UBS Group is reportedly contemplating moving its headquarters out of Switzerland if the country mandates the bank to increase its capital reserves by an extra SFr22.05bn ($25bn), reported Bloomberg.
This potential move is in response to Switzerland’s efforts to tighten banking regulations following the 2023 collapse of Credit Suisse.
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The increased capital requirement could elevate UBS’s key capital ratio to approximately 20% from its current 14%.
When questioned about the potential relocation, UBS referred to a January interview with CEO Sergio Ermotti on Bloomberg TV, where he stated, “I do not think for me, it is a topic to even consider at this stage to move away from Switzerland.”
The Swiss government is aiming to strengthen banking regulations, which UBS has opposed, arguing that higher capital requirements would raise costs for businesses and households.
UBS, founded in 1862 in Switzerland, acquired Credit Suisse following its collapse.
Announcing its Q4 2024 and full year results last month, the bank said it is optimistic about completing the integration of Credit Suisse by the end of 2026 and aims to achieve $13bn in gross cost reductions by the end of next year.
In Q4 2024, UBS reported a net profit attributable to shareholders of $770m, compared with a loss of $279m in the same quarter the previous year.
The Swiss group’s total revenues increased by 7% during this period, reaching $11.63bn in Q4 2024, up from $10.86bn in Q3 2024.
Its global wealth management unit contributed $6.12bn to revenues in Q4 2024, while asset management revenues stood at $766m for the quarter.
UBS’s cost/income ratio improved to 89% in Q4 2024, compared to 105.7% in Q4 2023.
UBS recorded a net profit attributable to shareholders of $5.08bn for the full year of 2024, versus $27.37bn a year ago, while total revenues increased by 19% year-on-year to $48.61bn. It closed the year with a CET 1 capital ratio of 14.3%.
Earlier this month, UBS received approval from the China Securities Regulatory Commission to sell a 36.01% stake in Credit Suisse Securities (China) Limited to Beijing State-owned Assets Management. The bank will retain a 14.99% stake in the China unit.
