Despite the agreement of both parties, such a deal would face harsh regulatory scrutiny and might not see an approval easily. UBS's asset turnover ratio of 3.15% is 35% higher than that for CS, signifying UBS is more efficiently using its assets. The dashboard captures historical performance trends for UBS and Credit Suisse over recent years along with our forecast for 2019. There was plenty of chatter this week about a possible merger of Switzerland’s two biggest banks after a finance blog reported that the chairmen of UBS and Credit Suisse … This driver cannot be modified within this scenario. ©Copyright 2019 Insight Guru Inc. All Rights Reserved. UBS is a global bank that has wealth management, asset management, and investment banking arms. 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 … Formation of a Giant European Bank. Moreover, UBS’s focus on wealth management business has helped it churn a larger share of wealth management revenues. 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. On the other hand, Credit Suisse is yet to finish making changes to business model. - 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. UBS and Credit Suisse have been quite successful in reducing costs over the years. However, Credit Suisse’s wealth management business is much more profitable. 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. Given the terms of the agreement, only about a third of them accepted the offer, with almost as many opting to join UBS instead. Credit Suisse in 2015 had agreed with Wells Fargo that the U.S. bank would assume its relationship managers. As of 2018, UBS’s client assets of $2.3 trillion were roughly 50% more than that of Credit Suisse’s $1.5 trillion. You can read more about UBS on the WSO Company Database. 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 is the world’s largest wealth manager with $2.3 trillion in assets at the end of 2018. Credit Suisse had assets of $1.4 trillion. 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. UBS is the largest wealth manager in the world. Credit Suisse’s pre-tax margin of 34.6% in 2018 was almost 50% more than that of UBS’s 23.6 %. Credit Suisse’s pre-tax margin of 34.6% in 2018 was almost 50% more than that of UBS’s 23.6 %. However since 2015, Credit Suisse has significantly reduced its trading business and is developing a business model similar to that of UBS. Credit Suisse (NYSE:CS) climbs 3.5% and UBS Group (NYSE:UBS) gains 2.0% in premarket trading in the U.S. after Swiss finance blog Inside Paradeplatz reports that … UBS reported a headcount of 68K at the end of 2018, while CS had 46K employees. Moreover, Credit Suisse’s revenue per employee in 2018 stood at $458K – roughly 5% higher than the figure for UBS. 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. But following the merger reports, Credit Suisse shares jumped 4% on Monday, as UBS rose 2.5%. 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. 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.. stood at 12.6% as opposed to UBS's 12.9%. Although Credit Suisse has cut down on its trading operations, its business model remains much more diversified than UBS. 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. Shares in Credit Suisse have dropped 22% this year, and UBS shares have fallen 8%. However, people did exit to Investor Services/ Capital Raising at some of the bigger and more prestigious HF /PE shops. NYSE/AMEX data delayed 20 minutes. Compare Credit Suisse vs UBS BETA See how working at Credit Suisse vs. UBS compares on a variety of workplace factors. Credit Suisse’s pre-tax margin of 34.6% in 2018 was almost 50% more than that of UBS’s 23.6 %. Wall Street Oasis' figures for average working hours per bank are shown in the chart below. Similar situation at BAML, with M&A, Sponsors and LevFin. Stable wealth management fees as well as an increase in asset base has helped the division’s pre-tax margin remain around 22% over the last four years. Stringent cost-cutting measures have helped these banks significantly improve their pre-tax margins. Moreover, UBS’s dividend payout ratio of 51% was much higher than Credit Suisse’s 32%. When the limit is reached those drivers not yet modified become disabled for modification. They suggest that working hours are significantly longer at boutique M&A firms, and significantly shorter at French banks like SocGen and BNP Paribas. 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. Kushner Likely Walking Away From Times Square Retail As Foreclosure Progresses, Avoiding The Coffin Corner: Get Ready For A Rate Increase Sooner Rather Than Later, The Market’s Still Primed To Get Blindsided By Bonds, Rising Treasury Yields Seem To Be Stirring Some Unease In Equity Market, 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. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. UBS' past investments in information technology infrastructure may be helping here. Credit Suisse's revenues in 2018 stood at $21.5 billion with Investment Bank and Wealth Management both contributing approximately 40% to total revenues. All Rights Reserved, This is a BETA experience. A tram leaves light trails as it passes the entrance to Credit Suisse Group AG's headquarters in... [+] Zurich, Switzerland, on Wednesday, April 24, 2019. Credit Suisse is mainly cutting personnel expenses – jobs – while UBS is pruning its general expenses instead. 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. Credit Suisse’s focus on wealth management business could help the bank develop a more profitable business than UBS. 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. When I was at one of the aforementioned banks I knew a few people in PFG. 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. UBS reported $31 billion revenues in 2018 with the Wealth Management division contributing more than 55% of total revenues. 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. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. UBS and Credit Suisse have been quite successful in reducing costs over the years. By using the Site, you agree to be bound by our Terms of This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. Zurich, Switzerland, on Wednesday, April 24, 2019. The platform uses extensive data to show in a single snapshot what drives the value of a company's business. UBS reported a headcount of 68K at the end of 2018, while CS had 46K employees. UBS has a larger and more profitable business than Credit Suisse. As of 2018, UBS's client assets of $2.3 trillion was roughly 50% more than that of Credit Suisse's $1.5 trillion. The Demise And Now Rise Of UBS? Notably, though, an increase in the number of high net-worth individuals (HNIs), as well as an increase in their assets have helped the Swiss banks increase their asset valuations over the years, Given UBS’s focus on its wealth management business, this division was responsible for 55% of total revenues in 2018. 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. See How It’s Powering New Collaboration and What-Ifs, For CFOs and Finance Teams| Product, R&D, and Marketing Teams, Like our charts? On the other hand, Credit Suisse’s business is more diversified and its cornerstone wealth management business is much more profitable than UBS. Photographer: Stefan Wermuth/Bloomberg. Although Credit Suisse reported a marginally higher common equity figure compared to UBS at the end of 2018, a higher risk-weighted asset base dragged its CET1 ratio below UBS’s. Each of these banks is solid and has their own strengths / weaknesses. You may opt-out by. 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. Your options are: This interactive model has a minimum and/or maximum limit on the value for the current driver you are viewing. 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 … Also, there are rumors that Brady … 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. 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?