© 2021 Forbes Media LLC. Also, there are rumors that Brady … Formation of a Giant European Bank. And UBS's Notably Higher Net Income Implies That Its Return on Assets (RoA) Figure Is Better Despite Its Larger Asset Base, Return on assets = Net Income ÷ Average Total Assets, As of 2018, UBS's return on assets stood at 0.5% - substantially higher than the 0.3% figure for Credit Suisse, Notably, UBS's net income of $4.5 billion was more than double to that of Credit Suisse's $2.1 billion, Moreover, UBS's CET1 Capital Ratio Is Marginally Better Than That Of Credit Suisse, Common Equity Tier I Capital Ratio= Adjusted Common Equity ÷ Risk Weighted Assets. Moreover, Credit Suisse’s revenue per employee in 2018 stood at $458K – roughly 5% higher than the figure for UBS. A similar pattern applies to risk-weighted assets, with UBS trimming these assets by 13% over the past year, more than double the pace of reduction at Credit Suisse. Explore example interactive dashboards and create your own, Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you. Compare Credit Suisse vs UBS BETA See how working at Credit Suisse vs. UBS compares on a variety of workplace factors. As of 2018, UBS’s return on assets stood at 0.5% – substantially higher than the 0.3% figure for Credit Suisse. After the economic downturn, the banks decided to cut back their investment banking activity and increased their focus on wealth management in view of stricter regulatory requirements. UBS and Credit Suisse are the two largest Swiss banks. As of 2018, UBS’s client assets of $2.3 trillion were roughly 50% more than that of Credit Suisse’s $1.5 trillion. While the average revenue for UBS over this period was just under CHF 6.8 billion ($7.4 billion), Credit Suisse reported roughly CHF 6.3 billion ($6.9 billion) in average revenues. Trefis compares key operating metrics for UBS vs Credit Suisse in an interactive dashboard, and concludes that UBS’s business is larger and more profitable – with the largest Swiss bank faring better on most counts. The Future Of Credit Suisse (Originally Posted: 05/19/2014) A settlement could come early as today announcing a deal where Credit Suisse would plea guilty to helping US citizens avoid taxes, and they must pay $2.5bn fine. UBS's solicited credit ratings are set out in the table below, together with the most recent statement by the rating agency of the status or outlook. However since 2015, Credit Suisse has significantly reduced its trading business and is developing a business model similar to that of UBS. The platform uses extensive data to show in a single snapshot what drives the value of a company's business. UBS's asset turnover ratio of 3.15% is 35% higher than that for CS, signifying UBS is more efficiently using its assets. Over 2015-16, the bank's margins had been adversely impacted by one-time restructuring and litigation charges, UBS manages 50% more client assets than Credit Suisse. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. NASDAQ and other Cost-cutting measures have helped UBS’s operating margin steadily increase from 14.7% in 2016 to 19.8% in 2018 despite stagnating revenues, Credit Suisse’s operating margin has seen a much larger improvement, though, going from -10% in 2015 to more than 16% in 2018. You may opt-out by. The big difference? Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. How Has The Securities Trading Portfolio Of European Banks Changed Over The Years And What's The Forecast? well as an increase in asset base has helped the division's pre-tax margin remain around 22% over the last four years. Credit Suisse is smaller, but has a more diversified business model compared to UBS UBS’s revenues were $31 billion in 2018 with the Wealth … UBS has seen its revenue per employee fall steadily over the years, while Credit Suisse’s Revenue per employee has increased by roughly 5% since 2016. UBS is the largest wealth manager in the world. Credit Suisse's pre-tax margin of 34.6% was almost 50% more than that of UBS's 23.6 %.The primary reason for this is a notable difference in average fees. As of 2018, Credit Suisse's CET1 ratio stood at 12.6% as opposed to UBS's 12.9%. On average, PE exits will be the strongest from CS, with certain groups placing particularly well- M&A, Sponsors and TMT come to mind. Credit Suisse is pleased with the ruling, a … Credit Suisse’s focus on wealth management business could help the bank develop a more profitable business than UBS. Consensus EPS estimates are from QuoteMedia and are updated every weekday. Moreover, UBS’s asset turnover ratio of 3.15% is 35% higher than that for Credit Suisse – implying that UBS is using its asset base more efficiently. Credit Suisse’s pre-tax margin of 34.6% in 2018 was almost 50% more than that of UBS’s 23.6 %. - At the same time, UBS's average compensation per employee is much higher, and was $236K in 2018 as opposed to a figure of $211K for Credit Suisse, UBS vs HSBC: A Detailed Comparison Of Operating Metrics, UBS Earnings: Performance and 2019 Forecast, Revenues For UBS's Wealth Management Business Could Cross $19 Billion In Five Years, Deutsche Bank's Business Model Has Changed Considerably Over The Last Decade, And More Changes Are Underway, Revenues For Credit Suisse's Wealth Management Business Could Cross $10 Billion In Five Years. But given the outreach of UBS’s wealth management business, it is highly unlikely that CS would be able