Why UBS Interview Questions

UBS is a worldwide financial services company that gives quite several products and services to its clients.

Here's a detailed overview of what UBS offers:

A. Wealth management 

They offer a complete variety of wealth control services, consisting of investment advice, portfolio management, financial planning, and estate planning.

Additionally, they provide access to an in-depth range of funding products, which incorporates equities, fixed profits, and alternative investments.

B. Investment banking 

The company is the most renowned investment banking company around the world. They provide services like mergers and acquisitions, portfolio management, fundraising, and consultancy services.

They have a strong presence in the global capital markets, serving clients across industries and geographies.

C. Asset management 

The company generally expands investment merchandise and techniques via its asset management department, along with mutual funds, exchange-traded funds (ETFs), hedge funds, and private equity. They also offer customized investment solutions for institutional clients.

D. Retail banking and commercial banking 

They offer retail banking services, together with savings and checking accounts, credit cards, and mortgages, in selected nations. They also offer commercial banking services, such as lending, cash management, and trade finance, to corporate clients.

E. Corporate Center 

The company's corporate center provides more than a few support offerings, consisting of risk control, compliance, human resources, and technology. They also oversee the company's overall strategy and governance.

When preparing for a question about UBS's products and services, it's important to research the company thoroughly and understand its offerings in detail. By going through the company's website, you will get a basic idea of their conduct and give their services to their clients.

Additionally, consider the specific role you are applying for and how your skills and experiences align with the company's offerings. This can help you tailor your answer to demonstrate your qualifications and fit for the job.

If you are interested in management and valuation, go through our Valuation Modeling Course

The "strengths and weaknesses" question is a common one during job interviews, including at UBS.

We will dive into the detailed overview of the question and how we can answer this type of question.

A. Strengths

Here when discussing strengths, you have to be straightforward about your skills and abilities. Show them that your strengths are in alignment with the job role you are applying for.

Some examples of strengths that might be relevant for a job at UBS could include:

• Strong analytical skills
• Effective communication abilities
• Proven leadership abilities
• Ability to work well under pressure
• Excellent problem-solving skills
• Attention to detail
• Adaptability and flexibility
• Positive attitude and team player mentality

When answering this question, be sure to provide specific examples or stories that demonstrate your strengths in action.

For example, you might discuss a time when you successfully led a team through a challenging project or when you demonstrated strong analytical skills to solve a complex problem.

B. Weaknesses

When discussing weaknesses, it's important to be honest and self-aware, but also show how you are working to improve. Here are some tips on how to approach discussing weaknesses:

• Choose a weakness that is not a core requirement for the job. For example, if the job requires strong attention to detail, don't choose that as your weakness.
• Frame your weakness in a way that shows how you are actively working to improve. For example, "My weakness is public speaking, but I have been taking classes to improve my skills and have volunteered for opportunities to speak in front of groups to practice."

Sample answer:

“One of my strengths is my ability to effectively communicate with others. I have strong interpersonal skills and can clearly articulate my ideas and collaborate with others to achieve shared goals.

In my previous job, I used to be responsible for leading a team on a complicated task, and I found that my conversation skills had been critical in keeping each person aligned and moving on the right path.

One area that I'm currently working to enhance is my capability to delegate responsibilities to others. In the past, I have tended to take on an excessive amount of responsibility myself instead of delegating duties to different team members.

But, I've been actively working on this by setting clear expectations for group members, providing guidance and support when wanted, and trusting in their skills to get the task done.

I believe that by continuing to practice delegation and building stronger relationships with my team, I can become a more effective leader.”

Staying current with industry trends and advancements is critical for finance professionals, and this is a topic that is frequently asked during UBS interviews. In this question, the interviewer wants to know how you evaluate and stay up to date with current market trends.

Staying up to date on current market trends and affairs gives you a boost of information regarding investment banking and the financial industry’s core affairs.

Here are some tips that you can use as a reference.

A. Follow industry publications 

Subscribe to industry publications and read articles about current events and trends. It will keep you ahead of the average candidate.

B. Attend conferences and events  

Attend conferences and events that are relevant to your field to network and learn from other professionals.

C. Take courses and certifications  

Consider taking courses or certifications to deepen your knowledge and stay current with industry best practices.

D. Join professional associations 

Join professional associations in your field to access resources, attend events, and network with other professionals.

E. Network with colleagues 

Network with colleagues within and outside of your organization to exchange ideas and stay informed about new developments.

Sample answer:

“Staying current with industry trends and developments is essential in the financial industry, and I make a concerted effort to do so by regularly engaging in professional development activities.

For example, I frequently read industry publications and attend relevant conferences and events to stay informed about the latest trends and best practices.

In some recent days, I attended a conference on sustainable investing, wherein I found out about new techniques for integrating environmental, social, and governance (ESG) elements into investment decisions.

