|Bid||12.64 x 1200|
|Ask||12.97 x 3100|
|Day's range||12.62 - 12.86|
|52-week range||10.12 - 13.55|
|Beta (5Y monthly)||1.27|
|PE ratio (TTM)||12.28|
|Forward dividend & yield||0.73 (5.70%)|
|Ex-dividend date||05 May 2020|
|1y target est||16.00|
(Bloomberg Opinion) -- Sergio Ermotti is facing a painful reality. For the third time in three years, UBS Group AG’s chief executive officer is resetting his ambitions for the world’s biggest wealth manager. A big fine in France is clouding the outlook for investor returns because it will make payouts uncertain.The pressure on profit margins is forcing the $2.6 trillion manager to retool its wealth business — and, crucially, to lend more. While the bank will be stung by the dent to its management team’s credibility, it must be careful not to push things too far with the revamp of the unit under Iqbal Khan, a new, energetic wealth manager lured from Credit Suisse Group AG. Though analysts expected UBS to miss its 2019 earnings targets, the bank still managed to disappoint on Tuesday. At 1.4%, the growth of net new money coming into the wealth manager was well below the firm’s annual target of 2% to 4%. Its cost to income ratio, a measure of efficiency, came in at almost 80%, worse than the 77% target; return on common equity tier 1, the key profitability measure, slipped to 12.4%, well short of the aimed for 15%.The future’s looking less rosy too. UBS’s new goals shouldn’t be too difficult to achieve, in part because they’re considerably less ambitious than before. Between 2020 and 2022, the return on equity metric should be within 12% to 15%, a range that’s already being hit. The cost to income ratio should improve to 75%-78% and the bank is sticking to pretax profit growth expectations in wealth management of 10%-15% (up from 4.4% in 2019). UBS’s smaller businesses — investment banking, asset management and corporate banking — will no longer have specific growth goals and the bank is abandoning a specific target on net new funds.While it’s no bad thing to not want to take on more client funds if they just end up sitting in cash and costing UBS because of negative interest rates, the concurrent pursuit of higher profit isn’t exactly worry-free.Wealth clients are trading more, which should improve transaction income, but the division’s earnings growth will rely heavily on lending and structured products. That may improve margins now, but it’s hard not see UBS taking on greater risks that could backfire later in the economic cycle.The bank is expanding the collateral it will accept against which to lend money, and loan volumes should increase by about $20 billion a year through 2022. While that’s marginal for a bank with more than $327 billion of loans, a number of single-stock positions backfiring could hit profit.For Khan, it’s a familiar playbook. More lending (and cost-cutting) helped improve profitability at Credit Suisse; by one measure, income per relationship manager is three times the level at UBS, according to analysts at Citigroup Inc. Khan’s team is eliminating some jobs to streamline the business and speed up decisions, and the bank will cut more costs should the environment deteriorate.This year, UBS is counting on $1 billion in cost savings already in place to fund investments and to keep group expenses flat. It’s also counting on returns at the UBS investment bank — described by Ermotti as unacceptable in 2019 — improving as equity and currency trading shifts to electronic platforms.There’s not much margin for error. Later this year UBS will appeal against a $5 billion penalty for helping French clients evade taxes. A greater overall focus on cost would reassure investors on the course ahead and ease pressure on bankers from chasing risky lending revenue.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
UBS Group missed profit and cost targets for 2019 as wealthy clients pulled money in the fourth quarter, adding to chief executive Sergio Ermotti's challenges as he dials back some of the bank's financial goals. Ermotti, who successfully pivoted UBS away from investment banking to wealth management nearly a decade ago, is under pressure to retain UBS' edge in the business of managing money for the rich amid ultra-low interest rates and increased competition from U.S. rivals. Ermotti described the lost business as low margin and said Switzerland's largest bank was dropping a goal of net new money growth of 2%-4% a year as low interest rates weigh on cash holdings.
