The wealth management arm of UBS has achieved an adjusted profit before tax of CHF694m, the strongest fourth quarter result since 2008.
The bank said that increased net interest income and recurring net fee income reflected its initiatives to grow lending and mortgage balances and to increase mandate penetration, and was also a result of higher invested assets.
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"This was offset by declines in transaction-based income, which fell after a very strong third quarter," UBS said in a statement.
The wealth arm’s quarterly gross margin decreased to 82 basis points, below the target range. While, net new money flows from clients in Asia Pacific, UHNW clients globally and clients of the domestic business in Europe remained buoyant.
Overall, the division generated net new money of CHF3bn.
The bank added that the division’s adjusted cost / income ratio remained within the target range during the quarter.
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By GlobalDataUBS Wealth Management Americas delivered an adjusted profit before tax of $233m. its total operating income increased on higher transaction-based and net interest income.
UBS Wealth Management Americas’ net new money increased to $5.5bn, with higher inflows from net recruiting of financial advisors leading to an annualized net new money growth rate of 2.2%, within the target range.
For the three months that ended 31 December 2014, UBS reported profit of CHF963m, up from a profit of CHF917m in the same period a year ago.
