We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UBS to Cut Asia-Pacific IB Jobs at Credit Suisse Next Month
Read MoreHide Full Article
As part of the integration process, UBS Group AG (UBS - Free Report) is planning to cut investment banking (IB) jobs at Credit Suisse next month, specifically in the Asia-Pacific region, per a Bloomberg article. These job cuts are expected to be witnessed by Australia and China where these two banks have most of the overlapping presence.
UBS Group AG became a Swiss banking giant following the completion of the emergency takeover of Credit Suisse last week. Per a source, UBS informed its staff about the planned job cuts on Tuesday. It, however, did not specify the total number of jobs to be eliminated.
Two sources familiar with the matter stated that UBS is imminent to diminish most of Credit Suisse's consumer and retail as well as general industrial group coverage teams in Asia.
Nonetheless, most of the Credit Suisse’s technology, media and telecoms team's investment bankers as well as dealmakers covering non-China financial institutions are expected to be retained.
Further, since risk profiles of these two banks’ clients are very different, UBS aims to have a separate, dedicated, regional leadership team for Credit Suisse’s book and client list.
Such eliminations of IB jobs by UBS are likely to reduce expenses and will help to navigate adverse market conditions causing pressure on top-line growth. Notably, UBS’s IB unit’s operating profit before tax in first-quarter 2023 was $477 million, down 48.6% from the prior-year quarter.
UBS Group AG’s shares have gained 7.7% on NYSE over the past six months compared with the industry’s rise of 6.7%.
UBS Group AG is not the only one to trim workforce. Many others, including TheGoldman Sachs Group, Inc. (GS - Free Report) and Citigroup (C - Free Report) , have been taking similar steps in their IB divisions.
GS is eliminating more than 30 IB positions in the Asia region to survive the current uncertain economic conditions. The company's Global Banking & Markets division has witnessed the majority of the regional job cuts.
Also, C is likely to cut 30 IB jobs and 20 more in its corporate banking unit in London. Per a person familiar with the matter, the cuts are necessary to reduce its cost base as the bank navigates adverse market conditions.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
UBS to Cut Asia-Pacific IB Jobs at Credit Suisse Next Month
As part of the integration process, UBS Group AG (UBS - Free Report) is planning to cut investment banking (IB) jobs at Credit Suisse next month, specifically in the Asia-Pacific region, per a Bloomberg article. These job cuts are expected to be witnessed by Australia and China where these two banks have most of the overlapping presence.
UBS Group AG became a Swiss banking giant following the completion of the emergency takeover of Credit Suisse last week. Per a source, UBS informed its staff about the planned job cuts on Tuesday. It, however, did not specify the total number of jobs to be eliminated.
Two sources familiar with the matter stated that UBS is imminent to diminish most of Credit Suisse's consumer and retail as well as general industrial group coverage teams in Asia.
Nonetheless, most of the Credit Suisse’s technology, media and telecoms team's investment bankers as well as dealmakers covering non-China financial institutions are expected to be retained.
Further, since risk profiles of these two banks’ clients are very different, UBS aims to have a separate, dedicated, regional leadership team for Credit Suisse’s book and client list.
Such eliminations of IB jobs by UBS are likely to reduce expenses and will help to navigate adverse market conditions causing pressure on top-line growth. Notably, UBS’s IB unit’s operating profit before tax in first-quarter 2023 was $477 million, down 48.6% from the prior-year quarter.
UBS Group AG’s shares have gained 7.7% on NYSE over the past six months compared with the industry’s rise of 6.7%.
Image Source: Zacks Investment Research
UBS carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
UBS Group AG is not the only one to trim workforce. Many others, including The Goldman Sachs Group, Inc. (GS - Free Report) and Citigroup (C - Free Report) , have been taking similar steps in their IB divisions.
GS is eliminating more than 30 IB positions in the Asia region to survive the current uncertain economic conditions. The company's Global Banking & Markets division has witnessed the majority of the regional job cuts.
Also, C is likely to cut 30 IB jobs and 20 more in its corporate banking unit in London. Per a person familiar with the matter, the cuts are necessary to reduce its cost base as the bank navigates adverse market conditions.