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UBS in Zurich: At Credit Suisse, the proportion of Russian clients was even higher
Photo: FABRICE COFFRINI / AFP
Wealthy Russians seem to feel they are in good hands with UBS.
The major Swiss bank manages billions of dollars for rich Russians: 0.7 percent of the $3.145 trillion in assets under management in the Wealth Management division are held by Russians, who may be affected by measures to punish Moscow's attack on Ukraine.
This is reported by the Reuters news agency and the Financial Times, citing the bank's annual report that has now been published.
The share corresponds to around 22 billion dollars.
This is the first time that UBS has presented information on the assets under management in the Russian business.
Rival Credit Suisse had put the proportion of assets managed by Russians at around four percent of the total volume in mid-March.
assets frozen
However, the withdrawal from markets and sanctions related to Russia's invasion of Ukraine led to a decline in assets in the wealth management division, according to the quarterly report.
UBS Chief Financial Officer Kirt Gardner said in a conference call that there had been "some outflows...(in business) with Russian clients as a result of the sanctions."
When asked if the bank had frozen assets related to the sanctions imposed on Russian individuals and entities, CEO Ralph Hamers said: "Many banks have ... sanctioned parties on their books and we have some too, but we give those numbers not known."
UBS's direct involvement in Russia fell to $0.4 billion by the end of March from $0.6 billion at the end of 2021. Across all business areas, the Russia business caused a loss of around $100 million in the first quarter.
Best quarter since the financial crisis began in 2007
Overall, despite the economic consequences of the war, UBS surprisingly started the year with more profit.
The bottom line was a surplus of a good $2.1 billion in the first quarter – 17 percent more than a year earlier.
Analysts had expected a decline.
According to UBS, it was the best quarter since the beginning of the financial crisis in 2007. The investment bank in particular made unexpectedly significant gains.
The news was well received on the stock exchange.
Apr/Reuters
