Union Bank of Switzerland: A Comprehensive Guide

Union Bank of Switzerland was founded in 1862, making it one of the oldest banks in Switzerland.

The bank's early years were marked by stability and growth, with a focus on private banking and wealth management.

Union Bank of Switzerland's headquarters were located in Zurich, Switzerland, a hub for international finance.

The bank's history is a testament to the Swiss banking tradition of discretion and confidentiality.

UBS was founded in 1862 as the Bank in Winterthur, marking the beginning of the series of modern Swiss Grossbanken (big banks) in the latter part of the 19th century.

The name "UBS" comes from one of its predecessor firms, the Union Bank of Switzerland, but it's no longer considered an acronym. In fact, UBS is one of the more than 370 financial firms that have become part of today's UBS since 1862.

Here's a brief overview of UBS's major mergers and acquisitions:

Today, UBS is one of the largest banks in the world with a market capitalization of $63 billion, as per a 2022 report.

The History of Union Bank of Switzerland is a long and winding road that spans over a century. UBS was founded in 1862 as the Bank in Winterthur, which served as Switzerland's industrial hub in the 19th century.

The bank's name was derived from the town of Winterthur, where it was first established. By 1854, six private bankers in Basel founded the Swiss Bank Corporation (SBC) to cater to the increasing credit needs of Swiss railroad and manufacturing companies.

The Bank in Winterthur merged with Toggenburger Bank in 1912 to form the Union Bank of Switzerland (UBS) and grew rapidly after the Banking Law of 1934 codified Swiss banking secrecy. UBS does not stand for Union Bank of Switzerland, but rather the name 'UBS' came from one of its predecessor firms.

Here is a brief timeline of UBS's major predecessors:

Over the years, UBS has undergone significant changes, including the 2007-2008 financial crisis, which led to heavy losses, and the 2011 rogue trader scandal resulting in a US$2 billion trading loss.

The subprime mortgage crisis was a major economic issue that occurred between 2007 and 2009. It was triggered by a surge in subprime lending, where banks and other financial institutions issued large numbers of mortgages to borrowers with poor credit history.

Many of these mortgages had low introductory interest rates that would reset to much higher rates after an initial period, making monthly payments unaffordable for borrowers. This led to a wave of defaults and foreclosures.

The crisis was exacerbated by the securitization of subprime mortgages, where these mortgages were packaged into securities and sold to investors around the world. This allowed lenders to offload the risk of these mortgages and focus on making more loans.

The value of these mortgage-backed securities plummeted in value as defaults and foreclosures increased, causing a massive loss of wealth for investors and banks. This led to a freeze in credit markets and a sharp decline in economic activity.

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Wealth Management has its roots in the early 20th century, with the first wealth management firms emerging in the 1920s.

Wealth Management firms have been around for nearly a century, but they have evolved significantly over the years to meet the changing needs of their clients.

The term "Wealth Management" was first coined in the 1990s, as the industry began to shift its focus from solely managing investments to providing comprehensive financial planning services.

As UBS has grown, its core principles have remained steadfast. UBS prioritizes its clients and their needs above all else.

At the heart of everything UBS does is a focus on delivering a personalized, relevant, on-time, and seamless experience for its clients. This commitment to client centricity drives every aspect of the company's operations.

UBS aims to connect people, ideas, and business to create a global ecosystem where clients, employees, and other stakeholders can excel. This vision is a key part of the company's principles.

Acting to drive long-term value creation is a core principle of UBS. This means contributing to a better world for its stakeholders, society, environment, and future generations.

UBS is a joint-stock company listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE). Its shares are traded globally, with a significant presence in the United States.

As of December 2020, UBS has offices in 50 countries, with around 30% of its employees working in the Americas, 30% in Switzerland, and 19% in Europe, the Middle East, and Africa. The bank's major presence in the United States is reflected in its American headquarters for investment banking in New York City and private wealth management advisory in Weehawken, New Jersey.

UBS's corporate structure includes four main divisions: Global Wealth Management, Personal & Corporate Bank, Asset Management, and Investment Bank. These divisions are responsible for the bank's global business operations.

UBS is a joint-stock company, which means its shares are publicly traded. This is reflected in its listing on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

As of December 2020, UBS has a significant global presence, with offices in 50 countries. This includes major financial centers worldwide.

