UBS Reshuffles Wealth Management Business Ahead of Leadership Transition

Strategic Insights -

UBS, Switzerland's biggest bank, has implemented a major reorganisation of its wealth management business, with a focus on aligning it more closely with the bank's investment bank and asset management unit. The move comes ahead of the leadership transition next week, where Iqbal Khan and Rob Karofsky will take charge as co-heads of the wealth management business. The reorganisation aims to capitalise on a long-term strategy of selling more banking services to ultrarich clients, while converting investment banking customers into wealth management account holders.

Key Takeaways:

  • The reorganisation is designed to align the wealth management business more closely with the bank's investment bank and asset management unit, in line with UBS's long-term strategy of selling more banking services to ultrarich clients.
  • Iqbal Khan and Rob Karofsky, the new co-heads of the wealth management business, announced that their "most important priority will remain unchanged: delivering exceptional outcomes for clients every day."
  • Former Credit Suisse executive Yves-Alain Sommerhalder has been given oversight of various business lines that bring wealth management closer to other parts of the bank, heading a new division called GWM Solutions.
  • GWM Solutions will oversee units focused on investment management, markets, lending, ultra-rich clients, and alternative investments.
  • Patrick Grob, who will lead the new alternative investments division within GWM Solutions, will relocate to the Asia-Pacific region and become president of the business from September.
  • UBS's Latin American business is to be split out from its Americas division and continue to be led by Marcello Chilov.
  • Jason Chandler will switch from being head of GWM Americas to chair, with Michael Camacho brought in from JPMorgan to head GWM US.

Statistics:

  • 2 individuals, Iqbal Khan and Rob Karofsky, will take charge as co-heads of the wealth management business from next week.
  • 4 business lines will be overseen by Yves-Alain Sommerhalder through GWM Solutions: investment management, markets, lending, ultra-rich clients, and alternative investments.
  • 2 individuals will relocate to the Asia-Pacific region: Patrick Grob and Jason Chandler.
  • 2 divisions will be led by separate individuals: GWM US (Michael Camacho) and UBS's Latin American business (Marcello Chilov).

Sources:

- "UBS reshuffles wealth management division" by Owen Walker, European Banking Correspondent for UBS, Financial Times