UBS share price: Bank said to plan restructuring of CAG division

on Nov 28, 2013
Updated: Oct 21, 2019
Listen, Thursday, November 28: Reuters reported today that UBS AG (VTX:UBSN), Switzerland’s biggest lender measured by assets, is scaling back its Corporate Advisory Group in some emerging markets aiming to reduce overlaps with other departments. The newswire cited three unnamed sources familiar with the bank’s plan, who said that the restructuring would take place in markets such as the Middle East, Turkey, Asia and Africa. The sources, who asked to remain anonymous, did not provide details on how many jobs would be cut in the process.

The Swiss bank declined to comment on the matter, Reuters noted.
In today’s trading UBS shares gained 1.65 percent to CHF17.25 as of 11:37 UTC. The stock has risen about 20 percent so far this year.
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**Corporate Advisory Group**
UBS’s Corporate Advisory Group (CAG) provides a range of services, including advice on mergers and acquisitions and initial public offerings, financing options and structured equity products, to ultra-rich individuals and entrepreneurs who were the bank’s wealth management customers. The division, which currently employs nearly 80 bankers around the world, served as an interface between UBS’s wealth management and investment banking operations.

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“There were overlaps with the normal investment banking operations and it wasn’t clear what the CAG staff were doing in certain geographies where there were good investment bankers to execute transactions,” one of the sources told Reuters.
According to the sources, after the restructuring the unit will only serve as an adviser on corporate finance activities, with the lender’s investment bankers providing the “execution” part.

The sources also said that the regions where the CAG has been shrunk will continue to be served by existing local wealth management staff.

UBS has revamped itself after the financial crisis and following a number of high-profile scandals that have damaged its reputation. Last October the bank revealed plans to cut 10,000 jobs and largely walk away from its fixed-income operations by 2015, as part of its push to satisfy investors demanding higher profitability.

The restructuring will see the majority of the CAG’s staff in Dubai leaving, the sources said, adding that the bank would probably keep only one out of the six employees at the division. According to the sources, UBS is in negotiations over the departure of Albert Momdjian, a veteran Gulf Arab banker who was hired in 2011 to run the CAG unit for the Middle East and Africa.
**As of 12:45 UTC buy UBS shares at CHF17.29**
**As of 12:45 UTC sell UBS shares at CHF17.28**
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