UBS offers sweeteners to Credit Suisse Asia wealth bankers to retain talent: sources

UBS promised retention packages to wealth-management staff in Asia at Credit Suisse, two people with knowledge of the matter said, as the bank tries to stem a talent exodus after the takeover of its former Swiss rival.

In a town hall address in Hong Kong on Friday (Mar 24), Iqbal Khan, UBS’s president for global wealth management, also focussed on stabilising the Credit Suisse Asia team and boosting confidence, one of the two sources said.

Credit Suisse had been steadily losing wealth management market share to UBS and to more well-capitalised United States banks in investment banking in the last few years, but remained the second-biggest wealth manager in Asia – behind only its acquirer.

Asia, particularly the greater China region, is seen as a growth engine for both banks.

In his address, Khan said the top performers at the Credit Suisse wealth business will get retention packages, the second source said. The details of the retention package were not immediately known.

The main message during the Friday town hall was to encourage the senior managers of Credit Suisse’s wealth business that the prospects would be bright after the firms merged, a third person said.

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Khan said it would take time, but the merged entity would emerge as an even stronger player in the wealth management business and Credit Suisse staff had no need to be worried, the person added.

The sources declined to be named as they were not authorised to speak to the media.

Spokespeople for Credit Suisse and UBS declined to comment.

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Bloomberg first reported the development on Friday.

Khan, a former top Credit Suisse banker, held the town hall along with Francesco de Ferrari, Credit Suisse’s CEO for wealth management, two of the sources said.

UBS told Credit Suisse wealth bankers in Zurich this week that it is weighing financial sweeteners for them to stay as it seeks to reassure key staff following the takeover, Reuters reported on Monday.

UBS said on Sunday it would pay 3 billion Swiss francs (S$4.35 billion) for 167-year-old Credit Suisse and assume at least US$5.4 billion in losses in a deal backed by a massive Swiss government guarantee and expected to close by the end of 2023. REUTERS