Strategy
UBS Starts Cutting Asia Private Banking Jobs – Report
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As the economic climate in China and the region has turned chillier, the world's largest wealth management house, in the process of integrating Credit Suisse, has cut jobs, a report said.
UBS has begun cutting jobs at its Asia private banking division this week amid a fall in profits at the group, Bloomberg reported, citing unnamed sources.
WealthBriefingAsia understands that the decision to cut jobs is not a new one – it was reported in January.
The Switzerland-headquartered bank, like many of its peers in recent years, had heavily expanded into Asia, including China, because of rising prosperity. It has now had to cut about 70 people, including relationship managers, mainly in Hong Kong and Singapore.
The news service said a spokeswoman for the bank declined to comment. UBS also declined to comment to this publication.
The report noted that wealth generation in China has stalled as the nation’s economy struggles to regain momentum amid a property crisis and a selloff in equities. Restrictions on certain economic sectors, such as parts of technology, by the current Beijing regime two years ago also hit investment confidence from overseas.
The latest Capgemini report on the world’s wealth sector, issued in June 2023, found that the population of HNW individuals in Asia-Pacific fell 2 per cent in 2023 from a year earlier, as markets took a tumble.
The news report on UBS said the job cuts included bankers who joined from Credit Suisse as part of the integration after the takeover by UBS. The Zurich-listed lender has been melding together teams since the “shotgun” wedding with its smaller rival last year – a process that raised prospects of reductions.
WBA regularly notes when former Credit Suisse senior bankers have been hired by other banks across APAC. Take this case of a former Credit Suisse figure joining Bank of Singapore, as announced a few days ago, for example.
UBS reported a fall in fourth-quarter operating profit for 2023 from a year ago. Losses stemmed from investment into SIX Group and the integration costs involved in buying Credit Suisse.
