UBS has $200 million exposure to Russian assets in loans to rich

UBS has $200 million exposure to Russian assets in loans to rich
The Swiss bank also identified 'a small number' of wealth management clients who were sanctioned in response to Russia's invasion of Ukraine.
MAR 07, 2022
By  Bloomberg

UBS Group has about $200 million in exposure to Russian assets that were used as collateral in loans to clients at its wealth unit.

The Swiss bank also identified “a small number” of wealth management clients who have been sanctioned in response to Russia’s invasion of Ukraine, it said in its annual report, published Monday. Those clients had less than $10 million in total loans outstanding as of March 3.

“We are working to implement sanctions imposed by Switzerland, the U.S., the EU, the UK and others,” Chief Executive Ralph Hamers and Chairman Axel Weber said in the report.

Wealthy Russians with links to President Vladimir Putin have seen their assets frozen across the world, while other rich bank clients who borrowed against Russian assets have to come up with more collateral after those securities plunged in value. Bloomberg reported previously that UBS and Credit Suisse Group are both triggering margin calls on some customers who use Russian bonds as collateral, after marking down the value of debt issued by the country and its corporations.

In a margin call, banks ask investors to add cash or securities to a portfolio that typically also includes some borrowed funds or securities when the market value falls below a predetermined limit, often during a market rout or other event. The bank can forcibly liquidate clients' holdings if they are unable or unwilling to deposit the funds. 

UBS said its direct country risk exposure to Russia added $634 million to its total emerging market exposure of $20.9 billion. Not included in the figure are $51 million in net assets held at its Russian subsidiary. It had no material direct country risk exposures to Ukraine or to Belarus as of Dec. 31.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.