The Economic Times  Jul 6  Comment 
Previously, the iconic club had an agreement with UB Group, which ended last month.
The Hindu Business Line  Jul 4  Comment 
United Breweries's NSE-listed shares dropped as much as 1.5 per cent to Rs 1,151 in thin trade as Goldman Sachs has initiated coverage on the stock wi
The Economic Times  Jun 2  Comment 
Under section 213 of the Companies Act, 2013, there is a provision for a shareholder or creditor or any other person to apply to the NCLT and seek an order for an investigation into the affairs of the company.
GenEng News  May 11  Comment 
University at Buffalo (UB) scientists say they have developed a new protein analysis tool that could vastly increase the speed and precision with which disease and drug effects are analyzed. Called IonStar, it is the first to provide...
The Hindu Business Line  Apr 23  Comment 
United Spirits’ CEO Anand Kripalu has spent over four years in sustaining as well as growing the company in its most turbulent period. In an interview
The Economic Times  Mar 8  Comment 
Mallya resigned from the UB board after the Securities & Exchange Board of India declared him ineligible as director of a listed company.
The Economic Times  Nov 16  Comment 
USL had loaned to various UB group companies and all these loans had been consolidated under UB Holdings which has been acknowledged by the holding company.
The Hindu Business Line  Oct 27  Comment 
Fifteen per cent cheaper than grid power is a strong argument for going solar. The country’s largest liquor manufacturer, United Breweries, has vowed to meet more of its power demand through solar en...
The Hindu Business Line  Sep 25  Comment 
To invest ₹1,000 cr in energy savings, phosphatics plant
The Economic Times  Sep 3  Comment 
The majority stakeholder in UB, Dutch-brewer Heineken recently launched an alcohol-free version of its namesake beer with half the calories of a standard Heineken in 17 markets globally.


UnionBanCal (NYSE: UB) is a bank holding company that operates commercial banking operations in the western United States and Texas. Its major subsidiary is Union Bank and the company is divided into two operating segments: retail banking and corporate banking.[1] In the wake of the 2008 financial crisis, UB faces unfamiliar challenges as the credit market remains uncertain and the Dodd-Frank Act changes the financial sector.

Business Growth

In 2010, UB realized a net income of $573 million after incurring a net loss of $65 million in 2009.[2] While revenue and loan volume increases helped the company in 2010, its turnaround resulted from a significant decrease in its effective tax rate from 71% in 2009 to 30% in 2010 as the company took advantage of tax credits and write-offs associated with its 2009 loss.[3]

Trends & Forces

Uncertainty in credit market affects lending revenues

UB's primary source of revenue is its lending practice - like any commercial bank, Union Bank pays customers interest on their deposits so that it can lend out their money at a higher rate. The net interest margin metric acts as proxy for the bank's ability to earn interest on its assets. In the midst of credit market uncertainty following the 2008 financial crisis, UB's ability to lend profitably may be reduced and its net interest margin may decrease.

Dodd-Frank regulation may change investor sentiment

The Dodd-Frank Wall Street Reform and Consumer Protection Act, the government's response to the 2008 Financial crisis, significantly impacts the way the financial sector operates. Its allowance for government support of institutions identified as "too big to fail" may increase the value of identified financial institutions while decreasing the prospects and equity value of smaller financial institutions like Union Bank. In addition, the Act increases financial regulation which may restrict UB's operations and increase back office expenses related to compliance.


Union Bank competes with other commercial banks in California including competing regional banks and national competitors:

UnionBanCal and its competitors increase revenues and income by increasing their deposit and loan volume. The industry is competitive as companies increase their deposit interest rates while decreasing their loan rates and fees to attract customers.


  1. UB 2010 10-K pg. 78  
  2. UB 2010 10-K pg. 35  
  3. UB 2010 10-K pg. 38  
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