UBS combines wealth management and investment banking to achieve cost efficiency
Swiss financial group UBS has confirmed its decision to merge the back offices of its wealth management and investment banking divisions.
The restructuring will be implemented at the beginning of July and will see Ulrich Hoffmann, currently head of operations in the wealth management unit, to lead the combined team, with around 7,000 staff.
According to the Q1 financial results released by the bank at the beginning of May, UBS’s wealth management units attracted CHF10.9bn (€9.07bn) in net new funds.
At the time, chief executive Sergio Ermotti confirmed the bank’s strategy to rebuild the wealth management business despite challenging market conditions.
According to the same strategy, UBS is shrinking its investment bank to focus more on wealthy customers.
UBS is looking to scale back the investment bank business to to focus on private banking, and it is looking to achieve a CHF2 bn cost savings by the end of 2013.
Q1 pretax loss for the investment bank arm was of CHF 373m. The performance was affected by the $2.3bn loss caused by unauthorized trading and revealed in September.