UBS: U.S. Wealth Prospered Despite Big Asset Outflows

UBS Wealth Management Americas was the breadwinner for its Swiss parent’s global prosperity franchise in the fourth one fourth despite experiencing elevated client asset withdrawals. The bank’s strategy of slashing recruiting in the U.S. UBS executives said. The Wealth Americas business, jockeyed by 6,850 agents in the U.S. That made the Americas device the bank’s most profitable by in the quarter far. UBS Chief Financial Officer Kirt Gardner attributed the Americas wealth jump to raised fee-based revenue and net interest income. But UBS’s stock plunged on the report, partly because of the diminishing possessions and broker outflows.

3.6 billion of customer property in the fourth one fourth. 8 billion of asset outflows at UBS’s prosperity businesses globally. The picture for the Americas business was less beneficial for the entire year. 4.1 billion in 2018, which makes it the only net loser on a yearly basis over the Swiss banking giant’s business divisions.

Assets grew at a rate of 0.3% in the Americas, below the 2% to 4% development focus on that UBS has provided to investors. “Our online new money performance was influenced by outflows from net recruiting,” Gardner informed analysts with an income call. UBS will not break down advisor counts between its U.S. Latin American businesses, but said total headcount in Americas Wealth of 6,850 brokers at the end of 2018 was 60 less than three months previously.

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The brokerage power is less than half the 14,800 and 15,800 that Merrill Lynch and Morgan Stanley reported at yearend respectively. Several UBS Wealth Americas brokers and branch managers said that numbers they receive to show their relative performance show a continuous slip in brokerage force numbers. UBS wide U.S. franchise was comprised of about 6,320 agents, down from 6, year ago 606 one, according to 1 of the internal sources, who spoke on condition of anonymity.

A UBS spokesman declined to touch upon the source’s accounting. In October, UBS officials said that they had dropped their target of keeping the Americas brokerage drive in a variety around 6,500 to 7,000 agents. 3 billion overhang of forgivable loans from previous hiring sprees. 1.a calendar year ago 263 trillion.

Ermotti, while contacting the asset declines unsatisfactory, told analysts that he was nevertheless pleased with the U.S. Americas where world wide web new money was negative, we do better than our key rivals in terms of invested asset developments both on quarter-on-quarter and year-on-year basis,” the professional said. Fewer hires and “record” inflows of property among existing companies are “in keeping with our strategy,” Gardner said.

1.346 million, the spokesman said. UBS Wealth Americas executives lately reversed punitive steps that would have made it harder for experienced agents to contact former clients if they remaining, and continue steadily to preach cost-cutting that they said is proving successful. 2.305 trillion in the year-ago one fourth and off 8% on the linked-quarter basis.

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