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.UBS Group AG missed key targets for 2019 as investors pulled money late in the year, underscoring the challenge for new wealth management co-head Iqbal Khan as he seeks to turn around its most important business.The Swiss bank failed to meet several metrics set during a revamp of its goals just over a year ago, highlighting mounting headwinds for European lenders while U.S. rivals post record profits. The downgrades were across the board -- on profit, cost efficiency and dividend growth -- while the private bank unexpectedly saw $4.7 billion of outflows last quarter.UBS shares declined as much as 5.9% in early Zurich trading, the most since May, and were 5% lower as of 9:07 a.m. local time.The downgrades mark a reversal for Chief Executive Officer Sergio Ermotti after he rejigged goals in Oct. 2018 under pressure from investors. To help restore the bank’s edge and strengthen the bench of potential CEO successors, Ermotti in in October brought in Khan from Credit Suisse. The new executive is cutting jobs, speeding up decision making and giving more autonomy to the regions in an effort to revive the wealth business.Here are the key numbers and new targets from UBS’s results:Wealth management outflows of $4.7 billion driven by AmericasReturn on CET1 capital of 12.4% in 2019 below 15% target.Now targeting CET1 capital metric at 12%-15% to 2020-2022Adjusted cost-to-income ratio of 78.9% missed target of 77%Now targeting cost-to-income metric at 75%-78%1 cent a share dividend rise going forward; had sought mid-to-high single digit percent$722 million net income beats company compiled estimate of $682 millionUBS isn’t alone in dialing back its ambitions in an era of negative rates, investor caution and escalating trade tensions. Credit Suisse toned down its target in December, while Deutsche Bank AG last month warned that its mid-term profitability goal now appears to be “more ambitious,” and it will rely more on volatile investment banking to reach its revenue target. Italy’s UniCredit SpA is cutting 8,000 jobs as part of its new multi-year plan to boost returns in the face of limited growth prospects.Deutsche Bank Cuts Investment Bank Bonuses About 30% in OverhaulThe lower targets -- and outflows -- overshadowed a strong finish to the year in which the bank posted better than expected net income and investment banking results while boosting its core financial strength. UBS also gave a moderately positive outlook for the first quarter, saying client activity is picking up and the favorable credit environment and partial resolution of trade disputes should help mitigate slowing global economic growth.“Higher invested assets and seasonality bode well to 2020’s start, but a miss on wealth flows is a concern,” Alison Williams, an analyst with Bloomberg Intelligence, wrote in a note.The fourth quarter marks the first for Khan at UBS since his acrimonious departure from Credit Suisse in the summer, followed by a spying scandal in which he was followed through the streets of Zurich by an espionage agency hired by his former employer. After being given 60-days by Ermotti to come up with a plan for the wealth management business with co-head Tom Naratil, he’s relying on many of the levers of his success at Credit Suisse: more power to the regions, boosting lending to rich clients and moving customers who don’t need complex services to cheaper models.Thiam Stumbles After Restructuring, Credit Suisse Cuts GoalsAs part of his overhaul, Khan is also dismantling the ultra-high net worth business as well as a miniature investment bank within the wealth unit that was seen as a drag on loan approvals and a source of costs. He also split up the business serving Europe, the Middle East and Africa and is cutting 500 jobs. Among his first challenges -- with Naratil -- will be to stem the unexpected outflows at the business which, in part, may have caused the bank to abandon a goal of net net money growth of 2%-4% per year.“We have been working hard to reposition the business and execute on the strategy,” Ermotti said in a Bloomberg Television interview. “We don’t need shake ups, we just need to go into execution.”UBS Wealth Bankers Get Dose of Credit Suisse Tonic in Khan PlanWhile UBS’s job losses are smaller than at many competitors -- Deutsche Bank is culling 18,000 positions -- it’s the first time in years that UBS’s private bankers have felt the heat. For a decade, they’d driven growth as Ermotti pivoted UBS away from investment banking and toward the business of managing money for the rich. The strategy worked well after the financial crisis, when ultra-low interest rates fueled a wave of wealth creation around the world.Here are some other highlights of the results:Pre-tax profit at the wealth management business also beat expectationsWill return incremental capital through share repurchasesTo complete 2 billion franc buyback program in summerTargeting 10-15% profit before tax growth in global wealth managementBank says it now manages $3.6 trillion of assetsFor now, Khan’s arrival has taken pressure off the CEO to come up with a bigger strategic overhaul. A year ago, Ermotti was under pressure after Chairman Axel Weber blindsided the executive with the comment that the bank was in the early stages of succession planning.