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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Sergio, welcome back. How do you feel about returning to UBS at such a pivotal time.
It's great to be back and also having the opportunity, but also the responsibility to manage such an important moment for our bank but also for the Swiss Financial Center, and I would argue also for the global financial centers.
So today, we published our first quarter financial results. What are your initial reactions?
Well, first of all, a very good set of numbers despite a very challenging macroeconomic conditions, which put a lot of our clients on the wait-and-see attitude. So despite this $2.4 billion of pre-tax profits on an underlying basis and a 16.5% return on CET1 were strong results. We saw many clients moving into money markets and other form of liquidity.
But the good news is that the clients kept their assets with us. Actually, we saw very strong inflows across all geographies, which is very important for us to demonstrate that even in moments of tensions, including the last 10 days post the announcement of the CS acquisition, we have been seen by clients as a source of stability in the system.
And ultimately, also the fact that we were able to make very good progress and substantial progress in the resolution of a very old litigation matter in the U.S. makes me very happy with these results.
So as we think about the acquisition of Credit Suisse and our upcoming integration, what are your initial objectives and plans?
My initial objective is to as soon as possible to create clarity about the future operating model to make sure that we have a clear division between the process that is necessary to lead the integration and the fact that we need to continue to manage our day-to-day business on both sides, both the UBS and Credit Suisse. We need to stay very focused on serving our clients, preserve the value of the 2 franchises. We will not rush into any quick decisions. We need time. But I'm confident that this will be a great outcome for all our stakeholders.
What do you think are the biggest challenges as we move forward?
Well, the challenges are definitely the one of keeping the value of the franchises as intact as possible going into this transaction, keeping amalgamating the 2 culture, the culture of the 2 organizations. So not only what we do but how we do things. So I have no doubt that this is going to be a challenge, but also an opportunity. There are still many areas both in terms of product capabilities and also in terms of geographic reach, where we are extremely complementary. So I do think that at the end of the day, our clients will be better served. And in turn, our people will have an opportunity also to have a more interesting jobs and career path. But of course, things are going to be hard. It's not a straight line to success. And I'm pretty confident that we will be successful.
What about our shareholders?
For the shareholders, I think that this is something that will reinforce our leading position as the only truly global wealth managers. In asset management, we also create critical mass, getting very close to the top players and with very complementary offerings.
In the investment bank, while we want to reduce the overall percentage in the aggregates to below 25% of risk-weighted assets, we will have a more diversified business. In Switzerland, we have complementary offerings that can go together and clients reach. So if I look at every business, we will be stronger and better. We will generate more profits and our shareholders will benefit from that.
So Sergio, as we embark on this truly historic moment, what are you most excited about?
I think I'm excited that we can create something unique, really reinforcing our leading position as the only truly global wealth manager is a huge opportunity. I'm excited about in 3 years' time, 4 years' time to deliver on that and to be seen as a very successful and respected organization that all of us can be proud to work for.