UBS outlined its global wealth management ambitions, including the goal of achieving $5 trillion in invested assets by 2028. Where does Asia fit in all of this?
Globally, UBS aims to achieve at least $5 trillion in invested assets by 2028, according to a presentation of its 2023 results that outlined its strategy for the upcoming years. This would require it to add a minimum addition of $1.15 trillion from its current $3.85 trillion in invested assets.
The Swiss private bank also detailed the path to reach this target. It aims to achieve $100 billion in net new assets (NNA) per annum through 2025 before optimizing for «greater capital efficiency» to achieve $200 billion in NNA annually by 2028. It is also eyeing to reduce its underlying cost-income ratio to 70 percent by 2026, down from 87.7 percent at the end of 2023.
Asia Share
Although the bank did not disclose specific targets by region, Asia will likely continue to play a prominent role. In its 2023 annual results, APAC grew its invested assets by $217 billion to $645 billion, marking a 51 percent year-on-year increase. It recorded the highest amount of NNA by region at $13.5 billion, compared to $21.8 billion in NNA worldwide. The next closest was the US at $13.4 billion in NNA.
On a relative basis, it also saw the second highest growth rate of client advisors from 847 at end-2022 to 1,101 at end-2023. Globally, the share of APAC client advisors rose from 9 percent to 11 percent.
Diversified Growth
Compared to the pre-Credit Suisse era, the new UBS will achieve growth in Asia in a more diversified fashion. Last year, chairman Colm Kellher noted that the bank was an undisputed leader within Asia «at a stroke», including South APAC, which has traditionally been a stronghold for Credit Suisse. This could also mitigate certain risks, mostly notably related to China’s slowing economy and geopolitical concerns.
Meanwhile, UBS will continue to push forward with its integration with the aim of completion by the end of 2026. Within its APAC wealth unit, the bank has set a target deadline of end-2024 to complete the migration of clients and products in Hong Kong and Singapore, its main hubs in the region.