UBS CEO Ermotti warns pain from negative rates may spread

With central banks around the world again drive rates lower, UBS is battling a series of headwinds. These also include tightening competition for wealthy clients, slowing economic growth, as well as a legal dispute in France.

ZURICH: An increasing number of clients could be at risk of feeling the pain of negative interest rates, UBS Group AG Chief Executive Officer Sergio Ermotti said, while keeping a protective hand over his smallest depositors.

As low rates persist, and threaten to go even lower, speaking in an interview at a conference in Beijing, Ermotti said the bank may have "no choice” but to pass on more of the cost. He emphasised that it "will not pass negative rates to smaller clients, the personal banking clients.”