Swiss banking giant UBS has unsuccessfully tried to sell its wealth-management business in Canada earlier this year, the Wall Street Journal has reported.
The exact reasons why UBS put its Canadian wealth-management unit on the block and reasons behind the failure are unknown.
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All of Canada’s five big lenders had their earnings boosted last quarter by big numbers from their growing wealth-management units, but UBS’ Canadian operation is a niche one without the cross-selling opportunities or expense-saving scale of the larger players.
This scale will allow the domestic banks to boost profits by spreading their costs over a large asset base, the report says.
In January, UBS’s Canadian asset management unit has sold its Canadian fixed-income, equity and domestic balanced funds business for US$50.5 million to Fiera Capital. The acquired funds had assets under management of C$8 billion.
That same month, UBS’s Canadian investment bank cut almost half of its staff.
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