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UBS

Analysis before buying or selling UBS shares

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To invest online in the UBS share price, you need to have an excellent knowledge of this company. This is what we suggest you do here by discovering, in this article dedicated to this security, the information that any good trader needs for his analyzes of the course of this security. We offer you a complete presentation of this company as well as its activities, a presentation of its main competitors in its country and abroad, its recent partnerships as well as more general stock market data. We will also guide you in the implementation of your fundamental analysis of this title with the elements that you must follow in the news.

Elements to consider before selling or buying UBS shares

Analysis N°1

First of all, we will closely follow the foreign exchange market and its fluctuations which may favor some of the activities of the UBS group.

Analysis N°2

We will also follow the efforts made by UBS to position itself on the emerging stock markets including the Asian markets which represent an important source of profits.

Analysis N°3

Likewise, the development of UBS's retail banking activities in emerging economies will be closely monitored.

Analysis N°4

The economic policies and the various financial regulations of the countries in which UBS operates can also act as a brake on the group. So keep an eye out for it.

Analysis N°5

We will also pay attention to the very strong competition in this sector and to the statements of the main opponents of UBS.

Analysis N°6

Finally, financial crises are logically events that will mark the activities of the UBS group.

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General presentation of UBS

Let's start our analysis of the UBS share with a slightly more detailed presentation of the Swiss group and explanations on its activities. By understanding what are the sources of income for this company, you will have an easier time anticipating future variations in this stock market price.

The UBS group is a Swiss company and more specifically a holding company. This is organized around 4 poles of activities that we will now present to you according to the share of turnover that these activities generate:

  • First of all, the majority of the UBS group's income comes from wealth management activities. These activities represent more than 54.4% of operating revenues.
  • The investment banking activities represent 26.1% of the turnover of the UBS group.
  • Then there are the retail banking and merchant banking activities. The latter generate 13.5% of the turnover of this holding company.
  • Finally, asset management represents the smallest pole of activity in the group, ie 6% of total turnover.

Currently, the UBS group is in charge of the management of more than 419.8 billion Swiss Francs and 320.4 billion Swiss Francs of outstanding loans.

It is also interesting to know the geographic distribution of the activities of this group by share of turnover. In Switzerland, the UBS group generates 23.2% of its turnover. Europe and the Middle East Africa generates 20.1% of the turnover of this company. The Americas generate 40.8% of the group's turnover and finally, the Asia Pacific generates 15.9% of turnover.

Analysis before buying or selling UBS shares
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The major competitors of UBS

Although the UBS Group is currently one of the leaders in its sector, it is facing serious competition from various players. We are going to present you the main current opponents on the market that are likely to take market share from it:

Credit Suisse

The Credit Suisse Group is a Zurich-based banking group that serves individuals, small and medium-sized businesses and government agencies. Its shares are listed on the Swiss market as well as on the New York market and the group currently employs 47,000 people worldwide. It is also one of the most profitable and largest investment banks in the global financial system.

Citigroup

This American company, also known as Citi, is a New York-based company that resulted from the merger of Citicorp and Travelers Group in 1998. It is also the twelfth largest company in the world with assets of over US$1,795.1 billion. The group employs more than 219,000 people worldwide and has more than 200 million customers in 100 countries. The company is listed on the New York Stock Exchange and is also included in the benchmark Dow Jones Industrial Average (DJIA) in the United States.

BNP Paribas

This French bank is the most profitable in its country and the tenth largest in the world and is present in 71 countries. It is listed on the Euronext Paris market and is also part of the CAC 40 stock market index. The bank has more than 200,000 employees and over 30 million customers with retail banking activities in the domestic markets of France, Belgium, Luxembourg and Italy.

Deutsche Bank

This is Germany's largest bank and is based in Frankfurt am Main. It is the eighth largest European bank in terms of capitalisation. It operates in over 75 countries and has centres in London, New York and Singapore.

BPCE

Finally, BPCE is the joint body of the Banque Populaire and the Caisse d'Epargne in France and was created by the merger of the Caisse Nationale des Caisses d'Epargne and the Banque Fédérale des Banques Populaires in 2009. It is currently the second largest cooperative banking institution in the world after Crédit Agricole and includes all the companies that make up the two banking groups and their subsidiaries.


The major partners of UBS

If a good knowledge of the enemies of UBS is important, it is also essential to know the allies of this company. When UBS partners with other companies, it tends to boost the prices of this security on the stock market. Here are some recent examples of this type of partnership established by UBS:

Banco do Brasil

In 2019, UBS signed a partnership agreement with the Brazilian group Banco di Brasil. This rather restrictive agreement is implemented in the field of merchant banking and will give rise to a joint venture. Thus, the company to be formed by the two companies will aim to provide merchant banking services in Brazil and some Latin American markets. UBS and Banco do Brasil have concretized an intention to collaborate in the field of merchant banking. The two entities signed this agreement and awaited regulatory approvals before this joint venture was implemented.

BlackRock

In 2020, UBS partnered with the BlackRock investment fund. This American asset manager and the Swiss wealth management giant have joined forces in order to launch a new ETF fund. This ETF invests in a multilateral development bank or MDB. It will then be offered as an alternative to traditional high quality fixed income investments such as government bonds.

Sumimoto

Finally and in 2019, the UBS group also set up a new association and created a new joint venture with the Japanese wealth manager Sumimoto Mitsui. This partnership, which had been mentioned previously and is thus confirmed. It will then be signed in Zurich the same day. UBS itself announced it in a press release. UBS ownes 51% of this joint venture. The objective of this partnership is wealth management in the form of a joint venture majority-owned by UBS.

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Frequently Asked Questions

What are the different divisions of the UBS group?

The UBS group is currently organized into 5 main divisions. This includes the Global Wealth Management division, the Retail & Corporate division, the Asset Management division, the Investment Bank division and the Corporate Center division. Each of these divisions manages different and specific activities and you must therefore know them to trade this value well and carry out good analyzes of its price.

Who are the largest shareholders of the UBS group?

The most important shareholders of the UBS group to date are GIC Private Limited, BlackRock and Norges Bank. GIC Private Limited thus holds 7.07% of the capital of the UBS group. BlackRock holds 4.89% of the capital of this company. Finally, Norges Bank holds 3.30% of the capital of this group. Of course, the shareholding of this company is likely to change over time and you should check this information systematically.

Has UBS created its own virtual currency?

Yes! It is true that the UBS group has developed a virtual currency. This was created in collaboration with Clearmatics, a British company. The virtual currency project implemented by the UBS group has been named Utility Settlement Coin. This project obviously uses blockchain technology.  Thanks to this digital currency, the UBS group naturally intends to facilitate transactions between financial institutes while significantly reducing the cost of these transactions.

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