UBS Group AG (UBS - Free Report) has selected Germany’s financial hub Frankfurt over London as its new base for post-Brexit operations, per Bloomberg. Additionally, UBS plans to open offices in Madrid, Paris and Milan as part of its multi-location strategy in the European Union.
The company’s Chief Executive Officer, Sergio Ermotti, has been preparing to relocate operations to Frankfurt under assumptions of a no-deal Brexit. By assuming the worst-case scenario, the bank is likely to make provisions for higher costs than what might be incurred if a deal is struck.
The CEO made no mention of the number of employees that will be impacted by this move. However, the figure is expected to remain below 200, as expected previously.
Post Brexit Plans of Other Banks
HSBC Holdings (HSBC - Free Report) recently transferred the London branch’s ownership in its Polish and Irish subsidiaries to a unit in France, while Credit Suisse chose Frankfurt, Madrid and Luxembourg for shifting its investment banking jobs from Britain.
Further, Deutsche Bank (DB - Free Report) is planning to transfer large chunk of assets from its London base to Frankfurt headquarters post Brexit. Though no final decision on the size of asset to be moved is taken yet, Deutsche is likely to trim its balance sheet by about 75%.
While Citigroup already has majority of its EU employees outside of Britain, the bank still expects nearly 150 jobs to be affected in case of a no-deal Brexit. Moreover, JPMorgan has also initiated relocation plans for several dozen of employees at its U.K. offices, in a bid to ensure business continuity post Brexit.
Our Take
UBS Group’s restructuring initiatives along with cost-control efforts keep us encouraged of its growth prospects. However, its profitability continues to be challenged by negative interest rates in the domestic economy.
Shares of UBS Group have lost 7.1% on the NYSE over the past year, compared with the industry’s decline of 11.6%.
Currently, the stock has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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UBS Group AG (UBS - Free Report) has selected Germany’s financial hub Frankfurt over London as its new base for post-Brexit operations, per Bloomberg. Additionally, UBS plans to open offices in Madrid, Paris and Milan as part of its multi-location strategy in the European Union.
The company’s Chief Executive Officer, Sergio Ermotti, has been preparing to relocate operations to Frankfurt under assumptions of a no-deal Brexit. By assuming the worst-case scenario, the bank is likely to make provisions for higher costs than what might be incurred if a deal is struck.
The CEO made no mention of the number of employees that will be impacted by this move. However, the figure is expected to remain below 200, as expected previously.
Post Brexit Plans of Other Banks
HSBC Holdings (HSBC - Free Report) recently transferred the London branch’s ownership in its Polish and Irish subsidiaries to a unit in France, while Credit Suisse chose Frankfurt, Madrid and Luxembourg for shifting its investment banking jobs from Britain.
Further, Deutsche Bank (DB - Free Report) is planning to transfer large chunk of assets from its London base to Frankfurt headquarters post Brexit. Though no final decision on the size of asset to be moved is taken yet, Deutsche is likely to trim its balance sheet by about 75%.
While Citigroup already has majority of its EU employees outside of Britain, the bank still expects nearly 150 jobs to be affected in case of a no-deal Brexit. Moreover, JPMorgan has also initiated relocation plans for several dozen of employees at its U.K. offices, in a bid to ensure business continuity post Brexit.
Our Take
UBS Group’s restructuring initiatives along with cost-control efforts keep us encouraged of its growth prospects. However, its profitability continues to be challenged by negative interest rates in the domestic economy.
Shares of UBS Group have lost 7.1% on the NYSE over the past year, compared with the industry’s decline of 11.6%.
Currently, the stock has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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