Tag: UBS

  • UBS Tops Broadridge’s China Rankings for Asset Managers

    UBS Tops Broadridge’s China Rankings for Asset Managers

    UBS Global Asset Management took the top of Broadridge’s ranking of global asset managers in China, based on a survey of 50 fund gatekeepers from the mainland market.

    The survey is based on six criteria: brand perception, China fund assets under management (AUM), global investment strength, local business operations and scope, and the firm’s strategic prioritization of the China market.

    The Swiss asset manager took the top spot again – the firmed first launched the rankings in October 2019 – followed by J.P. Morgan and Blackrock. By AUM size, Blackrock, UBS, DWS, Invesco and Fidelity all ranked in the top five.

    As with many other things in the mainland market, brand name matters and it often has stronger effects to distribution than other more mature markets that may use a portfolio of diverse instruments such as through discretionary mandates.

    The survey highlighted both J.P. Morgan and Fidelity for their strong efforts in this regard, with the former taking the top rank – it scored high across all 50 respondents – and the latter breaking the top 10 as a new entrant.

    Despite an ongoing global pandemic, global asset managers continue to capitalize on a historic opportunity to enter the mainland market with such deep levels of participation, sometimes at the wholly-owned level. J.P. Morgan will look to invest $1 billion to take full ownership of its joint venture partner China International Fund Management (CIFM). BlackRock and Singapore’s Temasek are in talks with China Construction Bank’s wealth unit to form a new asset management joint venture.

    Barring further COVID-19 related setbacks in the mainland, we see that global managers are well set to resume the rapid ramp-up of their onshore presence, said Yoon Ng, Broadridge’s senior director of APAC insights, adding that local authorities are expected to keep opening up the financial sector as planned.

  • Ex-UBS Private Banking Veteran Reemerges at StanChart

    Ex-UBS Private Banking Veteran Reemerges at StanChart

    A private banking veteran, most recently with UBS leading a team covering high net worth clients in Hong Kong, has reemerged at Standard Chartered.

    Chiu Wai Man has joined Standard Chartered as a deputy market head for Hong Kong, effective as of yesterday.

    A spokesperson for the bank confirmed the new hire.

    Chiu was most recently the Hong Kong country team head at UBS where she joined in 2018 with the task of hiring more relationship managers for the bank’s high net worth business in the city under regional market manager Adeline Chien. Chiu has around 20 years of banking experience and was previously with Hang Seng leading a 30-strong private banking team after stints with ANZ and HSBC.

    2020 remains on track to reach its target of $100 billion assets under management (AUM) in the next two to four years. The bank had over $67 billion of AUMs as of 2019-end.

    In January this year, Standard Chartered hired another ex-UBS banker, Gerald See, as an executive director and senior client partner based in Singapore to focus on ultra-high net worth (UHNW) clients. At UBS, See was previously a director in its family office and UHNW division.

  • UBS Bonus in Times of Crisis

    UBS Bonus in Times of Crisis

    UBS has had a great start to the year 2020 – and yet, under the impression of the coronavirus pandemic, the company plans to curtail bonus payments, if shareholders are forced to take a cut of their dividend.

    Should UBS not suddenly unearth a negative surprise when managers put together first-quarter results in coming days, the bank will present a very nice set of numbers: net income for the first three months of 2020 amounted to about $1.5 billion, a third above the year-earlier figure, the bank said in a statement on Thursday.

    With a strong operating performance in all business divisions, even after accounting for credit loss expenses and own credit valuation adjustments, the bank will exceed the expectations of analysts (which date back to the time before the pandemic). It seems unlikely though that the boom will continue under the current circumstances.

    It seems that Switzerland’s largest bank succumbed to the pressure applied by the finance regulator Finma and the demand for the solidarity of the management with shareholders. Should the bank not be able to pay the second installment of the dividend in the autumn of 2020 because of a weaker performance this year, the board and executive will also see their variable payment components affected.