UBS has a diverse workforce, with about 30% of its approximately 73,000 employees working in the Americas, 30% in Switzerland, and 19% in Europe, the Middle East, and Africa. The remaining 21% work in the Asia Pacific region.

The bank's global business groups are divided into four main divisions: Global Wealth Management, Personal & Corporate Bank, Asset Management, and Investment Bank. These divisions work together to provide a range of financial services to clients.

Here is a breakdown of UBS's corporate structure:

The company's corporate structure has undergone changes over the years, with all UBS business groups being rebranded under the UBS moniker in 2003. This marked the beginning of the company's unified global entity.

As of June 2018, the largest institutional shareholders of UBS include Chase Nominees Ltd. (11.76%), DTC (Cede & Co.) (7.57%), and Nortrust Nominees Ltd. (4.53%).

The senior leadership at UBS has undergone significant changes over the years. Colm Kelleher has been the chairman since April 2022.

Sergio Ermotti has been at the helm as chief executive, with his second term starting in April 2023.

As of 30 September 2017, the largest shareholders of UBS are Chase Nominees Ltd, DTC (Cede & Co.), and Nortrust Nominees Ltd, holding 10.32%, 6.63%, and 4.04% of total share capital respectively.

GIC Private Limited, a significant shareholder, invested CHF 11 billion into UBS in 2008 to help bail it out during the subprime mortgage crisis, making it the largest single shareholder.

The shareholdings of UBS Group AG are distributed among various types of shareholders, including individual shareholders, legal entities, and nominees, fiduciaries.

As of 30 June 2019, individual shareholders held 97.8% of the total share capital, with 220,172 individual shareholders owning 490,593,639 shares.

Legal entities, on the other hand, held 2.1% of the total share capital, with 4,665 legal entities owning 543,626,690 shares.

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Nominees, fiduciaries, and other types of shareholders held the remaining 0.1% of the total share capital, with 217 nominees, fiduciaries owning 1,165,313,198 shares.

Here is a breakdown of the shareholdings of UBS Group AG as of 30 June 2019:

UBS operates as a joint-stock company, listed on the SIX Swiss Exchange and the New York Stock Exchange. Its shares are held by a diverse group of shareholders from around the world.

As of 2018, the bank had a significant presence in the Americas, with 5,675 shareholders, and a total of 434 million shares, accounting for 11.3% of the total shares.

The company's global business groups include global wealth management, investment bank, asset management, and personal & corporate banking. These groups are the backbone of UBS's operations, generating revenue and driving growth.

UBS has a significant presence in Switzerland, with 206,060 shareholders, accounting for 89.5% of the total shareholders. The bank also has a presence in the Asia Pacific region, Europe, Middle East and Africa.

The bank's corporate structure includes four main divisions: Global Wealth Management, Personal & Corporate Bank, Asset Management, and Investment Bank. These divisions work together to provide a range of financial services to clients around the world.

As of June 2018, the bank had a total of 230,330 shareholders, with 100% of the shares being held by both registered and unregistered shareholders.

UBS's global wealth management advisory division offers a range of advisory and investment products and services to high-net-worth individuals worldwide. As of the end of 2016, UBS Wealth Management's invested assets totalled CHF 977 billion.

The company manages the largest amount of private wealth in the world, counting approximately half of The World's Billionaires among its clients. More than 60% of total invested assets in UBS Wealth Management belong to individuals with a net worth of CHF 10 million or more.

UBS offers a broad range of securities and savings products that are supported by the firm's underwriting and research activities. The company provides a complete set of retail banking services in Switzerland, including chequing, savings, credit cards, and mortgage products for individuals.

Secrecy is a cornerstone of global wealth management, and UBS is no exception. The bank's history of banking secrecy dates back to the 1700s, but it was the Federal Act on Banks and Savings Banks of 1934 that cemented its reputation for confidentiality.

UBS's banking secrecy policies are so strict that they prohibit the distribution and release of client information to third parties, unless a client is charged with deliberate financial fraud. This means that even UBS employees are prohibited from discussing client activity or information publicly.

In 2018, Switzerland, where UBS is headquartered, was ranked first on the Financial Secrecy Index, with UBS being the largest wealth manager in 23 of the top 25 countries on the list. UBS's operations in the US were ranked second on the index, with similar banking secrecy policies in place.

The bank's policies across Europe and the US are comparable, with a focus on protecting client confidentiality. UBS employees are required to maintain robust bank-client confidentiality agreements and are prohibited from sharing information across borders.

