Many affluent clients of beleaguered Swiss wealth manager Credit Suisse Group have switched to its rival UBS Group in Asia as concerns over its financial wellbeing continues to rise, reported Bloomberg.
In the last three months, the Asia Pacific wealth management business of UBS has received hundreds of affluent clients from Credit Suisse, the report added citing people privy to the development.
To oversee the increasing accounts, UBS is preparing to reposition its workforce.
Another investment banking giant Morgan Stanley is also one of the banks benefitting from the outflows, the sources said.
However, it is not yet clear the number of funds that will permanently move to UBS as several potential clients are still reviewing their options, told the unnamed people.
Outflow of the investors’ money could adversely affect Credit Suisse since executives are trying to improve the bank’s financial state with a restructuring that greatly emphasises on private banking business.
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Representatives for UBS, Credit Suisse and Morgan Stanley refused to offer any comments on the matter.
In the initial weeks of the quarter, Credit Suisse lost at least CHF84bn ($89bn) of client money across the globe. This can be termed as the worst outflow since the financial emergency.
The report comes close on the heels of the bank warning that it might posts CHF1.5bn ($1.6bn) loss in the fourth quarter of this year as wealthy clients continue to withdraw money.