    In that case, the bank will not pay its top managers a cash bonus. The bank would instead convert the bonus into deferred equity and similar financial products.

    UBS also said it might resort to additional measures with respect to the pay of Chairman Axel Weber and CEO Sergio Ermotti. The latter is one of Switzerland’s best-paid managers. He earned a total of 12.5 million Swiss francs in 2019.

    Credit Suisse, which also altered the way it will pay out the dividend to shareholders, didn’t make a statement in regard to pay. It has said in mid-March that it had a successful start to the year.

  • UBS Boss Donates to Corona Efforts

    UBS Boss Donates to Corona Efforts

    Sergio Ermotti is donating 1 million francs towards pandemic relief efforts. The UBS boss is working from home in his native Ticino, which borders the hardest-hit area in Europe.

    The Swiss wealth manager’s CEO said he has dispersed 1 million Swiss francs ($1.1 million) in personal funds to his family’s foundations to help with relief efforts. Ermotti is working from home in Montagnola, a small Swiss village overlooking Lake Lugano and near the Swiss-Italian border.

    I hear about the difficult situation in hospitals and people who have lost members of their family. The situation is dramatic! Ermotti told Swiss tabloid Blick in an interview on Monday. His corona donation will be dispensed by a foundation he launched together with his wife and his siblings in 2011.

    Ermotti said the funds will be routed via non-profit organizations to people in need of emergency funds. UBS itself has also been generous, donating 30 million francs for patients and families in Switzerland affected by the virus’ outbreak.

    The crisis represents an opportunity for Ermotti to display UBS’ Swiss credibility: Now, we’re part of the solution and not part of the problem anymore, he told the outlet, alluding to Switzerland’s 2008 bailout of UBS.

    Last week, the Swiss government unleashed a massive bailout, enlisting banks like UBS to help small businesses battered by the crisis. «We received 10,000 loan applications within 36 hours. By Sunday night, all of them were processed and roughly 1 billion Swiss francs approved,» Ermotti said.

    UBS, like Credit Suisse, has pledged to donate any proceeds from the emergency loans to charity. Ermotti ends his nine-year tenure as CEO of UBS in November when Ralph Hamers, head of ING, takes over his job.

  • UBS Opts for Digital Shareholder Meeting

    UBS Opts for Digital Shareholder Meeting

    The world’s largest wealth management giant UBS is canceling plans for a physical shareholder meeting at the end of next month. It is holding fast to a hefty dividend.

    Swiss-based UBS will conduct its annual general meeting on April 29 online, it said in a statement on Monday. The outbreak of the novel coronavirus is stopped assemblies of more than five people in Switzerland until at least April 19.

    The bank also said it will hold to plans to pay $0.73 per share as a dividend. UBS’ lead regulator Finma last week urged Swiss financial firms to rethink their 2019 payouts in order to spare their capital for the economic fallout of the pandemic.

    Holding its shareholder meeting online means UBS is avoiding public criticism of its pay policies and of its handling of a high-stakes French criminal trial. UBS’ investors last year denied directors and top management an all-clear because of the case, which is due to head into appeal in June.

    UBS said it would ask shareholders to vet management and its board for 2019 on all issues – except on the French case. As previously disclosed, directors David Sidwell, Isabelle Romy, and Robert Scully aren’t standing for reelection, while UBS is proposing Mark Hughes and Nathalie Rachou in their place.

  • UBS Disperses Calming Drops

    UBS Disperses Calming Drops

    The world’s largest wealth manager sought to soothe investor nerves amid market turmoil sparked by the coronavirus pandemic.

    Swiss-based UBS said it had observed «little to no» disruption in service to wealthy clients as trading volumes surged amid a stock and bond market rout. Worries that the coronavirus pandemic’s effect on the global economy is overshadowing broad policy moves meant to counter the fallout.

    The remarks address a pandemic expected to wreak economic havoc: Deutsche Bank on Wednesday predicted a global recession, with the demand to plunge in China this quarter and in Europe and the U.S. next. Rating agency Moody’s noted that global investment banks’ solid liquidity allows them to manage rising drawdown demands.

