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Following Credit Suisse’s acquisition, existing clients, particularly from the wealth unit, will have to think long and hard about whether they should stay with the newly enlarged UBS or move on. finews.asia takes a look at some of the potential beneficiaries of fleeing assets.

As UBS absorbs the newly acquired Credit Suisse, one of the key matters that will be closely monitored is the movement of client asset flows, especially in the core wealth management business.

Within Asia, Credit Suisse is the second largest private bank as of end-2021 with $239.5 billion in assets under management (AUM), according to finews.asia data. Despite persistent outflows in 2022 – the global wealth unit’s AUM fell 27 percent to 723.4 billion Swiss francs ($778.2 billion) – the soon-to-be defunct lender is still a leading player in the region. 

UBS and its rivals now face a golden opportunity to grab hold of an incredibly sizeable market share not readily available under normal market conditions. finews.asia reviews some of the private banks in the region that could be potential beneficiaries of Credit Suisse’s historic exit. 

Home Court Advantage

As the acquirer, UBS Global Wealth Management will look to retain assets as the first offensive. Although it remains to be seen if the discounted purchase will ultimately be a good deal, asset inflows are set to surge.  

During a March 19 investor call, CEO Ralph Hamers highlighted Credit Suisse’s complementary Southeast Asia wealth business when placed next to UBS’s more Greater China-focused business. And as of end-2022, UBS will also have more resources to target the sub-region after completing an 18-month plan to add 300 staff in Singapore, as per a June 2020 announcement. 

While there will inevitably be some outflows due to client overlaps, such an issue is a relatively smaller challenge in markets like Asia where many high net worth individuals (HNWI) often opt to open an account at one of the two Swiss universal banking giants, and not both.

Familiar Faces

Deutsche Bank's International Private Bank (IPB) unit could be one of the key frontrunners to scoop up asset outflows in Asia from the UBS-CS merger. 

Clients will be met with familiar faces after the German wealth manager hired numerous ex-Credit Suisse private bankers including Jin Yee Young, Johanes Oeni, Stella Lau and more. And they will also be met with a familiar business approach as IPB has repeatedly headlined its focus on cross-divisional collaboration, also known as the «one-bank» model, with decades of combined related experience imported from Credit Suisse.

Interestingly, Deutsche Bank had even reportedly considered buying parts of Credit Suisse before a strategic overhaul announced in 2022.

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