The decline of net new money in Asia has prompted UBS, Switzerland's biggest bank to choose a new broom to put things right again. A UBS veteran with 29 years of experience has been charged with the task.
UBS in the third quarter has taken 1.2 billion francs in net new money in the Asia Pacific region, the bank said in a statement on Tuesday. Previously, the figure reached as much as almost 9 billion in some quarters – for example in the three months through June 2014. A year ago, UBS still received a whopping 7.8 billion.
The turbulence on the Chinese exchange obviously left its marks – in customer portfolios but also at banks such as UBS. The risk-inclined traders of Asia are smarting from a loss at a position or two.
Chinese Worries
Things won't change that quickly. With the worries comes prudence – the murky outlook of the Chinese economy is taking its toll. UBS is adjusting to this fact, according to its latest quarterly statement.
The number of relationship managers in the Asia Pacific region declined significantly. UBS at the end of September had 1,073 customer advisers (in full-time equivalents), down from 1,201 six months earlier. The times of euphoria seem long gone.
Loyal Chinese at the Helm
The margin reported for the region also serve as an indication of the situation. The gross margin on invested assets this year dropped to 77 basis points from 83 basis points.
The departure of Chi-Won Yoon, UBS' head of Asia, at a time of turbulence may come as a surprise. He is at least considering returning after a timeout, according to the UBS statement.
Kathryn «Kathy» Shih is taking his place starting in 2016. Shih has successfully guided the wealth management unit of UBS in the Asia Pacific region for 13 years. The veteran Shih has 29 years of experience at UBS, for instance as chief executive of UBS Hong Kong.
