UBS has finally revealed the details about the new European banking division. There's no surprise about the seat of the headquarters. Some wealth management units however will be kept apart of the main unit.

UBS Europe will be based in Frankfurt, as was widely expected. The European wealth-management business will be combined into one legal entity, UBS said in a statement today.

Some divisions – including the ones in France and Belgium – are kept apart. The new division will comprise the units from Germany, Italy, Luxembourg (which already incorporates Austria, Denmark and Sweden), the Netherlands and Spain.

Cost Savings 

UBS Europe will operate in European markets through a network of branches, the company said. The step is helping the bank to simplify its governance structure and increase operational efficiency and therefore lead to cost savings.

UBS had nine different booking platforms for twelve units, with six IT systems supporting them. The unification will lead to annual savings of an estimated 100 million francs, according to insiders.

Rodermann to Speak for the Management

The country branches will now operate under a single European license, which makes the bank's European governance much simpler. Hitherto, the license allowed banking services to be executed in the 28 members states of the European Union plus three countries of the European Economic Area. The adjustments to the regulation now makes it possible to have a sole license covering the entirety.

Thomas Rodermann, the CEO of UBS Germany, is the spokesman of the management board of UBS Europe. Birgit Dietl-Benzin, chief risk officer, Fabio Innocenzi and René Mottas, wealth management market heads, Andreas Przewloka, chief operating officer and Stefan Winter, chief investment banking, are the other members of the executive committee.

The management of the branches has been awarded to the market heads in the respective countries. Roland Koch, the chairman of UBS Germany, will also take the lead on the supervisory board of UBS Europe.

Following a Trend

UBS is following a trend among Swiss bank to unify their European operations. So far, Julius Baer, Vontobel and Lombard Odier all made the move, with headquarters in Germany and Luxembourg.

The heart of UBS' wealth-management unit is the client platform CETUS, which cost about 100 million francs to develop.