The wealth management arm of UBS has registered profit before tax of CHF344m in the fourth quarter of 2015, a decline of 47% compared to CHF646m a year ago.
For the quarter ended 31 December 2015, the unit’s adjusted profit before tax was CHF505m.
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The unit’s total operating income decreased 7% to CHF1.86bn from CHF2bn in the corresponding quarter of 2014. Net interest income rose 3% to CHF598m compared to CHF583m a year ago.
Total operating expenses were CHF1.52bn for the fourth quarter of 2015, a rise of 12% from CHF1.35bn a year earlier.
Net new money for the wealth-management business was CHF3.4bn in the quarter driven by outflows in emerging markets and Europe, partly offset by inflows in Asia Pacific and Switzerland. Net new money from ultra high net worth clients was CHF2.2bn.
The unit’s invested assets were down 4% to CHF947bn as of 31 December 2015 compared to the prior year quarter.
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By GlobalDataWealth Management Americas delivered a profit before tax of $13m compared to $217m in the year ago period. Total operating income decreased 3% to $1.87bn, while total operating expenses increased 9% to $1.86bn.
Net new money at the unit was very strong at $16.8bn, with significant inflows from newly recruited advisors, as well as $4.9bn from advisors who have been with the firm for more than one year.
For the fourth quarter, financial advisor headcount increased by 151 to 7,140.
Asset Management unit reported a profit before tax of CHF171m compared to CHF85m a year ago, while adjusted profit before tax was CHF153m.
Excluding money market flows, net new money outflows were CHF8.9bn.
Overall, the groups posted a net profit attributable to shareholders of CHF949m for the fourth quarter, up 11% compared to CHF858m a year earlier.
UBS CEO Sergio Ermotti said: "Despite a very challenging environment, we had an excellent year, both in terms of shareholder returns and strengthened client relationships. Going forward, we will continue with the disciplined execution of our strategy while investing for profitable and sustainable growth."
