UBS Expects Pandemic to Boost Bank M&A in Europe and the U.S.

UBS Group AG expects the coronavirus pandemic to further boost consolidation in the banking sector amid increasing threats from low interest rates and intensified competition.

“There are likely to be more mergers and acquisitions in the U.S. and especially the European Union, with growing regulatory appetite,” UBS said in its annual report published Friday. Switzerland’s biggest bank also said it sees further disposals of non-core businesses and assets as banks seek to simplify their business models to reduce operational and compliance risks.