It’s been a difficult start to the year for one wealth management firm – and the company’s CEO has no doubt where the blame lies.
According to a Bloomberg
report, Chief Executive Officer of UBS Group AG Sergio Ermotti believes that the performance of the wealth management section of his firm has not recovered during the early part of 2016 following what he described as “challenging” conditions which rocked the sector at the end of the prior year.
Speaking at a conference on Wednesday, Ermotti outlined how the wealth management arm of the business – which is the largest segment for the lender – had pre-tax profits at a comparatively low 344 million Swiss Francs during the fourth quarter of last year. That’s as slip of 47 per cent compared to the same period during the previous year.
“Market volatility has also affected our wealth management clients, and while client activity has recovered somewhat from the lows we saw in the fourth quarter, transaction-based revenues have not rebounded to levels typically seen in previous first quarters,” he said.
In addition, he commented that even though savings plans are a priority for the company, it would be necessary for the Zurich-based bank to keep an eye on costs and focus on “quality rather than quantity” when it comes to attracting new money.
What impact has market volatility had on your business? Leave a comment below with your thoughts.