The changes are the latest steps in a broad overhaul of wealth management since Iqbal Khan came in as co-head three months ago/Bloomberg
UBS Group is splitting its European wealth management business into three regions and expects to cut as many as 500 private banking jobs globally as the lender overhauls its most important division, reported Bloomberg.
According to an internal memo, the revamp will break apart Europe, the Middle East and Africa (EMEA) private banking business led by Christl Novakovic, giving Caroline Kuhnert responsibility for Central and Eastern Europe and Ali Janoudi the Middle East and Africa.
UBS wealth management co-heads Iqbal Khan and Tom Naratil said that Novakovic will retain Western Europe.
The changes are the latest steps in a broad overhaul of wealth management since Iqbal Khan came in as co-head three months ago and he and Naratil were tasked by Chief Executive Officer Sergio Ermotti with devising plans to revive the business.
UBS is looking for ways to maintain its edge and reinvigorate shares that have trailed rivals over the past year. To help boost lending to rich clients. The bank also plans to manage all loans originated in the wealth management business through a separate risk book in its investment bank.
Khan previously indicated that UBS could make ‘quick wins’ by increasing lending, a strategy he used at his former employer Credit Suisse Group.
The goal is to eliminate time-consuming negotiations between wealth managers and the investment bank and speed up the approval of loans.