Bank Quote by Sergio Ermotti
“Many businesses in an investment bank, not only at UBS, are structurally a loss leader, so they don't pay for the cost of capital.”
About This Quote
Source Speech: UBS Annual Shareholder Meeting, 2018
Many investment‑bank units operate as loss leaders, meaning they deliberately incur costs without covering capital expenses.
In simple terms: Bank units often run at a loss.
Key Takeaway
Recognize hidden costs.
Themes
finance
banking
cost structure
Mood
analytical
critical
Type
business
financial
When to use this quote
- budget planning
- risk assessment
- profitability analysis
Key Concepts
economics
strategic management
Questions to Reflect On
- Why maintain loss‑making units?
- How to balance short‑term loss with long‑term gain?
A Different Perspective
Loss leadership can be unsustainable.
