UBS Group AG (SIX:UBSG) has announced the appointment of Roger von Mentlen as the Chairman of UBS Switzerland AG and Credit Suisse (Schweiz) AG on Friday. The move is part of UBS's broader strategy to merge Credit Suisse's Swiss operations into its own, with the board restructuring set to commence from November 1, 2023.
Mentlen, a seasoned veteran with four decades at UBS and a board member since 2020, is set to succeed Markus Ronner and Peter Derendinger. The restructuring seeks to ensure optimal supervision coordination throughout the transition period, as the two banks anticipate a legal merger to be completed in 2024.
In response to the announcement, UBS shares were priced at $23.75 on the New York Stock Exchange (NYSE). According to InvestingPro data, the company has a market cap of 76,506.29M USD and a low P/E ratio of 2.23, which indicates that the stock is trading at a low earnings multiple. The company has also managed to maintain a strong return over the last three months, with a 3-month price total return of 18.12%.
The incoming Chairman's role will be pivotal in leading the harmonized boards of directors for both UBS Switzerland AG and Credit Suisse (Schweiz) AG throughout this significant period of structural change. Under Mentlen's leadership, the company will need to address several challenges. According to InvestingPro Tips, the company's revenue has been declining at an accelerating rate, and it suffers from weak gross profit margins.
Despite these challenges, UBS remains a prominent player in the Capital Markets industry. It has maintained dividend payments for 12 consecutive years, offering a dividend yield of 2.29%. Furthermore, the company's management has been aggressively buying back shares, which is usually a positive sign of the company's belief in its own future prospects.
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