Good morning, everyone. Welcome to the Julius Baer Half Year Results Call.

I am Alex van Leeuwen, Head of Investor Relations. We are joined today by our CEO, Stefan Bollinger; and CFO, Evie Kostakis.

Before starting, I would like to flag the important information provided on Slide 2 of the presentation. It is now my pleasure to hand over to Stefan for his introductory remarks.

Thank you, Alex. Good morning, everyone, and thank you for dialing in today.

Let me start by giving you my take on our half year results. It has been an intense but highly productive first half for Julius Baer.

Overall, we delivered a very strong operating performance, which was driven by exceptional client activity, especially in the first quarter. The results also reflect the depth and breadth of our capabilities and the ability of our team to help clients navigate complex markets and capture opportunities.

Now let's have a look at the figures. Asset under management reached CHF 547 billion, up 5% year-to-date, the highest level in our history.

Net new money amounted to a solid CHF 5.7 billion, which we achieved despite the ongoing implementation of our revised risk and compliance framework. We generated a record half year net profit of CHF 673 million, a like-for-like increase of 32% year-on-year.

Our gross margin expanded to 87 basis points, and our cost/income ratio improved to 62.6% as we delivered further positive operating leverage. Capital generation remained strong with the CET1 ratio increasing to 18.5%, underscoring our solid capital position and financial resilience.

Regarding capital distribution, I would like to reaffirm that any further share buybacks remain subject to approval by FINMA. We continue to have an active and constructive dialogue with FINMA, but the time line is ultimately theirs.

In short, we have no further update at this point. As you know, the first half also marks the start of our new 2026-2028 strategic cycle.

We continued to progress steadily on our strategic priorities and are in execution mode on all 5 pillars: growth, efficiency, risk and compliance, technology and last but not least, our people agenda. First, we launched our growth program in February, and we are pushing to unlock organic growth.

Front to back, everyone is involved. At the same time, we continue to progress on the implementation of our revised risk and compliance framework.

On the operational side, our focus is on simplifying end-to-end processes, taking a risk-based approach and leveraging technology, including AI. One example of how we apply a risk-based approach is the work we did on streamlining the client onboarding process in Switzerland.

Among many use cases, an example of how we leverage AI is the work we did on materially improving name and media screening. And on the fifth pillar, we progressed on the culture transformation agenda with emphasis on performance and ownership.

Overall, I'm proud of what the team achieved and where we stand. Of course, there's still a lot of work ahead, and it's crucial we all remain focused on executing with discipline.

With that, I hand over to Evie to walk you through the financials.

Thank you, Stefan, and good morning, everyone. As usual, before turning to the results, I'd like to begin on Page 7 with an overview of the key market developments during the first half of the year as these will help frame the context for our performance.

Despite the shock in March, global stock market indices were up meaningfully, albeit with quite a wide dispersion of returns. For example, while the NASDAQ was up 20%, the SMI was up just 7% and Hong Kong and India were actually down more than 10%.

Bond markets were little changed. And while the Swiss franc strengthened slightly versus the euro, the franc saw some modest weakening versus the dollar.

The prices for precious metals show significant swings, especially at the end of January when both gold and silver following record peaks experienced their sharpest 1-day sell-offs and most extreme intraday swings in decades. In terms of Central Bank interest rates, we saw the ECB hike by 25 basis points in June, the first time they raised rates since September 2023, whereas the U.S.

Federal Reserve kept rates unchanged for now after 3 consecutive 25 basis point cuts in quick succession in the second half of 2025. The Swiss National Bank kept rates at 0.

The third set of graphs on the bottom left of the page shows that the shape of the key yield curves continued to normalize. Finally, stock market volatility, as measured by the VIX increased in the first quarter with a spike in March before normalizing in the second quarter.

Moving on to Slide 8, which shows assets under management up 5% to an all-time high CHF 547 billion on the back of positive market performance, continued net new money and the stronger dollar. Monthly average AUM, important for the margin calculations, grew by 7% year-on-year to CHF 526 billion.

And with assets under custody up 10%, this brings total client assets to just shy of CHF 650 billion. Proceeding to net new money on Slide 9.

A bit similar to what happened in H2. We started the period slowly, but picked up some momentum in the last 2 months, ending with net new money of CHF 5.7 billion, and that's a 2.2% annualized run rate.

