UBS Group AG Realigns Wealth-Management Business to Enhance Offerings for 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 oversee the operations of this division.

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

UBS plans to wind down its non-core and legacy portfolio, releasing over $6 billion of capital by the end of 2026. The company aims 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%. Other banks, such as AssetMark Financial Holdings Inc. and Citizens Financial Group, Inc., are also restructuring their wealth management businesses to attract high-net-worth clients and accelerate growth.

Overall, UBS Group AG is taking proactive steps to enhance its wealth-management offerings and streamline its operations to better serve its clients and improve its financial performance.