UBS Group is exploring the possibility of relocating its headquarters from Switzerland to the United States after Swiss regulators proposed stricter rules requiring the bank to raise its capital by $26 billion. UBS says the increase is excessive and could hinder its ability to compete with rivals in Europe and the U.S.
The new rules follow UBS’s 2023 takeover of Credit Suisse, which aimed to prevent a broader crisis in Swiss finance. Since then, Zurich regulators have sought higher loss-absorbing capital for UBS.
The bank is negotiating with authorities to reduce the proposed increase. UBS shares fell 0.42% on Friday but rose 0.64% in after-hours trading.
UBS leaders have held talks with U.S. officials about moving the bank’s main base to America. Options include purchasing or merging with a mid-sized U.S. bank to expand its presence.
Analysts suggest potential targets such as PNC Financial Services and Bank of New York Mellon. UBS’s $126 billion market value would give it leverage in any deal.
If UBS relocates, it would still follow rules for systemically important banks, but U.S. regulations are less restrictive than Switzerland’s. For example, JPMorgan Chase cannot make major acquisitions due to deposit limits, whereas UBS would not face the same restrictions.
For investors, a move to the U.S. could reshape the banking landscape. Switzerland could lose part of its global financial influence, while U.S. markets could gain a significant new competitor in wealth management, custody, and capital services.
UBS has a Moderate Buy consensus rating, with an average stock price target of $42.44, implying roughly 4% upside from current levels.
