Good morning. Welcome everyone. Thank you for joining us at our 2022 investor deep dive. My name is Kinner Lakhani. I'm head of investor relations and group strategy and development. We're delighted to be able to host this year's event in person, and pleased to see so many of you here in the auditorium. A lot of familiar faces for me. Let me begin by giving you a quick overview of the format of the day. Our CEO, Thomas Gottstein, will provide some introductory remarks. As outlined in our agenda, this will then be followed by four deep dive presentations. David Wildermuth on risk management, Rafael Lopez Lorenzo on compliance, followed by Joanne Hannaford on technology, and then finally, Francesco De Ferrari will outline Credit Suisse's group aspirations for wealth management. We will then begin the live Q&A session, and we'll take questions from both the audience and on the phone, and the event is scheduled to end around 11:30 A.M. this morning. As we are presenting our second quarter results on July 27, I would ask that we leave earnings-related questions until then. Please note that slides are also available on the Credit Suisse Investor Relations app and on our website. Finally, before we begin, please note all the legal disclaimers in the presentation. Let me remind you of the important cautionary statements, including the statements on non-GAAP financial measures, forward-looking statements, and Basel III disclosures. For additional detail, please look at our investor deep dive presentation and the media release also available on the investor relations section of our website. With that, I would now like to hand over to our CEO, Thomas Gottstein, invite him onto the stage. Thank you. Thank you, Kinner, and good morning also from my side. Welcome to the Credit Suisse Investor Deep Dive today here in London. I'm delighted to be here with you, and thank you all for participating in today's event. This morning, you will hear from four of our newest Executive Board members. All four individuals have impressive track records and are playing a key role in our transformation. David Wildermuth, Joanne Hannaford, Rafael Lopez Lorenzo, and Francesco De Ferrari are core members of my Executive Board, which has been significantly refreshed and strengthened since I became Group CEO. Today, I'm particularly keen to showcase the progress we are making to strengthen our bank and to make a new Credit Suisse, one that we believe will be more resilient and unparalleled in serving clients around the world. First, David will show you how we are elevating our risk culture and our risk capabilities. Rafael will explain how we are making changes to help keep the bank safe through the effective and efficient compliance organization. Joanne will detail how we are engineering an exciting digital future. This will be the foundation that should allow us to sustainably grow our core businesses and to invest for the future, particularly in our world-class wealth management franchise, which Francesco will discuss with you at the end of this session. In November of last year, we unveiled a strategic plan that we believe will help Credit Suisse retain its unique position in global finance. Our promise was to strengthen and simplify the bank so that we could invest for future growth. As you will see today, we are underway in fulfilling that ambition despite facing numerous headwinds, including a very difficult macroeconomic environment and geopolitical environment, and markets that are less than favorable to our business mix. The fact that we have achieved so much already is a testament to our employees, who despite the challenging environment, relentlessly serve our clients with purpose and integrity around the world. Their efforts are earning the trust of our clients and restoring the faith of key stakeholders, all of which is central to the Credit Suisse turnaround story. Now let me quickly highlight some of the achievements we have made. At the start of the year, we simplified our operating model by launching our global wealth management organization and our Investment Bank division, as well as our unified technology and operations function. We strengthened the focus on our wealth management businesses by releasing, since the end of 2020, $2.5 billion of allocated capital from the investment bank. This represents 82% of our ambition of releasing $3 billion by the end of 2022, and we reshaped our investment bank by, among others, exiting from the prime services business. We are fully focused on our expense base and are accelerating our cost measures to further reduce the bank's adjusted operating expenses to the lower end of our previously communicated guidance of CHF 6.5 billion to CHF 17 billion in 2023 and 2024, down from around CHF 17 billion expected in 2022. This acceleration includes group-wide measures in technology, operations, procurement, as well as in other areas where our simplification approach will allow us to take excess capacity out of the business. At the same time, we have continued to invest in the future by hiring and attracting top talent, including roughly 50 relationship managers in wealth management in the first quarter 2022, and a similar number of managing directors in the investment bank since mid-2021. We are furthering our commitment to sustainability with roughly CHF 140 billion of sustainable assets under management in the first quarter 2022, up 22% from a year ago, while imposing additional restrictions on Arctic oil and gas, oil sands, and deep-sea mining. Sorry, all this transformation is taking place as the global economy and financial markets are adjusting to geopolitical upheaval, rising inflation, and higher interest rates. Credit Suisse has a strong capital base that will allow us to weather these headwinds, a fact recently highlighted by the Swiss National Bank in its financial stability report. Our CET1 capital ratio in the first quarter of 2021 was 13.8%, significantly higher compared to the 12.2% a year ago. Our near-term guidance is that we intend to operate with a CET1 ratio of around 13.5%, and our ambition by 2024 remains to be at least at 14% on a pre-Basel III basis. In addition to strengthening our capital position, in recent years, we have shifted significant parts of our capital from the Investment Bank to Wealth Management, the Swiss Bank division, and the Asset Management division. In 2015, these three divisions, Wealth Management, Swiss Bank, and Asset Management, accounted for zero point five times the capital in the Investment Bank. As per the end of the first quarter, they account for one point five times the capital we have in the Investment Bank. We believe we are, in short, well-positioned to handle the changed market conditions. We have worked extremely hard to improve our risk and control framework. The bank has reduced its group credit portfolio by around 10% as of the end of the first quarter compared to one year ago, including a 20% reduction in group market risk RWAs. As Rafael and David will highlight for you, we have also strengthened our risk and compliance leadership at all levels of the bank. This includes the first and second lines of defense. It includes the bank-wide risk framework and processes encompassing risk assessment, risk review, and risk escalation. Moreover, together with the board oversight, we have clearly defined accountability as well as roles and responsibilities across the organization. We have adopted a group-wide initiative which is based on individual accountability, namely everyone is a risk manager. This cultural change and this cultural change program includes risk training programs, as well as adding risk metrics to scorecards and compensation. David will talk more about this in his presentation. We are confident that these and many other initiatives we are undertaking will restore the confidence of our stakeholders in the bank. Before I hand the mic over to the executives on my team, which will be with me today, let me sum up what our key five priorities are. Firstly, the challenging market environment should not distract us from our determination of executing our strategic plan. Secondly, we are continuously working on strengthening our risk culture. Thirdly, our employees are fully focused on staying close to our clients and delivering best-in-class solutions. Fourthly, our engineers are driving the digital transformation across the bank. Finally, five, we are accelerating our structural cost savings program. I recognize it has been a difficult 16 months for Credit Suisse stakeholders, but I'm convinced the bank will emerge stronger, more resilient, and better equipped to weather adversity and to help our clients in all of their future endeavors. With every quarter, with every deal, with every Swiss franc of revenue, Credit Suisse will look to stabilize and rebuild. Our intention is to restore the confidence of our stakeholders and to deliver financial outcomes that energize our investors. We believe our employees will benefit from this transformation too. Holding their heads high, knowing they have helped to shape a premier financial group, serving sophisticated clients with care and entrepreneurial spirit. Without further ado, I would like now to hand over to David. Thank you. Thank you, Thomas. I think this one will work. Well, hopefully, we'll see. Welcome everyone. My name is David Wildermuth. As described, I'm the Group Chief Risk Officer. Just a little bit of my background. I joined Credit Suisse in January, after over 24 years at Goldman Sachs, and being a partner for the last 10 years. At Goldman, I had a broad career across risk disciplines, including being the deputy Chief Risk Officer, Chief Credit Officer, the EMEA Chief Risk Officer, and I always had a keen focus on strategic innovation and driving change. For example, I led the establishment of the operational risk department, the liquidity risk, enterprise risk, et cetera. I also have a bit of a technology background, albeit it was a very long time ago. I had a degree in computer science and economics, so I am still very focused on technology adaptation and digital transformation. Forgetting about the past and moving to the present, when the opportunity came to join Credit Suisse to lead the risk function, I realized it would be challenging, but I also realized it played to my strengths, both technical and in developing people and culture. I have five key messages for today in the context of the title, Elevating Our Risk Culture and Capability. First is that we have these two very important dimensions, and we can't be successful unless we complete both. The first is what I call the hearts and minds piece. This is the risk culture, which is inclusive of risk awareness, risk ownership, and risk mindset. The second is what I refer to as the muscles and tools piece. This is the resources, the frameworks, the infrastructure, the capabilities part. As I said, we cannot succeed unless we do both. One without the other will just not be sufficient. Second, I'm going to provide an important update on the substantial actions that we've taken and the progress that we've made. Third, I'm going to demonstrate that we have concrete plans with a realistic path to achieve our objectives. Fourth, I'm gonna provide some insights into our very sound risk profile and the de-risking that's taken place. Finally, I wanna highlight, this is very important, that we remain laser-focused on our BAU risk management in this very challenging market environment. As per the title, the last twelve months have been a period of significant and positive change. We've accomplished much, which we'll start covering here. I'm trying to stay out of the way of the slides. But we also fully acknowledge, as we cover later in the presentation, that we have more to achieve, and we need to prove these changes are also sustainable. On the left, you're well aware of the firm's strategy to strengthen, simplify, invest. On the right, we have some specific areas of focus on the progress we've made, which we'll deep dive into a bit later. Rebasing our risk appetite, reinforcing the risk organization, prioritizing first line of defense ownership, developing a path to demonstrate risk culture, and aligning on making the right investments to support our strategic vision. On our risk profile, you'll see it's well-diversified with a focus on traditional credit risk. At the left, we have the breakout of RWA at the end of the first quarter. You'll see credit risk 53% and market risk and counterparty risk are both less than 10%, and counterparty risk is 7%, is down from 11% in the first quarter of 2021. At the right, we have a breakout by segment of our credit exposure, which I'm going to cover in more detail on the next page. The credit portfolio is diversified and sound. You'll see that the four quadrants are relatively equal in size. Starting at the bottom left in central banks, which is 26% of our portfolio, it doesn't get much better than this. You'll see 99% of the exposure is with the Swiss National Bank, ECB, and the Federal Reserve to manage our group liquidity. If you move up to the top left, financial institutions, this is probably somewhat in line with your expectations. It's 87% investment grade. This is commercial banks, funds, asset managers, et cetera. If you move to the top right, that's our commercial segment. 85% of that's exposure to developed markets. This is also where we include our leveraged finance exposure, which I'll touch upon a little bit later. Finally, on the bottom right, our very strong consumer business. This is a very granular and diversified portfolio, with 71% being residential mortgages and primarily in Switzerland. Over a long period of time, the banks actually demonstrated a very strong track record in managing credit risk, as the chart shows. We have a significantly lower PCL ratio over this extended period, relative to peers. While not included in here, we've also performed very well during the financial crisis, for those of you that remember that. As I highlighted in the top right, our Swiss Bank and our wealth management ratios have each individually averaged eight basis points over the last four-year period. Now, Archegos, though, was a very different and catastrophic outcome, so we're in no way diminishing the severity of that, and we've learned many lessons which we're going to cover in detail later in the presentation. One clear message to me is that we believe we are best equipped to manage risk in the businesses that we know best, and so that's why our bank strategy is to focus our growth and business activities in the areas we have the deepest expertise across the first line and the second line. In terms of our aggregate risk profile, we've taken immediate and urgent action to perform a detailed review of our risk portfolio and rebase our risk appetite. Also, importantly, to create capacity to support our growth strategy, primarily in wealth management and the Swiss bank. On the left side, you'll see comparing the first quarter 2021 to Q1 2022, our overall RWAs declined during the period, but actually the direction of travel is consistent with our strategy. You see the Investment Bank went down from 39% to 34% while we had an increase in the Swiss Bank, and we had an increase in the Wealth Management segment. On the right side, we have some specific points. We reduced the total RWAs by CHF 30 billion, leverage exposure by CHF 90 billion as part of this recalibration. These reductions were managed in line with the business strategy, so primarily in the IB with the exit of prime, the non-core GTS markets, and optimization of the corporate bank exposure. You also see I've included that our Level three assets have declined to CHF 10 billion, which is 1.4% of our total assets from CHF 15 billion. These are all relative to the Q1 of the prior year. Finally, we manage our liquidity on a conservative basis with strong LCR and NSFR metrics. As we detailed in the Q1 results, our de-risking from both a financial and a client risk perspective, of course, had short-term revenue implications as each reduced or exited client had generated revenues. Executing our strategy in our target focus areas will utilize that capacity, but it will just take some time given the broader market and other conditions. I'm gonna further deep dive on three areas of risk reduction. First, we were addressing concentrated positions among our higher-risk clients. This resulted in reducing non-investment grade exposure 17% YoY. Secondly, as we all discussed, our exit from the majority of our prime business with an 83% reduction in RWA. Then finally, we note a 22% reduction in ship finance as we look segment by segment and looked at our risk appetite. Important in this area to note that we remain very committed to this sector over time. Now I'm gonna go a little more into looking at it from a slightly different perspective. First, we have the Swiss bank business. You see it's very high quality, 93% investment grade, 73% of that's real estate at quite moderate LTVs. This also is where we include our commodity trade finance sector, where we focus on the mid and large players. As noted at the bottom, 75% of this exposure is secured and with relatively short-term maturities, less than 180 days. In the middle, we talk about our share-backed lending business. This is core to our strategy of wealth management clients, particularly entrepreneurs. 