This information has helped me better advise clients on socially responsible investment options and position our organization as a leader in the sustainable investing space.

I also did a financial risk management course, which helped me keep updated on the newest approaches and tools for influencing financial risk.

This expertise has been beneficial in my work with customers, allowing me to better detect and minimize possible risks in their financial portfolios.

In addition, I am an active member of numerous professional organizations, including the CFA Institute, through which I have access to resources, attend events, and network with other professionals in the area.

Through these organizations, I can remain up to date on the newest financial sector trends and share my knowledge with other experts.

Just like that, staying up to date with current market trends gives me an overall picture of the financial industry. And with it, I am able to deliver the most effective advice and ideas to my clients while also contributing to the organization's success.”

The question "What is your experience with financial analysis and modeling?" is a common question asked during UBS interviews. This question is based on your experiences with financial analysis and modeling.

They evaluate a candidate by their past experience in the finance industry.

Here are some tips for your reference:

A. Highlight relevant experience 

Emphasize any relevant experience you have in financial analysis and modeling, such as coursework or previous work experience.

B. Provide examples 

Give specific examples of projects or tasks you have completed that involved financial analysis and modeling.

C. Explain your approach 

Explain your approach to financial analysis and modeling, including any tools or software you use.

D. Discuss results 

Discuss the results of your financial analysis and modeling work, including any insights you gained and actions taken as a result.

E. Highlight soft skills 

Highlight any soft skills, such as attention to detail and problem-solving, that are important for success in financial analysis and modeling.

Sample answer:

“In the past, as a financial analyst, I was in charge of analyzing financial records and constructing financial models to find traits and forecast future performance. For example, I developed a financial model to anticipate a new company's income for the following three years.

I used Excel to create a model that incorporated historical data, industry trends, and sales projections to forecast revenue growth.

Based on this model, I recommended strategies to increase revenue, such as expanding the company's product line and increasing marketing efforts.

I feel soft qualities such as attention to detail and problem-solving, in addition to technical abilities, are necessary for success in financial analysis and modeling. 

I take pride in my ability to identify potential financial data errors and think creatively to solve problems.

I am confident in my skills and my experiences with financial analysis and modeling. I believe I can outperform and be a valuable member of the UBS team.”

Want to excel in financial statement analysis and modeling? You might like our Financial Statement Modeling Course.

This question is primarily based on your past experience in gathering the company's data and how you would analyze the financial data of the company.

Valuing a company is a difficult process. It is a very complicated task because here we have to collect the company's financial data and its current market trends.

Also, advanced knowledge of financial statements and accounting is a must. To approach this task, a financial analyst should consider various methods such as discounted cash flow analysis, multiples-based valuation, and an asset-based valuation.

As well as, here, we have to gather the most relevant data regarding financial statements such as data related to the balance sheet, income statements, and cash flow statements.

Following that, we must do a full complete financial analysis of the company's financial health, market trends, and prospects for development.

Some basic tips:

• Familiarize yourself with different valuation methods and understand when to use each one.
• Collect as much relevant financial data as possible of the company. And you must note that the data should be up to date.
• Look up external matters such as the company's market trends, financial health, and consumer satisfaction that may affect the company's value.
• Be prepared to explain your approach and defend your valuation based on sound financial analysis.

Sample answer:

“When approaching the task of valuing a company, I would first gather all relevant financial data including income statements, balance sheets, and cash flow statements. And as an interviewer, you must know that collecting relevant information on the company's financial data is no joke.

As well as the collection of financial statements data such as balance sheets, income statements, and cash flow statements should be accurate.

Following that, I would study the enterprise's monetary performance by calculating essential financial ratios like earnings per share, return on equity, and debt-to-equity ratio.

I would then use several valuation methodologies to establish the company's worth, such as discounted cash flow analysis, multiples-based valuation, and an asset-based valuation.

In addition, I would consider external factors such as market trends, industry analysis, and economic conditions to further refine my valuation.

Finally, I would present my findings and defend my approach based on sound financial analysis and market research. This is the basics of what I do when I have a task related to this. But doing thorough research and analysis takes much time.”

Risk management is a very essential and critical factor in every organization. By asking this type of question, the interviewer wants to find out how you calculate risk and after calculating or finding risk, how you would overcome it.

As a financial professional, you must understand that risk management is a critical function in every organization. The financial industry is inherently risky, and effective risk management strategies can help to minimize potential losses and protect the organization's reputation.

Understanding the different types of risks that are important to the financial business is the first step in successful risk management.

A. Credit Risk 

Credit risk is the risk of loss resulting from a borrower's failure to repay a loan or satisfy financial commitments.

B. Market Risk 

The risk of financial instrument value losses owing to swings in market circumstances such as interest rates, currency rates, and stock prices.

C. Operational Risk 

The risk of losses is due to inadequate or failed internal processes, people, systems, or external events.

