UBS Boosts Wealth Management Franchise To Be In Line With New Banking Landscape

UBS has created two new business divisions called wealth management and Swiss bank and wealth management Americas, to adjust to new market conditions. It has also said that its investment bank will reduce headcount by 2,000 to 15,000 by the

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UBS has created two new business divisions called wealth management and Swiss bank and wealth management Americas, to adjust to new market conditions.

It has also said that its investment bank will reduce headcount by 2,000 to 15,000 by the end of 2009.

Wealth management and Swiss bank comprises all non-American wealth management businesses as well as the Swiss private and corporate client business. It will be led by two new group executive board members, Franco Morra and Juerg Zeltner. Wealth management Americas will be led by Marten Hoekstra.

The new structure re-focuses UBS on its Swiss core businesses, strengths of its international wealth management franchise in Switzerland and on the growth potential of its on-shore business globally.

The company has said that the investment bank will remain its core business. The latest job cuts will not include staff who will be managing positions from businesses that UBS is exiting.

“The board of directors and the group executive board are renewing their full commitment to our investment bank, says Peter Kurer, chairman, UBS.

“Over the last few months its business model has been completely refocused with a view to be managed in line with the requirements of the new banking landscape. Our global asset management division is also well positioned to respond to market developments.”

L.D.

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