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

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.