75% of this exposure is investment grade with a diversified portfolio of transactions targeting our ultra-high net worth clients and with a strong presence in APAC. Finally, leverage finance. Obviously currently a key focus area in the industry, given market conditions with widened spreads and higher rates. We have very strong first and second line capabilities here, given our long-term history in the market. You'll see underwriting volumes were down materially in the first. Our Q1 non-investment grade underwriting exposure was quite tightly managed at $4.7 billion. In terms of current market conditions, it's been challenging the leverage finance market, as you know, with price shield impact on both leverage loans and high yield bonds. Our non-investment grade underwriting risk has come down from the Q1 numbers, at this point. Also, I think it's important to note that we don't consider hope to be a risk management strategy. We in the first line have been going to market, pricing deals at market clearing levels and getting out of the risk, instead of hoping that conditions will improve or change. Finally, while the Q2 is not to a close, it's worth saying we do expect to take some marks in the quarter on our leverage finance exposures, which we expect to be proportionate. One interesting note is if you look, we always are participating generally alongside our major peers. For example, if you look at our three largest non-investment grade exposures at the moment, we are approximately 10% of each of those transactions. Now I wanna focus on our people and investments a little bit more. Investing in our people and our organizational design was clearly one of the key focuses of my first 100-day program. On the left, we address dual hatting. Six of my direct reports are no longer dual hatted since April. We've also hired four new direct reports in this period, since April 2021. I'd also say here that we remain an attractive employer in the risk area. This actually, I've created a new metric. We've now had seven months of net people inflows, net positive people inflows. For each of the last seven months, we've hired more people than have left the group. I think there's a lot of people that share our vision and really embrace what we're doing. In the middle, we talk about restoring our industry expertise. Our expertise now of my direct reports is about 25 years of average experience which is actually above where it was pre-Archegos. We also have more internal tenure, which I think is important to bring those institutional insights, and particularly for me as an outsider, so I can leverage those insights. On the right, we've talked about strengthening our risk pillars. We've reorganized to be more consistent across all risk types. I've also elevated certain risk types such as cyber and tech, sustainability as well. Finally, all of this does take some money, and so we've increased our budget about 15% over 2022 versus the 2020 period. Climate risk, a lot of my focus today on risk management progress, addressing issues the last year, but I did wanna talk about climate risk 'cause it's very important to the bank, and it's actually very important to me personally. One, our focus on risk is across two dimensions. One, understanding and managing of the emerging climate risks in our businesses. Secondly, actively supporting the bank's efforts to achieve our sustainability goals. I'm not gonna go into a ton of detail here, but specific details on our ongoing climate actions can be found in our TCFD report, which I've pictured here on the left. Of course, we're not doing this alone. We're tightly partnering with a number of organizations to align to best practices. As climate risk management is an evolving field. Okay. Archegos. There were many identified gaps which we've been addressing through prioritized investments. We had a series of internal and independent assessments that were done and identified root causes. Many have already been addressed through immediate remediation efforts. Others will take some time to address. We have improvements across both the first line and the second line, enabling greater first line accountability with stronger second line supervision and challenge. I'm not gonna cover all the detailed points, which you can read, but a couple I'm gonna call out. In the first line, we've appointed a new investment banking business line CRO who's building out a strong team. We've completed now the rollout of dynamic margining across our hedge fund portfolio. We've enhanced our default management capabilities, which already actually proved useful in the Russia-Ukraine crisis management. In the second line side, we've established a new Executive Board Risk Management Committee. We established a new counterparty market risk function as part of our organizational enhancements. We completed a bank-wide review of our largest clients globally, and we've strengthened our limit framework, where we're elevating more constraints now to the Executive Board and the Group Board of Directors level. Then finally, we focus a lot on culture, setting the right tone from the top. I want to touch briefly on Russia-Ukraine, partly because I think it demonstrates that the bank actually does have the capability to act with great urgency, accountability in time of crisis. To take a step back, the best risk management usually happens in advance. In this case, and certainly with no credit to myself not being here, I think we entered the Russia crisis with in pretty good position. We had less than CHF 1 billion, excuse me, of exposure even at year-end 2021. As we were closely monitoring the situation in Russia before the war broke out, we reduced our exposure in advance of the sanctions. The second place the risk organization can really add value is how we managed through the crisis. In this case, we mobilized with a real sense of urgency and purpose as the events unfolded. We implemented multiple times a day, actually 4 to be clear, risk reporting on exposures and key developments. We also established a cross-divisional response team, and we had daily meetings, including having Executive Board members, every day in the room, well, virtually that is, to make quick and transparent decisions, which I truly believe resulted in positive outcomes. Some of the results were the reduction in exposure you see on the left, and also I think in the provisions that we've taken as part of our overall, Russia-related, PTI losses that we disclosed in the Q1. You're gonna hear soon from Joanne Hannaford, who's our new CTOO, but it's critical to our success and risk that we're successful in technology and building our risk infrastructure. Most importantly, we've centralized risk under a new CTO, as I mentioned. We actually have a new dedicated head of risk technology who started in May. Our plan includes targeted investment on automation, which is key to reducing our operational risk, enhancing our reporting capabilities. Moving to the cloud will also enable better scaling and efficiency. As importantly as the things that we're doing are actually that we now have a process around these things. We've designed a set of principles going forward to guide both further technology investment and the build risk culture. This is one of our key focus areas. Joining me in the front row is Christine Graeff, who is my co-sponsor of this from our people division. We've developed a risk culture framework. It's set around 10 items. The top five are behavioral. The bottom five are foundational and centered in our theme that everyone is a risk manager. Immediate changes were made, but we do have more work to do. We launched a culture survey last year to help understand the current state. Key focuses that came out of that emerging from it were to develop a speak up culture, we have to work to relieve strain, we have to strengthen the risk mindset, and we wanna further embed a client focus. It's important that the culture is owned by the Executive Board as a team objective because this does apply to everyone in the bank. Some pillars that we've developed, again, set out on the left, just to pick a couple. Encourage challenge. The behavior there we wanna encourage is speaking up and challenging and encouraging others to do so when appropriate and respecting views across the lines of defense. Another one, governance, which has an associated metric, is knowing where decision-making and activity takes place and who's accountable. For example, one of the sample metrics we shared is the percent of limit breaches resolved within guidelines, where we're currently tracking a fraction above 99%. Just showing that we're actually acting again urgently and with a sense of accountability. When we have limit breaches, they get resolved quickly. Finally, taking ownership, which I think is one of the core principles. The behavior we wanna encourage there is across all lines of defense that people take responsibility in their risk management seriously, and they hold themselves and others accountable for their decisions. One of the metrics we chose here was the risk deep dives performed by the first line of defense in our risk committees. The plus 70% actually relates to the number of times those things occurred in 2021 relative to 2020. I think this demonstrates our first line business leaders, you know, showing and demonstrating that they own the risk, that they understand the risk. In fact, they talk quite facilely about the risk, including the financial and the non-financial risks. It really sets a strong tone from the top because, as we know, people focus on what their bosses are focusing on. When they see our division heads spending time focusing on risk with such a great focus, you know, causes them to focus more on it as well. We've also established a strategic regulatory remediation function to make sure we can strengthen our delivery on the regulatory commitments. This was launched in April of 2022. I'm leading that effort, although it is not formally part of risk because actually the regulatory programs, more than half of them are actually not risk-specific programs, they're bank-wide programs as a whole. We have significant oversight from my CEO, Thomas, from our chairman, Axel, and from the board of directors, and our key goal is moving towards being more holistic from perhaps being in the past a bit reactive. We're now looking across all regulators, all commitments, and then as importantly, taking into account what is our goal for our capabilities and for our roadmap, and then bringing that all together with a more holistic view, and then ensuring that there are actual deliverables that we'll be able to hit in a timely way. We're making progress in repositioning our mindset. Okay, this is my last slide. We will continue to deliver on this strategy. Our objectives are clear. We need to elevate both the risk culture and our risk capabilities, taking stock of the progress that we've made. We need to execute the clear plans we have in place to address our ongoing initiatives. Recognizing the de-risking that we've done, we need to build on our sound risk profile to facilitate the strategic growth in our plans, and we need to remain laser-focused on our day-to-day risk management. In closing, thank you all very much for your time. I feel confident that we made substantial progress at Impact and that we know what we need to do, but we do have more work to do. Some will come sooner as we deliver on our near-term upgrades and the tone from the top. Some will take longer to fully implement, such as our more comprehensive uplift of our data and infrastructure. We know we need to prove it, not just say it, and we know that sometimes perception lags reality. I do know that we're making progress every day, every week, every month, and the bank's risk management today is much different already in tone, like proactivity and accountability, and we're going to elevate further from here. Thank you very much, and I will now hand it over to Rafael. Thank you, David, and thank you everyone, and welcome to this deep dive. My name is Rafael Lopez Lorenzo. I've been the Chief Compliance Officer of Credit Suisse since October last year, and prior to that, I was the Global Head of Internal Audit at Credit Suisse as well. Being in the bank for seven years, and prior to that, I spent 12 years at JPMorgan Chase in New York, also in internal audit, mostly focusing on investment bank and also in PricewaterhouseCoopers and IBM Consulting in London. The goal of today's session is to share the vision and the changes we're making in compliance, and also give you some perspective of where we are in that journey. I hope that I'll be able to provide you with insights on how these changes are positioned in Credit Suisse to, number one, avoid legacy issues by having a stronger compliance, risk management and controls. Number two, gaining efficiencies by the way we're simplifying our processes and tools. Number three, improving regulatory relationships, and we're doing that by being more proactive, being more risk-focused, and being more transparent about what we're doing on the regulatory book of work. Finally, by strengthening the compliance risk culture, and especially we're going to touch today on rebalancing first line and control functions. For this presentation, I would like to provide a context on the evolution of compliance in banking. It's not gonna be very long, but at least it will give you an idea of some of the regulatory changes that the industry has faced and how Credit Suisse has adapted to those. I'd also like to introduce my vision for compliance. This is a really important pillar on everything else we're doing, be it internally and also how we face our key stakeholders. Touching on the compliance organization, which is a completely new organization, I will also provide three examples of how we are reinforcing risk management and controls, share some insights on how we are addressing regulatory commitments and how we go about it, and finally some of my personal insights in how I see compliance risk culture improving in the bank. Next. Yep. The banking industry. What we have seen is a sustained increase in volume and complexity of compliance requirements, and this has been affecting all banks, as you very well know. I think Swiss banks, in particular, had an extra challenge, especially after we opened up from some of the strict banking secrecy requirements, especially around 2008 and 2017. You have some of the events on the screen. If you look at the events, they tripled. Events could be new regulations, position papers, and amendments to specific regulations. They tripled over the last 10 years, and they focus on a very wide variety of topics, anti-money laundering, data client protection, crypto, greenwashing, and tax compliance, among others. I think the other feature in the industry that has kept us really busy is the coordinated nature in which all these regulatory agencies address these new topics and themes. At the same time, another factor that we have observed is that there's been an increase in sophistication and complexity of financial crimes by the bad actors and as well as other compliance risks. This has led to a significant war for talent in these areas and these topics, and also a realization that we can only address these challenges with strong technology and data tools. At the same time, what you see on the right is that Credit Suisse has been making significant efforts to adapt to this regulatory environment and address these challenges. We've prioritized the book of work in compliance at Credit Suisse with our budgets growing every year since these changes were prominent. Our resources have increased about 25% since 2019. In terms of FTE and resources, we have about 11 compliance officers for 100 million of revenue, which is pretty much in line with how every other competitor is addressing this, or the good competitors are addressing this. The investment also went up by 34% in the same period. In terms of cost, we are approximately 3% of the total cost of Credit Suisse, and that is also in line with our peer group. My takeaway is that despite these sustained and complex industry changes, Credit Suisse has been up to the game. Next, before I introduce my vision, I'd like to share with you some reflections as I took over this function last October. I'll share some strengths and some opportunities, 'cause I think it was very important to, after having spent seven years at Credit Suisse, five years as chief audit executive, and that was sort of the starting point of the vision. Number one, the strength, right? We definitely have at Credit Suisse a strong stature. We are listened to in the organization by other areas, and we have a very strong independent view in the bank. Talent is quite prominent. The subject matter experts and the bench strength at Credit Suisse compliance also was a significant positive and strength. The support we get from our CEO, the Executive Board, and the board of directors on compliance topics also is extremely prominent and featured frequently. The last strength that I would mention is the appropriate investment that we have made in the function. This is not an underinvested function, and certainly it will not be. In terms of opportunities, I do see an opportunity to reduce complexity. Many of you have said we are extremely complex, and I think there is plenty of room to reduce that complexity, which is driven by fragmentation. We can definitely increase our consistency. We have an opportunity also to transfer some of the front office client processes and activities that are executed by compliance back to the first line. We also have a very clear opportunity to deliver on all regulatory commitments and thus increase capacity. Our vision is very simple, keeping the bank safe and doing it efficiently. We've made a number of changes, as you see in the middle. And these are more than changes. They are changes in our principles that will drive and have been driving all the decisions we've made. We wanna be risk-focused versus process-focused. I think over all those changes that I shared earlier in the presentation, the regulatory changes, I think there is a danger of being too focused on processes and completing processes rather than making decisions based on risk. With that, we also want to bring forward global minimum standards on all key risk disciplines, and we need to apply those consistently. For that, we have created central teams that focus solely on risks, those risk pillars, the key compliance risks, and they will also oversee how those, risk management and global minimum standards, are applied consistently throughout the organization. Second principle is we wanna be more holistic in the assessment of risk, and I'll share later some of the examples of how we are achieving that. This is really important because if you look at one of the key requirements for most regulators is consolidated supervision. That's how our host regulator, FINMA, calls it. That is nothing other than ensuring that, through a fragmented or divisionalized or regionalized function of the bank, we're able to understand risks collectively and holistically and make decisions collectively. The third pillar is, or principle is rebalancing the first and the second line of defense at Credit Suisse. We will share later how we're doing that as one of the examples, with one of the examples that I will share with you. I think this is really important because it strengthen risk culture and it brings alive the principle that we shared earlier around everyone is a risk manager. Finally, I want to ensure that technology and data are in close proximity to the compliance officers of the bank. Technology and data are there to support them and are there to ensure we can do our jobs more effectively and efficiently. In terms of objectives that are already underway, and obviously we have a journey ahead of that, is we need to strengthen the compliance organization. We are reinforcing controls and simplify processes to find efficiencies. We'll deliver in our regulatory commitments, and we're improving our compliance risk culture. This reset provides a strong framework to manage compliance risk more effectively and more efficiently while improving our risk culture. Next, the organization. Now I'll go through the four objectives. Number one is the organization. As you know, we separated risk and compliance in April last year. I was appointed in October last year, and we reorganized the team in January this year. This is a new team. We brought new leadership, four direct reports from the outside, four were promoted from within, and we have five females to improve our