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UBS loses top wealth manager spot to BoA: research
2009-07-07
GENEVA (AFP) - Swiss banking giant UBS has lost its top spot as the world's biggest wealth manager to the Bank of America, research firm Scorpio Partnership said Tuesday. The US bank managed 1.501 trillion dollars' worth of assets at the end of 2008, while UBS managed the equivalent of around 1.285 trillion dollars' worth, according to the firm. UBS reported its assets in Swiss francs. Citigroup came third and then fellow American bank Wells Fargo. "M&A activity has influenced the top 10 with Bank of America now becoming the world's largest wealth manager although the core of its asset base remains inside the United States," said the research. "Indeed, although UBS experienced significant difficulties during 2008, it is notable that it remains in second spot and is effectively still the largest non-US international wealth manager." Bank of America agreed to buy Merrill Lynch last September in a bid to save the latter from a meltdown as the credit crunch intensified. The acquisition led to a surge in first quarter profits to 4.2 billion dollars for the bank. On the other hand, UBS, which last year reported losses reaching 17 billion dollars, has seen a significant outflow of assets as clients took their money elsewhere. A net 226 billion francs (148.9 billion euros, 208.3 billion dollars) flowed out of the bank in 2008, compared to a net inflow of 140.6 billion in 2007.
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