UBS CFO remains comfortable with private credit exposure
CFO Todd Tuckner says UBS is comfortable with its private credit exposure despite market jitters. He expects the group to meet annual cost-income targets.
UBS Group AG Chief Financial Officer Todd Tuckner stated on Tuesday that the bank remains confident in its level of exposure to private credit funds. Speaking at a Morgan Stanley conference in Zurich, Switzerland, Tuckner addressed growing market anxieties regarding potential risks within the private credit sector.
The private credit market has recently faced scrutiny over issues related to asset valuations and a perceived lack of transparency. These concerns have been amplified by high-profile financial distress cases, such as the bankruptcy filings of car dealership Tricolor and auto-parts supplier First Brands. Despite these industry-wide headwinds, the executive dismissed concerns regarding the bank's current position.
I'm comfortable with the level of exposure that we have.
Tuckner also provided insights into the impact of the current monetary environment on the bank's operations. With the Swiss National Bank maintaining a benchmark interest rate of 0%, the bank faces pressure on its net interest income. Tuckner noted that this environment could lead the Swiss division to fall slightly short of its underlying cost-income ratio target by the end of 2026.
However, the CFO emphasized that the broader organization remains on track to meet its financial objectives. He confirmed that the bank is maintaining its underlying cost-income ratio target for the entire group for the current year, despite the specific challenges facing its domestic operations.
