UBS has amassed more and more wealthy advisors for the ultra-high net worth, but it’s in no rush to hire a bunch of them.
swiss wire house report Advisor headcount was broadly flat in Tuesday’s mixed fourth-quarter results. Significant increase in adoption in the Americas in the third quarter.
Despite lower fee-based income and lower investment banking activity, the bank posted strong year-on-year growth in net interest income of 29% year-on-year in its Swiss banking and wealth management businesses. We were able to achieve quarterly profit growth of 22% year over year. The unit underperformed in a macroeconomic environment that remained challenging for deals and client portfolios.
The company broke consensus to report diluted earnings per share of $0.50. Analyst expectations 35% of $0.37.
Responding to analysts who expressed concern that UBS had slowed growth in the number of U.S. wealth advisors in the past quarter, CEO Ralph Hamers said on Tuesday’s earnings call that he was picky about who would join. and expects to hire only highly productive advisors.In line with the company’s goal of Expand market share at ultra high level net worth segment.
“That means you have to pay for the business they bring,” Hamers said. “Getting FA at the productivity level is very important to us.”
Although he intended to continue his employment, his priority was to help existing advisers become more productive, leading to what he envisioned as “higher net worths in areas where wealth is expected to grow.” of individual clients, adding experienced advisors who fit the shift to a more productive FA.”
In particular, Hamers plans to hire in areas of the United States where more start-ups are minting new wealthy individuals. Entrepreneurial wealth,” he said. The Census Bureau record number 5.4 million new business applications submitted in 2021 as Americans used the COVID-19 pandemic to come up with new businesses.
Hamers noted that $23 billion of net new fee-generating assets, up 8% year-over-year, flowed into Global Wealth Management last quarter.
In addition, Hamers said the bank offers products that respond to strong customer interest in alternative investments, high-yield cash vehicles, and bank account offerings, which essentially allow investors to own assets. can do. Customized portfolio of securities Have someone else actively manage it.
Deutsche Bank analysts Benjamin Goy and Sharath Kumar said in Tuesday’s earnings call that the company had “a decent mix of businesses” and maintained a buy rating on UBS.
They believe that Personal & Corporate Banking segment Primarily providing banking services in Switzerland, but also serving the business needs of international clients – performed well, with Global Wealth Management performing ‘medium’, while Investment Banking It was a “major failure”.
Scroll down the slideshow to see the key takeaways from UBS’s fourth quarter earnings. For the company’s third quarter earnings, click hereLooking at the second quarter results, click here.