Growth continues to be weighed down by the ongoing rollout of our revised risk and compliance framework. That said, every region added inflows with Western Europe, including Switzerland, delivering particularly strong results.

Most of the inflows came from RMs still delivering on their agreed business cases, typically over a 3- to 4-year horizon. And on average, they're performing right in line with our expectations.

And on the topic of client leverage, after pausing in the first 4 months, we saw clients starting to take on some leverage again in May and June. So now let's go to revenues on Slide 10.

Compared to the underlying result a year ago, thanks to the record high AUM and the exceptionally strong client activity in the first quarter, operating income grew by 12% to CHF 2.276 billion. Net commission and fee income grew 12% year-on-year to CHF 1.279 billion, largely driven by the 7% year-on-year increase in average AUM and a rise in brokerage commissions.

Net interest income rose 80% to CHF 130 million, driven largely by lower deposit rates, resulting in total interest expense dropping 21% to CHF 714 million. Despite higher average loan volumes, interest income from lending fell 16% to CHF 529 million, impacted by lower rates.

In contrast, income from the treasury portfolio edged up 2% to CHF 270 million, supported by slightly higher balances. Net income from financial instruments at fair value through profit and loss grew 9% to CHF 876 million.

The boost came mainly from strong performance in FX and metals trading as well as structured products, especially in the first quarter before moderating in Q2 as conditions settled. On treasury swaps, income dipped slightly despite higher average volumes as the yield spread between U.S.

and Swiss rates compressed compared to last year. On Slide 11, we regroup the IFRS revenue lines in an alternative way with the aim to better reflect the 3 key business drivers, i.e.

recurring income, interest-driven income and activity-driven income. For the definitions and how we derive this alternative split from the IFRS view, please refer to the appendix.

And I note that the treasury swap income figures we are -- we use are based on management accounts. What this alternative view shows clearly is how the 12% year-on-year revenue increase was driven mainly by higher activity-driven income, which grew by 30% to CHF 710 million and by recurring income, which rose by 10% to CHF 984 million, while the jump in accounting net interest income was tempered by lower treasury swap income, thereby limiting the growth in interest-driven income to 2% or CHF 593 million.

On Slide 12, we show the same in gross margin terms. The year-on-year increase in gross margin from just over 83 basis points to almost 87 basis points is essentially the result of a 5 basis point increase in the activity-driven gross margin to 27 basis points and a 1 basis point decrease in the interest-driven gross margin to 23 basis points, with the recurring gross margin holding stable at 37 basis points.

The exit gross margin in the last 2 months, i.e., May and June was 80 basis points, of which somewhat more than 37 basis points from recurring income, well over 21 basis points from interest-driven income and slightly less than 23 basis points from activity-driven income. By the way, in the appendix, you can find an overview of the gross margin development on the basis of the IFRS revenue split.

Now let's move on to operating expenses on Slide 13. Costs reached CHF 1.462 billion, an increase of CHF 36 million or 2%, well below the 12% growth rate in revenues, i.e., delivering healthy operating jaws.

The increase was driven by personnel costs, which were up CHF 37 million or 4% to CHF 974 million, driven by a 1% year-on-year rise in average headcount and higher incentive and performance-related compensation. The rise in headcount was largely driven by further internalizations as part of our cost improvement focus as well as a one-off technical FTE true-up in H1 related to the treatment of long-term absentees.

General expenses held steady at CHF 371 million. This included provisions and losses of CHF 37 million, up by CHF 1 million or 3% year-on-year.

When excluding provisions and losses in both periods, we saw a 1% year-on-year decrease to CHF 333 million. This reflects a balance between higher spending on technology investments, which rose as part of our platform modernization initiative in Switzerland and significant cost savings achieved through efficiency measures and internalizations.

The sum total of depreciation and amortization was unchanged at CHF 117 million. The costs in H1 included CHF 7 million cost to achieve related to the new efficiency improvement program with fiscal year savings of CHF 11 million already benefiting the P&L in the first half of the year.

Gross run rate savings of CHF 60 million have already been implemented by the end of June. As a result, the expense margin improved by 3 basis points year-on-year to 54 basis points.

