Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
18th November 2011
New UBS CEO halves investment banking - sets financial targets
Sergio Ermotti was confirmed as 'proper' CEO, as opposed to interim CEO earlier this week, just in time for the New York investor conference held on Thursday.
In the post meeting announcement UBS recognised that people wanted hard performance targets rather than words in the communique. The most significant change to its structure and the financial emphasis related to the investment bank where Basel III risk weighted assets are to be reduced from circa CHF 300bn (€242bn £207bn $326bn ¥25.1tr Y2,075bn) today to CHF 145bn.
The bank provided these financial targets:
Group
- Basel 3 common equity tier 1 ratio: 13%
- Annual return on equity: 12-17%
- Cost / income ratio: 65-75%
Wealth Management
- Annual NNM growth rate: 3-5%
- Annual Gross margin: 95-105 bps
- Cost / income ratio: 60-70%
Wealth Management Americas
- Annual NNM growth rate: 2-4%
- Annual Gross margin: 75-85 bps
- Cost / income ratio: 80-90%
Retail & Corporate
- Annual net new business volume: 1-4%
- Annual net interest margin: 140-180 bps
- Cost / income ratio: 50-60%
Global Asset Management
- Annual NNM growth rate: 3-5%
- Annual Gross margin: 32-38 bps
- Cost / income ratio: 60-70%
Core Investment Bank
- Annual pre-tax return on attributed equity: 12-17%
- Cost / income ratio: 70-80%
UBS redefined its business in terms of the existing divisions stating:
"UBS's strategy is centered on the long-standing leadership positions of its global wealth management businesses and its universal bank in Switzerland. Together with a focused, less complex and less capital-intensive Investment Bank and a strong Global Asset Management business, UBS will drive further growth and expand its premier wealth management franchise. "
In addition to the reduction in assets within investment banking the unit is to "exit or significantly downsize several businesses. The Investment Bank will work more closely with UBS's wealth management businesses and increase its emphasis on the execution, advisory and research capabilities it provides to wealth management clients". Despite the halving of assets within the unit the bank is proposing a further cut in staff of just over 11% with numbers falling from 18,000 to around 16,000 by the end of 2016.
The bank referred to the issuance of "non-dilutive loss-absorbing debt qualifying as capital", but did not indicate the quantity.