to match UBS’s scale over the foreseeable future. Both headquartered in Switzerland, Credit Suisse and UBS are two leaders in the global investment banking industry, and the merger of such big companies would give birth to a massive entity.. Stringent cost-cutting measures have helped these banks significantly improve their pre-tax margins. Shares of Credit Suisse rose 2% at 11:36 a.m. in Zurich, and UBS gained 1.3%. See How It’s Powering New Collaboration and What-Ifs, For CFOs and Finance Teams| Product, R&D, and Marketing Teams, Like our charts? Shares in Credit Suisse have dropped 22% this year, and UBS shares have fallen 8%. As of 2018, Credit Suisse’s revenue of $8.5 billion was roughly half to that of UBS’s $16.9 billion. stood at 12.6% as opposed to UBS's 12.9%. Opinions expressed by Forbes Contributors are their own. Additionally, you can find more Trefis Financial Services company data here, Credit Suisse is smaller, but has a more diversified business model compared to UBS, UBS’s Operating Margin Is Better Than Credit Suisse’s, UBS manages 50% more client assets than Credit Suisse, UBS’s Wealth Management division is bigger, but operates at a lower profit margin compared to Credit Suisse, UBS’s Notably Higher Net Income Implies That Its Return on Assets (RoA) Figure Is Better Despite Its Larger Asset Base, Moreover, UBS’s CET1 Capital Ratio Is Marginally Better Than That Of Credit Suisse, Common Equity Tier I Capital Ratio= Adjusted Common Equity ÷ Risk Weighted Assets, Conclusion: UBS Is Clearly Doing Better Than Credit Suisse On Most Counts, What’s behind Trefis? For both, the Swiss business represents heart and lungs. Credit Suisse is mainly cutting personnel expenses – jobs – while UBS is pruning its general expenses instead. Given UBS's focus on its wealth management business, this division was responsible for 55% of total revenues in 2018Stable wealth management fees as. Notably, CS reported marginally higher common equity at the end of 2018, but a higher risk-weighted asset base dragged its CET1 ratio lower than UBS. ©Copyright 2019 Insight Guru Inc. All Rights Reserved. The primary reason for this is a notable difference in average fees. By using the Site, you agree to be bound by our Terms of Use. As of 2018, Credit Suisse’s CET1 ratio stood at 12.6% as opposed to UBS’s 12.9%. Zurich, Switzerland, on Wednesday, April 24, 2019. Stringent cost-cutting measures have helped these banks significantly improve their pre-tax margins. Photographer: Stefan Wermuth/Bloomberg. The board of UBS is gathering to discuss strategy this week but a merger with Credit Suisse, which had recently been examined, is not on the official agenda, said a … UBS reported a headcount of 68K at the end of 2018, while CS had 46K employees. This driver cannot be modified within this scenario. Photographer: Stefan Wermuth/Bloomberg, The S&P Is Likely Moving Higher In This Week, It’s Time: Set Your Investment Clock Forward As New Stock Market Winners Dawn. - Credit Suisse's Revenue per employee has increased by roughly 5% since 2016. Moreover, UBS’s focus on wealth management business has helped it churn a larger share of wealth management revenues. UBS reported a headcount of 68K at the end of 2018, while CS had 46K employees. Credit Suisse’s Advisory, Underwriting and Financing unit in Asia (i.e. This scenario is linked to a parent scenario that has already modified this driver. In this dashboard, Trefis compares key operating metrics for two of the largest Swiss banks, Credit Suisse is smaller, but has a more diversified business model compared to UBS. Similar situation at BAML, with M&A, Sponsors and LevFin. At the same time, UBS’s average compensation per employee is much higher, and was $236K in 2018 as opposed to a figure of $211K for Credit Suisse. UBS and Credit Suisse have been quite successful in reducing costs over the years. The Demise And Now Rise Of UBS? Credit Suisse CET1 capital ratio = [ A / B ], Create new scenarios to try different combinations of driver modifications, Reset one of your driver modifications in this scenario in order to modify another driver. Moreover, UBS’s dividend payout ratio of 51% was much higher than Credit Suisse’s 32%. data delayed 15 minutes unless indicated. Financial market data powered by Quotemedia.com. People also pivoted to industry or other product groups at the bank from time to time. You can read more about UBS on the WSO Company Database. Although Credit Suisse has cut down on its trading operations, its business model remains much more diversified than UBS. Credit Suisse’s average fees in 2018 was 1.1% of the bank’s client assets compared to a figure of 0.8% for UBS. UBS was first off the block in terms of restructuring its business and has been able to reap the benefits of a more stable business model with less focus on volatile revenues over recent years. They reflect submissions from the site's users and have not been validated by the banks concerned. UBS's revenue have remained largely stagnant around the $31 billion mark over the last years due to sub-par performance by its investment bank even as its Wealth Management business flourished, On the other hand, Credit Suisse has lost $3.8 billion in total revenues since 2015 at an average annual rate of 5.4% mainly due to the bank's more recent decision to scale-down its securities trading business.
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