UBS Profits Double in APAC Wealth Unit
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Asia Pacific profits in the fourth quarter of 2020 more than doubled year-on-year at UBS, driven by a strong increase in invested assets.
Profits before tax at UBS’s APAC unit increased by $95 million to reach $169 million – a nearly 130 percent increase – driven by an increase in both transaction-based income and recurring net fee income from a strong increase in invested assets.
Asia’s largest private bank by far, UBS saw another strong quarter of net new money with $13.2 billion, outpacing all other regions. Invested assets in the region reached $560 billion, a $57 billion increase compared to the last quarter.
Worldwide, invested assets at UBS Global Wealth Management grew an additional $262 billion to reach $3 trillion, a 10 percent increase compared to the third quarter, as markets continue to reach new highs amid a coronavirus pandemic.
Overall, the world’s largest wealth manager also posted net new money of $21.1 billion, with net inflows from all regions.
Asia’s lead over other regions was helped in no small part by a single inflow of $4 billion, already more than the combined net inflows of the Americas ($1.4 billion) and Switzerland ($700 million).
While an operating income increase of $60 million played no small role in the surge in profits, cost control was also a significant factor.
Cost/income ratio at UBS’s Asia wealth unit saw a sizable decrease from 85.6 percent to 70.5 percent.
Questions & Answers
Q.What specifically caused the increase in profits for UBS's Asia Pacific unit during this period?
What specifically caused the increase in profits for UBS's Asia Pacific unit during this period?
The significant increase in profits was primarily driven by a strong rise in invested assets, which led to higher transaction-based income and recurring net fee income. Effective cost control also played a crucial role in this profit surge.
Q.How much new money did UBS's Asia Pacific unit attract in the fourth quarter compared to other regions?
How much new money did UBS's Asia Pacific unit attract in the fourth quarter compared to other regions?
UBS's Asia Pacific unit attracted $13.2 billion in net new money, outpacing all other regions. This was significantly boosted by a single $4 billion inflow, exceeding the combined net inflows from the Americas and Switzerland.
Q.By how much did the cost/income ratio improve for UBS's Asia wealth unit?
By how much did the cost/income ratio improve for UBS's Asia wealth unit?
The cost/income ratio at UBS's Asia wealth unit saw a significant decrease. It fell from 85.6 percent to 70.5 percent, indicating improved operational efficiency and cost management within the unit.
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