diversity in the team. Every direct report of mine but one is new in the role, and I'm making sure that we place the right people in the right job with the right expertise. These changes reinforce the key objectives that I shared earlier. We have an organization that is risk-aligned to ensure that we cover all these risks, set the global minimum standards, and oversee the application of the global minimum standards. We have a divisional and regional team aligned as per our core strategy in the bank. We have centralized teams whose goal is to accelerate the priorities, and these areas are change, regulatory remediation, data and technology. This is supporting the bank's strategy, as I said earlier. This eliminates fragmentation and this creates a globally consistent model. On the right, you have a few examples of the features of this new leadership team. As you can see, it's a diverse and experienced team. The average professional experience of my direct reports is about 21 years. There are diverse skills. We have traders, bankers, lawyers, law enforcement investigations, and data scientists in the team. We have also a very strong gender diversity, not just in my direct report, in my management team, but also across compliance with 55% females in the entire compliance department. We've also brought more seniority. About 14% are managing directors and directors in the compliance function. This year alone, in Q1 only, we hired 22 new managing directors and directors, of which 21 are external new joiners. We've also increased bandwidth. The senior leadership team in compliance increased from 8 to 13 to ensure we can cover the whole remit of risks in a much more efficient and effective way. We've reduced de-hatted, dual-hatted roles across compliance, especially in the senior teams. We did eliminate 10 dual hats. The result, this new team is more risk organized, more diverse and has more bandwidth to keep the bank safe. Client risk management. This is one of the examples that I wanted to share with you on some of the changes we are making to reinforce and simplify the processes in compliance. Client risk management is one of the key competencies of compliance. We approve and review clients and transactions into the bank. We have made significant improvements in the governance you have on the left, in the criteria that we use to filter clients and transactions, and we are already observing on the right some positive outcomes. In the new approach, we have a much more holistic view of the risks. We have combined reputational risk and compliance committees into one so that we can have a much richer and better view of these risks. We have retired a number of duplicative and overlapping committees. We went from six main committees to three. We have added a clear escalation criteria for those committees that go all the way up to the Executive Board risk management committee. In this new governance, the front office, the divisional heads lead the process alongside with compliance and risk. In the middle, you have the six criteria that we apply consistently to transactions and clients. We review sanction risk, Politically Exposed Persons risks, convicted persons, country risk, sustainability risk, and lately sovereign risk. A combination of these factors will determine the outcomes and the decisions we made on clients and transactions. The tangible improvements. We have seen a step change in the senior committees and engagement from the board of directors and Executive Board and senior management. The ExB is setting the risk appetite. We have a lot more efficient decision-making. The analysis and the discussions are more holistic. We are applying consistently these criteria across every division and every region. I can also observe, as I will wrap up later in my culture slide, I've seen a culture shift as the first line, the front office, is taking the lead in presenting these transactions and these clients based on this criteria. The bottom line is that client risk management is done more holistically, efficiently, and with a strong front office leadership. The second example is client life cycle. On this page, you see what I mean by client life cycle, onboarding, changes to the clients through the life cycle of that client in the bank, and off-boarding. This is an important core competency of compliance in the bank where compliance plays a leading role. We are determined to strengthen the first line of defense role in this area. By infusing expertise, we will be transferring 450 people in compliance to the first line in August 1. It's in line with our core principle that everyone is a risk manager. We're gonna have different roles. The business will play a leading role in anti-money laundering and know your customer life cycle. The proximity of the front office relationship managers to the clients will increase efficiency without compromising independence. These teams will report into the COOs, the chief operating officers of the different divisions, and will basically apply the right standards and the right criteria. We will reinforce ownership of client risk on the first line, as I said, and these 450 experts in client onboarding will also bring their tools and processes, leaving compliance to perform their second line oversight roles. We will focus on high risk in compliance, high-risk clients, including PEPs. We will do independent testing, and we'll be doing the standard setting on how we onboard clients. There is no right or wrong model, but I do believe that these changes will align us to best practices in the industry. CTOO will also help us in a second step in automating and improving these processes to make them more efficient. In summary, bringing client life cycle closer to the front office will provide better client insights, more efficiency, and strengthen compliance risk culture. The third and last example is sanctions. To elaborate on David's presentation. As a background, the complexity and the speed of this event was unprecedented, and how quickly we addressed these events was also remarkable. 7 weeks to implement changes. Not only the U.S. was a major regulatory player, sanctions agency player, but U.K., Switzerland and EU also added on. Our main Russia sanctions risks that we manage and we cover in compliance are threefold. Risks related to clients or counterparties that are being sanctioned, risks related to sanctioned products and services, and risks of circumvention of these sanctions through people and product. What we did, we created preemptive scenario analysis before any sanction was put in place. When sanctions were put in place, we applied client blocks the same day. We have additional overnight screening alerts to sweep the portfolio and identify any issues. We applied payment filters also within the day. We had, as David mentioned before, global senior governance and EXP calls four times a day, as David mentioned, and we had a very strong front office engagement throughout. This wasn't compliance setting the tone or driving this decision. This was a collective effort between the first line and second line where front office took the lead. In summary, sanctions risk management has been a great example of effective controls, strong compliance culture, addressing sanctions in a record time. Sanctions risk, rather. Next, I'd like to give you some insights on a roadmap to deliver on regulatory commitments. Gaining trust from our regulators is our priority. Clearly, events have occurred which have caused concern. We're regaining this trust by addressing issues diligently, transparently, and with risk in mind. We have improved our engagement. We have a much more proactive engagement with all key regulators. We discuss our priority and agree on our priorities with all of them. We're transparent in the progress that we're making and the challenges that we're facing. The conversation with regulators focus on risk rather than process, as I said earlier in the vision, and we're working diligently in the execution of a regulatory book of work. We obviously continue to work through it. The positive impact that I've witnessed is I can clearly see some green shoots. The tone from our core regulators have changed. We have improved the health and trend of our compliance regulatory programs. We have increased the spend by 35% of new and emerging regulatory requirements. We have reduced significantly, as you can see in the chart, our open regulatory commitments, and we do now a more effective read across, as you saw earlier from David's presentation, in the strategic regulatory remediation office, which I'm also part of. This is a journey that we have started and we have a lot to do, but the bottom line is that we're more proactive, more transparent with the regulators, and we remain focused in completing our regulatory commitments. My last slide touches on culture. David explained and touched on the framework we put in place, and I see how all the steps we're taking to strengthen the risk-focused culture alongside our processes is narrowing the circumstances in which our legacy matters could be repeated in today's environment. Some examples. I see a strong tone at the top by the Executive Board, by the Board of Directors and top management, as I mentioned earlier. In regulatory programs and committees, the first line of defense, the front office, is having a leading role. In the governance of the bank, the first line of defense, as I described earlier in how we manage client risk in the bank, the first line is also having a leading role. Risk management committees, steering committees, client risk committees, the first line take the leading role in explaining and describing the risks in clients and transactions. We have a clear accountability of client risk appetite, per the example that I gave you earlier, and we have a balanced collaboration between the first line and the second line to resolve challenges. I do believe compliance risk culture changes are already visible and reinforce that everyone is a risk manager. It's a journey, and the bank is taking decisive steps. I hope this session provided you with insights into how we are strengthening compliance risk management and controls to position Credit Suisse better to avoid legacy issue, simplifying processes and tools that will lead us to be more efficient, how proactive and risk-focused and transparent we will help us to improve our regulatory relationships, and how balancing from top fees and control functions will strengthen the compliance risk culture. I believe that these changes will be able to keep the bank safe. With that, I would like to thank you for your attention. I look forward to answering any questions later on. Now over to you, Jo. I am Jo Hannaford, an Executive Board member at Credit Suisse, responsible for technology and operations, which currently comprises 40% of the firm's headcount. I joined in January 2022. Prior to that, I was an engineering partner at Goldman Sachs. I have been a software developer for decades and have a track record in delivering scaled platform simplification, which have been used time and time again to create new businesses. The story you will hear today is quite extraordinary in terms of opportunity. You'll hear a story where we are self-funding technical investments, bringing our costs in line with benchmarks, creating digital revenue opportunities, all through changing our workforce mix. When I joined Credit Suisse, the scale and the complexity of our global business footprint stood out. CTOO is the backbone of our global diverse business model comprising of wealth management, investment banking, Swiss Bank and asset management. Our scope includes the full bandwidth of a global universal bank. From running 15 booking centers around the world for our wealth management business, processing 160 million daily client orders in our IB, to operating 430 ATMs in Switzerland. This diversity of our business is a complexity driver, which has historically hindered enterprise platforms, front to back process harmonization, and economies of scale. We now have one foot in the past and one foot in the future, as our newly integrated operating model across technology and operations allows us to shift gears in defragmentation and simplify the technology platforms, supporting businesses such as wealth management. This was one of the opportunities Thomas saw in the creation of a consolidated technology and operations organization. This alone is expected to result in lower cost to income ratio for wealth management over time. I'm excited to share with you today the immediate benefits we have realized and provide you with insights on our strategy going forward. We are aligned to the business strategy themes and have a clear plan for 2022 to steer us in a direction that leads to a modernized organization. I am fortunate to have the support of a cohesive ExB team to drive this strategy alongside me. The long-term opportunity is that we are simplifying our operating model, both in terms of addressing the fragmentation of our technology platform, as well as optimizing our footprint. At the same time, we are focusing on the resiliency and security of our business. By building in-house engineering expertise and retaining our knowledge, we will be agile, more accountable, and able to solve complex problems more easily. What is our long-term strategy which will incur savings in the medium term? We have positioned CTOO as a strategic partner to our business divisions, and shown here are the digital opportunities by business. CTOO enables our business strategies by providing future-proof, technology-powered enterprise capabilities that drive a better service and experience for all CS stakeholders. As such, as part of our strategic priorities, we are specifically investing in digital business platforms. Predominantly building upon our existing digital capabilities, we intend to further enhance our business platforms, enabling scalable front-to-back digital services. Technology platforms and core capabilities. These are going to be best-of-breed technology platforms driven by our newly hired CTO, providing enterprise capabilities and savings. Security. We plan to continue to invest in our security capabilities, staying ahead of the evolving threat landscape and mitigating cyber risks with a secure-by-design approach, thereby providing dynamic protection and minimizing risk. Operations. Our focus is to provide excellent client services with a robust, scalable, and automated operations function. We are investing in strengthening the position of operations to act as a second line of defense across the organization. Structural cost opportunities. As we are centralizing our structure, opportunities to simplify our processes and technology emerge. We see potential to increase the productivity of our workforce by balancing the right skills, location mix, and balance internal versus external talent. Our culture, talent, and agile ways of working are incredibly important to this strategy. We are placing an emphasis on attracting and retaining the best engineering talent, making Credit Suisse a destination of choice where engineers will have outstanding careers. We are revisiting which activities we want to outsource and what work we want to be delivered by our talented internal engineers. We have also launched a program to reinforce our engineering culture and ensuring engineers are focused and able to deliver high-quality code. Our digital business platform initiatives, we have already produced tangible results and expect to further scale them to drive growth. I would like to showcase some of our existing digital capabilities that are key enablers for creating successful client-facing offerings and services. With CSX, our flagship digital franchise in our Swiss home market, we can already count over 150,000 clients and are aiming to reach more than 200,000 clients by the end of this year. CSX was only launched in October 2020 and is our mobile offering. It covers retail and affluent client needs across banking, lending, and investing. CSX is a true success story so far, and we intend to continue to invest. For example, an obvious opportunity is to further develop into an ecosystem platform for customizing service models for affluent wealth as a service and open banking infrastructure. I would also like to highlight Sverea in our Investment Bank. Sverea is an equity and other cross-asset derivative structured products platform. With industry awards in each of the last three years, recognizing the innovation delivered to our institutional clients. The platform also has an impressive return on investment between 7-10 times return in revenue for every dollar invested in technology. Finally, Spark. This has been developed in APAC and has been rolled out to Switzerland at the moment. It continues the client and product view, checking the relevance and compliance of a product to a client. It provides a client-centric data platform for RMs. A great example of where we took a piece of technology from another region and applied it and reused it at minimal cost. Our newly integrated operating model has allowed us to make a step change in the way we approach our foundational technology capabilities. I mean, a story which is very common is the story to invest and upgrade technical infrastructure. We are now building enterprise scale, consistently applied foundational technology capabilities and are making these available to business-facing engineers to deliver software quicker, cheaper and resiliently. Hence, the economies of scale being realized. This is exactly what technology firms do. These benefits should start being seen in 2024. The formula is we are funding these technology platforms in part by reducing the manual work undertaking within the technology division and repurposing this to hire more in-house engineers. We are making our current engineers more productive through a single developer toolkit with developer experience investment. These platforms will manage and constrain our costs. A few highlights on why these are important capabilities. Omnichannel. One software or data delivered through multiple channels as a client chooses, regardless of whether it is mobile, API, web, or as a service in a frictionless manner. Cloud. We are developing the cloud native capability to make most effective and controlled use of cloud and more to come on this topic. Intelligent automation. We are consolidating our expertise for intelligent automation into a single center of excellence to maximize return of our investments in artificial intelligence and machine learning and other automation capabilities. We see a huge potential in further optimizing how we distribute work between humans and machines, and in how we enable our organization to make better use of available data. At this stage, we are expecting these workflows to be self-determined and not determined by the computer. Developer experience, as I mentioned, we continue to invest in our developers' workbenches, and I will explain further later in