‘Compelling Prospects’
UBS reported today for the first time how much money it makes on assets of ultra-high-net-worth clients. The bank said the super-rich segment has “compelling economics and growth prospects,” as the lower costs of running the business make up for a weaker margin on assets under management.
The bank said its net margin on ultra-high-net-worth assets, which amounted to 394 billion francs at the end of June, was 24 basis points, compared with 40 basis points for other clients. The ratio of pretax profit to revenue was 43 percent for the wealthiest, compared with 33 percent for others.
UBS’s wealth management unit reported a 1 basis point decrease in gross margin, which reflects how much revenue the bank makes on assets it oversees, to 90 basis points from 91 basis points in the first quarter.