(Adds shares)To contact the reporters on this story: Marion Halftermeyer in Zurich at email@example.com;Patrick Winters in Zurich at firstname.lastname@example.orgTo contact the editors responsible for this story: Dale Crofts at email@example.com, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
UBS Group AG is likely to have a hard time regaining ground lost in the 10 months it was banned from the big-money business of sponsoring IPOs in Hong Kong, where Chinese rivals have become formidable players, bankers and analysts said. The Swiss bank's unprecedented year-long ban ended two months early after regulators last week said standards had improved since it found due diligence failings during an industry-wide probe that has led to HK$900 million (89.2 million pounds) in fines. "After the fines, international banks - especially UBS - have the problem of clients perceiving due diligence processes as more rigorous and protracted with an international bank than a Chinese firm, making the latter more attractive," said Benjamin Quinlan, chief executive of consultancy Quinlan & Associates.
UBS Private Wealth Management is proud to announce that Wickham Cash Partners have joined the firm in Charlotte, NC.
The Zacks Analyst Blog Highlights: Beyond Meat, UBS, Walmart, Restaurant Brands International and Conagra Brands
Swiss climate activists dumped coal inside a branch of bank UBS on Tuesday to protest against its funding of fossil fuel projects, a day after a judge acquitted 12 climate protesters over a stunt inside Credit Suisse . A witness said 20-30 activists took part in Tuesday's protest in the student city of Lausanne, carrying a banner saying "We will leave when you quit fossil fuels". "The action was intended to be symbolic and give them back the coal whose extraction they financed," said Gary, a witness from Greve du Climat Vaud (Climate Strike Vaud), who declined to give his full name.
In sync with Goldman Sachs' (GS) efforts to gain majority control in the joint venture and improve profitability, the bank announces plans to increase workforce in China.
(Bloomberg) -- A former UBS Group AG veteran who was dismissed following a compliance-breach investigation is suing the bank in London, saying his departure was “highly unfair.”Michel Lee, a senior banker in Hong Kong who worked on many of China’s largest corporate fundraisings, was dismissed after an internal probe into the disclosure of confidential information to a client in 2018. At an employment tribunal in London, he also said he suffered after whistleblowing and from sexual discrimination. UBS is fighting the employment claim on jurisdiction grounds, according to court filings.Lee specialized in offering equity derivative products before he was fired in 2018 in a decision taken by the president of the investment bank in London. He’d worked for 25 years at UBS, including 11 in Hong Kong. The claim is at an early stage and the full details of the complaint aren’t available, but Lee’s filing said that UBS determined that his alleged misconduct was a breach of Hong Kong employment standards.Throughout his tenure, Lee was always formally an employee of UBS’s London branch, he said in his filing at the start of a preliminary hearing. The banker was paid above the salary cap for a managing director in Hong Kong and compensated as if he was working in London. He also faced U.K. disciplinary proceedings rather than those in Asia, he said.The bank said that it would continue to defend against the accusations.“We wouldn’t comment on ongoing proceedings other than to say we deny the allegations made in the claim,” UBS said.In British employment cases, an award is capped at just above 80,000 pounds ($104,000) unless a worker can show discrimination or that they were fired for blowing the whistle on improper actions.During his cross-examination Monday, Lee apologized for being “emotional.” He frequently appeared frustrated, raising his voice only to be interrupted by the judge.Lee’s group at UBS worked on financing many of the largest Chinese conglomerates as they stepped up the pace of acquisitions to a record. UBS was one of four banks to hold collateral for $3 billion of loans to the heavily indebted HNA Group Co. after helping fund the acquisition of Hilton Worldwide Holdings Inc.Lee was designated a “material risk taker” by the London branch for the purposes of U.K. Prudential Regulatory Authority rules, according to the filing. The Hong Kong office wasn’t legally allowed to run an equity derivatives position, he said.