And thanks to the cost management and of course, the elevated gross margin, the cost-to-income ratio came down by almost 6 percentage points to 62.6%. However, it is important to note that this outcome benefited from an exceptionally favorable revenue environment, one that we do not expect to repeat regularly in our planning.

Additionally, we are continuing to roll out significant investments over the next few years. For these reasons, I would caution against extrapolating the year-to-date strong cost-to-income performance into the near future.

Slide 14 summarizes the profit development. Thanks to the all-time high in AUM, the pronounced client activity and the improved operating leverage, net profit reached a record high half yearly level of CHF 673 million.

In terms of IFRS net profit, that meant profits more than doubled year-on-year. But considering the large items impacting the results a year ago, the like-for-like increase was 32%.

The pretax margin improved by 6 basis points to 31 basis points, while the return on CET1 capital increased from 28% to 32% despite a very significant buildup in capital, as we will see in a few slides. Our forward tax guidance for the current strategic cycle is unchanged at between 18% and 20% and takes into account the currently expected impact of the implementation of the OECD minimum tax rate in different jurisdictions.

On to the balance sheet on Slide 15. Our balance sheet remains highly liquid with a loan-to-deposit ratio of 61% and one of the highest liquidity coverage ratios in Europe at 344%.

Year-to-date, the balance sheet grew 8% to nearly CHF 117 billion. The main driver was client deposits, up 8% to CHF 72 billion.

On the asset side, loans rose 5% to CHF 44 billion with Lombard lending up 7% to CHF 36 billion, while mortgages edged slightly down 2% to CHF 8 billion. The treasury book also expanded up 15% to CHF 18 billion, supported by growth in both fair value through OCI assets, up 13% to CHF 10 billion and bonds at amortized cost, which rose 17% to CHF 8 billion.

As there was relatively little change in the Swiss franc exchange rate versus the key currencies, the FX-neutral changes were not meaningfully different. Turning to the capital development on Slide 16.

Julius Baer finished the first half of 2026 with a significantly stronger capital base. CET1 capital rose by CHF 0.4 billion to CHF 4.3 billion, a 9% increase since year-end.

During the same period, risk-weighted assets grew to CHF 23.3 billion, an increase of 3%, driven by increases in credit risk positions and market risk positions. Overall, this translated into a CET1 capital ratio of 18.5%, a 1.1 percentage point increase over the past 6 months, reflecting the highly capital-generative nature of our business model.

The risk density was 20% at the end of June, and we've slightly reduced our guidance for the cycle to 21% to 23%. Finally, on Slide 17, a quick review of the development in the Tier 1 leverage ratio.

As a result of the CET1 capital development and the impact of the USD 350 million A Tier 1 redemption in April, Tier 1 capital increased by 2% to CHF 5.6 billion. The leverage exposure increased by 7% to CHF 120 billion, basically in line with the growth of the balance sheet.

As a result, the Tier 1 leverage ratio declined somewhat to 4.7%, but clearly remains very comfortably above the regulatory floor of 3%. With that, it is my pleasure to hand back to Stefan.

Thank you, Evie. Our financial performance in the first half of 2026 reflects good progress against our midterm targets, which we reconfirmed today.

There's still work to be done, and we remain fully focused on delivery. Now let me summarize the key takeaways.

We achieved a strong operating performance in the first half of 2026, which confirms the strength of our business model and momentum in the execution of our strategy. The implementation of our revised risk and compliance framework continues.

We are making steady progress on all our strategic priorities with a particular focus on reigniting organic growth and on driving culture change. Before we go into Q&A, I would like to take a moment to thank Evie, given today marks our last results call together.

Evie, you have been instrumental in repositioning Julius Baer for long-term success. And on a personal note, I'm deeply grateful for your support since I joined the bank.

This isn't quite goodbye given the upcoming handover to Pete, but I want to sincerely thank you and to wish you every success in the next chapter of your career.

With that, let's transition to Q&A.

The first one is just on the IM target. I think for the IMS state, you told us that the number you expect it to be higher by year-end.

Can you just give us an update on where you think the relationship manager could add at the end of the year and if you still target the 150 hires? And then just on the guidance on net new money, continued -- or the commentary about net new headwinds to 2027 flows.

