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The stocks of UBS and Credit Suisse aren't budging. The reasons couldn't be more different, finews.asia finds after parsing quarterly results from the both giants.

A disappointment for Sergio Ermotti und Tidjane Thiam: the respective bosses of UBS and Credit Suisse each posted steady and reliable results for investors in recent weeks. At UBS, Ermotti delivered on a 2012 promise to generate profits with less risk and volatility. Thiam dropped Credit Suisse's first profit since 2014 after hitting most targets in a three-year restructuring bid.

Both Swiss banks lifted payouts to shareholders, and both even launched a new share buyback – and investors appeared not to acknowledge any of it. Both bank's stock have edged slightly higher this year amid a rise in wider markets. But neither UBS nor Credit Suisse truly enjoy investor backing, as illustrated by their unsparing valuation.

Below Book Value

UBS trades at just 90 percent of its book value, while Credit Suisse is languishing at 0.7x price-to-book. Both Ermotti and Thiam have become practiced at asking investors for patience until their respective shares: the market will eventually honor their efforts, and shareholders had perhaps not fully understood their strategy are common themes.

Both also highlight the fact that bank stocks have it hard with investors at the moment. A closer look at the most recent profits at UBS and Credit Suisse shows the reasons the respective shares haven't dazzled are entirely different.

Global Markets, Global Wealth Management

At Credit Suisse, the fly in the ointment is – no surprise – the markets and trading department. By contrast, UBS' investment bank doesn't seem to worry investors, even after the surprise exit of long-standing leader Andrea Orcel last year. Switzerland's largest bank may be the world's weightiest wealth manager, but investors seem to be fretting about the flagship business.

Direct comparisons between the big two Swiss are difficult, because UBS and Credit Suisse have carved up their divisions differently, and vary how they assign spending as well. Nevertheless, the comparison of several key figures is telling.

Shrinking Business

First, in investment banking, Credit Suisse continues to maintain an oversized trading arm which soaks up too much capital in comparison to what it returns. The unit's return on equity stood at 3.1 percent last year, even less than in 2017.