Tags: UBS | investment | wealth | growth

UBS Doesn't Want to Hive Off Investment Bank

Monday, 03 Jun 2013 03:01 PM

UBS's private banking head hit back against a shareholder's call to hive off the investment bank, saying the units work together to serve wealthy private clients.

Knight Vinke, a shareholder in UBS, launched a campaign a month ago to marshal other investors into supporting a breakup of the Swiss bank. UBS, which last year said it will let 10,000 staff go as it largely withdraws from fixed income, had not responded publicly in detail.

"We take them seriously," UBS private banking head Juerg Zeltner said of the Knight Vinke campaign. But Zeltner repeated that the Swiss bank aims to align the wealth business more closely with the securities unit.

He said the private bank uses more services than ever from the streamlined investment bank, run by Andrea Orcel.

"I gave up macro research, I gave up single stock research and I source everything from the investment bank," Zeltner told the Reuters Global Wealth Management Summit.

"We have absolutely no incentive to pay the Street if we can pay ourselves."

A forecast-beating first quarter from UBS, including the highest wealthy customer inflows in six years, took some of the sting out of Knight Vinke's demands.

Zeltner said UBS's private bank is constantly looking at acquisition targets, but would adhere to strict criteria on price, strategy and cultural fit.

"Of course we are in the market," Zeltner said. "Our priority is we want to organically build."

© 2017 Thomson/Reuters. All rights reserved.

 
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UBS's private banking head hit back against a shareholder's call to hive off the investment bank, saying the units work together to serve wealthy private clients.
UBS,investment,wealth,growth
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2013-01-03
Monday, 03 Jun 2013 03:01 PM
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