    Private banks like UBS are seeing volume surge as investors shift their portfolios and hunt for liquidity to meet margin calls. We have seen little to no disruptions in service to our clients and have successfully managed very high volumes across our businesses, particularly in our trading operations, finance chief Kirt Gardner said on Wednesday.

    He underscored UBS’ conservative capital cushion, its ample liquidity and funding, and successful stress tests. «While previous economic growth projections are clearly no longer valid, it is too early to forecast the impact» – and it depends on official responses from health, monetary, and other authorities, he noted.

  • UBS Grounds Bankers Amid Virus Fears

    UBS Grounds Bankers Amid Virus Fears

    UBS is halting international travel for its staff, asking its employees to postpone meetings or opt for remote ones. The move comes in response to COVID-19.

    The Swiss bank on Wednesday told its more than 60,000-strong staff to stop traveling for meetings, a UBS spokeswoman said on Wednesday. UBS is adopting the policy for all not absolutely business-critical» travel in response to COVID-19, a disease caused by the new coronavirus.

    Existing meetings will be postponed – or held remotely through digital channels, the spokeswoman said. UBS bankers who had visited China, Italy, South Korea, or Iran in recent weeks – for work or personal travel – are asked to work from home for the next 14 days.

    Roughly 20 percent of UBS’ staff work in the Asia-Pacific region and a sizable amount in China – but the Zurich-based wealth manager doesn’t break out employee numbers by country. Its cross-town rival Credit Suisse put roughly 1,000 compliance, information technology, and trading employees in Switzerland on a staggered home office rotation from Monday.

    UBS is apparently warning its staff to hold back on personal travel, and requiring approvals from senior management if they want to travel to non-bank events. On Tuesday, the World Health Organization said COVID-19 can be contained, but that its mortality rate is higher than the typical seasonal flu.

  • Sergio Ermotti Set to Leave UBS

    Sergio Ermotti Set to Leave UBS

    UBS Chief Executive Sergio Ermotti will leave the bank after retiring from his position later this year. He won’t become the chairman of Switzerland’s largest bank, as some observers had expected.

    Instead, Sergio Ermotti on April 17 will stand for election as a non-executive member of the board of Swiss Re, the world’s second-largest reinsurer.

    In 2021, he will be nominated to succeed Walter Kielholz as chairman, according to a statement by Swiss Re on Tuesday.

    Kielholz is one of the heavyweights in Swiss finance and has been chairman of Swiss Re since 2009. He was on the board of the reinsurer for more than 20 years. Between 2003 and 2009, Kielholz was chairman of Credit Suisse.

    I am honored to be following in the footsteps of Walter Kielholz, who over the past decades immensely furthered the development not only of Swiss Re, but the entire Swiss financial center, said Ermotti, according to the statement.

    Today’s announcement put paid to speculation that CEO Ermotti would be replacing Chairman Axel Weber after retiring from his current position at the end of October. When the bank announced Ermotti’s departure at the end of February, it didn’t make a statement about a potential handover of responsibilities at the top of the bank.

    At the end of his tenure at UBS, Ermotti will have been CEO of Switzerland’s biggest bank for nine years. Together with Weber, who was elected chairman of the bank in 2012, he has moved UBS away from the classic investment banking model toward a strategy based on wealth management.

    More recently, the talk had been about differences of opinion at the top as the board was said to be unhappy how Ermotti had set up his succession plan. UBS has not been able to give the share price a boost, which has never recovered from the financial crisis.

    The appointment of Dutch banker Ralph Hamers in February as Ermotti’s successor came as a major surprise. Hamers is known for his digital banking expertise and will need to get UBS ready for the future.

  • UBS Cuts CEO Sergio Ermotti’s Pay

    UBS Cuts CEO Sergio Ermotti’s Pay

    UBS boss Sergio Ermotti’s pay fell more than 10 percent in 2019, amid a setback for the wealth manager in a landmark French criminal trial. Private bank co-boss Iqbal Khan was paid $8.4 million to defect from Credit Suisse.

