UBS wealth division’s asset base falls by 3.7% during third quarter

UBS’s assets under management in the wealth division excluding the Americas fell by 3.7% in the third quarter of 2011, but the bank also reported forecast-beating net profits during the same period.

In a statement issued on 25 October, the Swiss group said the asset under management in its wealth division decreased to CHF720 billion (€588 billion), from CHF748 billion at the end of the second quarter of the year.

In addition, net new money in the same unit decreased by 32%, to CHF3.8 billion from CHF5.6 billion one quarter earlier.

However, the pre-tax profit of the bank’s wealth management unit increased to CHF888 million, from CHF672 million in the previous quarter.

Net inflows in the wealth management division, with the exception of the Americas, came mainly from clients in the emerging markets, as well as from the bank’s current ultra-high net worth customers globally, while clients in western Europe withdrew funds.

The Swiss bank also said its profits for the three-month period were CHF1 billion, despite the $2.3 billion loss it suffered in September because of unauthorised trading.

This is better than the “modest net profit” that the bank had previously said it expected to post.