“Our clients have started to be a bit more active, but the current period is still one where risk-off has come back,” Weber said in an interview with Bloomberg Television’s
Profitability at UBS’s wealth management unit, which oversees assets of
The gross margin at the wealth management division, which reflects how much the bank makes in revenue on assets it oversees, fell to 85 basis points in the fourth quarter from 88 basis points in the third. A basis point is equivalent to a hundredth of a percentage point.
UBS said in July while presenting second-quarter results, when almost 31 percent of advisory assets were in cash, that it would expect to see a 6 basis-point boost to gross margins from a “modest return of client risk appetite.” The bank targets gross margins of 95 basis points to 105 basis points.
Weber said in the interview he expects periods of “risk-on risk-off” in the markets to continue.
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