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UBS Group AG’s decision three years ago to close debt-trading desks, slash risky assets at its investment bank and concentrate on managing money for the wealthy helped make it a favorite among investors. Since then, its stock outperformed global peers including Deutsche Bank AG, Barclays Plc and Credit Suisse Group AG, which are still revamping their businesses to cope with stricter capital rules, rising legal costs and record-low interest rates. UBS may report a more than doubling in third-quarter net income to 1.79 billion Swiss francs ($1.81 billion) on Tuesday, based on the average forecast of four analysts surveyed by Bloomberg, after booking legal provisions of 1.8 billion francs a year earlier. Jeffrey Vögeli interviewed Chief Executive Officer Sergio Ermotti and he sees four key risks to UBS’s business as rivals increasingly emulate his strategy: new capital demands, copycats, market swings and further litigation. Read Bloomberg article here.
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