1. One of the key themes of the 2007 World Economic Forum in Davos is driving growth. How does your bank propose to drive growth in the coming year?
The financial services industry offers plenty of opportunities. UBS focuses on securing global leadership positions in wealth management, investment banking and asset management. These businesses have above-average growth potential and as UBS has significant scale in these areas it is in a position to concentrate on organic development and selected add-on acquisitions.
Most importantly, we have consistently invested in improving the quality of the advice we give to clients.
2. What are the main challenges facing the global economy in 2007 and how will your bank cope with them?
We have seen above-average growth around the world in 2006, and expect that in 2007 we will continue to see an overall robust global economy with selective slowing in the US and Europe. Of course, developments in the world’s financial markets – which remain an important driver in many of our businesses – are never fully predictable.
Our strategy is to concentrate on wealth management, investment banking and asset management, all on a global scale, as well as retail and corporate banking in Switzerland. Our even business mix as well as our very balanced global presence has helped our revenues become more resilient.
3. These days a global bank’s brand is one of its key assets. Can you describe your bank’s approach to managing brand value?
UBS has made the brand a key area of focus for the firm’s leadership. We are not referring here solely to monetary value but more to our brand’s ability to help us achieve our growth objectives. A strong brand attracts new clients and helps reinforce existing relationships; it is also a vital asset in our efforts to recruit and retain the best talent. These are among the most important cornerstones of our success as a business.
4. Climate change is now firmly on the mainstream political and business agenda. Can you tell us about any initiatives that your institution is taking on this or other environmental issues?
UBS considers the efficient and sustainable management of energy use and the reduction of its carbon-dioxide emissions to be important aspects of the firm’s corporate responsibility. In February 2006, UBS decided to set a carbon-dioxide emission reduction target of 40% below 2004 levels by 2012. UBS is a founding member of the Carbon Disclosure Project, which requires the world’s 500 largest listed companies to disclose information about their greenhouse gas emissions.
5. Bank chairmen and CEOs are natural optimists. What reasons do you have for being optimistic in 2007?
The global economy is strong without current danger of overheating. Inflation is not a pressing problem. A moderate correction in the equity markets is possible, but we do not fear a long-term bear market.
The main reason for being optimistic is our confidence in our long-term strategy. UBS chose the globally focused business model concentrated on selected growth areas which promise superior earnings.