UBS Group AG Realigns Wealth-Management Business to Focus on Ultra-Rich Clients

UBS Group AG is making significant changes to its wealth-management business in order to better serve its ultra-rich clients. The bank’s new co-leaders, Rob Karofsky and Iqbal Khan, have announced the establishment of a new division called GWM Solutions, which will consolidate various products for clients starting from Jul 1, 2024.

This new unit will offer a range of services including investment management, lending, family and institutional wealth management, and alternative investments. Yves-Alain Sommerhalder, a former Credit Suisse executive, will be in charge of running the operations of GWM Solutions.

Additionally, UBS will be creating a unit called Unified Global Alternatives to bring some of its alternative asset-management products closer to its wealth business. These changes are part of the bank’s efforts to restructure its business strategies and cut costs.

UBS Group AG aims to release over $6 billion of capital by the end of 2026 by winding down its non-core and legacy portfolio. The company also plans to achieve gross cost reductions of around $13 billion by the end of 2026 compared to 2022 levels.

In the past six months, UBS shares have declined by 4.7% on the NYSE, while the industry has seen growth of 0.8%. The bank’s restructuring efforts are in line with similar moves made by other financial institutions, such as AssetMark Financial Holdings Inc. and Citizens Financial Group, Inc., to enhance their wealth management businesses and attract high-net-worth clients.

Overall, UBS Group AG is taking proactive steps to improve its wealth-management offerings and streamline its operations to better serve its clients and drive growth in the future.