Do you sort of -- I mean, given you already can give us that comment now, is there like a target AUM base? Do you think that's at risk from your review to get a sense of how much of a headwind we still should expect in 2027?

And do you still expect net new money to be higher '27 and '26? Or is that too early to say?

Thank you very much for the questions. Let me take the first one.

So we ended the first half of the year with 1,247 RMs. On a gross basis, we have onboarded 47 RMs with further 14 hires already signed and expected to start in 2026 and advanced recruitment discussions ongoing with more than 50 candidates.

So we're very pleased about the pipeline. I wouldn't focus too much on the slight net decrease at June end because if you include the 14 RMs who've already signed, the development would have been flat at June end.

RM levers are mainly driven by our continued disciplined exercise of stringent performance management. And I would also say that in terms of gross hiring, given the challenging environment we have, particularly in the Middle East, we would now expect to hire around 120 or so RMs in 2026.

That said, we still expect to see a slight net increase in the total population of RMs by year-end.

On your question about the 2027 net new money guidance, in order to frame this, let me take you back to our strategy update in June last year. We are very focused on repositioning our business for the future, focus on quality core wealth management, which can yield predictable, repeatable and sustainable performance for our shareholders.

On the back of the new strategy that we announced in June, the Board approved a new risk and compliance framework last October. And since we have been working on implementing it.

As it stands, we indeed anticipate that the impact from the implementation of the revised risk and compliance framework will carry over into 2027. As you know, we are in the wealth management business and derisking takes time, especially if you think about clients that have a complex setup, illiquid investments and other circumstances that mean that it takes time to exit that.

And ultimately, of course, we want to do these exits in an appropriate manner for the impacted clients. Therefore, we should expect some continued headwind into 2027.

At the same time, the situation will normalize in 2028. This exercise obviously doesn't help flows in the short term, but it will lead to an improvement of the quality and long-term sustainability of our book.

So my view is short-term pain for long-term gain. I'd also mention that at the same time, we are ramping up our growth initiatives.

And while this takes some time, we expect some positive impact in '27 already. So all in all, derisking will be normalizing on one hand and our growth initiative will bearing some fruit on the other hand, which is why we're very confident about our 2028 target.

And in terms of how to quantify this, at this point, we reiterate the guidance we have given in May that net new money for 2026 will be below 2025. And we told you this morning, we expect this to spill over into '27, but it's too early to quantify the impact.

It's impacting predominantly existing clients, but of course, also prospects.

Two from me, please. First, just on personnel expenses and the cost income dynamic.

So if we look at the adjusted operating income, I think that was up 12% year-on-year and then personnel expenses were up 4% year-on-year. So would you see that as the right balance?

If we think net relationship managers are down slightly, as mentioned, I know that's largely a function of ongoing performance management measures. But if you're looking at the pay-for-performance culture and how it currently stands and within that personnel expense line, if there's more moving beneath the surface and between different cohorts of the business?

And then secondly, just on net new money, is there any other color you'd give on the regional split, particularly interested in how you see dynamics in Asia following some recent policy measures in Hong Kong and Mainland China?

Ben, thanks a lot for the questions. So on the personnel expenses side, obviously, we had a fantastic development on our top line in the first half, which we are super pleased about.

And in that respect, we've also reflected that in performance incentive accruals. In terms of the cost-to-income ratio dynamics, of course, the 62.6% print is a very good print.

And I note that in May and June, we had an exit cost-to-income ratio of 63%. However, if you were to ask me about the outlook for the year, as I mentioned in my opening remarks, I would not extrapolate that performance into the second half of the year.

The reason is because we do expect to see some cost buildup in the second half of the year. So from today's perspective, assuming an 80 basis points gross margin input factor, and this is not a forecast, just an input factor, happens to coincide with the exit margin we had in May and June.

For the second half of the year, I would expect the cost-to-income ratio to be below 67%. I foresee an increase in costs in the second half, largely driven by 3 factors.

Number one, we have front-loaded investments, particularly in relation to the ongoing renewal of our Swiss Corp banking platform, along with increased amortization from prior year investments. These costs are expected to weigh in, in the second half with obviously longer-term benefits materializing on a back-ended basis.