    The Swiss-based bank cut pay for outgoing CEO Sergio Ermotti to 12.5 million ($12.9 million) last year from 14.1 million francs in 2018, according to UBS’ annual report published on Friday. The bank said it weighed the impact of a French criminal ruling against UBS last year for top executives, as well as the «resulting share price development».

    The long-standing UBS boss, who is a notable shareholder as well, remains the highest-paid banker at the Swiss wealth giant – and likely among the top earners of European bank CEOs as well. UBS paid its new-co-head of private banking, Iqbal Khan, 8.2 million francs to defect from Credit Suisse last summer, the report reveals. His annual pay isn’t disclosed.

    Ermotti hands over to UBS’ next CEO, Ralph Hamers, in November. Hamers’ 1.75 million euro ($1.9 million) pay-day in 2018 illustrates the stark differences between corporate Switzerland and the eurozone: the Dutch banking veteran was due for a 50 percent pay rise two years ago for running ING – until Dutch politicians put the kibosh on it.

  • UBS’ Elite Squad of Top Bankers

    UBS’ Elite Squad of Top Bankers

    Three years ago, top executives including ultra-rich banker Josef «Joe» Stadler; domestic trouble-shooter Karin Oertli; Evidence Lab boss Barry Hurewitz; investigative head Emma Molvidson; and top Japanese private banker Victor Chang met for a twice-yearly confab overseen by CEO Sergio Ermotti near Zurich.

    After a day of meetings, the executives, part of a cadre of influential bankers at the Swiss wealth manager in the rank of «group managing director,» or GMD, were grouped for a team-building event. The challenge? The bankers had to change a race-car tire. Caroline Stewart, now finance chief of UBS’ investment bank, was on the winning team.

    As ING CEO Ralph Hamers prepares to take the top spot at UBS in November, the elite squad is coming into clearer focus: the title was introduced in 2010, and ranks have swelled under current CEO Sergio Ermotti. Several sources report that the system clogs the pipes in decision-making – something Hamers will have to tackle when he takes over.

    Now at more than 100, the executives form a kind of Praetorian Guard around the C-Suite, as one observer put it. For the most promising of the top executives, the GMD status is a way for the bank to illustrate the glide path into top management.

    It would be natural for Hamers to begin trimming their ranks. Besides being numerous, they are costly: GMDs make up part of 675 key UBS risk-takers, a group that took home a cumulative $1.25 billion on pay and bonuses last year (or nearly $2 million on average). They outrank the ladder of associate directors, directors, executive directors, and even MDs.

    Because they outrank nearly everyone and because they tend to be well-connected, GMDs can propel projects or ideas and mobilize resources even when times are tight. They are a powerful faction to woo because they wield great influence at UBS, which remains a hierarchically-run bank. Unlike vice-chairmen, aa role considered a largely symbolic consolation prize, the GMDs are operationally active.

    Perks for the GMDs like a private gym at one of the bank’s Zurich offices have raised eyebrows at home. The group is undoubtedly high-octane: part of the aim of designating a banker even more than a managing director is to keep them from defecting.

    That’s what long-standing wealth manager Juerg Haller, who has held both the GMD as well as subsequently the vice-chairman title, did recently: Haller is now chairman at family-controlled rival J. Safra Sarasin, a rival to UBS.

    GMDs enjoy other perks too: they are part of the same bonus pot that top management enjoys – so-called equity ownership plans – but their lock-up is shorter. The awards, like for Ermotti and his C-suite colleagues, can be clawed back if the wider unit’s performance disappoints.

    Part of the reason the rank – not the people themselves – are likely in for more scrutiny is that the process of getting there is completely opaque and at least partly political. Other banks have similar «super MD» statuses. Goldman Sachs, for example, held onto the «partner» designation when it went public.