this presentation why this is so important. It's very important for our developers to be as productive as possible and to attract new developers through these tools. You've heard data mentioned a lot this morning, and we see data fragmentation as important to unlock the value of our data. Moving from multiple silos to single silos will allow our businesses to shop for data they need and with a zero trust, agile approach to data security and access. Site reliability engineering, which is a topic founded in Google, how they run their production environments, where they can cost the price of systems failures and have the production machines run themselves. We already apply these techniques in certain areas, and we need to apply them consistently. Let's talk about the significance of cloud to our strategy. The use of cloud native services will greatly benefit our ability to drive innovation, time to market and efficiencies. We plan to apply a cloud first approach for new developments and increasingly consume cloud native services, thereby leapfrogging over our technical debt by moving to public cloud. We are also looking at strategic partnerships with the leading technology firms that will allow us to execute our platform and renovation strategies on a compressed timeline, benefiting both from their experience and offerings. A completely different balance between build versus buy. We expect that this approach CS stakeholders will benefit from accelerated time to market as well as a richer, easily accessible set of services. We have nearly doubled our investments in cybersecurity. There are significant challenges in keeping up with external cybersecurity threat landscape in which state-sponsored and criminal attackers are increasingly ambitious and prevalent. Financial institutions are almost wholly dependent on a high-functioning technology, and we are in an arms race. At the same time, we are faced across the world with heightened client and regulatory expectations around data security and operational resilience. Despite wider cyber-specialist resource constraints, Credit Suisse is meeting this challenge by a significant new and sustained investment in leading cybersecurity technologies. For example, we elevated the role of a chief security officer to be a direct report to me. We continue to enhance our traditional security controls by deploying improved vulnerability scanning and patching processes. In parallel, we are strategically moving to a zero trust architecture in which we never trust, always verify user or device. Access in all forms must be continuously evaluated based on identity and context. We take a threat-led approach, including enriched malware detection within our systems, to reduce the risk of ransomware attacks with an increased focus on data protection controls. We are also focused on training and awareness of our organization, including ExB and board level simulations on cyber. Our cyber program, although it's under investment, is completely green in its progress. We are driving towards a robust and scalable and automated operations function with strong control focus. We are currently elaborating the strategy for operations, and we are repositioning operations in three key areas, to be a proactive partner to our business, focusing on delivering client value in all activities, be an effective facilitator of client business, and continue to provide an efficient operation service while improving our resilience and automation, and to be a proactive control function, strengthening our second line of defense. We are also strengthening the interplay between the business divisions and global operations to continuously optimize and automate process. A great focus for us at the moment is the automation of client lifecycle processes. Now we switch to cost and cost benefits. In terms of talent, our workforce is globally distributed and aligns both to key business hubs and ensures efficient overall footprint. With 60% based in low- and medium-cost locations and opportunities in the talent space are concentrating and optimizing the skill mix. On the tech side, with only 41% of employees writing code, we see significant upside potential in tech delivering by increasing this ratio. Let me just highlight this to you. The opportunity to self-fund comes from this number here, and the opportunity to invest these digital capabilities comes from this number and increasing it. A repositioning of this chart. The short-term opportunities that you see largely come from the better management of this number. These are extraordinary numbers, and they're right, and there's plenty of opportunity for us to do this. The high part for me is we have existing presences which we can further optimize as we hire these engineers in these locations. Let me just remind you of this formula. We are funding these technology platforms in part by reducing the manual work undertaken in technology and repurposing this to hire more in-house engineers. We are making our current engineers more productive through a single developer toolkit with developer experience investment. On the operations side, the benchmark shows that we are actually smaller than our peers, but we have the opportunity to increase our investment in operations through intelligent automation and process automation front to back. Our cost structure reflects a period of transition from a federated to a centralized model. The federated model in place over the last seven years has allowed for strong ties between business and technology and operations to develop and resulted in tailored solutions for our various business lines. With this centralization, we aim to retain the upside created by being aligned to the businesses, but combine this with the ability to execute holistically on the group strategy, strategic themes, as well as capitalizing on efficiency opportunities. Concretely, having reviewed our combined technology and operations budget for 2022 at CHF 3.6 billion, we intend to achieve an estimated exit rate reduction of CHF 200 million this year. Obviously, there are fiscal savings for 2022, which we will state later in the year. We have already established a new organization which has been positively received. These immediate cost savings have been achieved by the elimination of duplication, the optimization of vendor and workforce strategy, as well as the optimization of our software delivery. We do, however, reiterate our investment commitment in operations as well as risk management-related change delivery. Operating spend, as I said, is at the lower end compared to our peers. Here we intend to make investments in execution capabilities and digitization. A great example of this is that our IB middle office platform runs on a mainframe. To describe the path forward on our cost plan, I would like to spend a couple of minutes covering short-term and medium-term structural cost opportunities applying to 2023 and beyond. Next year, we will continue to run our expense management program for the full year and incur even greater savings. On the left-hand side, you will see the full list of tactical items we are working on right now, all of which are well underway to deliver. These cost savings deliver the cost savings for the exit rate this year and the full CHF 200 million we are gonna save next year. Beyond 2023 into 2024 and 2025 and beyond, we will estimate an additional CHF 400 million savings over 2024 and 2025 to come from this change in strategy. It's a well-proven path to incur efficiency benefits from the introduction of agile practices and upgrading aging infrastructure. We are also going to take the next step in investing in our most important asset by rewiring our work delivery, building on the existing culture of meritocracy and further aligning our rewards model to contribution. In terms of infrastructure opportunities, we realize the benefit of implementing the core capabilities that I've described earlier and further utilize public cloud and reduce GTS managed data centers, for example. To summarize, we have a minimum savings opportunities of CHF 600 million, plus if you include the fiscal savings for this year over the immediate years ahead. Let's switch to the organization. By the end of 2022, we will have hired and appointed a world-class modern tech and operations organization, arguably based upon a technology firm more than an investment firm. Our evolved CTO structure enhances governance, accelerates decision-making, and reduces bureaucracy. The key highlights of this organization are. We have consolidated all of the group's technology and operations teams into a single division relatively seamlessly. Delivery software teams are now incorporated into under the chief information officer, so a single head of software delivery. We have created key roles in areas where we need to be more competitive, including a chief product officer, chief technology officer, and a chief digital officer. By building in-house engineering expertise and retaining our knowledge, we are confident we will be agile, accountable, and able to solve complex problems more quickly. To recap what I started with here, we can only deliver with a strong team with the right skills. This calls for a pipeline of the best engineers and technologists to drive landscape-altering transformation. As well as investing in new talent, we want to give all colleagues the opportunities to upskill for the future. The goal is to provide a fun and innovative workplace where we are motivated to learn and feel confident to try new things. My key takeaways for you today, we intend to drive digital platform renewal in close alignment with the divisions and corporate functions by building upon the strong digital capabilities we have already established, investing in core enterprise services, adopting cloud-native services, and leveraging strategic technology and transformative partners. We intend to further automate and strengthen our operations, driving tech renewal and creating more insight from data to strengthen our risk management. We intend to continue to invest in our talent, shifting towards an engineering-centric culture and agile ways of working. I look forward to answering your questions in the Q&A. I do believe that we have. A coffee break. a coffee break. 15 minutes. Kenneth, do you wanna? Yeah. Okay, thanks. Thank you very much, Jo. I think we've earned ourselves a longer coffee break. Instead of 15 minutes, we'll make it 20, and see you back here at maybe just before 9:45 A.M. Let's say 9:40 A.M. Then look forward to Francesco. Thank you. Welcome back from your coffee break. My name is Francesco De Ferrari. Since all my colleagues started with an introduction, let me start by saying a few words. I spent my first 12 years working for Deloitte, Nestlé, McKinsey, and then trying to be an entrepreneur, running three businesses of my own. I then joined Credit Suisse in 2002 and spent 17 and a half wonderful years at CS. Had sort of a tendency to always put my hand up for some of the biggest challenges, and so ended up traveling a little bit all over the world, work in Italy, worked in EMEA. Then the last seven years, I was leading our wealth management Asia Pacific business out of Singapore. A fascinating journey. Really got to understand Asia. In that period, we sort of grew profits nine times. We won Best Private Bank in Asia for my last five years. Really quite an interesting journey. I then left Credit Suisse in 2018 to become CEO of a listed Australian financial group, and that lasted three years. I joined the bank again in January with a really exciting opportunity to build a global wealth management division and lead this business. I joined very cognizant of the fact that the bank is going through a difficult situation post Archegos and Greensill. I mean, we've heard it today, and that there is a lot of work to do to rebuild trust across our key constituents. I also joined firmly believing that Credit Suisse has really a great franchise with exceptional talent, that we have a new Executive Board that's very focused on setting the right foundations for the business, and that we really have very deep client relationships. That is really a fantastic foundation on which to build a business. I just have two key messages for you today. In the first part of my presentation, I wanna take you through some of the distinctive features of our wealth management franchise and how these have impacted current and will impact future performance. Then take you through, you know, the strategy that was announced last November, how we are progressing on its execution, and what are we doing in terms of implementing actions that will get us to return to growth and deliver sustainable returns. Really just these two key points. With that, let me start sort of with an overview of our business. On this slide, we show our broader group franchise, which encompasses the wealth management division that I manage and the private banking Switzerland business, which André, who's sitting here in the front row, is my partner, manages within the SUB. Three key elements of our franchise. One, we're a top two global wealth manager ex the US. We have a strong brand, a lot of heritage. We have CHF 1.2 trillion of client business volume and CHF 0.8 trillion of assets under management. In a business where size is important, this really counts. Two is we have a very deep client franchise, and actually across the broader business, we have a balanced mix between ultra-high entrepreneurs and the high net clients. You see this 50-50 split on net revenues. Then we actually have, as I mentioned before, a highly skilled talent pool, which encompasses the 3,000 RMs that we have, but also the wide array of solution and structuring specialists, who are there to support our business. Now from this slide on, the numbers I will refer to are effectively pertaining to the wealth management division that I manage, so X, the private banking Switzerland piece. In wealth management, we have really deep and long-standing history across our regions, and we are geared towards higher growth markets. Let me take you through the critical elements. I mean, you see, so they're displaced geographically, but you see sort of our premium Swiss business, obviously operating since the 1850s. You see Europe, where we've been in some markets since 1910. Then up top, you see the global external asset manager, which is a dedicated business, which we operate with dedicated structures since the 1990s. Then you see some of the core strengths of our franchise at the bottom, which is our presence in emerging markets. We have a really strong presence in Latin America, since the 1950s. This is across a lot of countries, but really anchored on our Brazil onshore business. I mean, we've been in Brazil since the 1950s. As a bank overall, we have almost 1,000 people onshore in the market. That is truly distinctive versus any of the global competitors. Moving on, we have Middle East and Turkey. We have probably one of the deepest footprints of presence, and we're recently building out a number of onshore presences across the GCC. We've been in the GCC since the 1960s. This is clearly an area that geographically is set to benefit a lot from the current geopolitical situation. Asia, I mean, I talked about already, we have a historical strength in Southeast Asia, but we have a really broad footprint across the whole region. We'll talk about sort of the build-out of China onshore. I mean, two, I think countries that I would call out because they're not as prevalent in some of the other competitors. We run an onshore private bank in Australia, which is actually, again, I think we're one of the few, if not the few global player that effectively does that. We're effectively best starting to build a really successful business in India onshore. That's also different to some of the others. We really have a very interesting footprint. You would see also that when you look at this, that Asia represents roughly 30% of our overall client business volume. The key points of this slide is really we have significant footprint and size in all our region. The second point is we have a long-standing presence in the region, and most of regions we're present 60-70 years. This allows us to be a credible player to participate in the expected future growth of these markets. You see in the top right, I mean, we have 60% of our business has exposure to these higher growth markets, and a little bit more than half of our revenues effectively come from serving ultra-high entrepreneurs. Now, that's the profile of the business. The last slide that I wanna cover is really our distinctive capabilities, which effectively differentiate our client value proposition. By the three blocks, they're essentially pretty simple. The first is we are truly best of breed in our investment offering, and we have a leading house view that guides sort of strategic asset allocation and aims to produce sustainable alpha in advising our clients how to invest. In the middle, we have sophisticated lending capabilities, allowing us to structure lending across a whole series of asset classes, from liquid Lombard to real assets to corporate and cash flow. This is extremely important for ultra-high entrepreneurs, where often the private and the corporate become fungible into one, and our ability to structure across asset classes is truly distinctive. Last but not least is the box on the right, and I call this our ability to play in the space between the verticals. If you think of the verticals as business divisions, we are not the largest in any of them, but we are, from what I gather from talking to a lot of clients, really the best at playing in the space between the verticals. Really good client examples are our ability to effectively delivering both wealth management and investment banking services. We can talk about this more in the Q&A if you're interested. Essentially, to be a trusted advisor to a client, you need to be relevant for their issues. When you talk up to ultra-high entrepreneurs, their issues are how do I grow my business? How can you help me grow my business to generate the wealth that then you can manage, right? It is a process. Now, this is often overlooked. You do not improvise the stuff that's on this page overnight. I remember because I was here, we started this journey in 2005 with something called, Thomas, you remember, the One Bank. You know, 17 years later, we continue to evolve this. This is something that is embedded in the DNA of CS. It's not something that you can copy that quickly overnight. In summary, if I wrap up this first section, you know, we have a wealth management business that has size globally, but that also, very importantly, has a diversified footprint in the key regions that are gonna see growth with a long-standing presence. Differentiating capabilities geared for ultra-high. That is the type of business that our wealth management franchise at Credit Suisse. Now, this has positive elements. It also exposes the business, given how it's