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Swiss Banks at a reduced entry price?

Friday, 23 August 2019 Reading time : 3 minutes

Swiss bank shares cannot outperform the Swiss equity market in terms of their price development over the year. While the SMI® has achieved a price increase of more than 16% since the beginning of the year, Swiss bank shares have recorded the following price developments:

  • + 5.00% Credit Suisse
  • - 14.60% UBS
  • + 10.80% Julius Bär

Fundamentally, the Swiss banking sector currently appears attractively valued. This is supported by comparisons of current vs. historical price/earnings of 12.18 (Credit Suisse), 8.72 (UBS), 13.28 (Julius Baer) and price-book ratios of 0.65 (Credit Suisse), 0.73 (UBS) and 1.43 (Julius Baer).

If one of the three stocks loses more than 29%* of its Initial Fixing Level at maturity, the investor will receive a physical delivery of the worst performing stock. Special feature: The entry price is 71%* of the initial fixing level.

Key data - ZKB Reverse Convertible Defensive Swiss Banks
  • Strike at 71%* of the Initial Fixing Level (no barrier)
  • Guaranteed coupon of 3.00%* p.a.
  • Maturity of 1 year
  • Currency CHF
  • Termsheet

*indicative

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