Clients globally at UBS have demonstrated increased market caution, according to chief financial officer Sarah Youngwood, with those in Asia Pacific still deleveraging positions.
Clients are demonstrating caution worldwide with appetite by region approximately proportional to economic growth, said UBS CFO Sarah Youngwood. US and Switzerland were faring better, APAC was still deleveraging while Europe and the UK were in a bit more cautious and difficult situation.
«The clients […] are cautious, obviously, given what is going on in the world,» according to a «Reuters» report citing Youngwood at the recent Barclays Financial Services Conference in New York. «That is translating into less transactions and less recurring revenues.»
Investment Banking
While UBS is not observing any material issues in its leveraged capital markets business where it is conservatively positioned, momentum in the overall investment banking business remained weak and mirrored the second quarter.
«You are seeing the wallet continuing to be very down for the industry, whether it is advisory or capital markets. The pool is just really down,» Youngwood said.
Youngwood also reiterated the bank’s plans to increase its dividend payout by 10 percent due to excess capital but refused to quantify future increases. UBS announced the dividend payout increase earlier yesterday alongside expectations for its 2022 share repurchase program to exceed its $5 billion target after scrapping a $1.4 billion deal to buy US online wealth manager Wealthfront.
