UBS to rebrand Warburg and list on NYSE
Wednesday 15 December 1999
Europe's second-largest bank also announced it was scrapping previous targets, such as doubling assets under management by 2002, as unrealistic and focusing on boosting internally-generated profits by at least 10 per cent.
The fresh benchmarks will help it to compete more effectively with big Wall Street investment banks such as Morgan Stanley and Goldman Sachs.
Marcel Ospel, president and group chief executive officer, said yesterday at a series of investor presentations in Zurich that UBS is to apply for registration with the Securities and Exchange Commission, with a view to gaining a New York listing next year.
The move follows the repeal of the Glass-Steagall Act, which was brought in after the 1929 Wall Street crash to enforce a rigid separation between commercial and investment banking. UBS would be the first Swiss group listed in the United States.
The rebranding of Warburg Dillon Read to include the parent company in its title is aimed at least partly at quashing recent speculation that the division is up for sale.
Mr Ospel reaffirmed the group's commitment to keeping investment banking within the group. "I am convinced of the strength of the UBS Group business mode and our positioning in the context of industry trends. The integrated model is the vital underpinning for our strategies. And the initiatives we have under way throughout the group will realise the benefits of these strategies."
However, a full US listing will give the group a currency with which to finance acquisitions in the United States.
Luqman Arnold, chief financial officer of UBS, said: "In the future, we will no longer emphasise absolute targets. Instead, we will focus on those core ratios that measure shareholder returns delivered by the group."
The new growth targets will exclude the distorting effects of acquisitions and focus instead on internally generating growth. The targets are: 15- 20 per cent return on equity across periods of varying market conditions;
double digit average earnings per share growth, and continuous downward pressure on costs.
UBS has been one of the most aggressive consolidators in the investment banking industry sector.
Over the past five years, as SBC, the group acquired SG Warburg in Britain, and Dillon Read in the United States before merging with Union Bank of Switzerland last year.
- 1 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 2 I might be an MP, but that doesn't stop me fighting sexism with my breasts
- 3 Martha Stewart accuses Snoop Dogg of 'smoking for four hours' during Justin Bieber Roast
- 4 Google April Fools': company unveils backwards search engine and huggable digital assistant
- 5 April Fools' Day 2015: The best hoax news stories from around the internet
Martha Stewart accuses Snoop Dogg of 'smoking for four hours' during Justin Bieber Roast
April Fools' Day 2015: The best hoax news stories from around the internet
April Fools' Day 2015 live: The best pranks and fake stories from around the world
University of Cambridge: Remains of 1,300 scholars are found under building
Turkey power cut: Prime Minister says nationwide blackout could be caused by terrorists
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...
£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...