UBS's Swiss HQ deemed "not viable" by activist investor Cevian due to capital plans.

Cevian, an activist investor, has criticized UBS Group AG's capital plans, stating that they make its Swiss HQ "not viable." The Swiss bank operates in four areas: wealth management, investment banking, retail and corporate banking, asset management, and other. As of 2024, UBS had $745.8 billion in current deposits and $580 billion in current loans.

UBS Group AG, the Swiss banking giant, is reportedly weighing the possibility of relocating its headquarters from Zurich to the United States, following a proposal by Swiss regulators to impose significantly stricter capital requirements. The move is aimed at mitigating the potential impact of these reforms on the bank's financial stability UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1].

The Swiss Federal Department of Finance has proposed that UBS fully capitalize its foreign subsidiaries, increasing its common equity tier-one capital by up to $26 billion. This proposal, which is still subject to consultation and parliamentary approval, is expected to be implemented by 2028 UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1]. UBS has reportedly held preliminary discussions with U.S. officials to explore this potential headquarters move, which could provide a more flexible regulatory environment and facilitate growth through deals and acquisitions in the robust U.S. financial market UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1].

UBS has emphasized that it intends to remain a global bank headquartered in Switzerland, but is exploring ways to safeguard shareholder and stakeholder interests if the rules proceed as drafted UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1]. The bank is currently integrating Credit Suisse, having merged 95 Swiss branches and achieved $9.1 billion in cost savings since the end of 2022, which represents about 70% of its $13 billion target for completion by 2026 UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1].

Cevian, an activist investor, has criticized UBS's capital plans, stating that they make its Swiss headquarters "not viable." UBS operates in four main areas: wealth management (49.4% of revenues), investment banking (22.1%), retail and corporate banking (18.8%), asset management (6.4%), and other (3.3%) UBS reviewing all options to respond to Swiss capital proposals, CFO says^[2]. As of 2024, the group had USD 745.8 billion in current deposits and USD 580 billion in current loans UBS reviewing all options to respond to Swiss capital proposals, CFO says^[2].

UBS's shares have gained 36.7% over the past year, compared to the industry's growth of 36.3%, and currently sports a Zacks Rank #1 (Strong Buy) UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1]. Among its peers, HSBC Holdings plc and Shinhan Financial Group Co. also have a Zacks Rank #1, with their shares soaring 57.1% and 15.3% respectively over the past year UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1].