UBS U.S. CEO Says Firm Is Turning Things AroundPosted by in Blog on October 31, 2011
UBS may have had a difficult financial quarter, between a tough financial environment, and the loss of $2.3 billion due to one of its trader’s shenanigans, but the company’s wealth management operations “were a notable bright spot in an otherwise dismal earnings report,” InvestmentNews.com reports.
Robert McCann, head of UBS Wealth Management Americas, said in a memo to his staffers that even though the firm faced “reputational head winds,” UBS happened to be “in the midst of a meaningful turnaround.”
UBS showed more growth in wealth management earnings that its competitors Bank of America Merrill Lynch and Morgan Stanley Smith Barney did. While UBS isn’t close to reaching the $1 billion in profits goal that McCann set when he took over as CEO of UBS Wealth Management Americas in 2009, the revenue for the third quarter was $1.54 billion, which was a 2% increase from the previous quarter, and up 16% from last year’s third quarter.
The company also hired more financial advisors, picking up 51 over the third quarter, with 117 more than the previous year. They currently have 6,913 advisors. And for each advisor, UBS has $103 million in assets, more than any other such firm.
McCann wrote to staffers to congratulate them on “of the more impressive turnarounds I’ve witnessed in all my 30 years in financial services,” saying that UBS was “poised for even greater success.”
Writty by Lisa Swan