{
}
UBS is under pressure to bolster its equity capital, with discussions around increasing it by 15 to 25 billion francs. While UBS argues against excessive capital requirements, it lags behind several European competitors in capital ratios, prompting calls from regulators for a stronger balance sheet. The Swiss Finance Institute is hosting an event to debate the future of banking capital requirements, highlighting the need for UBS to reassess its capital strategy.
UBS aims to achieve $7.5 billion in cost savings by year-end, raising its target multiple times this year. However, actual cost reductions have only reached $3.2 billion, leading to investor skepticism about the merger's benefits and resulting in a 4.5% drop in share price. The bank's cost base has increased across most business units, complicating the narrative of improved profitability post-merger.
UBS aims to cut costs by $7.5 billion by year-end, raising its target multiple times this year. However, actual cost reductions have only reached $3.2 billion, leading to investor skepticism about the merger's benefits with Credit Suisse, as costs in most business units have increased. The bank's shares fell 4.5% after initial gains, reflecting concerns over profitability and efficiency post-merger.
Colm Kelleher, Chairman of UBS, is contemplating retirement after three years in office and is considering a US asset manager acquisition post Credit Suisse integration. He aims to enhance UBS's US business, which currently lags behind competitors, and seeks to replicate Morgan Stanley's success with Smith Barney. Kelleher, 67, plans to step down around age 72, ensuring a smooth transition for his successor.
UBS reported a net profit of CHF 1.43 billion for Q3 2024, a 21% increase from the previous quarter, driven by market gains and profits from its own debt. Operating income rose to $12.3 billion, while assets under management reached $6.2 trillion. However, the Swiss business faced challenges, with a 17% drop in pre-tax profit, and the integration of Credit Suisse is on track to achieve $7.5 billion in savings by year-end.
UBS has surpassed the three percent reporting threshold in its stake in the Swiss National Bank (SNB), raising concerns about its potential influence on monetary policy, especially following its acquisition of Credit Suisse. While private shareholders, including UBS, hold about 22 percent of SNB's capital, their ability to affect monetary decisions is limited, as they cannot intervene in policy-making and are entitled only to fixed dividends. Experts express mixed views on the implications of UBS's stake, emphasizing the importance of maintaining the SNB's independence.
The Swiss fund market reached CHF 1,565 billion in Q3 2024, marking a 14.4% growth this year, with significant inflows into bond and money market funds. UBS now holds a dominant 36.3% market share following the Credit Suisse takeover, while other providers like Amundi, Swisscanto, Blackrock, and Pictet have also increased their shares.
The Swiss Bankers Association (SBA) has criticized the Federal Council's proposed measures, arguing they could harm the competitiveness of the financial sector. While supporting stricter capital adequacy for UBS, the SBA opposes increased capital requirements and ex ante fees for the Public Liquidity Backstop, advocating for a balanced approach to regulation. Additionally, it rejects enhanced powers for Finma, preferring to maintain the current dual system of oversight.
Uwe Krakau has stepped down as COO of Raiffeisen Cooperative Bank after two years, leading to the abolition of his role. The decision follows a critical review of the bank"s strategy implementation, particularly the halted launch of a new app due to technical issues and internal tensions, notably between Krakau and Head of IT Niklaus Mannhart, who has since taken over project management.
Sergio Ermotti, CEO of UBS, addressed the challenges of integrating Credit Suisse at an Institute of International Finance conference, emphasizing the need for banks to adapt to rapid technological changes. He highlighted the importance of maintaining a liquid balance sheet, especially in light of reputational risks, stating, "People hate it when banks make money, but there is nothing worse than banks that lose money." The bank is currently migrating client data, with significant cost savings expected once the transition is complete.
Beat Schmid
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
ubs faces pressure to increase equity amid capital ratio concerns
Japanese Yen
British Pound Sterling
Euro
United States Dollar
Swiss Franc
Deutsche Bank Aktiengesellschaft
UBS Group AG
Groupe Bpce Sports
ING Groep N.V.
Barclays PLC
UniCredit S.p.A.
