UBS is considering selling some real estate assets within its asset management unit as part of a broader strategic revamp. The potential sale could involve Swiss real estate assets valued at less than $1 billion. UBS declined to comment on the specifics but reiterated its commitment to expanding its asset management capabilities.
The plans to consider selling part of its asset management division are part of an effort to revamp its smallest business unit. In February, Chief Financial Officer Todd Tuckner mentioned that the bank is considering “exits of non-strategic businesses” to improve the profitability of the asset management unit. UBS’s asset management division contributed 6.5% to the bank’s total revenues in 2024, overshadowed by the wealth management division, which generates more than half of the group’s total revenues.
A UBS spokesperson stated, “Asset Management is investing in its differentiated and scalable real asset capabilities, including its leading Swiss Real Estate business.
This decision to sell part of the asset management unit aligns with UBS’s overall strategy of streamlining its operations, focusing on core functions following the acquisition of Credit Suisse in 2023. UBS has been integrating Credit Suisse’s businesses and disposing of unwanted assets. The restructuring plan suggests the potential winding down of its Non-Core and Legacy portfolio, aiming to release more than $6 billion in capital by 2026.
UBS Group is making progress with Credit Suisse integration plans.
UBS asset restructuring and sale plans
By the fourth quarter of 2024, the company completed the migration of its Global Wealth Management client accounts in Luxembourg, Hong Kong, Singapore, and Japan to UBS platforms.
The company expects Swiss business migrations to commence in the second quarter of 2025. UBS aims to reach gross cost reductions of $13 billion by the end of 2026, compared with the 2022 reported level. Since the end of 2022, UBS has achieved $7.5 billion, or around 58% of the total targeted cost savings.
Shares of UBS have gained 11.2% in the past six months compared with the industry’s growth of 11%. Currently, UBS Group carries a Zacks Rank #3 (Hold). Other foreign banks are also restructuring their operations.
Barclays completed the sale of its German consumer finance business, Consumer Bank Europe, to BAWAG Group AG. HSBC Holdings is restructuring its operations in Germany to focus more on its growth strategy in Asia. In September 2024, HSBC signed an agreement to sell its private banking business in Germany to BNP Paribas, with the deal expected to close in the third quarter of 2025.
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