Number two, we see an increase in cost to achieve in terms of our efficiency program. We just had CHF 7 million for the first half of the year and we see that number picking up in the second half of the year as we tackle more structural elements of the cost base.

And third, of course, we're going to be stepping up our spending related to the hiring of new RMs as part of our targeted growth strategy. So these investments, coupled with our ongoing focus on cost discipline are expected to drive long-term operating leverage and support the achievement of our target of a cost-to-income ratio sustainably below 67% by 2028.

But as I've always said, it's not going to be a straight line.

Two questions, please. First, coming back on the question on the regional split.

And it's not only this half year, but consistently over the last years that Europe, Western Europe is very strong, which should be seen as a more mature market. On the other hand, Asia is solid, but not the outstanding performer.

So maybe you can comment on those 2 regions, what is Europe doing particularly well and where Asia could accelerate? And then secondly, CHF 23 million of credit losses.

Obviously, grand scheme of things is a small number in particular as compared to the last 2, 3 years, but still it's above the, call it, run rate we had previously. So just wondering with less risk taking on the lending side, whether you can comment whether there are -- this is a new normal or whether there are still some smaller cases a part of the cleanup pushing up that number?

Thanks a lot, Ben. I will also answer Ben's question from before on net new money development by region.

So as we outlined in the opening remarks, all regions contribute to net flows with particularly quite strong contributions from Western European markets, including obviously our home market, Switzerland. If I look ahead, we continue to expect strong contributions from all key regions.

In the Middle East, we saw some impact from the effects of the war, but we did see some normalization of flows, particularly in May and June. The RM hiring environment there remains challenging.

With respect to Asia, I would say that in May and June, in particular, when we saw a restart of releveraging after it had paused or ground to a halt in the first 4 months of the year, we saw a very strong contribution coming from clients from our Asian franchise. They accounted for about 60% of that releveraging.

So that's the commentary on the net new money regional developments. We are very, very bullish in Asia in the longer run, the pace of wealth creation there is just astounding, and we're -- our franchise is very strong, and we're there to capture the opportunities.

Now in terms of the credit losses, we had CHF 23 million worth of credit losses in the first half of the year. These are primarily associated with the income-producing real estate portfolio that we earmarked for managing down as we announced in the November IMS last year.

I wouldn't say that there's any unusual development there. In fact, exposure has come down by 20%, which is a pleasing development.

And then the other thing I'd note is the market has stress tested our Lombard book twice this year, once in January with the extreme volatility in the precious metals space and then once again in March when the war broke out, and it has passed with flying colors. So we're quite happy with the performance there.

Maybe just to add to Ben's question on the Chinese regulatory developments. I was in Asia last week and obviously, something I discussed with the local colleagues.

And the team on the ground sees this repatriation regulations mainly as a formalization of the process on capital flows in and out of China. As you know, all the official regulated channels, Wealth Management Connect, Stock Connect to Hong Kong all remain fully open.

And our team on the ground doesn't see any reason for concerns. In fact, as Evie just highlighted, we're very bullish on the long-term prospect of the regions.

The region, we celebrate 20 years on the ground, and we're doubling down on investments there.

Yes. Just coming back to the derisking, please.

Could you just -- sorry if I missed this, could you quantify the impact of the derisking in the first half from the revised risk and compliance framework? And I think you said it's too early to quantify.

But I guess just broadly, do you expect that rate to increase from here? And then just sorry, a final related question.

I guess does that impact of derisking in '27 mean that the progress on net new money will be more hockey stick now? Or are you still expecting a consistent path to the 4% to 5%?

And then on the recurring margin, just curious if there were any performance-related elements in your recurring margin in this period, which has expanded quite nicely. And I guess on a related note, have you -- you're already in the 37 to 39 basis points range.

Does this make you more confident that you can get to the upper end of that range? Or I'm just kind of curious if you -- how you're thinking now about the recurring margin from here?

Thank you, Nicholas. Let me start with the net new money question.

You're absolutely right. We should think more of a hockey stick type of development.

given by 2028, we'll have the higher derisking because of the implementation of the risk and compliance framework behind us. And of course, at the same time, also, we'll see the benefit of all the investments we make on the growth side.

In terms of the specific impact, it's hard to quantify given it affects both existing clients, but also prospects.

