UBS AG, a renowned Swiss bank, was founded in 1998 through the merger of two of Switzerland's largest banks, Swiss Bank Corporation and Union Bank of Switzerland. Although the acronym UBS is derived from "Union Bank of Switzerland", it does not stand for any specific words. The bank is headquartered in Zurich and Basel, Switzerland.
The Swiss Banking Corporation originated in 1854 as Basler Bank-Verein and was converted into a joint stock company in 1872. The company was initially engaged in investment activities, but after merging with Zürcher Bankverein in 1895, it became involved in commercial activities. Subsequently renamed Schweizerische Bankverein, it grew through acquisitions and opened branches and offices both at home and abroad.
The Swiss Allied Bank, founded in 1912 by the merger of Bank Winterthur and Bank Toggenburger, became one of the largest commercial banks in Switzerland. Headquartered in Zurich, it absorbed several other Swiss banks and expanded its presence worldwide.
By the 1990s, Union Bank of Switzerland and Swiss Bank Corporation were among the largest banks in Switzerland. However, increased competition from American financial institutions led to their merger in 1998, resulting in the formation of UBS AG - one of the biggest banks in Europe. UBS's core business includes retail and corporate banking, investment banking, wealth management and asset management.
In 1995, Swiss Bank acquired S.G. Warburg, and in 2000, UBS bought PaineWebber. In 2003, both banks became known as UBS. After significant financial losses from U.S. subprime mortgages during the 2007-2008 financial crisis, the Swiss government stepped in in 2008, taking a 9% stake in UBS and injecting CHF 6 billion ($5.36 billion) in capital.
In 2014, UBS Group AG, the holding company for UBS AG and its subsidiaries, was created, strengthening its position as a key player in the global banking sector.
UBS AG's evolution from the merger of two Swiss banking giants to its current status as a global financial powerhouse emphasizes its resilience and ability to adapt to the complexities of the financial world. With a rich history dating back to the 19th century, UBS is constantly evolving to meet the changing needs of its clients and the dynamic demands of the market.
As it continues to innovate and expand its services, UBS remains committed to delivering exceptional value to its shareholders while adhering to the highest standards of integrity and professionalism.
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