UBS changes tactics
(7 April 2010 – USA) UBS’s new head of US wealth, Bob McCann, has revealed his new strategy for the bank’s US wealth management division, including a new US$1 billion (A$1.08 billion) pre-tax profit target.
Mr McCann, who was appointed to the top position in October, said in a speech at a town-hall meeting last week that the division is aiming to net US$1 billion in pre-tax profits annually within the next three to five years.
Mr McCann added that the division would not be changing its name back to Paine Webber, a firm it acquired in 2000 with a highly recognisable name in the US market, preferring to build UBS’s recognition, which currently remains relatively low.
The wealth management unit will focus its efforts on high-net worth clients with liquid assets between US$1 billion- US$10 billion and ultra-high worth clients with assets over US$10 million, Mr McCann noted.
The firm will also focus its efforts on building-out the franchise in key US markets including Chicago, Los Angeles, New York and San Francisco.
Mr McCann has also said that the division will benefit from the better use of technology, and that brokers, all 7000 of them, will be incentivised to cross-sell other bank services like credit cards and mortgages.
Mr McCann added that the division would not be changing its name back to Paine Webber, a firm it acquired in 2000 with a highly recognisable name in the US market, preferring to build UBS’s recognition, which currently remains relatively low.
The wealth management unit will focus its efforts on high-net worth clients with liquid assets between US$1 billion- US$10 billion and ultra-high worth clients with assets over US$10 million, Mr McCann noted.
The firm will also focus its efforts on building-out the franchise in key US markets including Chicago, Los Angeles, New York and San Francisco.
Mr McCann has also said that the division will benefit from the better use of technology, and that brokers, all 7000 of them, will be incentivised to cross-sell other bank services like credit cards and mortgages.
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