* UBS aims to expand in the US, improve profitability

* Bank faces challenges revamping its US business

* Faced with tougher rules at home, Swiss bank seeks

growth abroad

(Adds more details throughout)

By Oliver Hirt and Dave Graham

ZURICH, March 20 (Reuters) - UBS has secured a

national banking licence in the United States, the Swiss bank

said on Friday, in a boost for its efforts to expand wealth

management in the world's biggest economy.

UBS said its application for a national bank charter had

been approved by the Office of the Comptroller of the Currency,

a positive step for the bank as it attempts to navigate tougher

banking regulations in Switzerland.

"This will strengthen our momentum in the U.S. and it

reinforces our ambition to lead as a premier global wealth

manager," Rob Karofsky, President of UBS Americas, said in a

video statement broadcast on LinkedIn.

UBS had applied for approval to convert its U.S. bank, UBS

Bank USA, to a nationally chartered bank, which will allow it to

match the full range of services offered by U.S. lenders,

including checking accounts, savings accounts and mortgages.

Brian Carlin, UBS's head of global wealth management U.S.,

said the charter would enable the bank to expand its client base

and services, though it would take time.

"We're now going to go head-to-head with offering everyday

banking," he said.

Banking products such as checking and savings accounts are

expected to be introduced for clients towards the end of 2027, a

person familiar with the matter said.

US IS MOST IMPORTANT WEALTH MARKET

UBS sees the U.S., where more than 1,000 people became

millionaires every day in 2024, as the most important growth

market in its core wealth management business.

But UBS is less profitable than leading U.S. banks, such as

Morgan Stanley ( MS ). UBS is also facing obstacles in revamping

the U.S. business after losing billions of dollars in client

assets and nearly 200 financial advisers, according to analysts

and industry sources, Reuters reported this week.

A firmer foothold in the United States could help UBS grow

its business as it seeks to satisfy investor demands for bigger

returns.

The need to bolster the U.S. business has taken on extra

urgency since UBS bought Credit Suisse after its rival collapsed

in 2023, prompting the Swiss government to embark on plans to

make the banking sector less risky with stricter regulations.

The government is expected to present a draft law with its

proposed regulations during the coming month.

UBS would face higher capital requirements under the

proposed measures. The bank has criticised them as excessive and

has said they risk putting UBS at a disadvantage.