The bank delayed its goal of returning 15 percent on tangible equity in November after Switzerland announced some of the world’s strictest capital requirements and trading for wealthy clients dropped to the lowest level in four years amid swings in emerging markets and China.
While wealth management tends to be less risky and volatile than investmentbanking, it isn’t immune to the market environment, said Martin Moeller, head of equity portfolio management at Swiss bank Union Bancaire Privee.
“If client activity is not there, you have a lack of revenue,” he said. “The difference from investment banking is that you don’t make a billion loss on that.”