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Revenue rose 16% year-on-year in the second quarter. CEO Sergio Ermotti is on track to finish axing $13.5 billion of costs by the end of this year from the integration of Credit Suisse. Finally, the pre-tax profit margin has noticeably improved in the historically troubled U.S. wealth-management unit.Just as importantly, bank valuations have changed too. U.S. rivals on average now trade at 2.5 times forward tangible book value, with Morgan Stanley leading the pack at a towering multiple of 3.7. UBS still falls well short on this gauge, probably in large part because of the capital question.The key takeaway from all this is that a possible Swiss capital hit would still be very painful, but it would erode UBS's returns from a higher base. 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