UBS advisers break $1 million per FA revenue mark

Bank's U.S. wealth unit is lone bright spot in rough fourth quarter

Feb 5, 2013 @ 3:23 pm

By Bruce Kelly

UBS financial advisers in the U.S. crossed the threshold of producing more than $1 million in revenue per adviser during the fourth quarter.

Average production was up 8% from $927,000 in the third quarter and 15% from $869,000 year-over-year, according to UBS Wealth Management Americas.

Along with the record revenue per adviser, which totaled $1,001,000 and included trainees in the mix, the firm reported a new high in net new money of $8.8 billion for the quarter, up 84% from $4.8 billion in the third quarter. It also reported record assets per adviser of $119 million versus $118 million in the previous period. Adviser headcount through December was 7,059, 27 more than at the end of September.

Wealth Management Americas parent company Swiss bank UBS AG posted a $2 billion loss for the fourth quarter. That was largely due to the cost of legal settlements, most notably for its role in a global manipulation of interest rates.

UBS advisers' average revenue generation is outpacing wirehouse competitors. Advisers at Morgan Stanley most recently produced $824,000. Reps and advisers with Wells Fargo Advisors LLC on average produced $670,000 in revenue, according to UBS spokeswoman Karina Byrne. Wells Fargo spokeswoman Rachelle Rowe did not return a call to verify that number.

Not counting trainees, advisers at Bank of America Corp.'s Merrill Lynch generated $1.3 million on average, up 13.5% year-over-year. Including trainees, that average dropped to $935,000.

“UBS is the smallest among the four wirehouses, but it is positioning itself to be responsive and nimble” to financial advisers' work and needs, said Danny Sarch, an independent recruiter who counts UBS as one of his clients. “Senior management is sensitive to the realities of the field.”

Non-personnel expenses at UBS Wealth Management Americas increased by $98 million, including $87 million for litigation and regulatory provisions.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Surprises when reporting on Morningstar

Assistant managing editor Susan Kelly speaks with senior columnist John Waggoner about the interesting discoveries he found in speaking with the analytics giant.

Latest news & opinion

Morningstar evolving well beyond its origins analyzing mutual funds

Led by CEO Kunal Kapoor, firm is moving way past ratings — and financial advisers are paying close attention.

Focus Financial IPO could be a sell signal for RIAs

The $100 million stock offering will fine-tune RIA valuations.

Ex-Edward Jones broker sues former firm, alleging racial bias

Complaint alleges the firm's policies limit African-Americans' 'income and advancement opportunities'

Piwowar defends SEC's best-interest rule

SEC commissioner says the Department of Labor rule set up an 'unworkable, impossible set of standards for people to comply with.'

RIA in a Box acquired by private equity firm Aquiline Capital

New owners plan more growth for the software service provider.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print