UBS AG appears to be making good on its pledge to sharpen its focus on wealth management and rein in its investment banking operations.
The firm said last Thursday that Robert McCann, leader of the wealth management business in the Americas, has been appointed chief executive of UBS Group Americas.
In the wake of the $2.3 billion loss incurred in September by a London-based trader in the investment bank, interim chief executive Sergio Ermotti — he is no longer interim — and senior board members indicated that they would curb the investment banking side of the business and devote more resources to wealth management.
“This is a sign of the importance of the wealth management franchise to UBS and of the importance of Wealth Management Americas to the business,” said UBS spokeswoman Karina Byrne. “It's also recognition of Mr. McCann's hard work in turning around the wealth management franchise here.”
Indeed, UBS' wealth management operations — particularly in the Americas — were a bright spot in a difficult third quarter.
Unlike competitors Bank of America Merrill Lynch and Morgan Stanley Smith Barney LLC, UBS posted positive revenue growth (2%) in the division. It also added 51 advisers in the quarter, while raising their average annual productivity to $895,000 — now the highest among the wirehouses.
Mr. McCann's promotion, however, doesn't give him unfettered authority over banking and asset management in the Americas. The heads of those two divisions will still report to Carsten Kengeter, chief executive of UBS' global investment bank, and John Fraser, chief executive of global asset management.
“Part of his new role will be to foster cross-divisional collaboration,” Ms. Byrne said. “He's going to work at getting the Americas to function as a true region, sharing leads and working more closely together.”
In a memorandum to UBS Americas employees last Thursday, Mr. McCann wrote: “Our strategy around the world and in the Americas is centered on leveraging our leading wealth management franchise together with a strong and focused investment bank and asset management business.”
Mr. McCann, who joined UBS in 2009 from Merrill Lynch, replaces Philip Lofts, who has served as Americas chief executive since January. Mr. Lofts will resume his former role of UBS Group chief risk officer.
The odd executive out is Maureen Miskovic, who has served as chief risk officer since January. She will leave UBS.
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