D. Reputational risk 

The threat of harm to an enterprise's reputation which can rise from negative exposure, poor customer support, or unethical conduct.

Once you've identified the different types of risks that apply to a given company, the next step is to create robust risk management policies and processes suited to your unique risks and needs.

Following are the most critical problems:

A. Risk Appetite 

Establish risk tolerance thresholds for each risk category and determine the degree of risk your organization is willing to take.

B. Risk Assessment 

Regularly assess the likelihood and potential impact of each type of risk, and prioritize them based on their severity.

C. Risk Mitigation 

Develop strategies to reduce or mitigate the risks identified in your risk evaluation, which include diversifying your investment portfolio, imposing more potent internal controls, or making an investment in risk management technology.

D. Risk Monitoring and Reporting 

Establish processes for monitoring and reporting on risks, including regular reporting to senior management and the board of directors.

E. Staying Up-to-Date on Emerging Risks and Trends

Staying abreast with emerging potential risks and trends in the sector is essential for effective risk management. This includes tracking legislative adjustments, being updated on new technology that can influence the corporation, and staying up to date on industry trends and best practices.

F. Working Collaboratively with Cross-Functional Teams

Eventually, successful risk management depends on a collaborative strategy that includes working with cross-functional teams to incorporate risk management into all elements of the organization's activities.

Sample answer:

“I understand how significant and critical risk management is to the company. In my previous position, I was responsible for establishing and executing solid risk management policies and processes that were suited to the organization's particular risks and demands.

Understanding the many forms of risks related to the financial business, such as credit risk, market risk, operational risk, and reputational risk, was required.

To stay up-to-date on emerging risks and trends in the industry, I regularly attended industry conferences and events, and read relevant publications. This helped me develop proactive strategies to address new risks as they emerged.

In addition, I collaborated extensively with cross-functional teams to ensure that risk management was included in all elements of the organization's operations.

One of my most significant accomplishments was developing a disaster recovery plan and business continuity strategy that ensured the organization was prepared for unexpected events.

This included identifying possible hazards and establishing ways to mitigate their effects, as well as evaluating the strategy regularly to ensure its effectiveness.

Overall, my risk management experience has taught me the necessity of being current on best practices and new trends, as well as the value of cooperation and integration across all organizational areas.”

This is one of the most common and frequently asked questions by the interviewer to evaluate the candidate's understanding and knowledge of financial terms and their way of calculating them.

WACC stands for Weighted Average Cost of Capital and EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization. We can basically say that these terms are made to measure a company's financial health, performance as well as other prospects.

WACC is the average cost of capital that a company must pay to its investors for the use of its funds. It is computed by multiplying the cost of each form of capital (debt and equity) by its proportionate weight in the capital structure of the firm and then summing these products.

WACC is calculated as follows:

WACC = (E/V x Re) + (D/V x Rd x (1 - Tc))

Where:

E = market value of the company's equity

D = market value of the company's debt

V = E + D, the total market value of the company

Re = cost of equity

Rd = cost of debt

Tc = corporate tax rate

On the other hand, EBITDA helps us to measure a company's operating profitability before non-operating expenditures are considered. Simply non-operating expenditures are interest, tax, depreciation, and amortization.

It is computed by deducting the company's revenue from its cost of goods sold and operational expenditures. And here we have to exclude things such as interest, tax depreciation, and amortization.

Following is the formula of EBITDA:

EBITDA = Revenue - Cost of goods sold - Operating expenses (Except for depreciation and amortization)

EBITDA is typically utilized by investors and analysts to research a company's capability to generate cash flow from operations and to compare the performance of different corporations in the identical industry.

But, it is crucial to highlight that EBITDA excludes all non-operating costs, which may have a substantial effect on the organization's net earnings and financial fitness.

Sample answer:

“To calculate WACC, I start by calculating the cost of equity and the cost of debt. We know that the cost of equity is the rate of returns that is expected by investors on their investment in a specific company.

To calculate the cost of equity I use CAPM(Capital Asset Pricing Model). The cost of debt is the interest rate that the business pays on its debt. 

The weighted average cost of debt is then computed by multiplying each form of debt's interest rate by its percentage of overall debt. Finally, I combine the cost of equity and the weighted average cost of debt to calculate the WACC.

Regarding EBITDA, I begin by analyzing a company's net earnings and then I have to subtract the interest, tax, depreciation, and amortization because it helps to grasp the basic earnings of the company.

This gives me a demonstration of the organization's operating overall performance before accounting for financing, taxes, and non-cash factors consisting of depreciation and amortization.

Overall, understanding WACC and EBITDA is important for evaluating a company's financial performance and making informed business decisions.

By calculating these metrics, I can assess the company's cost of capital and operating performance, and make recommendations for improving profitability and overall financial health.”