UBS Group AG UBS received regulator approval to sell its stake in the China securities joint venture, Credit Suisse Securities (“CSS”), per a Bloomberg report. The move is part of UBS’s efforts to integrate its operations in China. 

The China Securities Regulatory Commission has given the nod to sell 36% of Credit Suisse Securities to Beijing State-Owned Assets Management (“BSAM”). This will reduce UBS's stake to 15%.

CSS was founded in 2008 as a securities joint venture in China by Credit Suisse AG and Founder Securities. Following the completion of the transaction, BSAM will hold 85.01% of CSS.

Rationale Behind CSS China Stake Sale

Following the acquisition of Credit Suisse, UBS has been facing organizational challenges in China as UBS Group is also present in the country through a joint venture, UBS Securities. However, China regulations prohibit banks from holding two licenses in the country.

Co-head of UBS Group global wealth management and head of the Asia Pacific, Iqbal Khan, stated, "We are happy to continue our collaboration with our 20-year business partner, BSAM, and this transaction helps optimize the strategic set-up of our onshore platforms in China." "China is a significant market here, and Asia Pacific is at the heart of our strategic goals." 

According to Janice Hu, country head, UBS Group stated this represents a significant step forward for UBS and CSS's integration in China. "We will keep investing in China, strengthen our position as the Investment Bank's leader, and grow our asset management and wealth management businesses," Hu added.

UBS Progresses With Credit Suisse Integration Plan

In May 2024, UBS closed a merger with Credit Suisse AG. Following the acquisition, UBS continued to execute its integration plans and significantly reduce the execution risk of the Credit Suisse acquisition.

With the successful migration of wealth management client accounts across booking centers in Hong Kong, Singapore, Japan and Luxembourg, UBS Group has now transferred more than 90% of client accounts outside of Switzerland onto UBS platforms.

With this, the company is well-positioned to enhance the client experience and unlock cost reductions toward the end of 2025 and into 2026, as it delivers on its ambition of $13 billion in gross cost savings by the end of 2026.

UBS Zacks Rank & Price Performance

Over the past six months, UBS shares have gained 7.2% compared with the industry’s 8.1% growth.

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Currently, UBS Group carries a Zacks Rank #3 (Hold).

Stocks Worth Considering

A few better-ranked foreign bank stocks are Natwest Group plc NWG and Barclays PLC BCS, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NWG’s earnings estimates for 2025 have been revised upward to $1.42 per share in the past 30 days. Its shares have gained 30.3% over the past six months.

BCS’ 2025 earnings estimates have been unchanged at $2.02 per share in the past 30 days. Its shares have gained 33.5% over the past six months.

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