confi gured to the current market. If I look at first, on the left-hand side of the business, there are three headwinds, given everything I talked about the business, that particularly impacted our recent performance. Here I show you 2019, 2021, and then the last twelve months of Q1 2022. If I take you through the three impacts of our performance, the first is we've been negatively impacted by low interest rates. That has been across the market equally for all banks. The second is something that effectively impacts us as a firm, given the nature of our business, slightly more than competitors, which is the macro environment. We've seen significant deleveraging in Asia, and we've seen reduced client transactional activity. Now, as you heard me say before, Asia represents 30% of our business mix, and we would traditionally be slightly more exposed to that on the downside. The last point is something that is more Credit Suisse specific. David addressed it in his presentation. It is the proactive de-risking measures that we took last year following the incidents we had across sort of our lending exposures. These three headwinds actually explain the drop in returns that you see on the left-hand side of this page. You really should not judge the strength and potential of our franchise by the current performance in these exceptional circumstances. It is effectively the nature of the business. What are we doing to reinvigorate growth and sort of deliver sustainable returns? That's what you see on the right-hand side. Again here, one key message. The turnaround is primarily focused on driving revenue growth while maintaining cost and capital discipline. This is not a business where you can shrink to greatness. This is a business that is a growth business, and so exposed to long-term growth trends. There are three main drivers that we're deploying to match our 2024 return on capital ambition that you see on the page. The first is executing on our strategy to effectively drive increasing revenue, and I will take you through it in the next slide one by one. The second is the tailwinds that we are seeing from the rising rates, and you would say this is just a beta effect. Actually, there's a lot of work behind deposit management and treasury management, but our current estimate is that the tailwind from this, given the current forward rates, will be slightly in excess of CHF 0.8 billion for the wealth management business if we look at 2024 versus 2021. The third lever is we are doing growth investments. This year you see sort of a normalization of operating expenses from the previous environment, and that happens mainly in 2022, and increasingly will be offset by operating model efficiencies that happen both in the wealth management, but as you heard in my colleague, also across the whole group. This is sort of the walk of a distinctive business model, impacted current performance. The effects are pretty clear. What are we doing as an action to turn it around? Let me now take you through the strategic priorities and deliverables that underpin these drivers. This is our house chart where we go through the six execution priorities that we define. Let me take you quickly through them. Here is an overview and then deep dive them one by one. One, it's about, you know, integrating a wealth management division and simplifying the organization. It's about number two, deploying a more systematic client-centric approach to how we deliver services to clients. It's about optimizing our footprint. It's about leveraging our centralized lending and investment platforms to drive a different mix of revenues. It is about addressing technology fragmentation and especially client and RM experience and digital tools, while lastly, driving consistent risk management to enable sustainable growth. If I look at this in terms of a formula, this is about being really focused on the investments on where we can win and where we're getting good returns, and over time, as we create the division, start to drive efficiencies of and scalability of the operating model. Let me take you through them one by one. My focus in Q1 with the rest of the team has really been to create the wealth management division. This did not magically appear January first. We actually moved almost 8,000 people in terms of reporting lines, and geographies, and this allowed us to lay the foundation, what I call the foundations for sustainable growth. Let me take you through the key points on the left-hand side of the slide. Well, we've streamlined client coverage, so moving from 9 units and 3 divisions to 6 geographically regionally aligned units. We have created a global EAM business. Again, a very interesting business, given some of the market trends and the growth of independent advice. We have addressed a very fragmented financing and products and solutions set up to create an organization that has one global unit. We've also, at the bottom of the left-hand side, created a new unit called Platforms at the management committee level in wealth management, and this for two key reasons. One, the importance of data and tech, which you've already heard very much about. Two, to really start to address some of the issues we have in fragmentation of our application landscape. For me, what's really clear in this organization is to have the right setup, to have very clear accountabilities, and one person in my executive team who manages one of our big problems. That's a much better way for me to run this organization. This will allow us to have consistency of client service while maintaining proximity to clients. It allows us to continue building on the great work done in terms of driving foundations for consistent risk management and over time, capturing economies of scale. Now, this was the work done in Q1. In Q1, we set up the division when we appointed the team. In Q2, really, my main focus has been on going around the markets, meeting the employees, meeting as many clients as possible, and starting to mobilize the organization for change around the principle of urgency. The world is not standing still, so we need to move. Mobilizing around what? Well, around driving the other five priorities that I'm gonna talk about. Priority number one is, you know, how are we become more diligent in driving our segments? The first is our ultra-high net strategic clients. Why is this segment more important? Well, it goes without saying, it's the highest growth segment in this world. We're in a world where the rich get richer, and so that's effectively how you skew growth. Actually, for our franchise, ultra-high roughly represents 60% of the NNA of the last few years and really plays to some of our strengths. I mean, you heard the bank for entrepreneurs approach really works with clients across all markets. Our differentiators really are our ability to work across the various divisions. I talked about that before. Importantly, our ability to work through and have consolidated relationships across generations of clients. When I was in Brazil, interestingly, a few weeks ago, I met the longest serving client of the firm I'd met in 17 years. This family has been a client of Credit Suisse for 151 years. My pitch to them is, "We wanna be your bank for the next 151 years." It goes to show sort of. Interestingly, we accompanied this family from setting up the business, being really successful entrepreneurs, scaling it through access to capital markets, finally exiting the business, and now the family is really focused on putting their money to work to make the world a better place. A lot of our engagement is around ESG and how we can support them in some of these missions. That's not something that you improvise or can substitute very quickly. Our levers here, where we need to do better, where we're focusing on as part of the strategy is, well, we need to grow our private markets business. Clearly, ESG, as I mentioned, is a big topic for a number of these families, and we're effectively doing a lot of really exciting work on next generations and how we advise families in the handover and generational transition of wealth, which is a massive issue across the world. I mean, if you look at companies in Asia, for example, they tend to be much younger than the European family-run businesses, roughly 40 years versus 80. They are all gonna be facing generational transition, often with really complicated family structures. We do lots of really interesting advisory work, also accompanying our clients through that. In ultra high, really we do well. The results are there. Clients acknowledge that, at least in all the meetings I've had with them, we can really deliver like no other player. This is really about doing more of the same and continue to evolve because, you know, competitors don't sit still. We continue to focus on this segment. While for ultra-high, it is, you know, doing more of what we already do. For the high-net-worth business, our aim is really to accelerate our high-net-worth business with a clear objective of driving recurring revenues. Why is this segment important? Well, it's twice the size if you look at the fee pools of the ultra-high business. You see then two numbers in the two central columns on the left-hand side, which talk about a unit that we have called Private Banking International, PBI. This is a dedicated model serving international high-net-worth clients booked in Switzerland. We've set this up three years ago, and we've piloted how can we do business differently with high net clients. Interestingly, now it's reached a certain level of maturity, has a 55% cost income ratio, 60% of mandate penetration, really interesting return on capital. Our opportunity here is effectively, you know, to further scale up this business. We wanna scale up our existing dedicated model that we have in Switzerland, as well as extending this to Hong Kong and Singapore, which is the other immediate area of opportunity for the high net worth business. We feel that our brand, the house view, and some of the digital advisory capabilities that we're building out can actually help us drive meaningful success on the high net business. If I move now to the markets, you would have heard me say this is really about focus. We're gonna continue to optimize our footprint and focus the investments on the priority markets where we know we can win. On the left-hand side, you see we've defined 20 priority markets as part of the strategy, and we continue to hire in these markets. Thomas mentioned we've had 50 net RM hires in Q1, and that was true across emerging markets with a particular tilt to Asia, but actually also in Europe and in Switzerland. We continue to see interesting opportunities for talent. We are very focused on building out some of our onshore capabilities. Again, I mentioned Brazil. Saudi onshore is another one, China, obviously, another important one, and continue to scale up on these markets, which are extremely important. On the other side of the spectrum, sort of a disciplined approach. We're looking at risk return of some of the more smaller markets that we manage. We are finalizing the exit of Sub-Saharan Africa, which was decided in November of last year. That's roughly nine markets. We are looking at rationalizing additional subscale markets. You see sort of roughly what 20% of these markets represent really a marginal part of our client business volume. Again, this is more about discipline and focus than it is about driving a massive rationalization, but we just think it is important to effectively do this. If I move now on to the revenue drivers. While preserving sort of our traditional strength in transaction revenues, transaction revenues, if you look at 2021, were 39% of our P&L. The objective of the strategy, 'cause again, this is a investor deep dive for the long term, is really to leverage our centralized lending and investment platforms to drive long-term recurring revenue growth. Now, this happens in two buckets. On the investment side, it's about systematically deploying our house view. Interesting, if we look at the statistics, roughly 75% of our mandates outperform self-directed portfolios. So actually, especially in these volatile times, professional asset management does add a lot of value. It is about integrating ESG, and as I mentioned before, really accelerating the private markets sales through our single center of competence. You see here the 2024 ambitions that we've laid out. I must say we're starting to show, as you would have seen, for instance, the Q1 results, we're starting to show initial good progress on all of them. The other big piece of driving recurring business is lending. You know, we really feel we have an opportunity now that we've consolidated globally all the structuring teams to effectively have a better and more consistent product offering across the world. This is gonna be reflected in our ambition to drive mid to high single digit credit volume growth, obviously, where the market conditions effectively allow it. The other big opportunity is how we help our clients navigate sort of the energy transition, the net zero commitments, and the whole issue of sustainable finance. That's something that with David and the rest of the team, we feel is gonna be a really interesting opportunity. This is what we're doing to drive sort of a pivot to the business towards more recurring. Again, this doesn't happen overnight. This is a multi-year journey, but we're starting to point the ship in that direction. How are we thinking then about the technology that's required to support our ambitions? I think you've heard it probably three or four times. These businesses, increasingly data and tech, are absolutely pivotal to delivering value to clients, to improve the efficiency of our RM's and their client-facing time, but also to better manage risk, and therefore, they're pivotal to the scalability of the business. Now let me start with the bottom left because that's the more sort of foundational approach that you heard John talk about. We have an extremely fragmented architecture landscape because one of the sort of regionalization of the business before. Yes, we go very close to the business, but we've had sort of development of a significant number of applications. We are addressing that through Joanne and team. She now has a single wealth management technology head globally who is there to provide the best engineering skill set to develop or buy the best tools. We've appointed a platform head on the business side, who is the one who's gonna control the spending. I said one executive accountable for one problem. When you have one person controlling the spending, ultimately, over time, you start to make the right trade-offs that make sense for the business globally. I mean, some of the long-term. I don't think we have time to cover sort of the long-term vision of the business today, but obviously there are really interesting trends happening in the wealth management business around sort of, you know, fragmentation, you know, how you use digital assets in terms of, you know, democratization of wealth, what's happening to independent advice, how do you manage multi-custody platforms. I think Joanne used a really interesting term, which is, well, actually we're in a position now with the right centralized structure, the right business alignment to effectively leapfrog competition because, and therefore turning a weakness into a strength. I think more to come over the next months and how effectively we're gonna do that. The long-term direction in terms of foundational capabilities are extremely important. Short-term, this is really about, you know, investing in the tools that we have to better improve client and RM experience. Here I just have two examples. One is the Digital Private Bank, which we've been investing in Asia, direct to clients. We now are in a position where our Digital Private Bank-eligible clients actually execute almost two-thirds of their trades directly themselves with a click to trade. The bottom example is effectively how we are deploying technology and advanced analytics in the dedicated structure that I mentioned before. This is really exciting. It allows you to personalize and automate direct-to-client investment proposals and really have a data-driven leads generation. We're starting to see good pickup, and you see here sort of a, you know, one of the examples where we roughly have a 50% conversion rates of resulting leads, which means the RM gets given the client portfolio, given the house view, given the market environment, these are the things you should be recommending to your clients, and that 50% actually translates into the hit rate. This makes the business effectively very, very scalable. Now, moving on to risk. Well, our aim is to effectively grow our portfolio underpinned, as you've heard, by a strengthened approach to risk management. Again, here on the left-hand side, as you've heard from David, and he cited a number of examples, we've gone through a realignment of risk appetite as a firm last year, and this realignment is effectively largely complete. If you look at the top, we actually have, as David also pointed out, a really strong track record actually in managing credit risk through the cycle. This is due to the depth and quality of the coverage that I mentioned at the beginning. We actually have done quite a bit, a good piece of work in improving the quality of our credit portfolio. On the right-hand side, you know, as you've heard from Rafael, we've also done a lot of work to strengthen client risk and compliance. We've consolidated, you know, first line of defense in the wealth management COO setup. Rafael talked a lot about the business needs to take ownership. We are, as he mentioned, realigning accountability and shifting resources to be better at client onboarding and providing more tools upfront. We've reviewed our client relationship for the high-risk clients and took a number of de-risking measures. The key messages of this slide is while this has an impact on the P&L, and we've disclosed effectively the impact in Q1 and the estimated impact for the full year, we are heading into more volatile market conditions with a de-risked business and much more robust risk underlying frameworks. That's actually a good thing for the environment that is coming. To conclude, I'm at two minutes over. It's not good. One, a few key messages. We are really making good progress in implementing the strategy that's been announced at Investor Day last November. It's not an easy market environment, but we are working very hard to keep the teams focused on execution. Second, our historical numbers, I would say more than our current performance, provide a true indication of the potential of our wealth management business. This belief in the potential of the business is effectively underpinned by the three key things on this slide. First is we do have a distinctive and leading franchise, which is attractively positioned in high-growth markets, and where we have depth of footprint and depth