UBS is making strides with a previously-disclosed project for a European Union-wide bank. The Swiss bank has apparently decided where the central platform for wealth management with European clients should be housed, disclosing to finews.ch which branch has the best shot.

UBS has already plowed more than 100 million Swiss francs into building up a European client platform called CETUS. The goal is to build up a European wealth management bank under the official name UBS Europe SE, enabling the bank to save millions.

Until now, it hasn't been clear where the pan-european firm would find a home. A spokesman for UBS confirmed to finews.ch that the Swiss bank is eying up Frankfurt, and has already spoken with Germany's regulator about the plan.

Decision Later in 2016

The talks seem to be very advanced, and the choice is apparently «Mainhattan», which is also expected to be a key beneficiary of post-Brexit bank shifts out of the city of London. 

UBS said it plans to take a final decision by year-end. Swiss newspaper «Neue Zuercher Zeitung» has speculated last week about potential choices.

London had also been mentioned as a potential center for UBS' European bank, but a vote last week to leave the European Union has presumably mooted that choice and swung the decision in Frankfurt's favor. 

Costs in Focus

By shifting to a European-wide financial institution, UBS can eliminate banking licenses it maintains in 11 other EU countries in the mid-term. These subsidiaries then become branches.

UBS is aiming to cut costs in the European market, with a unified booking platform for the entire region. The bank 's goal is to slash costs in private banking – its core business – by 100 million francs.