UBS Plans to Shut Down India Investment Banking Office – Report

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UBS Group AG (UBS) is planning to shut down its investment banking office in India. Citing people familiar with the matter, Bloomberg reports that the Swiss bank is contemplating moving its investment banking coverage in India offshore. UBS shares fell 0.96% to close at $17.59 on December 15.

UBS is a multinational investment bank and financial service company. It offers private institutional and corporate clients worldwide wealth management, asset management, and investment banking services. The UBS earnings report for the fourth quarter is scheduled for February 1, 2022.

India Plans

While the changes are expected to affect the investment banking operations, UBS remains committed to its business in India. Consequently, it plans to maintain a significant presence in the region. According to Bloomberg, the bank’s staff have already been notified about the imminent changes.

UBS is realigning its operations, a move that has seen it make changes in a number of geographies. It is in the process of relocating its investment banking operations in South Africa. The strategic changes come on the bank delivering upbeat results in the last quarter.

The bank posted a surprise jump in profits, benefiting from rising wealth management fees. In the last decade, UBS has increased its focus on wealth management, a segment with tremendous opportunity for growth. Amid the changes, the bank boasts a much smaller investment bank segment than its peers. However, the segment still commands high-profit levels.

Stock Rating

Meanwhile, Berenberg analyst Eoin Mullany has reiterated a Buy rating on UBS stock with a $20.03 price target, implying 13.88% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 8 Buys, 2 Holds, and 1 Sell. The average UBS price target of $21.46 implies 22% upside potential to current levels.

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