capital by way of cancellation of shares repurchased under the 2022 Share Repurchase Program. The 2022 Share Repurchase Program was concluded on the 28th of March 2024 with a total of more than 298.5 million shares repurchased at an overall purchase price of USD 5.2 billion. The average purchase price was USD 16.78 per share. More than 178 million shares purchased were repurposed for the completion of the merger between UBS and Credit Suisse. The remaining 120.5 million shares are now proposed for recancellation and a corresponding reduction of the share capital. On 5th of February 2025, the call to creditors was published in the Swiss Official Gazette of Commerce. No creditors have come forward, which is why Ernst & Young Limited as auditors have prepared a special audit report confirming that despite the capital reduction, all claims of UBS Group AG's creditors are covered. I would open the discussion here, but there are no questions. So with that, I will close the discussion and we proceed to the vote on the agenda Item 10. The Board of Directors proposes that: one, UBS Group's AG share capital will be reduced by USD 12,050,600.80 from USD 346,208,772.20 to USD 334,158,171.40 by canceling 120,506,008 registered shares with a nominal value of USD 0.10 each, all of which are held in treasury; and two, the reduction amount be booked against the minus position for treasury shares.

The floor is now open for the vote. Voting time is running now. [Voting]

Bear with me until the results are shown on screen. As you can see from the results, 94.2% of the votes are in favor of the Board's proposal.

The AGM has approved the motion of the Board of Directors. I ask the notary, Mr. Marbach, to kindly certify the results of agenda Item 10. The Board of Directors will conduct a capital reduction and update the Articles of Association accordingly. We proceed to agenda Item 11, the approval of a new 2025 share repurchase program. UBS plans to repurchase $1 billion of shares in the first half of 2025 and up to an additional USD 2 billion in the second half. UBS intends to launch a 2025 share repurchase program of up to USD 3.5 billion over 2 years, starting immediately after completing the 2024 program, which began on the 3rd of April '24. I would open the discussion on this agenda item. There are no questions. So with that, I close that discussion and we proceed to the vote on agenda Item 11. The Board of Directors proposes the approval of the following resolution. The Board of Directors is hereby authorized to repurchase shares for cancellation purposes in an aggregate value of up to USD 3.5 billion over 2 years. Any shares repurchased under this authority are intended to be canceled by way of capital reduction, which will be subject to shareholder approval at one or several subsequent general meetings and the acquisition and holding of such shares are not subject to the 10% threshold for UBS Group AG's own shares within the meaning of Article 659, Paragraph 2 of the Swiss Code of Obligations.

The vote is open. Voting time of 10 seconds starts now. [Voting]

Bear with me until the results are shown on the screen behind me. As you can see from the figures on the screen, 93.5% of the vote is in favor of the Board's proposal.

The AGM has approved the motion of the Board of Directors. Dear shareholders, I would like to thank you for the confidence you placed in UBS Group AG and me by approving the proposals for the Board of Directors. The detailed voting results and today's speeches will be published on our website following this AGM. And within the next 2 weeks, we will also upload the short minutes of today's AGM there. The next AGM of UBS Group AG will take place on the 15th of April 2026, again in the St. Jacobs Hauler in Basel. Before I invite you to an appperoish, I would like to inform you with great appreciation that this was Markus Baumann's last AGM as Group Company Secretary, and he has decided to step down. On behalf of all members of the Board of Directors, I would like to thank you, Markus, for your tremendous contributions and dedication to UBS over the last 46 years. We wish him only the absolute best for his well-deserved retirement. Thank you, Markus. I now wish you lively conversations, a safe return home. And please could I ask you to hand in your voting devices. Dear ladies and gentlemen, I herewith close the Annual General Meeting 2025.