UBS
UBS’s resilience in 2002, one of the toughest ever for Swiss banks, has left no doubt in the judges’ minds that it deserves the award again this year.
In a year that was characterised by an exceptionally weak European economy and bearish financial markets, UBS managed to maintain profitability while its arch rival reported huge losses.
The group’s net profit declined to SFr5.5bn ($3.8bn) but much of that was due to an extraordinary charge related to the withdrawal of the PaineWebber brand for its US private banking arm in favour of the UBS brand. UBS also finished the year with an ROE of 13.9%, which was far better than the average for banks in the three German-speaking countries.
UBS’s resilience was in large part a result of cost-cutting – operating expenses fell 7% excluding the PaineWebber charge – as well as a good performance from its wealth management business in spite of the weak financial markets. A successful US expansion effort by the bank’s asset manager UBS Warburg and a little more business in investment banking also helped UBS’s revenue base.
“In one of the most challenging years ever for the financial industry, our businesses were remarkably resilient and competitive, gaining market share by continuing to invest in growth,” said Peter Wuffli, president of UBS’s group executive board.
“UBS is proud to receive The Banker Awards 2003 country award for Switzerland. We believe this award is a recognition of the trust that our clients place in us and of the confidence that markets have in our strategy, as well as the solidity of our institution.”
