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UBS boss Sergio Ermotti (63) has made this his top priority: recovering as many of the client assets lost from Credit Suisse as possible! “It will not be easy to recover the more than $200 billion of client money that left Credit Suisse last year,” Ermotti said in a statement at the end of August. But one of our top priorities is to recover as much as possible.”
In addition, UBS should try to retain customers who have deposited their money with both major banks for risk-spreading purposes and are now looking for alternatives.
The way to achieve this: preferential interest rates for wealthy customers. Reuters agency writes, citing inside information, that UBS subsidiary Credit Suisse sometimes offers interest rates well above market levels. For Credit Suisse clients, an annual interest rate of around 1.8 percent is applied to three-month fixed term deposits with a volume of at least 50,000 francs.
More fear of exit
For comparison: Comparable deposits of 100,000 francs or more at Zürcher Kantonalbank earn 1.34 percent interest, while at Raiffeisen the rate is 1.2 percent, according to company information, Reuters writes.
A Credit Suisse spokesman said of the news agency’s research: “As is usual in the market, there may be specially tailored offers that may also depend on overall client relationships.” UBS did not want to comment.
Analysts see further exits from Credit Suisse’s asset management as one of the main risks for UBS. It’s no surprise that UBS is trying to persuade customers to stay with preferential interest rates.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
