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UBS Group Considers Partial Sell of Asset Management Division
UBSUBS(UBS) ZACKS·2025-03-17 16:46

Core Viewpoint - UBS Group AG is planning to divest part of its asset management division focused on real estate investments, which may be valued at less than 1billion[1]Group1:DivestmentandRestructuringPlansUBSGroupisreviewingitsassetmanagementdivision,particularlySwissrealestateassets,forpotentialsale[1][2]ThedecisiontoconsidersellingpartoftheassetmanagementunitalignswithUBSsstrategytostreamlineoperationsandimproveprofitabilityfollowingtheacquisitionofCreditSuisse[3][5]UBSsassetmanagementdivisioncontributed6.51 billion [1] Group 1: Divestment and Restructuring Plans - UBS Group is reviewing its asset management division, particularly Swiss real estate assets, for potential sale [1][2] - The decision to consider selling part of the asset management unit aligns with UBS's strategy to streamline operations and improve profitability following the acquisition of Credit Suisse [3][5] - UBS's asset management division contributed 6.5% to the bank's total revenues in 2024, significantly overshadowed by the wealth management division [4] Group 2: Integration and Cost Reduction Efforts - UBS is progressing with the integration of Credit Suisse, having migrated over 90% of client accounts outside Switzerland to UBS platforms [6][7] - The company aims to achieve gross cost reductions of 13 billion by the end of 2026, with $7.5 billion or approximately 58% of the targeted savings already realized since the end of 2022 [8] Group 3: Market Performance - UBS shares have increased by 11.2% over the past six months, slightly outperforming the industry growth of 11% [9]