UBS to cut hundreds of wealth jobs in Asia as activity slows
UBS Group AG is cutting hundreds of wealth jobs in Asia just months after completing its takeover of rival Credit Suisse as the bank responds to muted client activity and China’s slowing economy.
Switzerland’s largest bank reduced some overlapping roles in the past months and further cuts are expected through November, according to people with knowledge of the matter, who asked not to be identified as the plans are private.
The lender is set to eliminate a few hundred roles that include relationship managers in Hong Kong and Singapore, the majority within teams newly acquired from Credit Suisse, the people said. The number of cuts hasn’t been finalized, they said.
The lender plans to keep the majority of private bankers in Australia and India for now, one of the people said.
UBS is battling muted client sentiment and activity levels in Asia-Pacific, where the regional business hub of Hong Kong has long been a booking center along with Singapore for China’s ultra-wealthy. The wealth management unit’s profit before tax in the region fell by 9% in the second quarter from a year earlier.
UBS shares erased earlier gains on Monday, trading at 22.73 Swiss francs ($25.493) at 11:18 a.m.
in Zurich.
The world’s second-largest economy expanded 3% last year, one of its slowest rates of growth in decades as pandemic controls and a property crisis battered the country. Its eventual reopening provided hope China would bounce back this year, but that recovery has lost ground and the benchmark stock index is on track for a third straight year of losses.
A UBS spokesperson declined to comment.
Since closing the takeover of Credit Suisse in June, UBS has outlined major targets for the integration of its former rival including 3,000
