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Time of India
10 hours ago
- Business
- Time of India
UBS steps up contingency planning as it tries to tame Swiss rules, sources say
ZURICH/HONG KONG, - UBS is briefing senior staff that the need to examine moving its HQ from Switzerland has grown since the government proposed new capital rules, a source with knowledge of the matter said, while another pointed to London as a favourite alternative. The Swiss government proposed reform measures in June that envisage that UBS - as Switzerland's sole remaining global bank with a balance sheet about double the size of the economy - should capitalise its foreign subsidiaries by 100% rather than 60% currently, to cover potential losses abroad. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Orthopedic Knee Surgeon: Suffering From Pain After Age 50? Do This Every Morning Wellnee Undo That could mean the bank has to carry an extra $24 billion in capital. A review by UBS looking at contingency planning has concluded that London is one of the best options for an alternative location should the bank try and move, one of the sources said. Live Events Britain has similar rules on foreign subsidiaries but a third source said authorities outside Switzerland may show more flexibility. Two sources familiar with the bank's thinking said UBS was also warning internally that it could be vulnerable to a future takeover by a foreign rival if it were weakened by the rules. The sources spoke on condition of anonymity because the discussions are confidential. UBS, which is due to release second quarter earnings on Wednesday, has intensified lobbying with parliament since June 6 to push back against the proposed capital changes, two lawmakers said. Even insiders at the Zurich-based wealth manager say UBS - whose leadership argues it came to the rescue when it bought Credit Suisse in a government-engineered deal - does not intend to leave Switzerland. All agree that UBS's principal objective is to soften the regulations. Even so, UBS executives think the government's demands mean that if no compromise is reached, it may need to respond radically, one source familiar with the lender's thinking said, pointing to a possible relocation. UBS told Reuters it would engage in the consultation process for the new rules while evaluating appropriate measures "to address the negative effects that extreme regulations would have on its shareholders." Its Swissness was a "differentiating element", it said, adding that UBS - which has been running an advertising campaign themed "A bank like Switzerland" - wanted to be based in Switzerland "leveraging the mutually beneficial relationship." Switzerland's finance ministry declined to comment on what it said were internal UBS decisions. FINMA, the Swiss regulator, declined to comment. UBS earlier this year started warning about the possibility of shifting its headquarters, but the latest deliberations are reported here for the first time and highlight a political tug-of-war between UBS, led by CEO Sergio Ermotti, and the government about what is best for the bank and for Switzerland. Representatives for the UK Treasury, Bank of England and the Financial Conduct Authority declined to comment. Swiss Finance Minister Karin Keller-Sutter said in June that the new rules would make it more costly for the bank to grow abroad but that she hoped UBS would stay in Switzerland. DIFFICULT MOVE As for any large bank, relocation would be costly and difficult and industry insiders say Switzerland's global renown as a wealth management centre has been central to UBS' business model. Pressure is, however, growing on the bank. UBS's shares have underperformed rivals, gaining 7% in 2025 against the wider sector's 37% as investors fear the new rules will impede shareholder payouts and growth prospects. One UBS shareholder, speaking on condition of anonymity, told Reuters it would be difficult for the bank to attract investors if the capital rules talks dragged on for three or four years without the bank making progress in softening them. The ball "is in UBS's court" to find a solution, the investor said. Under the proposed capital requirements, UBS's Common Equity Tier 1 capital ratio, a key measure of bank capital, of 14.3% could reach 17%. That would put it above rivals like JPMorgan at 15.8%, Morgan Stanley at 15.7%, and Goldman Sachs at 15.3%, the government estimated in June. Outside experts say like-for-like comparisons are difficult. PERSUADING INVESTORS Switzerland's parliament is not due to receive a draft law on the rules until well into 2026. But UBS executives want to reassure investors by early 2026 they can soften the final legislation, two of the sources said. If it cannot placate investors coming into 2026, UBS may try to repatriate more than the $5 billion in capital it already plans to return to its parent bank, which could eventually fund payouts, analysts say. UBS's efforts have already yielded fruit. Last month a parliamentary committee backed a motion to make the government send all the new banking rules to parliament instead of issuing some directly. "We have to find the right balance between capital that minimises risks but also maintains UBS's competitiveness," said Beat Walti, the lawmaker who proposed the amendment.
