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While the ban on bonuses for bankers is being discussed in Switzerland, Credit Suisse and UBS are even introducing new bonuses in Asia. This is intended to encourage asset managers to acquire new client money. Asian CS and UBS bankers receive 15 cents for every $100 of new customer deposits they clear. Insiders tell Bloomberg. That doesn’t sound like much at first, but it carries more weight than the perks available to bankers, continues Bloomberg.
The report says that so far the new premium is only available to UBS and CS bankers in Asia. It is unclear whether it will be introduced in other regions. Asia is particularly important to the wealth management business of the two major banks. UBS is the world’s largest wealth manager and market leader in Asia – followed by CS.
UBS management, under President Colm Kelleher (65) and CEO Sergio Ermotti (63), is clearly trying to prevent it from losing more market share and talented employees to international competitors. For example, British HSBC happily announced with quarterly figures that it has carefully attracted client funds and Credit Suisse employees in Asia. In Switzerland, employees are fleeing CS in droves.
Iqbal Khan with the attraction attack
UBS board member Iqbal Khan (46), head of global wealth management, has been trying to keep Asian CS bankers on board since the bank’s takeover was announced. According to Bloomberg, he was in Singapore this week to meet with customers and employees.
CS lost more than 61 billion francs in customer money in the first quarter. Part of that went to global wealth management – business with wealthy private clients – to UBS, which attracted an additional CHF 28 billion in the first quarter. The rest went to the competition.
The fact that UBS and CS are now using new perks to entice Asian asset managers to stay and take them to new heights in client monetization shows just how concerned the big banks are about their business in Asia. But they don’t want to comment on it when Blick asks.
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.
