This will potentially provide a growth opportunity to other wealth management firms based in the Asia Pacific region.
UBS has completed the acquisition of Credit Suisse, with the two set to operate as a consolidated bank. However, a process of complex integration has begun for this combined entity, involving thousands of jobs and multiple divisions. Restructuring costs are set to total around $10bn and the process is expected to last more than two years, with the bulk taking place in 2024. These efforts will have a significant impact on UBS’s operations.
In Asia-Pacific, Credit Suisse’s private bank and investment bank were tightly knit, providing holistic assistance to wealthy clients for both their personal and business needs. The restructure will likely disrupt the smooth servicing of HNW and UHNW clients – which may prompt some to leave. Additionally, UBS is likely to cut its global workforce by between 20% and 50%. Such moves will most notably impact investment banking jobs at Credit Suisse, with knock-on effects on its servicing capabilities.
UBS experiencing such a disruptive process will create a unique growth opportunity for smaller wealth management players within Asia-Pacific. There will likely be an influx of experienced bankers and relationship managers entering the job market. In the best-case scenario, they could help attract UBS clients to their new company.