UBS: Strength and stability
Our multifaceted approach to safeguarding client assets
A firm’s overall strength is more important than ever. If you are looking for more stability in a firm, we believe UBS offers you and your clients a greater sense of security. Our firm stands as a global leader with a 160-year history of proven resiliency.
A firm’s overall strength is more important than ever. If you are looking for more stability in a firm, we believe UBS offers you and your clients a greater sense of security. Our firm stands as a global leader with a 160-year history of proven resiliency.
We have successfully guided clients through ever-changing economic climates and market conditions for nearly two centuries. Today, we continue to be recognized as a leader among the largest and strongest firms globally.
Diversified business model
How does our powerhouse firm achieve resilience in uncertain financial winds? For starters, the parent company, UBS Group AG, encompasses several subsidiaries, each of which offers substantial services while also contributing to the firm’s overall diversification and growth globally. These include UBS AG, UBS Financial Services Inc. and UBS Bank USA.
This diversified business model helps ensure that assets held at one entity will not be at risk due to the failure of or lack of capital at a related entity, which means you can offer your clients a better sense of security for where their assets are held.
160 years strong
True security takes time to grow. The collective wisdom and experience of our 160-year legacy is the bedrock of our financial stability and resiliency. A key part of this legacy is our commitment to a culture centered on doing what is best on behalf of our clients with integrity and transparency.
- UBS has a Basel III common equity tier 1 (CET1) capital ratio of 14.2% as of December 31, 2022
- $5.7 trillion in assets under management as of March 2024
- $78.1 billion in capital reserves as of March 2024*
UBS AG remains one of the world’s best-capitalized banks in its peer group and ratings by major credit agencies are among the highest of our peers.
- S&P’s long-term rating/outlook: A-/N
- Moody’s long-term rating/outlook: A3/N
Better together with the Credit Suisse acquisition
As of June 12, 2023 UBS completed its acquisition of Credit Suisse, crossing an important milestone. Our increased scale is a significant advantage to our advisors and clients as it increases reach and access. Overnight, we became the number two wealth manager in the world with over 5 trillion USD of invested assets. We are the only truly global player among leading wealth managers with strategic scale and complementary capabilities in the most attractive growth markets.
The European approach with a global footprint
According to a recent Autonomous Research report, European banks’ liquidity coverage ratios are higher, averaging 165% to US groups’ 118%. And unlike their European counterparts, some regional US banks are shielded from the liquidity rule, due to a 2018 change by Federal Reserve regulators. European banks also own fewer bonds, making them less vulnerable to interest rate swings.
UBS has always and continues to be about our client focus, top quality services and a strong and supportive culture. UBS is stronger than ever and we will continue focusing on the needs of clients, employees
and shareholders.
Exceeding net capital requirements
UBS Financial Services Inc. has an established history of maintaining net capital at levels that substantially exceed those required under the SEC’s Net Capital rule, which is designed to protect clients against the risk of a broker-dealer’s failure. As of December 31, 2023, UBS Financial Services Inc.’s net capital was $1.215 billion, which exceeds the minimum net capital requirement by $1.076 billion.
Stringent holding practices
As a leading broker-dealer, we deeply value the confidence clients place in us. Our clients benefit from SEC security holding practices, including the stringent “Customer Protection” rule that governs the custody and use of clients’ securities and cash.
Clients’ securities are not assets of UBS Financial Services and are not exposed to the claims of the firm’s general creditors. Additionally, the firm cannot lend (rehypothecate) client securities unless they are held in a margin account and a margin debit balance exists in that account. Clients’ fully paid and excess margin securities must also be segregated for the exclusive benefit of the clients.
Learn how we communicate with clients about the safety and security of assets: click to download the PDF UBS—a partner you can count on
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How we safeguard your clients’ cash: click to download the PDF Rest assured at UBS Bank USA.
Supplementing SIPC protection
Client securities (including money market mutual funds), and cash held in securities accounts, are protected by the Securities Investor Protection Corporation (SIPC) and by supplemental insurance we maintain with London Insurers.
Strength of UBS Bank USA
UBS Bank USA remains well-capitalized with a Common Equity Tier 1 (CET1) capital ratio of 28.14% as of December 31, 2023, compared to the regulatory minimum requirement of 4.5%.1 It received a Fitch credit rating of A+/F, as of June 12, 2023.2
Bank USA’s FedFis rating of 1.33 out of five, with one being the best rating, as of December 31, 2023. FedFis uses a comprehensive proprietary rating system that considers factors such as liquidity, asset quality, capital adequacy and earnings to determine overall creditworthiness.3
Deposits at UBS Bank USA are protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 (including principal and accrued interest) for each insurable capacity (e.g., single, joint, corporate, etc.).
Examples of insurable ownership capacities include individual accounts, IRAs, joint accounts, trusts and employee benefit plans. The FDIC, in turn, is backed by the full faith and credit of the US government.
(UBS Bank USA’s most recent regulatory call report may be found on the FDIC website at fdic.gov.)
Your next best move
UBS is committed to maintaining an integrated series of safeguards to help ensure its ongoing fiscal strength and stability, which is key to protecting your clients’ assets and gaining their confidence—now and into the future.
Our strength and resiliency is just one of many reasons UBS may be your next best—and permanent—move.
To learn more about joining one of the world’s leading global wealth managers, submit your contact information to be connected with a Field Leader.
To learn more about joining one of the world’s leading global wealth managers, submit your contact information to be connected with a Field Leader.
