"UBS is actively engaged in the parliamentary process on banking regulation in Switzerland to achieve a balance between financial stability and competitiveness," UBS CEO Sergio Ermotti said on Wednesday during a web call on the quarterly figures. "The priority remains protecting the long-term interests of shareholders, clients and employees and promoting sustainable growth."

Ermotti once again highlighted UBS's importance for Switzerland's economic strength, for example as a lender to companies and private households.

The ongoing parliamentary process on banking regulation in Switzerland is a decisive factor for UBS's future. "I'm convinced that as was the case in March 2023, we are once again in a critical juncture where the course for the coming decades will be set for the Swiss Financial Center," he said. "Septermber's outcome of the Council of States is very concerning."

UBS has done everything possible to seek dialogue and contribute constructively, with the aim of creating the basis for a "truly democratic process."

The latest proposal ignores concerns

"Our goal has been and remains to reach a solution that balances financial stability, taxpayer protection and competitiveness."

Unfortunately, even the latest proposal fails to strike this balance. It continues to disregard the serious concerns raised by the overwhelming majority of participants in the consultation. At the same time, capital requirements that are already among the strictest in the world, would be tightened exessively.

"Just as troubling is the failure to consider the consequences for our shareholders, who remain the first line of defense, in a period of stress, and whose critical financial support during the acquisition helped protect Switzerland's reputation and financial stability."

Long-term competitiveness must be preserved

The UBS chief said he would have considered a proposal under which foreign subsidiaries would have had to be backed by 50 percent equity to be more balanced. He declined to comment on possible consequences the bank might draw from regulations that are unfavorable to it and strict.

"We will continue to engage constructively in the hope that the Parliarment will reach a solution that supports the countrys financial stability without imposing undue costs aon UBS's shareholders, clients, and employees, and withoutimpactin its long-term competitive position."

The debate is attracting significant attention and leading to numerous speculations, opinions and requests for clarification from stakeholders.

"We do not intend to address everything, but on one topic we want to be very clear. For UBS, the top priorities to protect the long-term interests of our shareholders, clients, and employees around the world."