Reuters
10 hours ago
- Business
- Reuters
Exclusive: UBS steps up contingency planning as it tries to tame Swiss rules, sources say
ZURICH/HONG KONG, July 29 (Reuters) - UBS (UBSG.S), opens new tab is briefing senior staff that the need to examine moving its HQ from Switzerland has grown since the government proposed new capital rules, a source with knowledge of the matter said, while another pointed to London as a favourite alternative. The Swiss government proposed reform measures in June that envisage that UBS - as Switzerland's sole remaining global bank with a balance sheet about double the size of the economy - should capitalise its foreign subsidiaries by 100% rather than 60% currently, to cover potential losses abroad. That could mean the bank has to carry an extra $24 billion in capital. A review by UBS looking at contingency planning has concluded that London is one of the best options for an alternative location should the bank try and move, one of the sources said. Britain has similar rules on foreign subsidiaries but a third source said authorities outside Switzerland may show more flexibility. Two sources familiar with the bank's thinking said UBS was also warning internally that it could be vulnerable to a future takeover by a foreign rival if it were weakened by the rules. The sources spoke on condition of anonymity because the discussions are confidential. UBS, which is due to release second quarter earnings on Wednesday, has intensified lobbying with parliament since June 6 to push back against the proposed capital changes, two lawmakers said. Even insiders at the Zurich-based wealth manager say UBS - whose leadership argues it came to the rescue when it bought Credit Suisse in a government-engineered deal - does not intend to leave Switzerland. All agree that UBS's principal objective is to soften the regulations. Even so, UBS executives think the government's demands mean that if no compromise is reached, it may need to respond radically, one source familiar with the lender's thinking said, pointing to a possible relocation. UBS told Reuters it would engage in the consultation process for the new rules while evaluating appropriate measures "to address the negative effects that extreme regulations would have on its shareholders." Its Swissness was a "differentiating element", it said, adding that UBS - which has been running an advertising campaign themed "A bank like Switzerland" - wanted to be based in Switzerland "leveraging the mutually beneficial relationship." Switzerland's finance ministry declined to comment on what it said were internal UBS decisions. FINMA, the Swiss regulator, declined to comment. UBS earlier this year started warning about the possibility of shifting its headquarters, but the latest deliberations are reported here for the first time and highlight a political tug-of-war between UBS, led by CEO Sergio Ermotti, and the government about what is best for the bank and for Switzerland. Representatives for the UK Treasury, Bank of England and the Financial Conduct Authority declined to comment. Swiss Finance Minister Karin Keller-Sutter said in June that the new rules would make it more costly for the bank to grow abroad but that she hoped UBS would stay in Switzerland. As for any large bank, relocation would be costly and difficult and industry insiders say Switzerland's global renown as a wealth management centre has been central to UBS' business model. Pressure is, however, growing on the bank. UBS's shares have underperformed rivals, gaining 7% in 2025 against the wider sector's 37% (.SX7P), opens new tab as investors fear the new rules will impede shareholder payouts and growth prospects. One UBS shareholder, speaking on condition of anonymity, told Reuters it would be difficult for the bank to attract investors if the capital rules talks dragged on for three or four years without the bank making progress in softening them. The ball "is in UBS's court" to find a solution, the investor said. Under the proposed capital requirements, UBS's Common Equity Tier 1 capital ratio, a key measure of bank capital, of 14.3% could reach 17%. That would put it above rivals like JPMorgan (JPM.N), opens new tab at 15.8%, Morgan Stanley (MS.N), opens new tab at 15.7%, and Goldman Sachs (GS.N), opens new tab at 15.3%, the government estimated in June. Outside experts say like-for-like comparisons are difficult. Switzerland's parliament is not due to receive a draft law on the rules until well into 2026. But UBS executives want to reassure investors by early 2026 they can soften the final legislation, two of the sources said. If it cannot placate investors coming into 2026, UBS may try to repatriate more than the $5 billion in capital it already plans to return to its parent bank, which could eventually fund payouts, analysts say. UBS's efforts have already yielded fruit. Last month a parliamentary committee backed a motion to make the government send all the new banking rules to parliament instead of issuing some directly. "We have to find the right balance between capital that minimises risks but also maintains UBS's competitiveness," said Beat Walti, the lawmaker who proposed the amendment.
