UBS Selling Onshore Business in Spain
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Switzerland’s largest bank is giving up its business with its Spanish onshore clients. This follows a similar move in Austria less than a year ago.
UBS is selling its Spanish office to Singular Bank according to an emailed statement Monday. This comes after months of speculation that many European markets simply aren’t large enough to warrant a presence.
Without disclosing the deal amount, the Swiss bank writes in its statement that all client assets, as well as the UBS team in Madrid, are included in the transaction. Investment banking and fund sales activities in Spain will remain with UBS.
The deal is expected to be completed by the third quarter of 2022.
Last December UBS Europe sold its business with Austria’s onshore wealth to Vaduz-based LGT Bank. The Spanish onshore business holds an estimated 9 to 12 billion euros ($9.8 billion to $13 billion) in assets under management.
The Austrian business managed 4 billion euros in assets at the time it announced the sale. Under its three-year plan for 2021 to 2023, UBS Europe is making staying profitable despite the turbulent economic backdrop its top priority.
Questions & Answers
Q.Which bank is acquiring UBS's onshore business in Spain?
Which bank is acquiring UBS's onshore business in Spain?
Singular Bank is purchasing UBS's Spanish office. This acquisition includes all client assets and the UBS team based in Madrid, as confirmed in an emailed statement released on Monday.
Q.What is the primary reason for UBS selling its Spanish onshore business?
What is the primary reason for UBS selling its Spanish onshore business?
The move follows speculation that many European markets are not considered large enough to justify UBS maintaining a physical presence there. The bank is prioritising profitability under its three-year plan for 2021-2023.
Q.Will UBS continue any operations in Spain after this sale?
Will UBS continue any operations in Spain after this sale?
Yes, UBS will maintain its investment banking and fund sales activities within Spain. The sale specifically pertains to its business with Spanish onshore clients, not all operations.
Q.How much was the Austrian onshore wealth business worth when UBS sold it?
How much was the Austrian onshore wealth business worth when UBS sold it?
At the time of the sale announcement, UBS's Austrian onshore wealth business managed 4 billion euros in assets. This sale to LGT Bank occurred last December.
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