March 27, 2025|
AI
|8 months agoUBS Proposes Investment Bank Size Cap to Address Regulatory Concerns
Switzerland's largest bank offers to permanently limit its investment banking division as regulators consider increased capital requirements following Credit Suisse takeover.
AI
Generated IllustrationKey Takeaways
AI
- UBS has proposed capping its investment banking division size to address regulatory concerns
- UBS currently has a self-imposed limit of 25% of risk-weighted assets for investment banking
- Swiss regulators are considering increased capital requirements following Credit Suisse takeover
- UBS's investment bank posted pre-tax profits of $1.9 billion on revenues of $11 billion in 2024
By The Numbers
$1.9 billion
Investment bank pre-tax profits 2024
$11 billion
Investment bank revenues 2024
$3.9 billion
Wealth management pre-tax profits
25%
Current self-imposed investment banking risk-weighted assets limit
They Said
"never expected the greatest obstacle to delivering a successful outcome would come from the same authorities who asked us to take on the Credit Suisse challenge"
"UBS's lobbying is both visible and unmistakable"