UBS wealth chief Khan pushes ‘net new money’ mantra in Asia tour

UBS Group’s global wealth chief Iqbal Khan is back in Asia – this time to rally his enlarged workforce to gun for new assets as the company targets the region for growth following its takeover of Credit Suisse.

In at least his third visit to Asia in four months, Khan this week hosted receptions for hundreds of Credit Suisse and UBS wealth staff at the Hong Kong Convention and Exhibition Centre on Tuesday (Jul 4), and Sands Expo and Convention Centre in Singapore on Thursday, said people familiar with the matter. The events were ostensibly to celebrate the two companies coming together, but the underlying message was clear.

In Singapore, Khan got up front to tell bankers they need to focus on three letters: “NNM”, an acronym for net new money, said the people, asking not to be named as the event was private. Arriving staff were greeted by a “Power of Two” display showing two people rowing a canoe in harmony, and entertained by a live band and game booths. On stage, top executives from the two companies put their arms around one another as they posed for pictures.

Khan had the same message for those in Hong Kong, namely that bringing in net new money is the main focus, the people said.

A spokesperson for UBS declined to comment.

UBS plans to retain a few hundred Credit Suisse private bankers in the Asia-Pacific region, bringing its total to more than 1,200 in one of the few areas spared from deep cuts following the takeover, Bloomberg reported last month.

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The move is being driven by Khan, who is betting Asia will continue to generate lucrative fees even as Credit Suisse suffers sharp asset outflows from clients in other regions. With the addition of Credit Suisse bankers, UBS will have more relationship managers in Asia than its closest rivals DBS Group Holdings and HSBC Holdings combined.

Even before the merger officially closed last month, UBS and Credit Suisse offered a rare incentive for wealth bankers in Asia to bring in fresh cash. Staff at both firms will receive commissions of 15 basis points, or 15 US cents for each US$100 in new client money they bring in, Bloomberg previously reported.

In Asia, UBS faces competition from rivals that are ramping up their wealth arms, such as HSBC and Citigroup as well as regional banks including DBS of Singapore. BLOOMBERG