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 be in charge of running the operations of this division.

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 aims to release more than $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%. Other banks, such as AssetMark Financial Holdings Inc. and Citizens Financial Group, Inc., have also been restructuring their wealth management businesses to attract new high-net-worth clients.

Overall, UBS Group AG is making strategic moves to enhance its wealth-management offerings and improve its financial performance in the coming years.