Here are some countries where UBS maintains similar banking secrecy policies:

These policies have led to controversies and disagreements with foreign governments, including the US, Germany, and France. In 2007, a UBS employee claimed that the bank's dealings with American clients violated an agreement between the bank and the US Internal Revenue Service.

As of the end of 2016, UBS Wealth Management's invested assets totalled CHF 977 billion. This is a staggering amount that demonstrates the bank's significant presence in the global wealth management market.

UBS manages the largest amount of private wealth in the world, counting approximately half of The World's Billionaires among its clients. This is a testament to the bank's expertise and reputation in the field.

More than 60% of total invested assets in UBS Wealth Management belong to individuals with a net worth of CHF 10 million or more. This shows that UBS is a go-to destination for high-net-worth individuals looking to manage their wealth.

The business is further divided geographically with separate businesses focused on the U.S. and other international markets. Two-thirds of the total invested assets come from Europe and Switzerland, with the final third coming mainly from the Asia-Pacific region.

As of the end of 2018, around 23,600 people worldwide were employed by Global Wealth Management. This is a significant workforce that is dedicated to providing top-notch services to UBS clients.

UBS offers a range of advisory and investment products and services to its clients. This includes brokerage services, asset management, and other investment advisory and portfolio management products and services.

UBS competes with the largest global investment banks, particularly within the Bulge Bracket. In fact, according to a 2018 study, UBS was among the top 10 of the world's investment banks.

UBS has a significant presence in various regions, making it a formidable competitor. In Switzerland, it competes with cantonal banks such as Zürcher Kantonalbank and Banque cantonale vaudoise.

Here's a breakdown of UBS's competitors in different regions:

UBS's global reach and reputation make it a force to be reckoned with in the financial industry.

UBS's acquisition history is a long and complex one, with the bank evolving from a series of smaller firms to the global financial giant it is today. The bank's earliest predecessor, Bank in Winterthur, was founded in 1862 and merged with Toggenburger Bank in 1912 to form the Union Bank of Switzerland.

The Union Bank of Switzerland grew rapidly after the Banking Law of 1934 codified Swiss banking secrecy, and by the 1990s, it had become one of the largest banks in Switzerland. In 1998, the Union Bank of Switzerland merged with the Swiss Bank Corporation to form the modern UBS.

Here's a brief overview of some of the key acquisitions in UBS's history:

These acquisitions have helped shape UBS into the global financial powerhouse it is today.

Paine Webber's international expansion was a significant milestone in its history. The company began its expansion in the 1990s by opening an office in London.

Paine Webber's London office was established in 1995 to serve the needs of European clients. This move marked a major step forward in the company's global ambitions.

Paine Webber's expansion into Europe was driven by the growing demand for investment services from international clients. The company's existing client base in the US was also looking to invest in European markets.

Paine Webber's London office quickly gained a reputation for providing high-quality investment advice to clients. The office became a key hub for the company's European operations.

By the early 2000s, Paine Webber had established a significant presence in Europe. The company had offices in several major cities, including London, Paris, and Frankfurt.

UBS's acquisition history is a long and complex one. The bank was formed in 1998 from the merger of Union Bank of Switzerland and Swiss Bank Corporation.

The company's roots go back to the 19th century, with the Bank in Winterthur being founded in 1862. This bank merged with Toggenburger Bank in 1912 to form the Union Bank of Switzerland.

Over the years, UBS has acquired numerous other banks and financial institutions. In 1915, it merged with Aargauische Kreditanstalt, and in 1919, it acquired the same bank.

One of the most significant acquisitions in UBS's history was the merger with Swiss Bank Corporation in 1998. This created a single company known as UBS.

Here's a list of some of the key acquisitions in UBS's history:

Long-Term Capital Management was a hedge fund that generated significant fees for Union Bank of Switzerland, with the bank earning US$15 million in fees from the fund in 1997.

The bank's exposure to LTCM was massive, with a 7-year European call option on 1 million shares valued at about US$800 million.

In 1997, UBS sold LTCM the option and hedged it by purchasing a US$800 million interest in the hedge fund.

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A further US$300 million was invested in LTCM by the bank.

UBS's losses from its exposure to LTCM were estimated at CHF790 million by November 1998.

The bank ultimately wrote off CHF950 million from its exposure to LTCM.