“Hong Kong regulators would never allow losses to be taken in Hong Kong,” he said.UBS operated much of its business through its London branch, Lee’s lawyer Jonathan Cohen said. That U.K. unit is the business that enters into contracts with customers and holds the collateral of any financing, he said.“It is the hub of the UBS investment bank, from which spokes lead out to staff prospecting business elsewhere in the world,” Cohen said.(Updates with U.K. regulatory position in 10th pararagraph.)To contact the reporter on this story: Jonathan Browning in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Aarons at email@example.com, Christopher Elser, Peter ChapmanFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- Follow Bloomberg on Telegram for all the investment news and analysis you need.UBS Group AG won an early release from a ban on sponsoring initial public offerings in Hong Kong, setting it up to once again broker deals in the world’s busiest market.The lifting of the ban comes after UBS “engaged and cooperated” with an independent 10-month review over its policies, procedures and practices, the Securities and Futures Commission said in a statement late Tuesday. UBS was in March last year fined HK$375 million ($48 million) and had its license suspended for a year. The early release is a rare move for the regulator and will allow the Swiss bank to get back into the game as the Asian financial hub seeks to lure more international IPOs via primary and secondary listings. Hong Kong was the top spot globally for IPOs last year, boosted by Alibaba Group Holding Ltd.’s $13 billion secondary listing late last year.Three other banks were also penalized in March, including Standard Chartered Plc, Morgan Stanley and Merrill Lynch, who all escaped a ban. The combined fine for the four banks reached $100 million.Hong Kong’s regulator assessed the fine over the mismanagement of three IPOs in the city that handed investors big losses and dented the credibility of the financial center. The IPOs in question were by China Forestry Holdings Co., Tianhe Chemicals Group Ltd. and China Metal Recycling Holdings Ltd., people familiar said last year.A UBS spokeswoman declined to comment. (Adds details from third paragraph.)To contact the reporter on this story: Kiuyan Wong in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Candice Zachariahs at email@example.com, Jonas BergmanFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Hong Kong's markets watchdog has lifted UBS's ban on leading initial public offerings (IPOs) after 10 months, down from an initial one year, after a review of the bank's enhanced governance processes, the regulator said on Tuesday. The Securities and Futures Commission (SFC) lifted the ban on UBS, put in place in March and set to expire after a year, with immediate effect, it said in an emailed statement. The ban kept the bank from sponsoring, or leading, IPOs in Hong Kong because of due diligence failings on three prior IPOs.
The Board of Directors of UBS Group AG announced today that it will nominate Nathalie Rachou and Mark Hughes for election to the Board at the Annual General Meeting on 29 April, 2020. David Sidwell and Isabelle Romy will not stand for re-election. David Sidwell will have completed a twelve year term of office and Isabelle Romy has decided to step down after eight years on the UBS Board.
UBS is overhauling its flagship wealth management business, including shrinking its senior staff, in the first big strategic move under the division's new co-head Iqbal Khan as the bank looks to revive flagging profits. UBS is cutting up to three layers of management in the division, splitting up its Europe, Middle East and Africa (EMEA) business and giving local teams more autonomy, according to a staff memo seen by Reuters and confirmed by the Swiss bank. The revamp mirrors changes Khan, who joined the world's largest wealth manager three months ago, made as an executive at rival Credit Suisse .
UBS Financial Services announced today a new Financial Advisor joined its Indianapolis office. Danielle Guerra, brings with her almost 15 years of experience in financial planning and wealth management.