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UBS said to begin review of Australia wealth-management business
[SYDNEY] UBS is undertaking a review of its Australian wealth-management business that may lead to a sale of the unit, people familiar with matter said.
Mike Chisholm, the bank's head of wealth management in the country, spoke to his team Tuesday about the review, which is focused among other things on management structure and the technology platform, said the people, asking not to be identified because the matter is private. The process may or may not result in a sale, they said.
While the reasons for the review are not clear, it comes after UBS's global wealth-management division posted lower-than- expected earnings in the fourth quarter. Chief Executive Officer Sergio Ermotti reorganiSed Switzerland's largest bank to focus on money management for the wealthy, a business that's under pressure from negative interest rates.
A representative for UBS in Sydney declined to comment. The possibility of the sale of the business was reported by the Australian Financial Review Thursday.