of coverage. We have capabilities that effectively we've been working on for decades are not easy to replicate. The second is we have effectively set the foundations for a global wealth management business. We have an organization that has very clear accountabilities and with a very strong team in place to deliver. Ultimately, we have a clear strategy in making Wealth Management a core business with six execution priorities that are gonna help us bridge the gap between the current performance and our 2024 ambition. We also have a new Executive Board where all the colleagues, as you've heard, are also going through the same foundational steps. To take the metaphor of a ship sailing through the sea, our captain has pointed the ship in the right direction. We have a brand-new crew. Clearly the seas are choppy, but that's where you wanna have the best crew possible. That's where the crew effectively can make a significant difference. We are building all the right things to drive long-term results, right? Some of these actions are gonna be more tactical, and deliver quickly. Some of the more foundational ones will take time, but make no mistake, the ship is pointing in the right direction. For us now, it's a focus of having consistency and relentless focus on execution, because that will drive growth and sustainable returns over time. With that, Kinner, I will pass back to you. Thank you very much for your attention, and happy for you to direct all the questions to Thomas afterwards. Great. Thank you very much, Francesco. You know, thank you, David, Rafael, Joanne. Also, thanks, Thomas. We're now gonna move to the Q&A part of this session, as soon as our speakers are seated. We'll start by taking questions from the audience here in the auditorium. Again, just a reminder, you know, we're presenting our second quarter earnings on July the 27th, so it would be great if we could keep earnings-related questions for then. For those of you on the webcast, if you'd like to ask questions, you will need to dial in into our kind of conference call. I think details are on the investor deep dive section of the investor relations website. You will have to, you know, if you're dialing in from outside, mute your webcast session before you ask the question. Maybe Thomas, did you wanna say a few words before we dive into the Q&A? Sorry, I'll disappear. Sure. First of all, I wanted also to say that from the Executive Board, we also have André Helfenstein here and David Mathers. We should have Christine Graeff as well, but she may have quickly- She'll be back at 11:00. To help us answering any questions you may have. I also wanted to actually express my pride and delight of having a great Executive Board. I'm extremely happy and proud to have a very diverse set of colleagues here. You know, a seasoned American, a seasoned Wall Street risk manager, a British engineer. You can call me a veteran if you want, but they call me. Who is not only a West Ham supporter but has become now an FC Zürich supporter. I have. Yes, that's right. Spanish. There are similar teams, unfortunately, Thomas. A Spanish compliance officer who used to be a tough guy in internal audit and obviously Francesco, Italian, ex-Credit Suisse. You actually have also Swiss passport, right? I do. Yeah, he has actually two passports. I wanted to point to two key events before we get into Q&A that have led us or led me also to some of these decisions. One was in October 2020, and one was then obviously in April 2021 after Archegos and Supply Chain Fund happened. In October 2020, in the first wave of COVID, we had a window where we finally could get together. You know, I became Group CEO in February 2020, three weeks before COVID started, and then 55,000 people had to work from home, and we couldn't have any meetings, and I wanted to visit the whole world. I couldn't. We had a window. We could get together with all wealth management businesses in Andermatt in Switzerland. We had André, Helman at the time, Philipp from the three wealth management divisions, and we all got together with their direct reports. For me, I was already going into that meeting having served five years on the executive board, where we didn't have a technology officer or the technology expert on the Executive Board, and that had actually matured already in me that we need a technology expert on this executive board. We then had presentations from André, Philipp, and Helman on wealth management, and we talked about client segmentation, about products, about technology, front-to-back compliance processes. Frankly, it was for me like three different banks were presenting to me. It was so obvious this bank had become very fragmented. Already at that time, it was clear to me we need a head of technology, we need to centralize technology, and we need to go back to what I used to work in when I was running Premium Client Switzerland, the global external asset management. At global external asset managers from 2013 to 2015, I was part of a global wealth management organization at that time. Actually, Francesco at that time was running APAC, and that's how we knew each other. We didn't have that anymore. It was clear to me already then. A, technology, we need centralized technology approach. B, we need to go back to some form of global wealth management organization. That's why in January, February 2021, we started to search for a new CTOO, and I was very glad to- I'm very glad to be here too. To find Joanne at the time. I already had some conversations with Francesco, who at the time had another job. So that led to that. Obviously in March, April, after Archegos happened and supply chain fund, we immediately had to appoint an interim chief risk officer, chief compliance officer, and we started a search. I was pretty clear at the time we probably need to divide up again the two functions. It was great obviously that when I met David in New York at the time, and it was great to have to find somebody who's prepared to move from New York to Switzerland and has all the experience from risk from a Wall Street firm, but very relevant for us, of course. As I said, to have then also a strong internal audit professional who has, as I said, been very hard on us, so with Rafael to run the compliance. That's why we're here in this composition, and I'm very happy now to answer any questions you may have. Thank you. I think mics will go around. Should we start with Alastair? Yeah. Thanks. Good morning. Alastair Ryan, Bank of America. Question for wealth management on retention and growth. I guess from the outside, because there's been a difficult period for Credit Suisse, we imagine that retaining advisors and clients has been difficult. Could you confirm or undermine that assumption? Then secondly, you talked a lot about the growth you see in the business, both ultras and high net worth. But coming off a period of internal restructuring that you laid out clearly, you know, how quickly does that happen? If we're getting back to these good numbers by 2024, are you thinking that's when it is, or is it, you know, is it happening before that? Thank you. Let me take these one at a time. In terms of sort of clients and advisors and retention, so two comments. One, clearly, wealth management business is a business of stability and long-term views, right? What is happening both in terms of markets, but also what's happening to us as a firm and some of the reputational challenges have an impact. I mean, it would be foolish of us not to acknowledge it. I would say, though, that when I start, I look at the facts, and that's why for me, it was critical to get the organizational piece done quickly so then I could travel and, you know, lead from the front and be present with the troops in the front line. That's why I'm trying to meet a lot of clients. When I look at clients, I would say to the example I was giving in Brazil, I mean, clients, especially entrepreneur clients, they've been through difficult times with their own business. Actually, we have built the strongest franchises at CS in moments of difficulty. I look at Southeast Asia, it was built when Indonesia was going through the riots in the nineties. When we stood by our clients, that created a massively successful business, and clients don't forget. Interestingly, now that we're in difficulty, I hear, and I think, Thomas, you hear as well, a lot of support from our clients because, you know, even the challenging conversations, they say, "Yes, we understand." I mean, the clients that have been with us for generations cut through a lot of the noise, and then they look at, am I getting the right service? Typically, as I mentioned during my presentation, is we can really provide distinctive service. That's with existing clients. Obviously, with new clients, it gets slightly more challenging. Then as we pointed out too, you have the market conditions backdrop against that. You have a lot of the de-risking that we did, but we also have a lot of deleveraging happening across, especially markets like Asia. On the client side, we are working very hard and staying close to clients. It has a partial impact on our momentum. If I look at advisors, I mentioned we hired 50 net in Q1 across multiple range of geographies. Interestingly, I think the grass is greener on the other side has always been the case in financial services. I've done huge amounts of hiring. There's always a perception that the other bank is simpler, things work better. Actually, it was fascinating for me. One of the first trips I took was to Spain, where we've hired 15 RMs from a large competitor. They were so excited to be at CS. They said, "Oh my God, you guys have amazing products, a great culture." I think it's a balance. Critically for us, the importance. That's why I said don't judge our performance from where we are today. I mean, the importance for us is consistency. Wealth management is a long-term business. Today, we're paying the price of some of the wrong choices over the last five years. We are resetting the ship in the right direction. This will come through to your point over the next period. Some stuff that we're doing is gonna have an immediate traction on results. But some of the more foundational stuff and why you should have a reason to believe is we are fixing the wealth management front organization. Rafael is fixing compliance. Joanne is fixing technology. David is fixing risk. It is when all these things come together that you will effectively see the business moving at the full potential. This will come inevitably. When you have the right people in the right roles with a unified view, these things happen. It will take some time, obviously. Then I'll stop, 'cause otherwise I'll be talking and there'll be no questions. Our margins, our P&L today is very NII and very transaction-heavy, as I'm sure you can all do the math. For us, you know, the speed and pickup, we have rising rates, which are really gonna help, and then the big question is: When is market confidence gonna come back from the investors? Because we have a unique trading machine at CS, and that we can't lose, 'cause that has big swings, as you've seen. Q1 2021 was an amazing P&L, right? I mean, markets are not gonna remain like this. We are also taking very structured approach to changing our focus on recurring. Because clearly long term, that's what's gonna drive the multiples of our share price, and therefore you see the focus on the house view, the focus on mandates, and the focus on accelerating high net. If I may add, it's as you said, clearly, some of the reputational issues we've had has had an impact on our, you know, risk management franchise as well. I would like to point out as an example how, you know, this long-term loyalty between clients and us plays, when in April 2021, we did the mandatory convertible to raise $2 billion of capital, which basically David Mathers and I had to do between two chairmen. Out of the 10 largest orders we had in the book, five were from ultra-high net worth clients, and two of those had actually Supply Chain Fund in their portfolio. They were not necessarily happy about that, but, you know, they put in the money. They said, "Look, you have been there for us, now we're gonna be here for you." This is the type of, you know, client relationships we have that we're very proud of. Should we go to Benjamin? Thank you. Benjamin Goy, Deutsche Bank. Two questions. First, one on risk and then one on wealth management and the tech behind it. Maybe on risk, I guess strengthening the risk framework makes a lot of sense. Just wondering your view of the risk that the pendulum swings too far, that you become too risk-averse and forgo good revenue opportunities, right, that other competitors might be happy to pick up. Secondly, on the One Global Wealth Management business, you spoke about some of the centralization, but I think on one of the slides you mentioned you have 15 booking centers. So actually, how much can you centralize? How much can you realize revenue and cost synergies, and what are, sort of, say, natural barriers by regulators or individual locations? Thank you. Maybe the first question. Yeah. by David, and then the second question by Francesco. I'll take the risk question. Look, given the catastrophic events that occurred, I think it's quite natural that the bank took a pause to sort of re-look in depth at the credit, at the overall risk profile of the portfolio. While it was doing that, the risk pendulum did swing a bit to the conservative side. I think now that we've gone through the work, we feel comfortable with the portfolio. We feel comfortable with the upgrades we've made to some of the infrastructure. I think we are moving the pendulum back the other way. You know, we have the capacity to increase our risk. I spoke about a bit in my presentation. You know, it's funny, it's probably the second time in my career that I feel I'm as much often a cheerleader for taking on more risk as I am for reducing risk. The other time was obviously right after the great financial crisis where the same thing occurred. I think, you know, as I'm going out and meeting with clients and meeting with our teams, you know, I think we do wanna take smart risk where we really understand the risk. We're aware of the risk. We understand the tail outcomes of the risk. But there are good risk opportunities out there, and we're doing that bit by bit. On your second question, on the 15 booking centers, that would require quite a long discussion. I think today, if you were to draw a wealth management business from scratch, you probably wouldn't end up with 15 booking centers, although that's probably an oversimplification, because if we see how much the world is de-globalizing, you know, driven by this Russia/Ukraine conflict, I'm not sure that might necessarily be the best answer. For example, in Europe, we have CRD VI, which is gonna limit market access. Certain countries are saying, "Well, if you don't book domestically, you know, you cannot do business here." We see lots of different trends. That's why ultimately, and this is not trying not to answer your question, but ultimately, the objective that we have with Joanne, we need to build a global single client front end that is booking center agnostic. Yeah. Because ultimately, the custodianship of the assets, you know, can be a utility. The biggest value we get today is by investing into a single global front office, you know, building that, really, because we have 3,000 RMs. The math is pretty simple, right? We can get 20% more client time. Well, we have 600, the equivalent of hiring 600 RMs, fully trained, ready, and operational day one. That's gotta be our focus, really. Mm. -building the right front end. If we can build something that's booking center agnostic, that's what I meant leapfrogging competition, that will really give us a significant- Yeah. Competitive advantage. I, um- We have some work to do to get th ere. I picked that metric actually quite deliberately. Because it's a very interesting metric for all of the things that you've just outlined. It's often seen by every wealth management franchise as a blocker to digital transformation. There's not a single wealth management franchise that doesn't have that problem. To me, it's a tremendous opportunity because it's more about the infrastructure than it is about the software capabilities. Deliberate decisions to configure the back-end execution platforms to support single booking centers as opposed to multiple booking centers. To me, it's a great example of something which has traditionally been a driver of cost, but needlessly, you know, in a situation where you can actually design solutions which are booking center agnostic, you know, multi-jurisdictional, multi-legal entity. Actually, Francesco did do this to a certain degree in some experimentation in Singapore that, although it's not booking center agnostic, it is multi-legal entity, multi-jurisdictional. You know, a center which supplies multiple jurisdictions in terms of their regulatory reporting. We do have some evidence that it is possible to do that. Andrew? Just there. Hi. Good morning. It's Andrew Coombs from Citi. If I could ask one on wealth, one on tech, and then one big picture question as well, please. So on wealth, I was interested in your NII guidance. Back in November last year, I think the figure was CHF 0.7 billion of incremental NII. Today, you've outlined CHF 0.8 billion, and yet since November, the forward curve has obviously steepened substantially. A lot of your competitors are talking about much larger NII numbers versus where they were. In November last year, you were only talking about very marginal step change. Just interested to know the dynamics there, and has there been an offset to the steeper curve through lower loan books or change in perimeter? What's driving that? On technology, you made the interesting point about in-house versus external spend. You've talked about the CHF 200 million and then CHF 400 million in medium-term cost savings, but can you provide some form of idea on the cost of those external employees versus internals and the relative comparison? Sorry, that- Sorry. There was a big picture which I'll let everybody chime in on as well, which is, when you gave the November Investor Day, you gave a CHF 600 million revenue attrition figure specific to Prime Services. Today in the risk slide, you've also talked about, the reduction in leverage finance, the reduction in shipping, the reduction in non-IG, kind of all of these other measures that you've taken. I don't know if you'd be willing to put any kind of framework around what the cost of that is in terms of revenues as well, just so we can get a feel for how much the revenue trends are cyclical versus how much has been the de-risking efforts you've made. Okay. Shall I? I would say. Yeah, I just clarify on the first question. Yeah. Yeah. The CHF 700 million, Andy, was more the strategic plan as opposed to the rate sensitivity, right? That is separate from the strategy. Just to be clear. You're