UBS’s refocused strategy will centre on
strengthening its wealth management businesses in core markets and
radically reducing the risk-weighted asset base of its investment
bank to best serve high net worth clients.
At UBS’s investor day, newly appointed group
chief executive Sergio Ermotti said the Swiss giant will grow and
expand its wealth management franchise.
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“We will continue to invest in products and
geographies where we see opportunities to grow, particularly in our
wealth management businesses,” he said.
UBS said it plans to extend its leadership
positions in Switzerland, Europe, Asia-Pacific and the emerging
markets, and will continue to build on its Wealth Management
Americas business.
Investment bank cut back
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By GlobalDataUBS also said its investment bank will work
more closely with UBS’s wealth management businesses and increase
its emphasis on the execution, advisory and research capabilities
it provides.
Basel III risk-weighted assets in the
investment bank are to be reduced by almost 50% from around
CHF300bn to CHF145bn ($330bn to $159bn).
UBS also released the annual targets for its
wealth management and wealth management Americas divisions for
2012-2016.
Annual targets
Wealth Management
– Annual NNM growth rate: 3-5%
– Annual gross margin: 95-105 bps
– Cost/income ratio: 60-70%
Wealth Management Americas
– Annual NNM growth rate: 2-4%
– Annual gross margin: 75-85 bps
– Cost/income ratio: 80-90%
