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Exclusive: UBS weighs asset management overhaul to reduce costs, sources say
By Jerry
LONDON/ZURICH, May 2 (Reuters) – UBS is weighing plans to cut several hundred million dollars of costs in its asset management division as the bank studies options for a business whose profit is under pressure, people with knowledge of the discussions told Reuters.
The initial focus of the review will be to bring down costs, the people said. One of them said the Swiss bank aims to cut at least $300 million in costs at the business, including by reducing Switzerland-based back-office staff who joined with Credit Suisse, the people said. The bank is also considering whether parts of the unit should be absorbed by its larger wealth management activities, the people added.
A representative for UBS declined to comment.
UBS has been integrating Credit Suisse since taking over the bank last year in a state-sponsored rescue.
Asset management businesses, which invest client money in a range of products, increasingly need scale to be able to compete and preserve profitability.
UBS’s asset management division contributed less than 7% to the bank’s total revenues in 2023 and is dwarfed by the bank’s wealth management division which makes more than half of the group’s total revenues.
Source: REUTER
