UBS Group AG is taking action to streamline its operations in Asia, with plans to cut hundreds of wealth management jobs in response to sluggish client activity and China's economic slowdown. This move comes just months after the completion of its merger with Credit Suisse.
Sources familiar with the matter have revealed that Switzerland's largest bank has already reduced some overlapping roles in recent months, with further cuts anticipated through November.
While the exact number of job cuts has not been finalized, the bank is expected to eliminate several hundred positions, particularly within the teams acquired from Credit Suisse. These cuts will predominantly affect relationship managers in Hong Kong and Singapore. However, UBS intends to retain the majority of its private bankers in Australia and India for the time being.
UBS is grappling with subdued client sentiment and lower activity levels in the Asia-Pacific region. Hong Kong and Singapore, longstanding financial hubs for China's ultra-wealthy, have been impacted by this slowdown.
In the second quarter of this year, the bank's wealth management unit in the region reported a 9% decline in profit before tax compared to the same period last year.
Following the completion of its merger with Credit Suisse in June, UBS has set ambitious integration targets. These include cutting 3,000 domestic jobs and achieving over $10 billion in cost savings.
While these measures will have a significant impact, it is expected that they will only represent a fraction of the overall global workforce reductions planned by the bank.
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