UBS Wealth Relying on Lending as Client Assets Dip

Posted on August 9th, 2022 at 3:24 PM
UBS Wealth Relying on Lending as Client Assets Dip

From the Desk of Jim Eccleston at Eccleston Law.

UBS Wealth Management is relying on loan growth and increasing interest rates amidst a quarter that the company has categorized as “one of the most challenging periods for investors in the last 10 years”, according to UBS CEO Ralph Hamers.

UBS’s wealth management business collected $2.64 billion in revenue during the quarter, which constitutes a 1% increase from $2.62 billion last year. However, according to the company’s second quarter earnings report, assets under management, due to net outflows from fee-based accounts, have declined. Assets under management at the company decreased by 9% to $1.57 trillion from $1.7 trillion last year, according to UBS. Predicting assets flows is difficult during “uncertain times,” according to Hamers. However, Hamers anticipates that the promotion of its “no fee” separately managed account program and broker recruiting initiatives would boost asset flows moving forward.

On the other hand, net interest income skyrocketed 37% as clients took out $3.8 billion in net new loans during the quarter.

Besides UBS, several industry competitors increasingly have relied on lending as a means to generate non-compensable revenue. Lending is not shared directly with their sales force in comparison to advisory fees.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, ubs

Return to Archive

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

January 30, 2026
FINRA Arbitration Panel Orders J.P. Morgan to Amend Form U-5, Flags Potential Pattern of Conduct

A Financial Industry Regulatory Authority (FINRA) arbitration panel recently issued an unusually detailed decision in a dispute between J.P. Morgan Securities and former advisor Joshua David Sappi Biering, shedding rare light on how a firm may deploy - and sometimes abuse - the Form U-5 during advisor departures.

January 29, 2026
OFAC Targets Individual Trustee, Sending a Clear Warning to Fiduciaries and Family Offices

In a rare move, the Office of Foreign Assets Control (OFAC) penalized a former U.S. government official, underscoring that professional gatekeepers can face personal liability for sanctions violations tied to trust administration.

January 28, 2026
FINRA Advances Overhaul of Outside Business Activity Rules to the SEC

FINRA formally has advanced its proposed overhaul of outside business activity (OBA) regulations to the Securities and Exchange Commission.