UBS saw pre-tax profit in its wealth management business in Asia during the third quarter fall by nearly a fifth as a combination of poor market performance and fewer client transactions weighed on its performance.
The Swiss bank saw profit dip by $56m year on year to $237m on the back of a 12% fall in revenues to $620m.
UBS said that loans fell 10% compared with the second quarter to $37m, reflecting $3.3bn of net new loan outflows as the current market uncertainty led to clients deleveraging.
One silver lining was that net new fee-generating assets were $6.6bn, an increase of 25.3% year on year.
Meanwhile, its asset management division saw a 22% drop in total invested assets in the region to $142bn.
UBS did not provide any explanation for the dip, although globally it noted that invested assets decreased by $47bn to $979bn, primarily due to the impact of negative market performance and currency depreciation.
Other results
HSBC recorded a 25% rise in adjusted revenues in its wealth and personal banking unit during the third quarter to $6.29bn, which it attributed to interest rate rises.
HSBC’s wealth revenue fell 9% to $1.9bn, which the bank partly attributed to a reduction in investment distribution as muted customer sentiment led to lower activity in equity markets.
Private banking revenues were up 19% to $525m. The bank did not provide an explanation for the increase, although on a nine-month basis it noted that revenues rose as the positive impact of rising interest rates on net income offset the decline in brokerage and trading revenue due to subdued client activity.
Meanwhile, Standard Chartered recorded a 15% drop in wealth management revenues for the third quarter on a constant currency basis with Hong Kong revenues also down 15%.
The bank attributed this partly to subdued equity markets, which led to lower transaction volumes.
