Category: History & Society
- Also called:
- UBS or UBS Group
- Date:
- 1998 - present
- Ticker:
- UBS
- Share price:
- $30.89 (mkt close, Dec. 22, 2023)
- Market cap:
- $107.50 bil.
- Sector:
- Finance
- Industry:
- Banks
- CEO:
- Ralph Hamers
UBS AG, major bank formed in 1998 by the merger of two of Switzerland’s largest banks, the Swiss Bank Corporation and the Union Bank of Switzerland. Although it is derived from “Union Bank of Switzerland,” the name UBS is not an acronym. The bank is headquartered in Zürich and Basel, Switzerland.
The Swiss Bank Corporation was founded in 1854 as the Basler Bank-Verein (Basel Bank Corporation) and became a joint-stock company in 1872. It specialized in investment banking. In 1895 its name was changed to Basler und Zürcher Bankverein when it merged with the Zürcher Bankverein (Zürich Bank Corporation). At that time it also began commercial banking, which eventually became its principal activity. After absorbing two other Swiss banks in 1897, the bank adopted the name Schweizerische Bankverein (Swiss Bank Corporation). The bank subsequently acquired or absorbed additional Swiss banks, and it opened branches and representative offices throughout Switzerland and in other countries. The bank’s headquarters were in Basel, which had its main office for European banking, while the main office for international banking was in Zürich.
The Union Bank of Switzerland was founded in 1912 in the merger of the Bank of Winterthur (established 1862) and the Toggenburger Bank (1863). It subsequently absorbed a number of other Swiss banks and became one of the largest commercial banks in Switzerland, with overseas representative offices and branches. Its headquarters were in Zürich.
By the 1990s the Union Bank of Switzerland and the Swiss Bank Corporation had become respectively the first and third largest banks in Switzerland, but increasing competition from American financial institutions prompted the two banks to merge in 1998. The resulting bank, known as UBS AG, became one of the largest banks in the world. The bank’s principal activities include personal and corporate banking, investment banking, wealth management, and asset management. Swiss Bank acquired S.G. Warburg, a financial services company, in 1995, and UBS purchased PaineWebber, a securities firm, in 2000. Both subsidiaries assumed the UBS name in 2003. In October 2008 the Swiss government took a 9 percent stake in and provided 6 billion Swiss francs ($5.36 billion) in capital to UBS, which had suffered tremendous financial losses from American subprime mortgage debt (see also financial crisis of 2007–08). In 2014 UBS Group AG was founded as a holding company for UBS AG and its subsidiaries.
The Editors of Encyclopaedia BritannicaThis article was most recently revised and updated by Chinatsu Tsuji.
I'm an enthusiast with in-depth knowledge about finance, banking, and the global financial landscape. My training data includes a vast array of information up until January 2022, encompassing various financial institutions, their histories, operations, and the broader implications of their activities.
UBS AG (UBS Group): A Brief Overview
UBS AG, commonly referred to as UBS, is a global financial services company and one of the world's largest banks. Here's a breakdown of the concepts mentioned in the article:
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Formation: UBS AG was established in 1998 following the merger of two prominent Swiss banks: the Swiss Bank Corporation (SBC) and the Union Bank of Switzerland (UBS).
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Origin of Names:
- Swiss Bank Corporation (SBC): Founded in 1854 as Basler Bank-Verein, it underwent several name changes before becoming the Swiss Bank Corporation. It primarily focused on investment banking but also ventured into commercial banking.
- Union Bank of Switzerland (UBS): Established in 1912 through the merger of the Bank of Winterthur and the Toggenburger Bank. Like SBC, UBS grew by acquiring other banks and expanding its operations.
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Headquarters: UBS is headquartered in both Zürich and Basel, Switzerland. Basel served as the main office for European banking, while Zürich was the hub for international banking.
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Activities: Post-merger, UBS AG expanded its operations to include personal and corporate banking, investment banking, wealth management, and asset management.
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Subsidiaries and Acquisitions:
- In 1995, Swiss Bank Corporation acquired S.G. Warburg, a financial services company.
- In 2000, UBS acquired PaineWebber, a securities firm.
- Both acquired entities adopted the UBS name in 2003.
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Financial Challenges:
- In the aftermath of the 2007-08 financial crisis, UBS faced significant losses linked to American subprime mortgage debt.
- To stabilize the bank, the Swiss government intervened, taking a 9% stake in UBS and injecting 6 billion Swiss francs into the institution.
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Organizational Structure: In 2014, UBS Group AG was established as a holding company, overseeing UBS AG and its various subsidiaries.
The history and evolution of UBS underscore the complex dynamics of global finance, consolidation within the banking sector, and the challenges and opportunities faced by major financial institutions in an interconnected world.
