×

First on CNBC: CNBC Excerpts: UBS CEO Sergio Ermotti Speaks with CNBC’s Sara Eisen on “Squawk on the Street” Today

WHEN: Today, Thursday, October 6th

WHERE: CNBC's "Squawk on the Street"

Following are excerpts from the unofficial transcript of a FIRST ON CNBC interview with Sergio Ermotti, UBS CEO, on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today, Thursday, October 6th. Following is a link to the story on CNBC.com: http://www.cnbc.com/2016/10/06/ubs-ceo-deutsche-bank-not-indicative-of-europes-banking-system.html. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000557170.

All references must be sourced to CNBC.

ERMOTTI ON EUROPEAN BANKS

Well look, the European banking sector is quite sound. I mean, we made huge progress in the last seven, eight years in addressing not only the capital position of banks, but also developing a better business models and trying to be sustainable. Of course, the macro environment is not very constructive for banks. Low rates, negative rates are putting a lot of pressure on profitability.

ERMOTTI ON EUROPE

European banks are suffering because of the macro economic conditions of Europe. The lack of growth. Low rates or negative rates are clearly putting a lot of pressures. There's also a huge over capacity in the European system. So that's the problem, but I wouldn't call it something that people should be concerned in terms of the stability of the financial system.

ERMOTTI ON DEUTSCHE BANK

I wouldn't look at one idiosyncratic situation as being a good proxy for the entire banking industry. I think it's a matter of fact that capital positions and being increased by seven, eight times in the last few years.

ERMOTTI ON BREXIT

London lost attractiveness in the last few years for sure. I would call it – it's going to continue to be a very important financial center for sure. But depending on how they resolve the issues of passporting from London into the rest of Europe, it will determine the next phase. I mean, I can't imagine London keeping the same status as they have today if there is no passport into Europe.

ERMOTTI ON NEGATIVE RATES

There are collateral damages that are created for sure. Lack of confidence by consumers and investors. Potential bubbles coming in certain asset classes. Stock market. But also the real estate market.

About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 386 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.

CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms including: CNBC.com; CNBC PRO, the premium, integrated desktop/mobile service that provides live access to CNBC programming, exclusive video content and global market data and analysis; a suite of CNBC mobile products including the CNBC Apps for iOS, Android and Windows devices; and additional products such as the CNBC App for the Apple Watch and Apple TV.

Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc.

For more information about NBCUniversal, please visit http://www.NBCUniversal.com.