UBS’s Ermotti Warns of ‘Huge Change’ as Rate Reversal Hits Banks
- CEO joins peers in signaling pressure on net interest income
- Says he assumes ‘rates will stay lower for a longer period’
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UBS Group AG Chief Executive Officer Sergio Ermotti joined Wall Street peers warning that income from lending will come under more pressure after a sudden reversal in expectations for interest rates globally.
Even as Switzerland’s largest bank on Tuesday posted its best quarterly result in almost a decade, lower net interest income already weighed on its key wealth management unit. The investment banking business, meanwhile, was dragged down by a continued slump in trading.