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UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten

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Key Takeaways

  • {\"0\":\"UBS is weighing a U.S. move after Swiss regulators proposed tougher capital requirements.\",\"1\":\"Relocation talks include U.S. officials and could involve acquiring a midsized bank.\",\"2\":\"Swiss reforms aim to strengthen banking stability and prevent another Credit Suisse-style crisis.\"}

UBS Group AG (UBS - Free Report) is reportedly weighing the possibility of relocating its headquarters from Zurich to the United States after Swiss regulators proposed significantly stricter capital requirements. This was first reported by the New York Post.

In June 2025, Switzerland’s Federal Department of Finance proposed that UBS should fully capitalize its foreign subsidiaries, up from the current 60% threshold, following its takeover of Credit Suisse. This move is expected to increase UBS’s common equity tier-one capital by up to $26 billion.

The Swiss government stated that these reforms are intended to strengthen the stability of the Swiss banking system and reduce the likelihood of another crisis similar to Credit Suisse. The proposals are still subject to consultation and parliamentary approval, with implementation not expected before 2028.

UBS has reportedly held preliminary discussions with U.S. officials to explore a potential headquarters move. Relocating could provide UBS with a more flexible regulatory environment and may involve acquiring or merging with a mid-sized U.S. bank to strengthen its presence.

UBS has stressed that while it intends to remain a global bank headquartered in Switzerland, it is exploring ways to safeguard shareholder and stakeholder interests if the rules proceed as drafted.

UBS’s Credit Suisse Integration Progress

UBS is steadily integrating Credit Suisse, having already merged 95 Swiss branches and achieved $9.1 billion in cost savings since the end of 2022. This represents about 70% of its ambitious $13 billion target set for completion by 2026.

While legacy legal costs from Credit Suisse remain a drag, UBS is firmly on track to complete the integration by 2026, reinforcing its wealth management dominance and strengthening its capital position.

Final Thoughts on UBS

UBS Group AG is exploring a potential relocation of its headquarters to the United States to ease Swiss regulatory pressure. Such a shift would highlight the bank’s adaptability and could provide greater opportunities for growth through deals and acquisitions in the robust U.S. financial market.

UBS’ Zacks Rank & Price Performance

Over the past year, UBS shares have gained 36.7% compared with the industry’s growth of 36.3%.

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Currently, UBS sports a Zacks Rank #1 (Strong Buy).

UBS’ Peers Worth Considering

A couple of other top-ranked peer stocks are HSBC Holdings plc (HSBC - Free Report) and Shinhan Financial Group Co (SHG - Free Report) . Each stock presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The earnings estimates for HSBC for the current year have been revised 3.1% upward over the past 60 days. Over the past year, HSBC shares have soared 57.1%.

SHG’s current fiscal-year earnings estimates have been revised 7.1% higher over the past 60 days. SHG shares have gained 15.3% over the past year.


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