Hello, gentlemen, good morning. Where do you think – how can you gauge the situation via-a-visthe regulators today? Would you say UBS is better, are people a bit more relaxed via-a-visyou? Do you have the feeling you can do more what you want to do? And via-a-visthe buffer, are you being able to effectively bring it down as much as you would want to? So overall temperature assessment really.
John Cryan
I’ve got lots of friends at the regulator.
Jacques-Henri Gaulard – Autonomous Research
I’m sure.
John Cryan
The liquidity buffer is really driven now by management’s best estimate of a reasonable stress scenario for cash outflow from the bank. So we’re doing it on the same basis as I imagine every other bank should assess its requirements for a liquidity buffer. And so although it’s higher than we would hope longer term, to have a buffer, that’s principally the result of the fact that we have no IFRS profitability which is weighing a bit on the bank.
Jacques-Henri Gaulard – Autonomous Research
Okay.
John Cryan
The client flows are less relevant because they are generally not in the form of anything on the balance sheet, client assets off the balance sheet. Although again, that must be a contributory factor just to the potential stresses on a liquidity buffer. As for relations generally with regulators, I think they’re fine although there’s a general change, I think, in the air in relation to capital and in relation to funding and liquidity supervision. And it was going to be one of the topics that I was going to address when I speak at the investor day in a couple of week’s time. Was just look at the whole regulatory capital debate, look at capital allocation for us and then gauge that in the context of the new funding liquidity requirements that are emerging.
But I don’t think in Switzerland, we have tripartite regulation with FINMA taking the lead with the Fed and the FSA. So we see all three of those regularly and I don’t think there’s anything happening in Switzerland that isn’t – that is particularly out of line with international standards. So no, I think it’s fine but regulations are tightening. So if you’re looking for returns of capital any time soon, don’t.
Jacques-Henri Gaulard – Autonomous Research
Okay. Thanks.
Philip Higson
Thank you. So I think we’re done for the Q&A, so that concludes the webcast of the third quarter results. If you’ve got further questions, please do speak with the financial communications team and of course, welcome you all back here for November 17. Thank you.
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