UBS Profits Double in APAC Wealth Unit

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.