UBS Group AG is apparently considering the potential relocation of its headquarters from Zurich to the United States amid proposals from Swiss regulators for significantly tougher capital requirements. This development was first reported by the New York Post.
In June 2025, Switzerland’s Federal Department of Finance recommended that UBS fully capitalize its foreign subsidiaries, increasing the requirement from the current 60% threshold following its acquisition of Credit Suisse. This proposed change is expected to necessitate an increase in UBS’s common equity tier-one capital by as much as $26 billion.
The measures aimed at reinforcing the Swiss banking system are intended to enhance stability and mitigate the risk of another crisis similar to that experienced by Credit Suisse. However, the proposals remain pending further consultation and parliamentary approval, with any implementation not anticipated before 2028.
As the discussions unfold, UBS has reportedly initiated preliminary talks with U.S. officials to explore the implications of a potential headquarters relocation. Such a move could offer the bank a more flexible regulatory environment and might involve mergers or acquisitions with mid-sized U.S. banks to bolster its operational presence in the country.
Despite these considerations, UBS has emphasized its commitment to remaining a global bank with its headquarters in Switzerland. However, the firm is also acutely aware of the need to protect the interests of its shareholders and stakeholders in light of the proposed regulations.
Currently, UBS is in the process of integrating Credit Suisse, having effectively merged 95 branches in Switzerland and realized $9.1 billion in cost savings since the conclusion of 2022. This achievement represents about 70% of its ambitious goal to reach $13 billion in savings by 2026.
Although ongoing legal costs tied to Credit Suisse pose challenges, UBS is making steady progress toward completing the integration by the 2026 deadline. This effort not only reinforces its dominance in wealth management but also enhances its capital framework.
The exploration of a potential move to the U.S. indicates UBS’s flexibility in adapting to changing regulatory pressures while also seeking growth opportunities in the robust U.S. financial landscape. Over the past year, UBS shares have shown significant gains, increasing by 36.7%, slightly outpacing the industry’s overall growth of 36.3%.
In terms of current performance, UBS holds a Zacks Rank of #1 (Strong Buy), positioning it favorably within the financial sector alongside other top-ranked peers such as HSBC Holdings plc and Shinhan Financial Group Co, both of which also hold a Zacks Rank of #1.
