UBS Group to Brave Coronavirus Impact With Restructuring

Amid the coronavirus pandemic, Swiss Bank — UBS Group AG UBS — continues with restructuring activities. A new global financing team has been formed by the bank to facilitate clients with faster service spanning different divisions under one group, per Reuters.

The new team will align employees working in global wealth management, investment bank financing and risk management under one group. Further, UBS Group’s financing capabilities will be enhanced in the operational areas of the bank, and the Swiss bank will spread out its product offerings to cater to the financing needs of clients.

"It is creating efficiency, so any type of lending, corporate derivatives or structured financing will now go through this one team. It is a global team that is able to really, in an organized way, meet all of our clients' needs on a local and global level," said UBS co-president of the investment bank Rob Karofsky.

Remi Mennesson will head the new team from November 2020, reporting to the bank’s four co-presidents. Notably, initial focus of the team will be on corporate derivatives and structured solutions expanded through UBS' Structured Equity Solutions Group and Special Situations Group.

Notably, UBS Group remains on track to achieve the goals related to the restructuring of its business.

Banks all over the world have been significantly affected by the pandemic and its impacts on the global economy. Banks in Europe are concerned about the results of the ongoing quarter, as the global lockdowns have affected these financial firms.

Our Take

UBS Group continues to execute restructuring initiatives to free resources and invest in profitable areas to better serve clients. However, the top line remains under pressure due to persistent negative interest rates in the domestic economy.

The company has lost 19.5% over the past six months compared with the 39.7% decline recorded by the industry. Currently, UBS Group carries a Zacks Rank #2 (Buy).

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DBS Group Holdings Ltd’s DBSDY current-year earnings estimate moved north in 60 days’ time. Further, the company’s shares have declined 28.4% over the past six months. At present, it holds a Zacks Rank of 2.

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