UBS AG to Expand in Tennessee – Analyst Blog

Swiss banking major


) recently announced that it will strengthen its back office
operations in Nashville, Tenn. This move will result in the
creation of 1,000 jobs in the city through the next five years.

At present, UBS AG has about 200 people under its employment in
Nashville, across its two offices and wealth management unit.
Additionally, the bank intends to invest approximately $36.5
million in a new shared-services center, which will cater to the
company’s wealth management and investment banking operations.

According to industry rumors, UBS intends to lease about 90,000
square feet in the building that was formerly known as Regions
Center on Deaderick Street. The newly built UBS Nashville
Business Solutions Center will have job vacancies in information
technology, legal compliance and finance. The office will likely
open in the second quarter of 2014.

UBS has striven to gain profits and reinstate its former
reputation, after suffering heavy losses subsequent to the
housing bubble burst in 2007, a $2 billion trading scandal and
the discreditable U.S. tax evasion case involving Swiss banks.

Further, UBS had given a bleak outlook on the upcoming quarters
based on the failure to progress in material improvements, the
eurozone sovereign debt crisis, fragile European banking system
and economic uncertainty at large. However, the company expects
its wealth management businesses to continue attracting new

Therefore, UBS is at present exploring new avenues in order to
grow its wealth banking business. Such prudent investments can
further improve its earnings in the future and bolster its
competitive edge.

The state of Tennessee has always been a much-opted choice for
foreign investors. The German auto giant
Volkswagen AG


), Japanese auto manufacturer
Nissan Motor Co. Ltd.


) as well as Japanese electronics firm
Sharp Corporation


) have extensive operations in Tennessee too.

UBS currently carries a Zacks Rank #3 (Hold).

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Thursday, August 29th, 2013 EN

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