The crystal and electronic structure, magnetic and electric properties of intermetallic compounds YbxGd1−xNi5 (x = 0.0, 0.2, 0.4, 0.5) are presented. The whole series crystallize in the hexagonal CaCu5 type of crystal structure. The ordering temperatures TC and the effective magnetic moments decrease with increase in ytterbium concentration. The electronic structure studied by X-ray photelectron spectroscopy method shows the domination of Ni 3d states nearby the Fermi level. The multiplet structure visible in valence bands is typical of Yb 3+ ions.