Investors demand more from UBS

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Investors demand more from UBS

July 20, 2018 - 11:45
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Seven years after restructuring UBS bank, which focuses on wealth management, is one of the most stable banks in Europe, Bloomberg notes. Shares are traded above peers' stocks, clients adding new assets, and bank reports expected profit. However, investors doubts anyway that bank's management can sustain current stable situation.

Entrance to UBS headquarters in Zurich | © UBS Zurich

Seven years after restructuring UBS bank, which focuses on wealth management, is one of the most stable banks in Europe, Bloomberg notes. Shares are traded above peers' stocks, clients adding new assets, and bank reports expected profit.

However, investors doubts anyway that bank's management can sustain current stable situation, especially among revolutionary revamps of rivals, including Credit Suisse Group AG.

Implementation of leaders' recent plans, including shares buyback amounted to 2 billion Swiss francs and merger of two large wealth management units, has not impressed investors and not caused significant growth of UBS shares.

Bank's leaders still have a chance to prove themselves when bank is reporting earning in the second quarter.

UBS is a largest billionaire money manager in the world today. Wealth management business, valued $2,3 trillion, exceeds American rivals, including Bank of America and Morgan Stanley. However, unlike from them bank's clients are located all over the world, which makes it difficult to manage costs.