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UBS Group (NYSE:UBS) is considering revamping its asset-management unit by cutting at least $300M in costs as its profit remains under pressure, according to a media report dated Thursday.
In 2023, the asset-management unit contributed less than 7% to UBS’s (UBS) total revenue. The unit’s pretax underlying operating profit came in 5% lower Y/Y in 2023, as operating expenses soared 35%. Recall UBS had acquired Credit Suisse last year in a government-sponsored rescue and has since been integrating it.
The potential overhaul may include reducing Switzerland-based back-office staff who joined with Credit Suisse, people familiar with the matter told Reuters, adding the lender is also weighing whether portions of the division should be absorbed by its larger wealth-management operations.