Swiss bank UBS is considering options, including a full or partial spin-off for its underperforming Australian wealth management division.
The proposals have come after a UBS management meeting in Sydney last week.
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The proposal would see UBS offload its entire wealth management arm, with Bell Potter Securities as front-runner for any possible deal and allow the bank keep the top 20% of advisers in the division and spin off the rest to Bell Potter, in which UBS holds a stake of about 16%.
The local wealth division is understood to face a calendar year loss of $17 million to $20 million, following red ink last year as well as revenue reportedly came in at about $93 million in 2012 but is expected to be significantly lower this year.
Christine Ong, CEO of UBS Wealth Singapore was sent to Australia to review the struggling division by UBS’s chief of wealth management for the Asia Pacific, Kathryn Shih.
"It’s incorrect and all I have to say is that we have no plans to sell all, or part, of the Australian wealth management business," a UBS spokesperson said.
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By GlobalData
