While preparing for mass layoffs, UBS goes on hiring spree for wealth managers
UBS is actively recruiting wealth managers in the US, specifically targeting affluent American clients, despite the ongoing deliberation of reducing 30% of its overall workforce following the acquisition of Credit Suisse.
According to The Business Times, in the first half of the year, UBS successfully hired 50 financial advisers, some of whom were from prominent institutions like Bank of America's Merrill Lynch unit, JPMorgan Chase's recently acquired First Republic Bank, Citigroup, and Wells Fargo.
Notably, 30 of these hires took place after the announcement of the Credit Suisse deal in March. Among the recruits was BG Group, a team of 13 professionals from Merrill, responsible for managing an impressive $2.5 billion.
After finalizing the Credit Suisse deal, UBS secured its position as the second-largest wealth manager globally. Despite its strong foothold in Europe and Asia, UBS holds the fourth spot among wealth managers in the United States.
This is primarily due to the dominance of American banks in the US market, where the management of ultra-rich individuals' finances is predominantly controlled by those domestic institutions.
“The US is the largest wealth market globally, and in recent years, there has been unprecedented growth,” Iqbal Khan, UBS’ president of global wealth management, told Reuters. “Investing in and building our business here is a top priority,” said Khan, who serves on the bank’s executive board, reported The Busienss Times.
Highlighting the significance of the enterprise, he personally engaged with high-net-worth clientele in southern California on June 12, coinciding with the momentous closure of UBS's historic agreement with Credit Suisse. Additionally, he spearheaded an internal gathering dedicated to recognizing the achievements of the company's top-performing financial advisers.
In the United States, the acquisition of Credit Suisse did not alter UBS's wealth business significantly. This is because Credit Suisse had already withdrawn from US private banking back in 2015 and had transferred approximately 275 financial advisers to Wells Fargo during that time.