    But unlike at the U.S. investment bank, where prospects are vetted by a committee and subjected to a series of interviews with partners around the world, UBS’ process is murky. The GMD status just appeared, and UBS has never given a satisfactory explanation of what the criteria is, a former UBS banker said. The bank also doesn’t disclose who is a GMD.

    UBS said its GMDs are its most senior leaders, under top management with a key responsibility to drive success for the whole group across businesses and functions, together with their teams‎. The Swiss bank declined to detail their role, number, or criteria for advancing to the rank of GMD.

    Several sources said the group is currently 100+ bankers, 60 of them in Switzerland, mainly in Zurich. The group is viewed as special within UBS, but the GMD status isn’t a shield against their stars dimming, a person familiar with UBS’ staff practices said.

    Typically, GMDs are afforded more time to look for another option at UBS if their roles are restructured: the process if somewhat more collaborative than with regular managing directors or other employees. «The GMDs are very actively managed, but it’s a much friendlier process than elsewhere,» the person said.

  • UBS Appoints New CEO

    UBS Appoints New CEO

    Switzerland’s largest bank, UBS, has named Ralph Hamers as its new Group Chief Executive Officer, effective November 1, 2020, according to a media release. Hamers currently serves as CEO of Dutch ING Group.

    Ralph Hamers will join UBS as a member of the group executive board on 1 September 2020 in order to ensure a smooth leadership transition. Effective 1 November 2020, Hamers will become group chief executive officer (CEO) and president of the executive board of UBS.

    The 53-year-old Dutch banker Hamers will succeed group CEO Sergio Ermotti who has been with the bank for more than nine years. He joined ING Group in 1991. During his career, he progressed through a series of roles across business segments and geographies before becoming CEO in 2013.

    Under his leadership, ING Group has implemented a fundamental shift in its operating model and is now considered one of the best examples of digital innovation in the banking sector.

    Hamers holds a Master of Science in Business Econometrics and Operations Research from Tilburg University in the Netherlands and is chairman of the European Banking Group, the leading European banking association.

  • UBS Hires a Proven Digital Transformer in Ralph Hamers

    UBS Hires a Proven Digital Transformer in Ralph Hamers

    Ralph Hamers brings with him a track record of not only profitability but also effective transformation to compete with tech giants that threaten to take the financial sector’s lunch.

    As expected, Sergio Ermotti stepped down from UBS’s top role succeeded by 30-year ING veteran Ralph Hamers. Though ending on a less than ideal note with 2019 results missing both profit and cost targets, Ermotti leaves behind a legacy of successfully transforming the business from being investment banking-focused to wealth management-focused.

    In Hamers, UBS has also hired a chief with a proven track record for transformation. His thoughts, speech and subsequent results at ING may very well paint him as the poster boy for the current zeitgeist in banking.

    In mid-2019, ING’s app was reportedly ranked 10th by daily usage in the Netherlands, behind mainstays like Facebook or Google. The reasons are almost purely non-financial. In addition to regular online banking, it was the biggest outlet for Philips products in the country through an e-platform that sells a vast array of non-food products including barbecues, TV sets, clothing and discount tickets for theaters.

    The Amazons, the Facebooks, the Googles of this world – knowing what people are looking for – are involved much earlier in this decision-making process, Hamers said. They know the trajectory of this customer going through that process and already have more intelligence than we will ever get. The question for me is whether I can build this platform, which is open, so I extend my activities into this decision-making process.

    Stemming from this strategic focus on mind share, the bank in 2018 purchased Makerlaarsland, a sizeable digital housing broker and agent (4-5 percent market share), precisely to be involved earlier in the decision-making process.

    While Europe does not house as many household tech names as the U.S. or Asia, its regulatory environment in finance is nonetheless in many ways more liberal and progressive. Since 2017, regulators leveled the playing field in payments through the Payment Service Directive 2 (PSD2), breaking banks’ monopoly on customer data.

    Fintechs force us to be more efficient, as a consequence of which we can deal more easily with low-interest rates and tougher regulations. If you open up to trends and try to make them yours, then it can still be fun to run a bank, Hamer said in a 2015 report with German newspaper Handelsblatt.