saying 700 plus 800? Well, it's obviously a different parameter. This 800 is rate sensitivity. Yeah. Obviously the number for the whole firm is bigger. This is a clear opportunity for the firm. There is some short-term negative impact by, for example, the SNB decision, for the Swiss business, which partially impacts also Francesco because he has the prime client business in Switzerland, but partially or more so André's business. Because, you know, in Switzerland we basically had a policy for any cash we had deposits above CHF 2 million, we had negative rates. Whatever we had to hold with, in terms of HQLA with the Swiss National Bank, we had this threshold which we can keep at zero, and that was actually a short-term benefit for us, which is now disappearing. That is something that will have a short-term negative. Clearly, if you take the forward curves across all major currencies, starting with U.S. dollar, euros and Swiss franc, this will be a major benefit for the firm, across all three businesses. Yep. The consultancy monthly run rate for our 13,000 consultants is between CHF 46 million and CHF 50 million a month. You can see the opportunities that I highlighted there, can't you? Maybe the third question, which was around what we had announced in terms of risk reduction in November and the link also to what David presented. It's clear that in November we were indeed focusing on prime services, but we also said already in November that we are reviewing all the risk. As a matter of fact, for example, in leverage finance, we had reduced our risk appetite already in the third quarter and fourth quarter 2021 significantly. We then went through an exercise together with David and the board of our risk appetite across businesses, including leverage finance. In many of these businesses actually went back to pre-Archegos risk appetite numbers. Now clearly, some of the reductions we also mentioned today in David's presentation in lev fin was also a reaction to the current market environment, and where we have, like many of our peers, you know, taken a more conservative approach with the higher rates, the higher spreads. I don't know whether you want to add anything. Yeah. I think just to be clear, so on leveraged finance, you know, we're not. The current level of risk is more related to market conditions than to our overall risk appetite. Exactly as Thomas said, actually, we're back roughly in line with our pre-Archegos risk appetite, which actually had come down a bit post-COVID. We're not at our, you know, our pre-COVID risk appetite in a lot of these areas, but we are still. We've reverted back to our pre-Archegos risk appetite. I do think in the Q1 slides, we gave some details of some of the other impacts across wealth management, of some of the client decisions that we've made and some of the risk reduction we've made. I don't know that it was comprehensive across all the segments, but I clearly remember the wealth management piece and some of the IB piece. Yeah. We have it split between IB and wealth management, and the individual actions were consistent with what we said on fourth of November. Kinner? Yeah. Thank you first of all for the very interesting presentations. I have a few questions. The first one is on IT. The way I understand it, tech spend is CHF 3.6 billion, exit is CHF 3.4 billion. You are going to save another CHF 400 million. Is that gross? Is that net? Now putting this in context, I cover Goldman Sachs and Morgan Stanley. They probably spend about CHF 4.5 billion-CHF 5 billion a year. Simpler models. If you look at Morgan Stanley in particular, a bit more comparable, one country, more or less. How do you put your budget in context to global competitors? In that context, you mentioned, for example, your middle platform in the IB business is still mainframe, which clearly a lot of them are changing. That costs a lot of money to change that from talking to other IBs. I'm just trying to square the numbers of investment going to cloud, where you are in cloud, and how you compare your budget to peers. Let me just talk about those peers. We can maybe talk a bit more later about it in a bit more detail. Morgan Stanley is interesting in that they've contained their costs by a very close relationship with Microsoft. This is one of the kind of. We'll kinda go through principles, but that's a very interesting proposition. In fact, Thomas and I have met extensively with Microsoft, you know, and they are our cloud provider. The thing about cloud is, and I think Morgan Stanley is a great example of this, is that, and this is why I emphasize native cloud so much, is that if you think about the orchestration and the infrastructure that historically you would have had to have built yourself. You know, native cloud provides much of that. If you take the developer experience point, you know, historically, and I did this at Goldman Sachs, we built the entire developer experience toolkit 12 years ago from scratch because there was no alternative at that moment in time. And that cost for them continues, right? It's generational, it's innovative, but it's an in-house product. And I was very instrumental in that decision 12 years ago. Now I'm in the same decision. I'm looking at Microsoft developer experience toolkit. It's best in class. It's cloud hybrid, it's very attractive to think, well, you know, do I have to spend the same amount of dollars to ultimately end up with a toolkit, which also because it's Microsoft-given industry standards and from an engineering talent, much more attractive for engineers to use wholesale market products than it would be homegrown products. This cloud-native strategy is very much connected to our leapfrogging because many of our competitors will have tried to migrate software. That's expensive. You've got to uplift, you've got to refactor. Of course, to a certain extent, you know, and I'm using Francesco and to quote Francesco, some of our weaknesses can quickly in this space be turned into strengths. Because, you know, we're not first movers for cloud native, and it gives you a lot for free by using these cloud products. I think that Morgan Stanley have done that very cleverly with their relationships, you know. Now we should talk about, you know, Goldman Sachs maybe, you know, later, and I'm happy to take you through some of those insights, right? Now in terms of our cost, let's just go back to the story because it is really important that we understand this story and the opportunities. The way that I see it is, and I think Thomas, you know, saw this, you know, wherever you were, I don't know where you were when you saw those opportunities. You know, when you bring an organization of this scale together, imagine a completely federated organization in technology. A federated model is fine if you have compensating controls. For whatever reason, those controls eroded or were not established in the beginning. I mean, that's a historical question. Now we've brought the organization together, the immediate thing that is apparent is just the running cost of that organization. The number of consultancies we use, whether we're using average rates. The very first thing we've done is to in effect, audit those relationships. We're looking for key partnerships, you know, key transformative partnerships that are willing to work with us on rates, rebates, credits, and access to technology skills that maybe we need during this transformation, but maybe we don't need longer term. This idea that you can flex your organization in and out quite easily. By the way, that's one thing that Goldman Sachs does do very well. The costs are less fixed. They're more very much related to revenues, and they're, you know, they can be adapted, you know, associated with certain products. There's a maturity life cycle as well that you would want to be able to create a baseline set of engineering skills which are in-house that allow you to kind of realize the benefits of that mature, maturing infrastructure. My plan is quite simple. Over the next 18 between this year and next year, we will continue creating operating principles by which we can manage our expense. Software licenses, contracts, consultancy agreements, that when you get economies of scale, make those renegotiations very straightforward. I have been very surprised by the cost opportunities by doing that. Very surprised. Now, I've also got decades of experience, so I know what you should price a developer at in certain markets. I know what software should be priced. I can say, "Well, hold on a second. I know the market rate for that is X." There are significant opportunities by doing that. One of the key hires that Francesco and David helped me with, we've just taken a COO of a business and asked them to be my COO so that we can have that kind of commercial attitude to managing that expense base in aggregate. Now, at the same time, my intention is to repurpose, you know, some of that money so that we can develop core technical capabilities. The best example I was giving somebody earlier was on the I mean, omni-channel technology is well known to be very significant for wealth management franchise. The idea of a platform there in context is quite simple. I mean, obviously this is a very straightforward example. Today, we have multiple software delivery mechanisms to put software on mobile phones. We really need one. Over time, what you'll see in the next, well, actually over the next 15 months, a much greater discipline by saying, "Well, actually, you can't develop your own mobile. You can't. We don't want one for the Swiss bank and one for IB and one for wealth management. We've already got one, it's fine. Use that." That's exactly what Goldman Sachs have done. The trick for us will be being able to repivot these dollars in order to invest in that, which as you can see from these numbers, there's absolute opportunity to do that. also to develop, you know, best-in-class platforms, some developed, some buy, to allow us to have those kind of enterprise capabilities by which we can realize those structural benefits. The by-product of those structural benefits and having consistent platforms is speed to market of new businesses. Today, if we were going to create a new business at Credit Suisse, you really are having to do, you know, assemble group of technologies, reselect the technologies. We don't have a cloud-native strategy, and so you're developing the orchestration and the infrastructure that goes with it. It's like starting a whole new business. Of course, if you were gonna start a new business, you wouldn't do that. You would go to a cloud-native approach. You would, you know, run your infrastructure in the cloud with all of the benefits of doing that. You also need to do that with a business, like there's certain capabilities that you want to keep in-house, you know, data. Right, we need to be very cautious with the fact that we have very, very sensitive data. Whether that will ever be completely housed in cloud is unlikely. That's an example of where we need to have a balance of these platforms. These platforms provide scale. Again, I can talk to you about, in my experience of how we've done this, but they absolutely create new business opportunities quicker and cheaper. Sorry, on the three, on the IT spend, ex the 24, what should we think? Yes. There will be fiscal savings this year. I just wanna explain these numbers, it's very important. There will be fiscal savings this year. In a consolidated organization of 25,000, I know what my run rate is today, and I know what my run rate will be at the end of this year, and it will be CHF 200 million less. The actual fiscal savings for the whole year will start toward the end of the year, because obviously, you know, amalgamating such a large number of people, it's a moving part. CHF 200 million next year, CHF 200 million the following year, CHF 200 million the following year. If I may, just one more on Wells. Can you talk about Asia structural issues? Let's leave aside CS specific issues, but how do you think about Asia structurally in terms of net new money growth against history, and also around the process of deleveraging? You reconfirmed your lending growth guidance that you gave at the Investor Day, and you said, assuming certain market conditions, so it's subject to, clearly. How do you think about structurally the environment in Asia? Very happy to take that. One, again, and that's why I focused right there. There's a particular moment in time, you cannot set sort of long-term strategy on just the current market conditions. If I look at Asia, and you look at wealth generation, the macro trends are very clear, right? If you look at demographics around China, India, Indonesia, I mean, these are significant wealth growth machines. And wealth growth machines for the long term. It wasn't clear to me when I was working here. It was very clear when you're onshore in Asia, spending time in the countries, the speed and wealth generation that's happening in those countries is really phenomenal. When you talk about the next generation, the next generation typically is hungrier than their parents because they want to effectively show that they can create their own pathway. I think the long-term trends are significantly supportive. Clearly, if you then break down the dynamics, Asia is not one, right? Australia is very different from Japan, very different from India, very different from China onshore. Clearly, what happens to China has a big impact on what happens across Asia. What is gonna be the macro environment in China? Obviously, China has been very hurt lately with all these zero tolerance for COVID and lockdowns. There is a Party Congress in October. It is very likely that we will see sort of a significant stimulus package around picking the average Chinese up and restarting the economy. I think you'd have seen China took some very hard stance against certain sectors and are now looking potentially to rebalance that. I definitely see long-term, Asia will continue to do well and China will continue to do well. That's why we're so focused on, you know, having the right setup in our China onshore business as we further build this out. When we look at leverage and deleveraging, I would divide it in two. There is leverage that is very market dependent, such as Lombard, right? Leverage that you use for reinvestment. It's very important that we deliver value to clients. I'm not sure getting clients to take on a lot of additional leverage, you know, heading into this market turmoil is necessarily the right thing for clients. I think there's a certain. We've seen clients deleveraging on the standard Lombard, and actually that's a good thing for them. Again, we have a long-term view. Entrepreneurs tend to act sometimes countercyclically. Actually, a lot of the entrepreneurs I talk to always see crisis as opportunities to buy. That's where with David, we're working on, you know, getting right the risk appetite on the structured lending fees to support ultra-high entrepreneurs capture the opportunities. But the deleveraging that you're seeing that is market connected is just, for me, a temporary phenomenon. My experience is, like transaction revenues, this in Asia turns very quickly. Is there a question from Isabelle? Yeah. Hello. Thank you very much. It's Isabelle from Morgan Stanley. I had a couple of questions, a lot of them on technology side. Could you talk a little bit about what you are doing in the wealth business to improve advisor productivity and free up that RM time, for example, through modulating mandates or outsourcing? More in general, when you think about your cost to serve, how much do you think you can compress that? Do you think you can get it to a place where it's profitable to go after the mass affluent segment in the way some of your competitors are doing? And then I had a separate question on NII. It's a simple question. How do you think that the deposit behavior may differ in this cycle relative to other Fed hiking cycles, given the market sell-off? How do you think about this expressing itself in deposit betas, and deposit rotation? Okay. The first question is both actually technology and the wealth management question. I would say, it's very good question because freeing up RM time is one of our core goals in all our businesses. It's not only about technology. No, it's also about compliance. It's about other areas. Maybe I suggest, Francesco, you start with that, and then maybe Joanne can complement you on some of the technology efforts we're doing. Thank you, Isabelle. I mean, I think as Thomas said, if you look at the amount of time today a client advisor spends on, I would say administration, but there's a lot of work going on around KYC, transaction monitoring. You've heard from Rafael. There is a lot of opportunity. We need to change how we look at processes on a front to back. For example, the shifting of resource, today we have, if you look at our FTE displacement, a really strong second line and a slightly weaker first line. That actually is not the right balance, right? We are shifting resources from the second line to the first line to make sure that people are there to support the RMs, make sure we onboard the right clients from the onset, not catch it afterwards. I think as we reengineer the processes, we define what good looks like in terms of global minimum standards, and we roll this out. I think that will significantly help getting a more streamlined business model. I think some of the technology that we can apply to that is absolutely fundamental in further driving automation, because a lot of this stuff can be automated. Mm-hmm. Now, is that going to effectively allow us to deliver at cost in mass affluent? Well, I would argue, if you would talk to André, we actually deliver at cost to mass affluent in our home market really very successfully. Are we considering taking the mass affluent business more globally? That's probably a phase two strategic question right now. Let's get the ultra-high business effectively, you know, continue to deliver, and let's accelerate the high net. There is enough opportunity in these two buckets. At least that's how I would answer the more strategic question. I mean, ultimately, you want the RMs to be spending their time solely on client-facing activity and mandates. I mean, that is absolutely our goal. One of the opportunities at Credit Suisse is, and I did reference it maybe indirectly, is there is a significant amount of manual work. Now, the thing that I find, you know, very interesting about that is that many of our competitors have grown their operations functions. You know, hired more people, more manual work, and I'm pretty determined that we won't do that. That in fact, what we'll do is we will adopt, you know, these best-in-class process modeling, process automation tools, which many of the ones that we have met have only actually come onto the market in the last five years. This is what I mean about, to a certain extent, it's we're in a kind of a very attractive situation