UBS Group AG has initiated job cuts in its Asia private banking division this week due to a decline in profits affecting the region's largest wealth manager. 

Approximately 70 positions, including those of relationship managers, are being eliminated, primarily in Hong Kong and Singapore, by the end of March, reported The Edge. 

Wealth creation in China has stagnated as the country's economy grapples with challenges such as a property crisis and a downturn in equities. Competitors like Citigroup Inc. have also been downsizing their wealth management and investment banking operations in the region. 

The reductions, confirming an earlier Bloomberg News report, included bankers who had joined from Credit Suisse as part of the integration following UBS's takeover. 

During the fourth quarter, UBS's pretax profit for Asia Pacific plummeted by 46% to US$97 million (RM454.08 million) from the previous year, marking the lowest among all regions globally. 

Meanwhile, the cost-to-income ratio in the region increased to 87.7%. UBS boasts the largest wealth management workforce in Asia, with a total of 1,101 advisers as of December 31. 

Chief Executive Officer Sergio Ermotti cautioned last month that 2024 would pose more challenges, as costs from the acquisition of its former rival impact results before UBS can realise the benefits. 

The lender's workforce swelled to approximately 120,000 when the Credit Suisse deal closed in June. During the three months ending in December, UBS' crucial wealth management unit reported a global pre-tax profit of US$381 million, significantly below analyst estimates of US$1.07 billion. 

However, net new money in the unit amounted to US$21.8 billion, surpassing forecasts.