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UBS Group Seeks to Lend Savings From Wealth Management Revamp
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UBS Group AG (UBS - Free Report) is planning to restructure its wealth management unit, under a project namely Rigi, with a view to reduce expenses and free some resources, which the company would offer as loans in higher-growth markets. The news was reported by Bloomberg.
The company will transfer large customer deposits from its Swiss entity into the bank’s main UBS AG legal unit, per the people familiar with the matter. With this move, the lender expects to be able to lend about $20 billion and $30 billion per year to wealthy clients outside Switzerland.
Notably, the project, which is expected to run through 2022, will be reversing measures that the Swiss bank has been asked to take by the government during the 2008 financial crisis. The measures included making “separate legal entities that would be insulated in the event of a surprise bankruptcy”, the article stated.
Project Rigi also includes the transfer of other parts of the global wealth business from the Swiss unit.
The company has been long focused on revamping its key wealth management division. In early 2020, the bank was in news for plans to cut about 500 jobs in the unit. Also, under the leadership of Iqbal Khan, who joined UBS Group last year, the unit was split to better cater to the needs of rich wealth-management clients.
Notably, UBS Group has long remained focused on building capital levels, expanding globally and executing restructuring initiatives. Though net interest income remains under pressure, thanks to falling interest rates, its strategic alliances to boost customer base and efforts to tap opportunistic areas bode well.
UBS’ shares have lost 1.8% over the past six months compared with the industry’s decline of 25.6%.
Currently, UBS carries a Zacks Rank #2 (Buy).
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Credit Acceptance Corporation (CACC - Free Report) has witnessed an upward earnings estimate revision of nearly 16% for 2020 in the past 60 days. Moreover, the Zacks Rank #2 stock has gained 4.1% in the year-to-date period.
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More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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UBS Group Seeks to Lend Savings From Wealth Management Revamp
UBS Group AG (UBS - Free Report) is planning to restructure its wealth management unit, under a project namely Rigi, with a view to reduce expenses and free some resources, which the company would offer as loans in higher-growth markets. The news was reported by Bloomberg.
The company will transfer large customer deposits from its Swiss entity into the bank’s main UBS AG legal unit, per the people familiar with the matter. With this move, the lender expects to be able to lend about $20 billion and $30 billion per year to wealthy clients outside Switzerland.
Notably, the project, which is expected to run through 2022, will be reversing measures that the Swiss bank has been asked to take by the government during the 2008 financial crisis. The measures included making “separate legal entities that would be insulated in the event of a surprise bankruptcy”, the article stated.
Project Rigi also includes the transfer of other parts of the global wealth business from the Swiss unit.
The company has been long focused on revamping its key wealth management division. In early 2020, the bank was in news for plans to cut about 500 jobs in the unit. Also, under the leadership of Iqbal Khan, who joined UBS Group last year, the unit was split to better cater to the needs of rich wealth-management clients.
Notably, UBS Group has long remained focused on building capital levels, expanding globally and executing restructuring initiatives. Though net interest income remains under pressure, thanks to falling interest rates, its strategic alliances to boost customer base and efforts to tap opportunistic areas bode well.
UBS’ shares have lost 1.8% over the past six months compared with the industry’s decline of 25.6%.
Currently, UBS carries a Zacks Rank #2 (Buy).
Other Key Picks
Enova International, Inc.’s (ENVA - Free Report) current-year earnings estimates have moved significantly north in the past 60 days. Further, the company’s shares have declined 33.5% in the year-to-date period. At present, it has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Credit Acceptance Corporation (CACC - Free Report) has witnessed an upward earnings estimate revision of nearly 16% for 2020 in the past 60 days. Moreover, the Zacks Rank #2 stock has gained 4.1% in the year-to-date period.
Mr. Cooper Group Inc.’s (COOP - Free Report) earnings estimates have moved 85% upward for 2020 in the past 60 days. Moreover, the Zacks #1 Ranked stock has gained 37.6% in the year-to-date period.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>