General presentation of the UBS company:
Let's start our analysis of the UBS share with a slightly more detailed presentation of the Swiss group and explanations on its activities. By understanding what are the sources of income for this company, you will have an easier time anticipating future variations in this stock market price.
The UBS group is a Swiss company and more specifically a holding company. This is organized around 4 poles of activities that we will now present to you according to the share of turnover that these activities generate:
- First of all, the majority of the UBS group's income comes from wealth management activities. These activities represent more than 54.4% of operating revenues.
- The investment banking activities represent 26.1% of the turnover of the UBS group.
- Then there are the retail banking and merchant banking activities. The latter generate 13.5% of the turnover of this holding company.
- Finally, asset management represents the smallest pole of activity in the group, ie 6% of total turnover.
Currently, the UBS group is in charge of the management of more than 419.8 billion Swiss Francs and 320.4 billion Swiss Francs of outstanding loans.
It is also interesting to know the geographic distribution of the activities of this group by share of turnover. In Switzerland, the UBS group generates 23.2% of its turnover. Europe and the Middle East Africa generates 20.1% of the turnover of this company. The Americas generate 40.8% of the group's turnover and finally, the Asia Pacific generates 15.9% of turnover.
Knowing the UBS shares' competition:
Now that you are familiar with the activities of the UBS group, we suggest that you learn more about its sector of activity and its competitive environment. Here is a presentation of the main competitors of this company on the different markets.
In Switzerland, the companies in direct competition with UBS are:
- Credit Suisse
- Cantonal Bank of Zurich
- Banque Cantonale Vaudoise (Cantonal Bank of Vaud)
With regard to the European market as a whole and outside Switzerland, we find the following competitors:
- Deutsche Bank
- Crédit Agricole (by Amundi)
- BNP Paribas
- Royal Bank of Scotland
Finally, several other competitors in this group are listed in the United States, including:
- Goldman Sachs
- JP Morgan
- Morgan Stanley
- Bank of America
The strategic alliances set up by the UBS group:
If a good knowledge of the enemies of UBS is important, it is also essential to know the allies of this company. When UBS partners with other companies, it tends to boost the prices of this security on the stock market. Here are some recent examples of this type of partnership established by UBS:
- Banco do Brasil: In 2019, UBS signed a partnership agreement with the Brazilian group Banco di Brasil. This rather restrictive agreement is implemented in the field of merchant banking and will give rise to a joint venture. Thus, the company to be formed by the two companies will aim to provide merchant banking services in Brazil and some Latin American markets. UBS and Banco do Brasil have concretized an intention to collaborate in the field of merchant banking. The two entities signed this agreement and awaited regulatory approvals before this joint venture was implemented.
- BlackRock: In 2020, UBS partnered with the BlackRock investment fund. This American asset manager and the Swiss wealth management giant have joined forces in order to launch a new ETF fund. This ETF invests in a multilateral development bank or MDB. It will then be offered as an alternative to traditional high quality fixed income investments such as government bonds.
- Sumimoto: Finally and in 2019, the UBS group also set up a new association and created a new joint venture with the Japanese wealth manager Sumimoto Mitsui. This partnership, which had been mentioned previously and is thus confirmed. It will then be signed in Zurich the same day. UBS itself announced it in a press release. UBS ownes 51% of this joint venture. The objective of this partnership is wealth management in the form of a joint venture majority-owned by UBS.
As we told you before, it is especially the future alliances that will be set up by UBS that will be important. You must anticipate the next alliances of this company to take advantage of it and to take a position at the right time on this title. For that, it is advisable to follow closely the news of the group.