  • UBS with a personal touch

    UBS with a personal touch

    One of the key challenges facing wealth managers today is how to gauge the needs of their clients. UBS has designed an app that will help its bankers to collect information going far beyond the core financial interests.

    What are you passionate about? Who are the people you care about most? What do you really want to do with your wealth and life?

    These are questions that the wealth management of UBS will put to its U.S. clients soon with the help of an app it designed together with Deloitte consultants. The new app is designed to help clients gain a more complete picture of their total wealth.

    The bank worked closely with clients and financial advisers in the launch of the application, it said in a statement. The clients can expect tailor-made insights through the use of the app.

    Apart from gathering information about the personal needs of clients with the help of algorithms, the app also introduces functionality that lets clients set and track financial milestones, alongside enhanced online account management features.

    In a bid to enhance the communication between client and relationship manager, the bank is introducing a one-click connection to the financial adviser. This feature sets the app apart from rival bids.

    The app will also help customers keep a view over their finances at UBS and other companies, something that UBS rivals also are keen to introduce as it would help them in advising their clients.

  • UBS Doubles China Headcount Early

    UBS Doubles China Headcount Early

    UBS shows no sign of slowing down its mainland China expansion plans despite an ongoing coronavirus outbreak, having met its target set in 2016 to double headcount to 1,200 ahead of schedule.

    UBS group chief executive Sergio Ermotti said in 2016 that the bank would double its China headcount in within five years to tap into the gargantuan domestic financial industry which is undergoing a historic transition to allow greater foreign ownership.

    Sources familiar with the matter said that UBS had already met the target to overall double staff size from 2016’s 600 to 1,200 ahead of its 2022 plan.

    The bank remains committed to wealth management in China despite the ongoing outbreak,, adding that business was largely unaffected with the exception of deferring non-critical travel. For staff that must enter the mainland, the bank has asked that they stay home for a 14-day period afterward before returning to office – the widely used standard to determine if one has been infected by the deadly virus.

    A spokesperson for the bank declined to comment on the matter.

    Even with its current scale, the bank’s hiring spree in mainland China is unlikely to end soon. UBS’s majority-owned investment banking joint venture is also accelerating growth with plans to double its current headcount of around 400 in three to four years, in addition to pursuing full ownership by 2020-end.

    Overall, our plan is to steadily grow China onshore headcount, but we are not just going to compete on size,» said David Chin, APAC head of investment banking and China country head at UBS, to reporters in December last year, placing emphasis on the derivatives business.

    Chinese regulators announced last year that it would scrap foreign ownership limits this year in futures, securities, and mutual fund companies. Global financial institutions including J.P. Morgan, Goldman Sachs and BlackRock are vying for a piece of mainland China’s financial industry as the country undergoes a landmark opening of its $45 trillion market.

  • UBS Donates $1 Million for Coronavirus Relief

    UBS Donates $1 Million for Coronavirus Relief

    UBS Group will donate $1 million to support efforts to contain the global spread of the novel coronavirus.

    According to the Swiss financial group, the donations will target frontline responders through domestic charity partners focusing on a range of areas including «timely delivery of medical supplies to the needy, screening and treatment of suspected cases, the development of treatments and vaccines and the construction of medical facilities in the community.

    This is a challenging time for many of our employees and customers, their families and the local community. Our thoughts are with the many impacted by the coronavirus outbreak, said David Chin, APAC head of investment banking and China country head at UBS. It is a critical time for us to give back to the community and help authorities in the most affected areas.

    In addition to a raft of Chinese firms, UBS joins foreign financial companies such as Japanese insurer Tokio Marine in supporting relief efforts in an outbreak that some estimate could result in damages surpassing the SARS crisis nearly 20 years ago.

    Meanwhile, the outbreak shows limited signs of slowing down and has now infected more than 17,000 individuals and claimed the lives of more than 360.