BS Analysis UBS Financials The table below presents a few of the most important financial key statistics of UBS as of 11 Mar 2014 (currency in USD). Income Statement Revenue (TTM) 33.43B Revenue (Quarterly YOY Growth) 1.95% EPS Diluted (TTM) 0.8985 Net Income (TTM) 3.651B Profitability Profit Margin (Quarterly) 14.50% Dividend Dividend Yield 1.36% Dividend 0.28 Current Valuation Market Cap 80.45B Enterprise Value 64.84B Price to Book Value 1.494 P/E (TTM) 23.6 EPS (TTM) 0.89 Other Beta 1.79 Figure 1 - UBS Financial Key Statistics UBS Strategy & Achievements Given the changing operating and regulatory environment and the issues encountered as described in section 2 above, UBS has finalized a new …show more content…
As compared to its peers, such as Credit Suisse, JP Morgan, Deutsche Bank as well as compared to the market, we can see a clear over-performance of UBS before the crisis with a huge crash though when the crisis hit (larger than the one of its peers and the market), which is why the Swiss authorities had to intervene to support UBS as presented in section 2 above. Overall, UBS has had a larger beta (risk) in comparison with the market as well as its peers, as shown by its share price performance both in good (even booming) economic environment as well as in a bad one. However, we can see a positive trend within the last year. UBS seems to be recovering much faster than its peers and over-performing the market. I believe this is due to the institution strengthening in terms of capital adequacy, liquidity, risk and cost reduction strategy adopted by UBS in 2011, as described in section 3B. Recent Risks & Mitigation Measures A few risks and recent issues should be taken into consideration given a possible investment in UBS shares: On 15 September 2011 , UBS announced the discovery of unauthorized trading – which had been covered by the recording of fictitious trades – done by a trader part of its investment bank in London, which lead UBS to incur a loss of USD 2.3 billion. Given the fact that UBS came forth with this, it avoided even larger losses that would have resulted from much higher fines. All over the world regulatory authorities are
The emergency rescue of the Royal Bank of Scotland in 2008 has cost the UK government thus the British taxpayer a huge amount of money. Many people are upset about the high bonuses the RBS management board have received, both because of the outrageously high amount and because the performance of the bank on the long-term was not good at all.
The bank at some point received negative attention for issuing credit to arms companies, including companies like Boeing, Lockheed Martin, General Dynamics, Textron, Colbun, BAE Systems and EADS. Some companies within the bank’s portfolio have also been involved in environmental and labor rights violations scandals, for instance Wal-Mart and Total USA. This negative attention may lead to loss of investor confidence in the bank.
What factors account for Shurgard’s historic performance? What near and intermediate term risks, if any, do you foresee?
In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that hidden this massive loss.
magnitude of these risks, this paper advocates for a more proactive solution. Active investing in
The BBB reports a government action against them. Their BBB file shows that on 10-9-14 the SEC charged current and former E*Trade subsidiaries with inappropriately selling their penny stocks through unregistered offerings. This case has been closed and the SEC announced that E*Trade and their current and former subsidiaries failed in their custodian roles during a four-year period when they inappropriately engaged in unregistered sales of their customers microcap stocks, while blatantly ignoring red flags that such activity was obviously occurring. This resulted in E*Trade being required to pay back more than $1.5 million in disgorgement and prejudgment interest from the commissions they earned on the improper sales, as well as a combined penalty of $1 million.
The biggest mistake the board of directors made was to trust a single man only because of his reputation. Just because Nick Leeson was reporting large profits, he was given virtually free rein and nobody had knowledge of his activity, when a trader on arbitrage strategies should not report such profits. The fact that Nick Leeson was reporting such profits should have been interpreted by the board of directors as a warning bell.
Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have
Over the years, UOB objective is to be seen and be known as a leader in the field of consumer and commercial banking services in the region. And to do so, they have came up with innovative treasury and investment banking products to provide an absolute solutions to their customers.
There is some discussion about uncertainties in the report, but that discussions is very vague in nature, and does not illuminate anything that a reasonable investor does not already know. There are no specifics about the risks, nor is there any
The purpose of this report is comprehensive quantitative analysis for the financial performance of Barclays Bank. Quantitative analysis is an important method of looking beyond the numbers and understanding the stories they tell. It is quantitative analysis that gives way to qualitative analysis and allows us to gauge the running of a business better. Quantitative analysis is key towards improving our understanding of the relationships that may exist among key financial variables or key factors influencing the performance of a firm. The application of quantitative analysis towards business performance is a key method of identifying problems that may hinder the growth of the business and tackle their root cause.
reputation of Chase bank as a lead international underwriter. What’s more there is another argument in
According to group´s performance from 2002-2006 identifies that Barclays´ performance underpinnings are represented by its strategy of acquiring other banking (such as ABN Amro and Banco Zaragozano) concerns to expand its retail as well as other banking services through representation in international markets as represented by the bank’s presence in 60 countries. This provides Barclays with the means to sell its highly profitable investment banking services as well as be positioned to service the cadre of multinational companies that utilize its diverse banking financial service packages.
Firstly, the credit risk management of SDB is poor. The lack of a systematic credit
This report is to analyze the recent performance of Union Bank of Switzerland (UBS), focusing on its private banking business, in order to explore its financial features and products and services that on offer by UBS and past strategy and future prospects of UBS. Besides, there is a covering of the current global market of private banking as well as studying the main features of the market environment and UBS competitors and the recent trends of private banking industry globally.