Analysis of UBS share price for trading

To invest online in the UBS share price, you need to have an excellent knowledge of this company. This is what we suggest you do here by discovering, in this article dedicated to this security, the information that any good trader needs for his analyzes of the course of this security. We offer you a complete presentation of this company as well as its activities, a presentation of its main competitors in its country and abroad, its recent partnerships as well as more general stock market data. We will also guide you in the implementation of your fundamental analysis of this title with the elements that you must follow in the news.  

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Our advice for trading UBS share

Tip number 1

First of all, we will closely follow the foreign exchange market and its fluctuations which may favor some of the activities of the UBS group.

Tip number 2

We will also follow the efforts made by UBS to position itself on the emerging stock markets including the Asian markets which represent an important source of profits.

Tip number 3

Likewise, the development of UBS's retail banking activities in emerging economies will be closely monitored.

Tip number 4

The economic policies and the various financial regulations of the countries in which UBS operates can also act as a brake on the group. So keep an eye out for it.

Tip number 5

We will also pay attention to the very strong competition in this sector and to the statements of the main opponents of UBS.

Tip number 6

Finally, financial crises are logically events that will mark the activities of the UBS group.

Trade UBS shares now!
75% of retail investor accounts lose money when trading CFDs with this provider.

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)
  • Raiffeisen

With regard to the European market as a whole and outside Switzerland, we find the following competitors:

  • Deutsche Bank
  • HSBC
  • Crédit Agricole (by Amundi)
  • BNP Paribas
  • Natixis
  • Royal Bank of Scotland
  • Santander
  • UniCredit

Finally, several other competitors in this group are listed in the United States, including:

  • Citigroup
  • 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.

Frequently Asked Questions

What are the different divisions of the UBS group?

The UBS group is currently organized into 5 main divisions. This includes the Global Wealth Management division, the Retail & Corporate division, the Asset Management division, the Investment Bank division and the Corporate Center division. Each of these divisions manages different and specific activities and you must therefore know them to trade this value well and carry out good analyzes of its price.

Who are the largest shareholders of the UBS group?

The most important shareholders of the UBS group to date are GIC Private Limited, BlackRock and Norges Bank. GIC Private Limited thus holds 7.07% of the capital of the UBS group. BlackRock holds 4.89% of the capital of this company. Finally, Norges Bank holds 3.30% of the capital of this group. Bien entendu, lactionnariat de cette entreprise est susceptible d’évoluer avec le temps et vous devez vérifier ces informations de manière systématique.

Has UBS created its own virtual currency?

Yes! It is true that the UBS group has developed a virtual currency. This was created in collaboration with Clearmatics, a British company. The virtual currency project implemented by the UBS group has been named Utility Settlement Coin. This project obviously uses blockchain technology.  Thanks to this digital currency, the UBS group naturally intends to facilitate transactions between financial institutes while significantly reducing the cost of these transactions.

Where and how to trade on the UBS share price?

You can invest now and online in the UBS share price by joining an online trading platform like the one we have just presented to you and which has certain advantages.

Trade UBS shares now!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.