The basic principles of UBS Group AG's industry selection are: enter the business field with its own comparative advantage and give up the business with its own comparative disadvantage; Enter the business with bright prospects and give up the business with uncertain prospects; Enter the business with complementary business and abandon the business with overlapping business; Enter the business with low profit but stable income, and give up the business with high income but high risk; Expand agency business and reduce self-operated business; In the choice of corporate business and private business, focus on developing private business.
For the top management of any bank, it is easy to enter certain businesses or implement certain acquisitions, but it is very difficult to voluntarily give up some businesses that were originally owned. UBS Group AG's senior management showed great courage in business choice.
First of all, UBS Group AG is the first big bank in the world that once owned a large amount of insurance business and voluntarily withdrew. When many other banks are still keen to enter the insurance industry and practice omnipotence, UBS Group AG chose to quit voluntarily.
Second, UBS voluntarily gave up its investment in high-yield securities and hedge funds, almost completely withdrew from the fields that these two major investment banks were eager for, and also reduced its holdings of high-tech industries with excessive bubbles, basically avoiding the collapse of US stocks.
Third, the merger and acquisition of UBS is highly selective. When choosing the right M&A target and integrating it into its own business, UBS Group AG acquired Paine Webber and took a fancy to its special position as a famous American retail broker. Pratt & Whitney is famous for underwriting municipal bonds and is the leader in the industry. However, despite the considerable market size, Pratt & Whitney is not attractive to other banks because of its low profits. At the beginning of this acquisition, UBS was not favored by most analysts. UBS recognizes Pratt & Whitney because its business and Warburg have little overlap and are highly complementary transactions. This acquisition enables it to be in the United States. Analysts believe: "UBS's transaction has a good future prospect. It not only fills the gap in UBS's asset accumulation, but also helps the overall growth of the bank through Pratt & Whitney. This will help UBS build its reputation and attract outstanding professionals. "
In recent years, UBS has focused on agency business because there are huge risks in self-operated business and almost no risks in agency business. In the field of agency foreign exchange trading, UBS Group AG is now the largest foreign exchange dealer in the world, handling about 65,438+02% of the global trading volume, and UBS Group AG is also the largest stock dealer in the United States, accounting for one-ninth of the global trading volume according to the data provided by Thomson Financial.