Yahoo
09-07-2025
- Business
- Yahoo
UBS continues to see opportunity in the U.S., CEO tells Fox Business
(Reuters) -UBS continues to see a lot of opportunity in the United States, the Swiss bank's CEO Sergio Ermotti told Fox Business' "Mornings with Maria" program. "This is the reason why we keep investing in our franchise," Ermotti said. While clients needed certainty on tariffs to make investments, UBS still saw a lot of growth and wealth creation in the U.S., he added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
20-06-2025
- Business
- Time of India
16 Billion Passwords Leak: Is your data safe with third-party vendors of any company? Cyber attack on Swiss supplier exposes UBS and Pictet employee data while banks claim no client data was affected. Here's what you should do now to be safe online
Two major Swiss banks, UBS and Pictet, have reported a data breach caused by a cyber attack on one of their Swiss-based suppliers. The incident has raised questions about third-party risks and the wider implications for the country's banking sector. Service Provider Breach Affects Employee Info UBS and Pictet confirmed that their internal data was exposed due to a cyber attack on Baar-based company Chain IQ. The leaked data included information related to UBS employees. UBS stated that no client data was affected. Chain IQ provides business services to several firms, including KPMG and Mizuho. Also Read: New Baba Vanga July 5 Disaster Prediction: Here's what may happen on this day Cyber Attack Disrupts Multiple Companies Chain IQ reported that it and 19 other firms were targeted. The stolen data was later found published on the darknet. UBS said it acted immediately to prevent operational disruption. Le Temps reported that the exposed data included a direct line number of UBS CEO Sergio Ermotti. Regulators and Partners Respond Swiss regulator Finma confirmed it was aware of the incident and had started following its internal procedures. KPMG stated that its systems were not impacted but it had added extra protective measures. Pictet said that only limited data related to invoices and suppliers was affected, not client data. Live Events Also Read: Nickelodeon Kids' Choice Awards 2025: How to vote for nominees? Here's date, time, host, venue, nominees and how to watch live on TV and stream online Chain IQ Statement Chain IQ said the breach occurred on June 12. The firm mentioned that it could not share details about ransom demands or communication with the attackers due to ongoing investigations. It stated that it had taken actions to contain the breach. What you should do now to be safe online? In a separate but related issue, 16 billion passwords continue to be exposed online. A previous leak involved nearly 10 billion passwords. Even if you believe you are not affected by this or other leaks, it is still a good idea to reset your passwords. You should use strong and unique passwords for each platform, turn on multi-factor authentication (MFA) where available, keep a close watch on your account activity and reach out to customer support if you notice anything unusual. FAQs Was client data affected by the UBS and Pictet data breach? No. Both UBS and Pictet confirmed that the cyber attack did not compromise any client-related information, only internal employee or supplier data. How can users protect themselves from password leaks? Users should reset their passwords, avoid reusing them, enable multi-factor authentication, and monitor accounts for unusual activities.
Time of India
18-06-2025
- Business
- Time of India
One of the largest banks in Europe confirms data loss after alleged cyberattack on its supplier
UBS Group AG has confirmed that company information was stolen in a cyber attack targeting one of its suppliers. This follows a report claiming that a hacker compromised the data of more than 1,30,000 employees of its supplier Chain IQ. Earlier, Swiss newspaper Le Temps reported that the employee data was published on the darknet after a ransomware attack on Chain IQ , a procurement service provider that spun off from Europe's seventh-largest bank in 2013. A hacker group identified as World Leaks, previously known as Hunters International, is reportedly responsible for the attack, according to the report. However, UBS has not confirmed the specific nature of the information that has been lost in the incident. What UBS said about the data breach In a statement to Bloomberg, the Swiss bank said: 'A cyber-attack at an external supplier has led to information about UBS and several other companies being stolen. No client data has been affected. As soon as UBS became aware of the incident, it took swift and decisive action to avoid any impact on its operations.' UBS' confirmation came after its supplier Chain IQ confirmed that it, along with 19 other companies, was targeted in a cyberattack . However, the supplier did not specify which data was compromised as well. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo The leaked information reportedly included UBS CEO Sergio Ermotti's direct phone number and employee details such as addresses and office floors. Swiss private bank Pictet was also affected, but said the exposed data was limited to recent invoice details with some suppliers. 'The information obtained through the cyberattack on ChainIQ systems does not contain any client data of Pictet,' the bank noted. Recent increase in cyberattacks on European banks In 2024, cyberattacks on Swiss financial institutions increased by nearly 50%, according to the country's financial regulator, which identified outsourcing critical operations to third parties as a major operational risk. Elsewhere in Europe, the European Central Bank warned that some banks are still falling short in addressing cyber threats, pointing to data breach es at ABN Amro and Banco Santander caused by hacks at external suppliers. Xbox Games Showcase 2025 Highlights: Biggest Game Reveals, New Consoles & More! AI Masterclass for Students. Upskill Young Ones Today!– Join Now
