UBS tipped to re-enter Australian wealth space
Global financial services giant UBS is reportedly set to re-establish its presence in the Australian wealth management space via its $4.8 billion
UBS has hinted at a return to the Australian wealth management industry via its $4.8 billion acquisition of Swiss competitor Credit Suisse.
According to reports, UBS would leverage Credit Suisse’s private banking arm to reassert itself in the Australian market.
"Wealth management is core to UBS, representing our largest business globally,” Nick Hughes, joint country head and chief operating officer at UBS Australasia, said in a statement.
“We recognise the quality and long-term success of Credit Suisse’s Australian private bank, and we look forward to building on that success."
Michael Marr, head of wealth management Australia and New Zealand welcomed the opportunity to “build on the success” of Credit Suisse Wealth Management in Australia.
“Our shared commitment is to ensure a smooth transition for our team and our clients,” he said.
“Our focus, as always, is the provision of quality advice and investment solutions for our clients."
A prospective UBS return to the wealth management space would come almost eight years after the firm exited the Australian market.
The reports come just weeks after UBS moved to fully acquire its distressed peer in what was described by UBS CEO, Ralph Hamers, as an “emergency rescue".
Credit Suisse struggled to rebuild investor confidence following a sharp surge in fund outflows in the back-end of the 2022 calendar year.
As part of the “all-share” transaction, Credit Suisse shareholders had been offered one UBS share for every 22.48 Credit Suisse shares, representing approximately CHF 0.76 ($1.22) per share for a total consideration of CHF 3 billion ($4.8 billion).
The deal was not subject to shareholder approval, with UBS securing a pre-agreement from Swiss regulators to accelerate the acquisition.
Once finalised, the acquisition would involve “managing down” Credit Suisse’s investment bank while reinforcing UBS’ global investment strategy, with the combined investment business to account for approximately 25 per cent of group risk weighted assets.
Together, the businesses are tipped to manage over $5 trillion in invested assets across global markets, of which, approximately $2.2 trillion would be invested in Europe.
The combined business was projected to generate annual run-rate of cost reductions exceeding $11.9 billion by 2027.
AUTHOR
Charbel Kadib
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