UBS Eyes Global Markets Growth in China, Japan and India
After focusing on integration with Credit Suisse last year, UBS’ global markets unit is shifting emphasis towards the execution of its growth strategy in 2025.
In 2024, UBS’ global markets business operated in its first year of being fully integrated with Credit Suisse with revenues increasing 19 percent to $7.5 billion – a record high – according to the bank’s financial results. This was driven by higher revenues in derivatives and solutions, execution services and financing.
Growth was also witnessed in Asia, most notably in China. According to Tim Wannenmacher, co-head of global markets APAC at UBS, the bank traded a record $16 billion on October 8 in China a day after the Golden Week holidays and nearly $12 billion on December 16 in a rebalancing of the CSI index. In February this year, the bank also executed over $36 billion in APAC from the MSCI rebalancing.
«We're proud of our leadership in the equity business, the derivatives and solutions business and our prime brokerage across APAC. We very much consider APAC a home region for us,» said Wannenmacher during a session at the 28th Asian Investment Conference attended by finews.asia.
Three Pillars
According to Thomas de Garidel, the other APAC global markets co-head, the business will now shift from integration to execution with a focus on three main pillars: protect, grow and diversify.
On protecting, UBS will defend its positions in ANZ (Australia and New Zealand), Southeast Asia and China, of which the former two were further bolstered by the Credit Suisse takeover. On growth, the bank will eye opportunities in Japan and India, on top of China. It will also seek to diversify not just in terms of regions but also into new capabilities.
«In Japan and India, [we] were maybe not top three, let's say, especially in the liquidity business,» de Garidel commented. «We made a very strong commitment to invest and that was where the Credit Suisse integration was sort of a gift. It allowed us to accelerate this strategy over a period of two years and put us in a very strong position to grow in those markets.»
Uncertain Environment
While the macro environment and the ongoing trade war are causing uncertainty and volatility, UBS sees demand in non-US assets from markets like China, Europe or India.
«Going forward when it comes to US-China tariffs, [it] is all to be written and seen, but definitely they will create opportunities in terms of repositioning, sector rotation and clients will have to make structural adjustments to portfolios and hedging, in general, to match what could be the views of the new equilibrium in global markets and the global economy,» de Garidel added.
In the first quarter of 2025, UBS delivered a record quarter in global markets with revenues rising 32 percent to $2.5 billion, mainly driven by higher client activity in equities and FX.