The Federal Reserve Bank of New York organized a bailout of US$3.625 billion by LTCM's major creditors to avoid a wider collapse in the financial markets.

UBS contributed US$300 million to the bailout effort, which would largely be recovered.

Mathis Cabiallavetta resigned as chairman of UBS along with three other executives in the aftermath of the LTCM collapse.

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Union Bank of Switzerland (UBS) offers a range of services to cater to various financial needs.

One of the key services provided by UBS is Private Bank Mortgages, designed to help individuals and families secure their dream homes.

UBS also provides Private Bank Accounts, which offer a secure and convenient way to manage one's finances.

Wealth Management is another important service offered by UBS, helping clients grow and preserve their wealth over time.

Here are some of the key services offered by UBS:

UBS offers a variety of services to cater to the diverse needs of its clients. Here are some of the key services provided by UBS:

Private Bank Accounts are available, providing clients with a secure and convenient way to manage their finances. These accounts can be tailored to meet individual needs.

Wealth Management services are also offered, helping clients to make informed decisions about their financial future. This includes advice on investments, tax planning, and more.

UBS provides Private Bank Mortgages, allowing clients to purchase or refinance a property. These mortgages can be customized to suit individual circumstances.

For clients with larger financial needs, UBS offers Lending services, including asset-backed lending and property-based mortgage finance. This provides access to a wider range of financial options.

International banking services are also available, allowing clients to manage their finances across borders. This includes access to a global network of banking services and facilities.

Here are some of the specific services offered by UBS in a concise format:

The UBS Off-cycle Internship program has specific eligibility criteria based on your region.

If you're from the EMEA or UK, you must be in your last two years of your degree or graduating in six months to be eligible.

Applications for the program typically open in September for EMEA and UK candidates.

For candidates from APAC, you must be in your penultimate year of studies and have less than two years of work experience.

Applications for APAC candidates open in July.

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At UBS, the company's core behaviors are centered around accountability, teamwork, and a commitment to improvement. Accountability with Integrity is one of the key behaviors, with guiding affirmations that include taking ownership of actions and making things happen.

The company takes responsibility seriously, with a focus on being accountable for what is said and done. UBS employees are encouraged to step up and act when something isn't right.

"Work as one" is the mindset at UBS, where employees trust and help each other to be successful. They deliver one UBS together, fostering a diverse and inclusive work environment.

To improve every day, UBS encourages employees to challenge perspectives and look for opportunities to improve. This involves actively seeking and providing feedback, and learning from successes and failures.

UBS offers a range of graduate programs for students and fresh graduates, including the UBS Graduate Talent Program, MBA Associate Program, Summer Internship Program, Off-cycle Internship Program, UBS Tomorrow's Talent Program, Reshaping Your Future Competition, and UBS Spring Insight Program.

The UBS Graduate Talent Program is a 18-24 month program that includes training modules for new graduates, and ends with a gateway workshop to prepare you for the next stage of your UBS career.

To be eligible for the UBS Graduate Talent Program, you need to be a recent graduate with no more than 12 months of work experience after graduation.

Here are the details of the graduate programs offered by UBS:

To start your job search at UBS, you'll need to complete the online application form, which requires personal and contact details, academic qualifications, job experience, and voluntary disclosures.

The application form also asks you to upload your resume/CV and any additional documents, so make sure to tailor your CV to the job you're applying for.

UBS offers a range of graduate programs, including the UBS Graduate Talent Program and the MBA Associate Program.

The UBS Summer Internship program is a great way to get your foot in the door, offering a 3-6 month program for candidates in their penultimate year of college.

Here are the UBS graduate programs and their typical duration:

Applications for the UBS Summer Internship program usually open in September to December, so mark your calendars and be ready to apply.

UBS offers a variety of graduate programs for students and fresh graduates seeking to start a career at the bank.

The UBS graduate program application process is the same as for direct entry roles, which means you can apply for multiple programs at once.

You can choose from several graduate programs, including the UBS Graduate Talent Program, MBA Associate Program, Summer Internship Program, Off-cycle Internship Program, UBS Tomorrow’s Talent Program, Reshaping Your Future Competition, and UBS Spring Insight Program.

Here's a brief overview of each program:

The application deadlines and program durations vary across programs, but it's essential to plan ahead and research each program thoroughly.

Here's a rough outline of the eligibility criteria for each program:

Keep in mind that these are just brief summaries, and you should check the official UBS website for the most up-to-date information on each program.