UBS Group AG UBS is seeking a wider banking license to operate in the United States to simplify its ability in order to offer loans and accept deposits in the country. 

UBS views the United States as a crucial market for its growth strategy. According to a Bloomberg report, the bank is considering an application for broader operational permissions under the Office of the Comptroller of the Currency. 

UBS Group AG’s CEO, Sergio Ermotti, identifies the U.S. wealth management sector as a vital growth area, particularly after the acquisition of Credit Suisse in 2023. This aligns with UBS’ Chairman Colm Kelleher's statement from last month, where he mentions the bank’s long-term vision that includes acquiring a U.S. wealth management firm to accelerate growth in the region. However, this goal will only be pursued after the full integration of Credit Suisse.

UBS Strengthens US Operations

The acquisition of Credit Suisse strengthened UBS Group AG’s U.S. investment banking operations, leading the bank to be in a better position to attract wealthy entrepreneurs and high-net-worth individuals for its private banking services.

The bank has opted to make changes in the senior leadership within its investment banking division to further solidify its competitive advantage. These adjustments come amid the departure of several senior executives. These changes in the leadership positions are aimed at reinforcing the bank’s commitment in key areas, including healthcare and leveraged finance, which are considered crucial for the company’s long-term growth prospects. 

In sync with changes in the senior management, last week, UBS Wealth Management appointed Ryan Lurie, an Accredited Portfolio Management Advisor, to oversee its Arizona offices.

UBS Group AG’s Price Performance & Zacks Rank

Over the past six months, shares of UBS have gained 4.8% against the industry’s decline of 9.7%. 

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At present, UBS carries a Zacks Rank #3 (Hold).

Foreign Banks Worth Considering

Some better-ranked bank stocks are Erste Group Bank AG EBKDY and Grupo Financiero Galicia S.A. GGAL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for EBKDY’s earnings has been revised 2.4% upward for 2024 over the past month. Shares of EBKDY have gained 8.5% over the past six months.

Earnings estimates for GGAL have been revised 8.4% upward over the past 30 days. In the past six months, GGAL shares have risen 57.6%.

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