UBS has managed to stem client outflows earlier than we anticipated. A significant positive development was the $22 billion of net new client inflows the consolidated wealth management business booked for the quarter—$3 billion of these inflows came from the legacy Credit Suisse wealth management business, and this comes after Credit Suisse lost $183 billion of its client assets over the previous four quarters.
historically, UBS has been one of the most profitable wealth managers globally with a dominant position in the lucrative ultra-high-net-worth segment. The takeover of Credit Suisse will further entrench its competitive advantages.
There has been a substantial increase in competition, with expansion into wealth management a part of the strategy of most banks and insurers.
|
Metric
|
UBS
|
BAC
|
MS
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.88 | 8.48 | 13.48 |
Price/Book Value | 1.06 | 0.94 | 1.44 |
Price/Sales | 2.49 | 2.46 | 2.61 |
Price/Cash Flow | 51.11 | 6.12 | 8.35 |
|
Metric
|
UBS
|
BAC
|
MS
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
UBS
|
BAC
|
MS
|
|---|---|---|---|
Return on Assets (Normalized) | 0.43% | 1.06% | 0.83% |
Return on Equity (Normalized) | 8.31% | 13.24% | 10.67% |
Return on Invested Capital (Normalized) | — | — | — |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
JPM
| JPMorgan Chase & Co | Wlxgx | $451.9 Bil | |
BAC
| Bank of America Corp | Nzfrt | $241.6 Bil | |
WFC
| Wells Fargo & Co | Tybv | $161.6 Bil | |
HSBC
| HSBC Holdings PLC ADR | Qrsh | $150.9 Bil | |
RY
| Royal Bank of Canada | Rfry | $128.1 Bil | |
TD
| The Toronto-Dominion Bank | Zqj | $108.4 Bil | |
MUFG
| Mitsubishi UFJ Financial Group Inc ADR | Wvj | $104.4 Bil | |
C
| Citigroup Inc | Lcfc | $91.6 Bil | |
SAN
| Banco Santander SA ADR | Jfsty | $69.4 Bil |