Nick, Evie here. On the recurring margin, Yes, we did a little bit above 37 basis points.

We're happy about that. We've always said this is going to be a slow grind to get to the 39 basis points.

The levers are well known. We talked about them extensively in the strategy update last year.

What I would say is that we've had -- we've made -- we had quite some success in terms of our discretionary mandate flows. So discretionary mandate penetration has gone up to 17% from 16% where it had dropped post the deconsolidation of the JB family office in Brazil.

So yes, we like the development in the recurring margin, and we are full throttle trying to do our best to get it up there. But as we've always said, it's going to be a slow grind.

On that, have you seen any impact on demand for private assets on the back of all the negative news flow? And I guess if penetration of private assets were to remain unchanged from here, would there be a lack of uplift in your recurring margin versus kind of the path that you set out in your strategic plan?

And I guess, would you be able to roughly quantify that lack of uplift if private assets penetration were to be unchanged?

Look, there's a lot of moving parts. What I would say is that where we are in terms of private markets penetration, we have a lot of upside ahead of us, Nick.

So I'm optimistic that we'll be able to get that gross margin associated with recurring up in the next couple of years. And I think, Stefan, maybe you have a couple of comments to add.

Look, quite generally, I would say that in private markets, given there's a lot of money leaving the space that maybe you could argue should never have been there in the first place. This opens up opportunities for sophisticated high net worth clients like ours.

And so we see lots of opportunities to take advantage of that. You can think of private credit, can think of some of the opportunities in buyout, but of course, also in venture.

I've got 3 questions. Firstly, on RM hires, can you talk about which regions are you hiring them from?

Is there a focus in particular countries or regions? That's the first question.

Second question is about releveraging. It's good to see a boost in May and June.

Is this the start of where you think releveraging to come and do you think this can be maintained? And lastly, just a clarification, Evie, I think you mentioned the exit margin in May, June.

Did you say that NI interest driven margin was 21 basis points. I just wanted to check if that was correct.

Thanks, Hubert, and thanks a lot for the question. So on the -- I'll start from the third one.

On the gross margin for the exit rate for interest driven, it was well above 21 basis points. In terms of the releveraging that we saw in May and June, I think if you take into account the lately quite hawkish narrative that's coming from central banks across Europe and the United States and what the market is pricing in now in terms of potential rate hikes, I would be cautious to extrapolate the releveraging trend for the rest of the year.

We don't do so in our budgeting. And as you'll recall from the strategy updates, that we did last year in London.

We are -- we've put out those midterm planning targets, assuming a stable lending penetration at current levels. Then finally, the first question on RM hires.

We are hiring across the board in all our key regions with a particular focus in our key markets.

I have one, please. Can you please talk about the split in contributions coming from seasoned advisers versus those on a business case that you have talked about in the past?

Amit, thanks a lot for the question. So the split between seasoned RMs and RMs on business case has held steady from where it was last year.

So it's about 2/3 -- 1/3. I would also say that we're very pleased with the performance of our relationship managers that are on business case.

Business case achievement rate is around 69%. As you know, the average business case is around CHF 200 million.

And I would also call out the fact that today, we have about 31% of our relationship manager population on business case, which is the highest proportion in the last 7.5 half year periods.

Maybe just to add, Amit, obviously, this also implies that there is a lot of upside in terms of the productivity of our seasoned RMs, and it's a big focus item as part of our growth strategy.

I have two questions, please. It looks like you actually wrote off a good chunk of your impaired loans, about CHF 600 million during the first half.

Is that related to the infamous property group that caused problems in late 2023? And is the fact that you're writing off this exposure also implying that the chance of recoveries here is now very low?

And the second question I wanted to ask is about the risk and compliance framework on the exercise to introduce this new risk and compliance framework. Is it fair to say that the completion of this project will be a condition for FINMA to sign off on the enforcement action?

Or are those 2 things totally unrelated?

Stefan, thank you for the question. Indeed, if you look at Note 9 in our half year report, which I assume you've already done, you'll see that we have written off the largest exposure associated with the private debt exposure in 2023.

I will note that last year, we had quite substantial recoveries from that position. And going forward, we, of course, are trying to recover some more.

But I think from now on, the recovery potential is more limited.

