Ermotti a Bloomberg In an interview given to TV, he discussed the situation of the money that migrated during the period of the acquisition of Credit Suisse. The leader said that it will be almost impossible to recover the entire lost amount, but their goal is to return as much of the 200 billion dollars as possible to UBS.
It will take a few quarters before we have recovered a suitable proportion
Asset management division of UBS attracted $16 billion in client assets in the second quarter, which is the highest value in more than a decade. Even more positive news is that at Credit Suisse’s asset management unit in June, the net cash flow of customers turned positive.
Ermotti said that without layoffs, by taking advantage of the “natural attrition” it was possible to transform the asset management business almost completely. Since the beginning of the year, around 8,000 people who previously worked at Credit Suisse have left the acquired bank globally. UBS has indicated that it plans to cut around 3,000 additional jobs, partly for integration reasons and partly for efficiency reasons.
At the end of June, UBS’s wealth management unit had $55 billion in risk-weighted assets, and an outflow of $8 billion was experienced in the second quarter. The price of UBS’s shares on the Swiss stock exchange is currently at a minuscule 0.04%.
Cover image source: Shutterstock