US investor Artisan urges UBS to quit Switzerland over capital rules
UBS•Artisan Partners urged UBS to leave Switzerland, calling proposed capital rules punitive. It estimated the changes would require an additional $16 billion in capital and could mean $2.4 billion in annual net income and $36 billion in lost market value for shareholders.
1. Artisan urges UBS to leave
Artisan Partners, which said its value teams manage more than 60 million UBS shares, urged the bank’s board to move UBS out of Switzerland, arguing that proposed tougher capital requirements would destroy shareholder value. UBS said it aims to continue operating successfully as a global bank from Switzerland and would advocate for regulation that is targeted, proportionate and internationally aligned.
2. Capital proposal advances
Switzerland’s upper house passed a proposal requiring UBS to back foreign units with 90% Common Equity Tier 1 capital. The lower house still must debate the measure, which is part of a banking overhaul following Credit Suisse’s 2023 collapse. Artisan estimated the proposal would require UBS to hold an additional $16 billion in CET1 capital; it said that capital could otherwise generate an annual return of about 15%, or $2.4 billion in net income. At 15 times earnings, Artisan said, that would equal about $36 billion in lost market value, around 23% of UBS’s current market capitalisation.