And Stefan, on your second question, first and foremost, this exercise is about bringing our business in line with our core wealth management lane and the strategy that we outlined last June. And we're very focused on having a book that has the right parameters going forward.

Evie, all the best for the next adventure. In terms of questions, so costs, second half, some investments you were flagging.

Could you quantify perhaps how much do you expect costs to increase in the second half or -- and how much cost to achieve do you expect? And then, Stefan, on your comment about the hockey stick on new money in 2028, does this mean that you probably expect '26 and '27 to be roughly stable around this level, like 2.5%, 3% and then the step-up towards 4% to 5% in 2028.

I'm wondering because consensus is currently expecting 3.5% in '27. And yes, I'm wondering if that's realistic or probably it will be lower.

Giulia, thanks a lot for your kind words and for the questions. So let me start with the costs.

I think I tried to give some indication. If you take the exit margin of May and June in terms of gross margin of 80 basis points and you take that as an input factor, I would expect the cost-to-income ratio for the second half of the year to be less than 67%.

I don't want to give you a specific number on cost growth. But what I can tell you with respect to the cost to achieve, we did CHF 7 million in the first half of the year.

I expect that number to more than double in the second half.

And Giulia, on your question around the hockey stick. So as we said before, we don't have enough visibility yet.

It's too early to quantify the impact for 2027. What we are saying is that there is a gradual positive impact coming from all our growth initiatives.

And as always, our strategy is not to kick the can down the road. And so we are trying to get the book in line with our risk and compliance framework as soon as possible.

All we can tell for now is that it is likely spilling over into '27.

And sorry, can I just go back to the comment on cost income below 67% in the second half. So essentially, you're already at the 2028 target in the second half.

Does it -- do you expect it to stay there to improve in '27 or '27 will be more investments and therefore, you can maybe be above 67%.

Why don't we give you an update on that in the November IMS when we are more progressed with our planning cycle for '27, Giulia, if that's okay. It will be Pete giving you the update, not me, but we speak with one voice.

Just one follow-up, please. On the adviser numbers, you're still seeing quite heavy adviser exits.

And I just wondered in rough terms, what proportion of those are recent hires from the last 3 years not working out versus longer tenure seasoned RMs rotating off? What's the rough split of the exits that you're seeing at the minute?

Jeremy, thanks a lot for the question. I would say that the vast majority is RMs on business case that we were not able to perform according to our expectations rather than seasoned RMs.

By definition, seasoned RMs are RMs that have made it.

I have two, please. The first one is coming back on the derisking side.

I just wanted to know if there is any region which is more impacted than the others from this exercise. And the second one would be on the interest-driven income outlook going into H2 and 2027.

We have rate cuts. We have deposits which are repricing.

We have a bit of Lombard growth. So how should we think about the interest-driven income going forward?

Because I think you mentioned that the interest-driven income was well above 21 basis points on the exit margins. And as a side question, could we have the size of the treasury swap book as well, please?

Nicolas, thanks for the question. So on the size of the swap book, I'll start from the last one, the FX swap book, it's around CHF 27.5 billion as of H1.

In terms of the interest-driven income, the component of gross margin, I did mention it was a little bit above 21 basis points in terms of exit margin. Part of that was due to an increase in time and call deposits towards the end of the period, which impacted a little bit the number.

However, in our forecast for the second half of the year, we're looking at a contribution from IDI of around 22 to 23 basis points. And with respect to '27, I think we'll be able to give you a better picture once we further progress with our planning for next year.

And on your first question on derisking, we do not disclose the detailed description of our risk and compliance framework, but you can think of different client types in high-risk countries or certain sensitive industries that no longer fit our risk profile.

Yes. Sorry, but just 2 follow-up questions.

The first one, you say you expect the RM number to be higher by year-end. Is that relative to end of June?

And then I just have a question about your dividend accrual at 120 basis points versus 300 basis points capital generation. Just to confirm your dividend payout ratio guidance for this year is 50%.

Thanks for the follow-up questions, Anke. Yes, the dividend policy remains unchanged.

And with respect to the net increase in RMs, I referred to year-on-year.

Thank you all very much for your engagement and your questions. We'll be back with our next update at the IMS in November.

As usual, the Investor Relations team is available offline in case of further questions. Thank you all, and have a good day.