Therefore, UBS converts its capital into dollars.

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It was a formality at the end of the UBS AGM, but some raised eyebrows. One shareholder even took the stand to prevent UBS from converting its Swiss franc share capital into dollars. But he had no luck, the application waved smoothly.

UBS has presented its consolidated financial statements in dollars since 2019. This has to do with the fact that the majority of the world’s greatest wealth manager’s earnings are in the world’s number one currency, the dollar. For example, significantly more in Swiss francs. Because many customers in Asia or Latin America have their assets managed in dollars, not local currency. Accordingly, UBS collects its fees in dollars.

In this way, UBS primarily avoids currency risk. Due to the strong Swiss franc, the conversion of a large amount of income into our national currency can seriously reduce it. Therefore, it makes sense for UBS to keep its consolidated financial statements in dollars.

This is the logical consequence of converting the group accounts and balance sheet to dollars. Because capital is one of many variables in the consolidated balance sheet. If the capital is shown in dollars, there is no need to convert this number and there is no currency risk. In addition, UBS hopes that the bank will be increasingly perceived as an American financial institution and therefore will attract large American pension funds or investors as investors. However, the share will continue to be traded in Swiss francs on the Swiss stock exchange.

Changes such as increase or decrease in the capital are the responsibility of the general assembly. Because of this, GM had to accept this change by a large majority.

Yes. For example, pharmaceutical giant Novartis, technology group ABB or insurance company Zurich. The reason is the same for all companies: they are global and generate most of their revenue in dollars.

Source :Blick