UBS Boston Consulting Group Matrix

UBS's aggressive investment in digital transformation and artificial intelligence (AI) positions these initiatives as Stars within the BCG Matrix. The firm is actively deploying AI tools, such as 'Red,' to significantly boost efficiency and elevate client service standards.

By year-end 2024, UBS had over 280 AI use cases live, demonstrating substantial progress in integrating AI across its operations. This focus has led to a remarkable four-fold increase in AI tool usage since the close of 2024, underscoring the strategic importance and growing adoption of these technologies.

Stars represent business units or products with high market share in a high-growth market. UBS's Global Wealth Management (GWM) is a prime example, experiencing robust growth with $54.8 billion in net new assets in H1 2025 and invested assets reaching $4.51 trillion, a 12% year-over-year increase.

The Investment Bank, particularly Global Markets and Advisory, is another Star, driving significant revenue growth. Global Markets saw a 25% year-over-year revenue increase in Q2 2025, and UBS led non-US equity trading revenues in H1 2025.

Digital transformation and AI initiatives are also Stars for UBS. By year-end 2024, over 280 AI use cases were live, with AI tool usage quadrupling since then, enhancing efficiency and client service.

Emerging markets are strategically positioned as Stars, with UBS anticipating a persistent GDP growth gap favoring these regions through 2026, offering opportunities for enhanced returns.

The integration of Credit Suisse is a transformative Star, expected to create a more robust and efficient entity. This integration contributed to a $7.7 billion net profit in Q1 2024 and targets over $10 billion in cost reductions by 2026.

UBS's traditional asset management offerings, encompassing areas like equities and fixed income, function as classic cash cows. This segment holds a significant market share within mature asset classes, consistently generating substantial profits for the firm.

While newer investment vehicles gain traction, the bedrock of traditional asset management continues to be a reliable source of cash flow. For instance, as of the first quarter of 2024, UBS Asset Management reported total invested assets of $1.1 trillion, with a considerable portion attributed to these established strategies.

UBS's Personal & Corporate Banking division in Switzerland and its Global Wealth Management segment are prime examples of cash cows. These units benefit from a strong market position and a stable, mature client base, generating consistent and predictable cash flows with limited need for substantial reinvestment. The ongoing integration of Credit Suisse's domestic business is expected to further solidify UBS's dominance, enhancing these cash-generating capabilities and reinforcing their status as reliable profit centers.

While UBS's Personal & Corporate Banking division generally performs well, certain areas are showing weakness. For instance, segments heavily reliant on net interest income experienced a dip in profitability in early 2025. This decline, coupled with net deposit outflows during the first half of 2025, indicates these specific sub-segments are underperforming.

The Non-Core and Legacy (NCL) portfolio, primarily from Credit Suisse, embodies UBS's strategic divestment of underperforming assets. These assets, characterized by low growth and market share, are classified as 'Dogs' in the BCG Matrix, necessitating careful management and eventual wind-down.

This includes the decommissioning of approximately 700 redundant IT applications inherited from Credit Suisse, representing 56% of its original IT portfolio, due to their high maintenance costs and limited value contribution. Specific segments within Personal & Corporate Banking, particularly those reliant on net interest income, also showed weakness in early 2025, evidenced by declining profitability and net deposit outflows, further solidifying their 'Dog' status.

UBS is actively divesting non-core wealth management units and inefficient operational entities to streamline its structure and focus on synergistic assets. For instance, in early 2024, UBS announced exits from certain wealth management operations in specific regions where Credit Suisse had a presence but which did not align strategically with UBS's global wealth management strategy, aiming to improve profitability and capital allocation efficiency.

The integration of Credit Suisse necessitates addressing legacy cost structures, with UBS targeting approximately $10 billion in gross cost savings by 2026 through IT consolidation, role optimization, and real estate portfolio streamlining. This focus on eliminating redundant expenses is critical for enhancing UBS's efficiency ratio and redirecting resources toward growth initiatives.

Expanding into untapped geographic markets, especially emerging economies, places UBS squarely in the Question Mark quadrant of the BCG Matrix. These initiatives demand significant capital infusion for infrastructure development, regulatory navigation, and localized marketing efforts to establish a foothold. For instance, while UBS has a strong presence in established markets, its penetration in many African or Southeast Asian nations remains relatively low, presenting both opportunity and risk.

UBS's expansion into emerging markets, particularly in regions with lower penetration like parts of Africa and Southeast Asia, represents a classic Question Mark. These ventures require substantial capital for infrastructure and local adaptation, aiming to capture future growth.

Similarly, the development of specialized advisory services within investment banking, such as those focused on renewable energy or digital assets, also falls into this category. While these areas show promise, they are still relatively nascent for UBS and demand significant investment to scale and prove their market viability.

The strategic push into active ETFs, while experiencing strong inflows in Europe, still constitutes a small portion of the overall market. This indicates a high-growth potential area where UBS needs to invest to increase its market share and solidify its position.