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UBS Bank Records the Highest Return on Equity in Europe at 12.96%

UBS Bank Records the Highest Return on Equity in Europe at 12.96%

  • Published: 6th July 2022, 14:08

UBS bank is the highest-performing European bank in terms of return on equity. According to a MoneyTransfers analysis, the bank’s ROE was 12.96% for Q1 2022. That figure is almost 3% higher than the second-best bank, BBVA.

UBS owes this high performance to its strategy of focusing on its core competencies and selective expansion into other markets. The bank has a strong presence in Switzerland and Germany, but it also has noticeable operations in Austria, Italy, and France. Besides, it has also benefited from its ability to connect with customers through digital channels and mobile devices.

Jonathan Merry, MoneyTransfers CEO

UBS’ Q1 2022 at a glance

Q1 2022 saw UBS concentrating on exciting its strategy to drive growth and efficiency. The bank continued its sustainability push, a topic that remains at the heart of its customers and operations. The culmination of these efforts saw it launching a new climate transition fund in conjunction with AON.

Additionally, UBS realized $8B commitments into private markets. It raised those funds from its wealth management clients. These clients can tap into the bank’s scale to benefit from institutional-like access and pricing.

Deepening connections with customers

Furthermore, UBS continued enhancing its mobile applications, which enabled it to deepen its connection with its clients. The bank says over 50% of its Swiss personal banking clients migrated to mobile banking platforms.

The bank was able to keep its clients’ trust despite the turbulence created by the pandemic, the Russia-Ukraine war, and biting inflation.

That trust netted it new income-generating fund flows worth $19B in Global Wealth Management. Moreover, it has $14B in net new money besides money market flows in Asset Management. Finally, it attracted a billion Swiss Francs in personal banking investments.

How did UBS compare to other elite European banks?

A look at the top ten European banks by ROE indicates a fair distribution across Europe nations. Following UBS in the second spot is Spanish bank BBVA which had a ROE score of 10.47%. Banco Santander’s counterpart took the second spot, returning a 9.27% score.

Meanwhile, Italian banker Intesa Sanpaolo took the fourth position after attaining an ROE score of 9.2%. It just about pipped Finish Bank Nordea Bank AB, who returned a 9.16% score.

Other banks making up the top ten were Crédit Agricole SA (8.9%), Barclays PL (7.93%), Danske Bank A/S (6.89%), BNP Paribas SA (6.71%), and Lloyds Banking Group (5.44%).

Elizabeth
Written by
Elizabeth

Elizabeth is a financial journalist working in global markets across the world. Specialisms include personal finance and property.