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.
The Economic Times  Aug 25  Comment 
Infosys employees have been receiving multiple emails from the management since February in relation to the dispute between the board and founder Narayana Murthy.
GenEng News  Aug 22  Comment 
The exponential rise in antibiotic-resistant microbes is a major public health threat worldwide. Moreover, with approval times for new antibiotics taking more than a decade in most cases, finding a viable treatment among previously approved...
The Economic Times  Aug 18  Comment 
After Vishal Sikka resigned as CEO and MD of Infosys, the company has appointed chief operating officer UB Pravin Rao on these posts.
The Hindu Business Line  Aug 11  Comment 
United Breweries has removed Vijay Mallya as director on its board after the Securities Appellate Tribunal (SAT) upheld the market regulator SEBI’s order barring him from holding any office of any li...
The Economic Times  Jun 8  Comment 
Pravin Rao said that the company's consulting business will remain muted for the rest of the year as it reworks this unit.
The Economic Times  Jun 2  Comment 
"Layoffs are regular, performance-based things that we do every year. The number is really 300-400," Infosys COO UB Pravin Rao said.


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  
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki