UBS amasses 1,200 private bankers in Asia as region spared cuts
UBS Group initially plans to take on the bulk of Credit Suisse private bankers in Asia Pacific, bringing the total headcount to over 1,200 in one of the few regional business divisions spared from deep cuts.
The move is being driven by global wealth chief Iqbal Khan, who is betting Asia will continue to generate lucrative clients, according to people familiar with the matter. The integration will give UBS more relationship managers in the region than its closest rivals DBS Group Holdings and HSBC Holdings combined.
While the plans may help cement UBS’s dominance in one of the world’s fastest-growing wealth markets, they are a departure from the firm’s treatment of its investment bank, which is likely to see widespread cutbacks. UBS executives have told their Credit Suisse colleagues that they prefer selectively bolstering their own investment bank while dumping the riskier operations, Bloomberg reported previously.
The emergency takeover has scuppered Credit Suisse’s plans to spin-off parts of that business under the Credit Suisse First Boston brand, leaving dealmakers at a loose end.
A UBS spokesperson declined to comment.
Switzerland’s largest bank may decide over the next several months whether to retain bankers whose roles overlap in markets including Hong Kong, Singapore and Japan, according to one of the people who asked not to be identified as the details aren’t public. The Swiss bank likely will keep Credit Suisse’s wealth presence in India and Australia, which are what it lacks and covets, said one of the people.
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UBS was already the biggest wealth manager in Asia excluding China before it pushed ahead with the acquisition, topping its rivals both in terms of assets under management and headcount, according to Asian Private Banker estimates.
Khan recently recruited banker Young Jin Yee from Deutsche Bank, less than six months after she had jumped to the German lender from Credit Suisse.
Private bankers are in high demand in Asia, known for its huge growth potential where competition is fierce as firms including HSBC, Citigroup and Singapore’s DBS are all expanding.
The combination of the two financial giants begins in earnest now after the formal closing of the takeover on Monday, around three months after the Swiss state orchestrated the US$3 billion deal as Credit Suisse headed for collapse. UBS top executives, including chairman Colm Kelleher have made clear that remaining Credit Suisse bankers would be put through a “culture filter” to weed out undesirable practices from the bank. BLOOMBERG
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