HSBC Holdings plc
Standard Chartered PLC
Nordea Afa
Societe Generale Batiment SA
Cédit Agricole
CHE
Markus Ronner
Steven Ongena
Beat Schmid
Yvan Lengwiler
Simona Nistor
Show more
08:16 05.11.2024
UBS struggles to achieve cost savings amid rising expenses and investor concerns
United States Dollar
UBS AG
Credit Suisse Anlagestiftung
CHE
Sergio Ermotti
Todd Tuckner
Beat Schmid
Show more
21:51 31.10.2024
ubs struggles to achieve cost savings amid rising expenses and investor concerns
United States Dollar
UBS AG
Credit Suisse Anlagestiftung
CHE
Sergio Ermotti
Todd Tuckner
Beat Schmid
Show more
07:57 31.10.2024
ubs chairman plans us acquisition before retirement in five years
United States Dollar
UBS AG
Credit Suisse Anlagestiftung
Morgan Stanley
USA
Colm Kelleher
Beat Schmid
Show more
08:27 30.10.2024
ubs reports 1.4 billion dollar profit driven by market gains and debt
07:47 30.10.2024
ubs stake in swiss national bank raises concerns over monetary policy influence
Swiss Franc
United States Dollar
UBS AG
Credit Suisse Anlagestiftung
DEU
CHE
Urs Birchler
Theo Siegert
Saverio Simonelli
Beat Schmid
Show more
07:39 29.10.2024
ubs leads swiss fund market with 36.3 percent market share
Swiss Franc
Amundi ABS AAA FUND
Credit Suisse Anlagestiftung
UBS AG
BlackRock, Inc.
Pictet Capital SA
CHE
Adrian Schatzmann
Beat Schmid
Show more
10:17 28.10.2024
Swiss Bankers Association opposes new regulations and defends UBS competitiveness
07:55 25.10.2024
coo uwe krakau departs raiffeisen bank amid app project tensions
09:00 24.10.2024
ubs ceo highlights challenges and opportunities in banking integration and technology
07:00 24.10.2024
Trending
Subcategory
Stock Market Updates
Corporate News
Industry Trends
Global Trade Developments
Global Financial Events
Finance Mergers & Acquisitions
Banking Regulations
Retail and Consumer Goods
Central Bank Actions
Startups & Entrepreneurship
Industry Mergers & Acquisitions
Inflation and Monetary Impact
Government Economic Policies
Market Analysis and Predictions
CEO Changes
Domestic Politics
Government Policies
Workplace Trends
GDP Growth & Recession Forecasts
Financial Scams and Security
Countries:
Companies:
JPMorgan Chase & Co.
Tesla, Inc.
Apple Inc.
Barclays PLC
Deutsche Bank Money Market PP
The Goldman Sachs Group, Inc.
Banco Santander, S.A.
Credit Suisse Strategic Income I
Berkshire Hathaway Inc.
Lloyds Banking Group plc
SpaceXCoin USD
Morgan Stanley
Amazon.com, Inc.
UBS Group AG
Bank of America Corporation
Wells Fargo & Company
BNP Paribas SA
NVIDIA Corporation
Bank Frick AG
UniCredit S.p.A.
Currencies:
United States Dollar
Euro
British Pound Sterling
Japanese Yen
Swiss Franc
Indian Rupee
Chinese Yuan
South Korean Won
Canadian Dollar
Vietnamese Đồng
Australian Dollar
Thai Baht
Singapore Dollar
Indonesian Rupiah
New Taiwan Dollar
Mexican Peso
Russian Ruble
Hong Kong Dollar
Offshore Chinese Yuan
New Zealand Dollar
People:
Donald Trump
Elon Musk
Warren Buffett
JD Vance
Sergio Ermotti
Mark Haefele
Robin Leopold
Troy L Rohrbaugh
Jennifer Piepszak
Olivier Calvet
Karoline Leavitt
Ursula von der Leyen
Scott Bessent
Stacey Friedman
George Saravelos
Susan P. Crawford
Francois Xavier Bouvignies
Joseph Spak
Stefan Rauti
Jeff Bezos