Total operating income, net new money and
invested asset levels all declined at UBS’ wealth management
divisions in the three months to 30 June 2011, driven in part by
the value of the US dollar and euro against the Swiss franc.
The Swiss private banking giant saw a 23%
quarter-on-quarter decline in group pre-tax profit to CHF 1.7bn
($2.12bn) as at 30 June 2011, forcing the bank to revise its 2009
targets.
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Total operating income at UBS’s Swiss and
international wealth management business declined 3% to CHF 1.87bn
on a quarter-on-quarter basis.
UBS also saw a 5% quarterly decline in total
operating income from its American wealth management operations to
CHF 1.28bn as at 30 June 2010.
UBS put the declines down to lower invested
asset levels and reduced client activity.
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By GlobalDataInvested assets drop 14% since 2Q
2010
UBS reported AuM of CHF1.39trn in the
second quarter of 2011 down 6% from CHF1.49trn in the first
quarter, when its wealth management divisions are combined.
Invested assets – the most commonly quoted
figure for AuM at UBS – stood at CHF748bn in its wealth management
and Swiss bank division and CHF650bn in its American unit.
This represents a 14% decline in AuM compared
to PBI’s reports of UBS’s second quarter results last year,
although UBS’s recent results put the decline at only 6%.
Net new money also falls
Crucially, net new money at its Swiss and
international wealth management business saw a 50%
quarter-on-quarter decline to CHF 5.6bn in June 2011.
Meanwhile, net new money at UBS’s American
wealth management division also declined 28% to CHF2.6bn.
Despite the quarterly drop, this was the
fourth quarter UBS has posted positive net new money inflows.
UBS also said it is co-operating with requests
from regulatory authorities in a number of countries on
cross-border wealth management services provided by UBS.
