UBS Wealth Management recorded net outflows of CHF3.4bn (£2.3bn, $3.3bn, €3.1bn) during the fourth quarter of 2015, compared with inflows of CHF3bn during the same period in 2014.
Chief finance officer Kirt Gardner attributed the net outflows to “continued deleveraging as clients reduced risk in response to extreme uncertainty, as well as cross-border outflows, and proactive and disciplined balance sheet management”.
In contrast, the wealth management division’s Americas segment, which is reported separately, achieved strong inflows during the fourth quarter of CHF16.9bn, up from CHF5.3bn in 4Q14.
On an annual basis; the wealth management division, excluding the Americas, reported net new money of CHF12.9bn, less than a third of the CHR34.4bn inflows recorded in 2014.
“We were not tempted to take more risks or buy unprofitable net new money to offset seasonal effects and challenging market conditions.”
Net inflows for 2015 across the Americas more than doubled to CHF21.3bn, against CHF9.6bn in 2014.
Across the wealth management division net inflows and (outflows) during the fourth quarter were:
Pre-tax loss for the wealth management division (excl. Americas) was 46.2% during 4Q15. The Americas, however, fared worse with a loss of 94.6% compared with 4Q14.
The group
UBS recorded a net tax benefit for the fourth quarter of CHF715m as a result of applying losses incurred during the financial crisis to their current results. The reduction in tax liabilities boosted quarterly net profit for the group by 79% to CHF6.2bn.
Group operating income was relatively unchanged at CHF6.8bn during the fourth quarter, but was up by 9.2% to CHF30.6bn for the year.
Not tempted
“The fourth quarter is a good demonstration of our discipline,” said chief executive Sergio Ermotti. “We were not tempted to take more risks or buy unprofitable net new money to offset seasonal effects and challenging market conditions.”