where we can actually not be the first movers in some of the software adoption. You know, that's certainly an interesting thing in the context of RMs, because our processes, I mean, part of fragmenting your technology and operations organization is that you indirectly fragment your processes. Now what we can do is look at them front to back and create real automation opportunities. That involves, when I talk about front to back, I mean, obviously the RMs are part of that chain of process. We can actually, through automation, you know, free them up in order to do this. Now, one of the immediate things that we're doing is, you know, the Spark tool that I mentioned in my presentation is an incredibly rich, client insights tool, which is used extensively in Asia. It's very straightforward for us to take that tool, we're in the process of doing it, and just roll it out to the RMs globally in wealth management. There's lots and lots of examples of where we can have some short-term wins that really provide these great data insights for the RMs, just by bringing this together more and creating more reuse opportunities. Before we get to the net interest question or deposit and related to the interest hike question, I just wanted to. I don't know whether we can quickly show the slide. I was, I think it was the second slide of Francesco. But this focus on client segment is very important in terms of managing the economics and managing basically the cost-income ratio. You heard the IPB cost income ratio 55%. That is really because this client segment only focus on high net worth, much higher penetration of mandates. It allows the RMs, actually, to spend client-time with clients outside discretionary mandates. If you go to the second page of Francesco's slides, please. Goodbye. Where you see the markets. Yeah, here. You see Switzerland premium clients, 50 RMs, CHF 420 billion client business volume. Mm-hmm. It's about CHF 100 billion, you know, if you exclude the lending. The average RM has about a CHF 2 billion book. They are only about 20 or 30 clients, client groups, families. We're talking about roughly CHF 100 million per client. They are very much focused. They have a low mandate penetration discretion because ultra-high net worth, they're not so keen on discretionary mandate. Some of them have, you know, usually not across various asset classes, but it's an equity mandate or a fixed income mandate. They have a very big client book in terms of AUM, but small number of clients, and they can focus on these clients. A high net worth RM has 100 clients. But many of them have discretionary mandates. This is how you actually manage the cost-income ratio and client time. That's why it's so important that outside Switzerland, we start because most of these other regions, whether it's Europe, APAC, Middle East, Latin America, they all have mixed books, these RMs. They have ultra-high net worth, and they have high net worth. We have started to do this with PBI, but there's much more we can do. Right? Yeah. If I can also add, 'cause I think I can see you're not gonna ask any questions about compliance. I won't take it personally. No, if you think about where RMs are spending a lot of time is in client risk management activities. As you saw from the previous slide, we're going to simplify these activities, these formalities activities, the know your customer activities. That, when you think about where we come from, the fragmentation that we have seen at Credit Suisse, coming up with those global minimum standards of what is the right documentation, what is the right information that we need to manage our clients? I think that we haven't quantified it yet, but I do believe that's gonna significantly reduce that time. Also in the other part of my presentation, we talked about client risk committees. These RMs and their entire teams are the ones that's spending time in these committees, going through the same client, the same presentation. Up until April, they did it six times. Now they do it three times. I do believe when you put those criteria also in one of my presentations, one of my slides, that clear criteria that provides the filter, the organization doesn't spend time or waste time, especially the RMs, on pursuing clients and pursuing transactions that do not fit into our risk appetite. Isabelle, in short, there's a lot of work to do, and I think a lot of opportunity. How are we tackling this? We're taking it from what are the biggest pain points today? How do we re-engineer the process? 'Cause automating what we have now ain't gonna work. How do we re-engineer the process and then apply technology to it? On the deposits, I mean, the way I would say, clearly, at the moment, a lot of our clients are more in cash, given the market environment. Cash is becoming slightly more attractive now. It used to be negative rates, especially in Swiss francs and euros, that becomes also slightly more so. I expect, clearly, some increase in deposits or cash volumes versus investments. At the same time, that can change quickly as markets stabilize and suddenly people see the upside, but we are certainly not there at the moment. Stefan? Thank you. Yes. Good morning. It's Stefan Stalmann from Autonomous Research. Thank you very much for the presentations. I have two questions, please. One on risk and the other one on tech. On risk, we have recently seen your company run stress test as part of the DFAST exercise in the U.S. The capital drawdown in your own stress test was substantially higher than it was last time that you disclosed it in 2020. It was about three times as high. Also last time you did it two years ago, it was more in line with the Fed's approach to stress testing, whereas now it's much more severe than the Fed's stress test. I'm wondering what has changed compared to 2020 stress test, and whether you think that this outcome of your company-run stress test actually changes the Fed's perception of the riskiness of the U.S. business. The second question on tech. You disclose about $8 billion of gross software assets. But unfortunately, the annual report doesn't say what the net number is. I was wondering if you could give us a hint about what the net depreciated number of software assets is. Related to that, do you think that number will tend to go up? Going forward or maybe go down as you move to more software as a service, maybe more cloud services, et cetera. Thank you very much. Mike? John... David, whichever one. No, I can. No? I can take the DFAST question. One, we do run DFAST every year. I guess we only publish it every other year, which is something I only found out a couple weeks ago. Actually, our results were largely in line with our expectations, and therefore I would expect within the Fed's expectations as well. I don't expect that they're gonna have any different view of either our risk exposures or our risk capabilities or anything from those results. I think, as I said, they're generally in line with the Fed's calculations. The Fed's calculations are in line with what we expected. You know, I think we've had a strategy of moving more of our portfolio into our U.S. subsidiary, and so I think that's also had some of the impact. On the capitalization, I mean, as we provide more software as a service and reduce our technology footprint through using partnerships, it will have a direct correlation on how much we capitalize over time. Now, what we're trying to work through is I'm just trying to understand the CHF 8 billion software capitalization and where it's attributed to, and I'm in the process of doing that at the moment, you know. To understand as we project forward over the next four years, you know, it's relatively straightforward to estimate the cost of some of these builds and to work that situation through. Jeremy. Hi there, Jeremy Sigee from BNP Paribas Exane. Just one question on risk, continuing the discussion, and particularly focusing on your regulatory relations. There were some suggestions, you know, around the FCA watchlist issue, this kind of thing, that the regulators were not satisfied with some elements of the progress you were making in terms of your risk reforms. I don't know if there's any truth in that, or if you could just comment on what steps you do need to go through to build confidence amongst your various key regulators in different jurisdictions. Yes. I'm not gonna comment on any specific individual regulatory feedback, of course. But I do think we clearly disappointed our regulators with the actions that occurred. Archegos, Greensill, other activities. We have a lot of work to do, as do a lot of our peers, to kind of uplift those risk capabilities, you know, across the bank. Being new to the firm, and I think I mentioned in my comments, you know, I think my observation is we were generally a bit reactive in dealing with regulatory feedback. If one regulator asked us to do A, B, C, another asked us to do one, two, three, a third asked us to do X, Y, Z, we would very siloed deal with those things individually and not really look across them to say, "What do they really want?" Like, what is the theme that they're pursuing, and let's organize ourselves that way, and then also taking into account what it is that we actually think is the best practice. That's the fundamental difference that we brought about through the Strategic Regulatory Remediation office, is actually consolidating all the feedback, having one plan that then we can share with all the regulators, and then we can make sure we have deliverables that we can consistently hit. I think that's gonna make a lot of difference. Amit. Thank you. It's Amit Goel from Barclays. Thank you for the presentations. I've got two questions. The first actually goes back to the, I guess, Thomas, your initial comments on costs. Just wanted to check, so in terms of cost for this year, with the acceleration of some of the cost savings plans, you still anticipate to be at around CHF 17 billion? That's the first. The second question again relates actually to the broader group targets and divisional targets. Obviously they're reiterated at this stage. The environment appears to have become a lot tougher in some respects. Revenue expectations this year are a bit weaker than I think what we anticipated back then. Just curious, you know, how you think about that and, you know, because the risk that drives adverse, you know, risk decisions and so forth, how you're thinking about those targets. Thank you. Yeah. Obviously there is also one element which you didn't mention, which is inflation. Obviously that is somewhat of a headwind. There's definitely a lot of opportunities we are tackling in terms of our cost management. I mentioned not only technology and operations, but procurement and other areas. There are also some areas in the front where clearly we have excess capacity and where we have to react to the current market conditions. Some of the decisions we're taking in some of the exit markets, not only in wealth management, but also GTS. Some of the also Russia, Ukraine-related market exits or downsizing that is happening. Many of these benefits we actually only see in 2023, because obviously we have to do this in the right way. There's definitely opportunity, especially for 2023, 2024 in terms of our cost reduction. As we also already said in November, we want to invest in some of the growth opportunities, and we have to balance that. We have to take on one side a tough view on cost management, at the same time, we don't want to give up our long-term plan and long-term strategy. A good example is also China. China, there were some reports that we are delaying our license application or our LIBOR process, which is totally not true. We are actually totally sticking to our plan in China. We want to get to 100% in our 51% securities legal entity. We apply for the licenses, we want to achieve all the right steps in terms of our LIBOR process, but we are clearly slowing down to some extent some of our front RM rollout plans at the moment given the slowness in the market. These are decisions we have to take in terms of where you wanna be long-term, but how can we manage short-term the costs. Take care. Yeah. Yes. Morning. It's Adam Sherck from Mediobanca. It's a question on wealth. A lot of the targets look familiar from November. A number that's conspicuously missing was the CHF 3 billion of capital redeployment. I was just wondering whether that still holds. As a follow-up, is the group capital position causing any issues in terms of capital redeployment or risk appetite at this stage? Then kind of the speed of the wealth management growth. Is capital at the group level causing any issues? Thank you. Maybe I can start off and then Francesco can add. I mean, it's very clear that lending growth is part of our growth strategy. This is part of our plans to get back to the 18% return on capital. You also saw the net interest opportunity we have, which is partially on our stock that we have, but there is also opportunities to grow our lending book. As we have seen, we had a significant amount of deleveraging going on, probably more so than we had expected in November. Some of it in Asia, some of it obviously in Eastern Europe and in Russia and elsewhere. In principle, our plan continues to be to grow our lending book in wealth management and directionally go towards CHF 3 billion. Given what happened in terms of you know the last couple of quarters, it's clearly a slightly different basis from where to grow. Yeah, I think that sums it up. I mean, the long-term strategy doesn't change. We set a strategy to build a long-term successful wealth management business. Clearly, the rate at which you see some of these initiatives being deployed has to be tempered given the market environment. That, I would suppose, is just normal. Great. We shouldn't forget Andrew now. Hi. It's Andrew Lim from Société Générale. First, on the risk side, David, I think there was one slide where you showed the Archegos loss as a credit loss, which is different to peers, which treated it as a negative revenue item. I'm wondering here whether in your discussions with FINMA, whether they share the same view, and given the time that's elapsed since Archegos, does that mean that we can take the risk of an op risk charge off the table there? My second question is related to slide 51. It just intrigued me a bit. You talked about half of your wealth management lending portfolio being standard Lombard loans. What exactly do you mean by that? Is the implication here that the other half is non-standard in nature, or are you just referring here to just like mortgage lending, non-Lombard loans, which are pretty safe? I suggest the first question maybe David Mathers should answer because, as you know, Archegos was based on swaps and the related losses. Actually, we bifurcated in March in the Q1 2021, and then in April 2021 when we had some of the trading losses as we exited some of the positions. Maybe David, you want- Yeah. Sorry. Is the mic on? Thanks. As Thomas said, the treatment was bifurcated because Archegos technically failed partway through, so it was treated as a credit provision for one phase and as contra revenue for the second one. I can't speak for how other people did, but that's the treatment under U.S. GAAP for us. Oh, sorry. There was a follow-on about op risk, wasn't there? Yeah. I don't think we're really answering Q1, Q2 questions. I would say, though, at this point, basically, that there was a very small change in terms of runway risk for hedge funds, but nothing more material than that. I think you may have seen something similar for one of our peers. To your second question, when you look at the pie chart that we showed, sort of the credit exposure. From memory, I think 47% was standard Lombard. We consider standard Lombard when it's within certain risk parameters, so liquidity of the stock, ADTV, and so on. The other categories, let me just be very clear, 17% was real estate that's secured by real estate collateral. We have ship and aviation secured by planes and ships. Effectively, the large majority of the wealth management lending exposure is fully collateralized. Just marking to what extent your lending practices for the non-Lombard lending parts deviates from what you consider to be standard Lombard lending. Is it simply the nature of the collateral, or is there some LTV changes or differences there? You know. Yeah. With financial instruments. Yeah The other is a house or a ship or a plane. They're very different types of lending. And that's- Yeah those main differences. Yeah. Okay, great. Thanks. Then you have, you see structured corporate, which is again, you know, partially around, you know, maybe some cash flow for corporates of entrepreneurs. I mean, you would get a whole mix. I mean, what should leave you comfortable is that, you know, as David has also pointed out, the average losses we've taken on these books, and you went back to, what? 2010 in your slide, right? Has been eight basis points. I mean, that is really exceptional, and that goes back to where we have people on the ground, we know the markets, and we have multi-year relationships with our clients. You know, we are really good at managing risk. To be standard Lombard, I mean, I think you said this, you have to have a certain diversification requirement, you have to have certain liquidity requirements, and so you have to fit neatly into a very standard kind of margin loan box. Then if you're not that, you become, you know, what we call structured Lombard, which is still, you know, just less liquidity perhaps or less diversification of the portfolio. That's, you know, we adjust for that in our LTVs and other compensating considerations, but that's sort of how we break the difference between those products. You know, for example, in ship finance, which is a business we are doing since the 1950s, it used to be called in German, Schiffshypotheken, so mortgages against ships. Ever since we are doing this, we are only doing ship financing to private banking clients. We are not in the ship finance business for whether it's an oil tanker or a gas tanker, or whether it's a bulk carrier, a bulk dry goods ship. We are not doing this business if you do not also have wealth management relationship with this ship owner. Even though the recourse is only against the ship, we have an asset maintenance clause usually with these clients. That's why we have had such a good track record in this business. Great. Well, I suggest, given it's nearly 11:30 A.M., that we continue the conversation out there over some lunch. Really wanted to thank everybody for, you know, the interest and all the good questions we had today. Also, thank you to all of you for presenting today, and I think all your teams as well, who've obviously put in a lot of energy into this. Of course, as always, the IR team is available if you have any kind of follow-up questions, but there'll be an opportunity to continue the discussion now over lunch. Thank you. Thank you. Thank you. Thank you.