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UBS to Deepen NTRS Tie-Up With Credit Suisse Fund Administration Deal
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Key Takeaways
UBS will transfer former Credit Suisse fund administration businesses in Switzerland and Luxembourg to NTRS.
UBS aims to reduce infrastructure and operational complexity as Credit Suisse integration nears completion.
NTRS could gain recurring fee income as UBS and former Credit Suisse funds migrate to its platform.
UBS Group AG (UBS - Free Report) has agreed to transfer its former Credit Suisse fund administration businesses in Switzerland and Luxembourg to Northern Trust Corporation (NTRS - Free Report) . Subject to regulatory approvals, the transaction is expected to close in the second quarter of 2027 and will cover Credit Suisse’s traditional and alternatives fund administration businesses in both markets. The migration is expected to take place in phases over two years as UBS Group exits the fund administration business.
The transaction builds on a long-standing relationship between UBS Group and NTRS. In 2017, UBS Asset Management sold its Swiss and Luxembourg traditional fund administration operations to Northern Trust and entered into a long-term servicing agreement. The latest deal expands that arrangement to additional funds and the former Credit Suisse operations. Building on an existing relationship, UBS could simplify the transition, limit disruption and maintain continuity for clients as the additional funds migrate to NTRS.
The move comes as UBS Group approaches the final stages of integrating Credit Suisse, with the integration process expected to be substantially completed by the end of 2026. Transferring these non-core operations to NTRS is likely to help UBS reduce the infrastructure, resources and operational complexity associated with fund administration while allowing it to focus more closely on core businesses, including wealth management, asset management and investment banking. In parallel, the company is also simplifying its Luxembourg Management Company services, with a greater focus on supporting its in-house funds.
The expanded mandate also creates a growth opportunity for Northern Trust, particularly across fund administration and asset servicing. For the six months ended June 30, 2026, its custody and fund administration fees accounted for 67.4% of total asset servicing fees, making them the largest contributor to the business. As UBS and former Credit Suisse funds migrate to NTRS, the additional servicing volumes are expected to support recurring fee income and increase the scale of its fund administration operations.
Overall, the agreement supports UBS Group’s post-Credit Suisse simplification efforts while providing NTRS with an avenue for fee-based growth. UBS stands to benefit from a leaner operating structure and reduced infrastructure requirements, while NTRS will likely gain from higher servicing volumes and recurring fund administration revenues over time.
Strategic Portfolio Simplification by Other Bank
Deutsche Bank (DB - Free Report) is also simplifying its business portfolio as part of its broader Global Hausbank strategy. In July 2026, the company agreed to sell its retail banking, affluent private banking and wealth management business in India to Kotak Mahindra Bank.
The transaction is aimed at sharpening Deutsche Bank’s focus on businesses with stronger scale and long-term return potential while supporting disciplined capital allocation. The deal is expected to close by September 2027, subject to regulatory approvals, and is expected to be accretive to Deutsche Bank’s CET1 ratio.
UBS’ Zacks Rank & Price Performance
Over the past six months, UBS Group shares have gained 17.2% on the NYSE compared with the industry’s growth of 11.4%.
Image: Shutterstock
UBS to Deepen NTRS Tie-Up With Credit Suisse Fund Administration Deal
Key Takeaways
UBS Group AG (UBS - Free Report) has agreed to transfer its former Credit Suisse fund administration businesses in Switzerland and Luxembourg to Northern Trust Corporation (NTRS - Free Report) . Subject to regulatory approvals, the transaction is expected to close in the second quarter of 2027 and will cover Credit Suisse’s traditional and alternatives fund administration businesses in both markets. The migration is expected to take place in phases over two years as UBS Group exits the fund administration business.
The transaction builds on a long-standing relationship between UBS Group and NTRS. In 2017, UBS Asset Management sold its Swiss and Luxembourg traditional fund administration operations to Northern Trust and entered into a long-term servicing agreement. The latest deal expands that arrangement to additional funds and the former Credit Suisse operations. Building on an existing relationship, UBS could simplify the transition, limit disruption and maintain continuity for clients as the additional funds migrate to NTRS.
The move comes as UBS Group approaches the final stages of integrating Credit Suisse, with the integration process expected to be substantially completed by the end of 2026. Transferring these non-core operations to NTRS is likely to help UBS reduce the infrastructure, resources and operational complexity associated with fund administration while allowing it to focus more closely on core businesses, including wealth management, asset management and investment banking. In parallel, the company is also simplifying its Luxembourg Management Company services, with a greater focus on supporting its in-house funds.
The expanded mandate also creates a growth opportunity for Northern Trust, particularly across fund administration and asset servicing. For the six months ended June 30, 2026, its custody and fund administration fees accounted for 67.4% of total asset servicing fees, making them the largest contributor to the business. As UBS and former Credit Suisse funds migrate to NTRS, the additional servicing volumes are expected to support recurring fee income and increase the scale of its fund administration operations.
Overall, the agreement supports UBS Group’s post-Credit Suisse simplification efforts while providing NTRS with an avenue for fee-based growth. UBS stands to benefit from a leaner operating structure and reduced infrastructure requirements, while NTRS will likely gain from higher servicing volumes and recurring fund administration revenues over time.
Strategic Portfolio Simplification by Other Bank
Deutsche Bank (DB - Free Report) is also simplifying its business portfolio as part of its broader Global Hausbank strategy. In July 2026, the company agreed to sell its retail banking, affluent private banking and wealth management business in India to Kotak Mahindra Bank.
The transaction is aimed at sharpening Deutsche Bank’s focus on businesses with stronger scale and long-term return potential while supporting disciplined capital allocation. The deal is expected to close by September 2027, subject to regulatory approvals, and is expected to be accretive to Deutsche Bank’s CET1 ratio.
UBS’ Zacks Rank & Price Performance
Over the past six months, UBS Group shares have gained 17.2% on the NYSE compared with the industry’s growth of 11.4%.
Image Source: Zacks Investment Research
Currently, UBS sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.