UBS faces mounting pressure in its U.S. wealth management unit after significant client outflows and adviser departures raised concerns over its turnaround efforts.
The bank reported $14.1 billion in net outflows in the Americas during the fourth quarter, contributing to a $6 billion annual decline.
Nearly 200 financial advisers exited over the past year, moving assets to rivals and intensifying competition in the key U.S. market.
Analysts warn the continued outflows could hinder UBS’s ability to grow profits and regain momentum in the world’s largest wealth market.
Morgan Stanley analysts say investors need to see a clear reversal in flows before confidence in the turnaround can improve.
CEO Sergio Ermotti maintains the strategy is working, pointing to rising margins and efforts to enhance profitability across the division.
UBS is targeting a 15% pre-tax margin in U.S. wealth management, still below levels achieved in Europe, the Middle East, and Asia.
Despite initiatives like expanded banking services, analysts caution there is no quick fix as competition for talent and assets remains intense.
