One of the largest wealth managers paid the price for the escalating productivity of its financial advisors amid the backdrop of equity volatility, with its profits slipping by 6% in the first quarter.
In contrast, revenue per advisor at UBS Wealth Management Americas climbed by 8% year over year in the first quarter as the firm’s more than 6,000 registered representatives added billions of dollars in separately managed accounts and advisory assets, according to the Swiss bank’s April 26 earnings report.
Despite the continuing slides in the firm’s advisor headcount, UBS CEO Ralph Hamers told Bloomberg News that there has been “a real pickup of demand” in the U.S. and Europe. In late January the firm unveiled a deal to purchase robo advisor Wealthfront for $1.4 billion. Hamers’ team is giving further growth opportunities in America “a close look” after a slowdown in client activity in Asia during the first three months of the year, the CEO told Bloomberg.
“It’s a very important geography for us. It is strategic,” Hamers said. “So where we can, we will certainly keep our eyes open.”
To see the key takeaways from UBS’ first-quarter earnings for financial advisors and other wealth management professionals, scroll down our slideshow. For coverage of the prior quarter’s earnings, click here.
Note: The figures refer where possible to the specific UBS Wealth Management Americas unit in the U.S., Canada and Latin America, except when the metrics are only available for the entire Global Wealth Management segment spanning 9,300 advisors worldwide.