The Swiss wealth management giant’s invested assets reached $450 billion at the end of the fourth quarter of 2019, posting an impressive 25 percent for the year.

The bank attracted an additional $3.1 billion in net new assets in the region which included inflow contributions of $5.7 billion from ultra-high net worth individuals (UHNWI). For the year, it reportedly lured net assets of $31.4 billion which included a hefty contribution of $45.5 billion from UHNWIs. Gross loans were stable with an $800 million increase to $43.1 billion.

The private bank closed the year with 1,041 client advisors in Asia Pacific, down from 1,138 last year.

For the fourth quarter, the region outshone its counterparts with the global wealth management business posting net outflows of $4.7 billion led by $9 billion in the Americas. The bank attributed this primarily to two individual instances of large outflows that totaled $5.4 billion. 

Overall, invested assets at UBS Global Wealth Management reached $2.63 trillion, up 17 percent from last year’s $2.26 trillion. The unit posted $3.47 billion in annual adjusted pre-tax profits, down from 2018’s $3.72 billion.

Profit Dip in 2019

Globally, the group generated around $6 billion in adjusted pre-tax profits, down 6 percent year-on-year. In addition to its wealth management business, its asset manager also saw a profit uptick of more than 11 percent to $565 million after invested assets reached a record of $903 billion globally. In the fourth quarter, it boosted net management fees by $6 million while doubling performance fees.

In contrast, its investment banking arm was hit the hardest by challenging market conditions, especially in the first quarter. Adjusted pre-tax profits for the year were down 37 percent to around $1 billion particularly due to muted equity-related activities. 

2020-2022

For the upcoming three years, UBS outlined its updated performance target alongside capital and resource guidelines. They include a 12-15 percent return on CET1 capital-driven in part by 10-15 percent growth from its wealth management business. 

Quantitative targets aside, the bank’s report also highlighted a focus on sustainable finance as a firm-wide priority. Its efforts have translated to promising results with the private bank’s multi-asset sustainable investment solution growing its assets to $9 billion. Its asset manager has also made contributions with assets invested in sustainable products having increased to $39 billion.