UBS views some web advisor losses as “regular” over the long run as U.S. brokers proceed to maneuver to unbiased companies, the Swiss financial institution’s chief monetary officer stated on Wednesday even because the agency reported a dramatic rebound in shopper asset flows.
“A level of web attrition might be the trade norm that you simply see versus it being web flat as a basic premise over the long run,” CFO Todd Tuckner advised analysts throughout UBS Group AG’s third quarter earnings name. “There may be nonetheless a transfer to unbiased advisor retailers, and also you’re seeing that throughout the trade.”
Tuckner stated that UBS’s recruiting and retention charges had been normalizing relative to historic developments. Though headcount remained down 3.1% year-over-year within the Americas, its newest losses mirrored advisor strikes that had been determined a number of months earlier.
UBS’s Americas gross sales drive declined sequentially by a web 43 advisors, or virtually 1%, to five,601. It was down by a web 178 from final 12 months within the area, which features a cadre of brokers in Canada and Latin America.
Regardless of the attrition, UBS’s web new belongings rebounded sharply within the third quarter to $16.7 billion following a web lack of $8.6 billion in the identical interval final 12 months. The enhance got here largely from bettering productiveness of its present advisors because of investments within the agency’s know-how and assist, Tuckner stated.
The regional wealth unit’s outcomes are “making the Americas a significant contributor to full-year 2026 NNA for the division general,” Tuckner added.
UBS and different giant brokerage companies have for years de-emphasized the significance of advisor headcount to profitability. Tuckner and different executives have described its method as attempting to grow to be extra productive with a smaller advisor drive as its headcount has declined from 7,025 advisors a decade in the past.
UBS additionally skilled a surge in departures after unveiling adjustments to its 2025 advisor compensation plan. Tuckner and different executives stated beforehand that the losses ought to abate within the second half of the 12 months though giant groups have continued to depart.
UBS has additionally invested in its early profession growth applications, which executives additionally anticipate will assist to stabilize its roster.
Wirehouse headcount general declined at a 1% compound annual price from 2013 to 2023, based on a 2024 report from trade consulting agency Cerulli Associates. Unbiased and hybrid RIA headcount elevated 5.2% and three.5%, respectively.
There have been different indicators of enchancment from UBS’s strategic reset beneath U.S. Wealth Head Michael Camacho, who joined in 2024 from JPMorgan Chase & Co.
The unit’s revenue rose virtually 28% to $530 million on revenues that climbed 9% to almost $3.four billion, UBS stated. Its revenue margin elevated to 16%, up greater than 2 share factors, year-over-year.
Working bills elevated 7% to $2.Eight billion reflecting advisors’ compensation rising with market valuations.
“We proceed to execute with self-discipline in opposition to our strategic priorities, delivering additional enhancements in profitability and development,” Tuckner stated concerning the Americas wealth unit.
UBS additionally has rosy expectations for banking, given its just lately acquired banking license within the U.S. Tuckner stated that the agency is now in “implementation mode” and plans to start piloting new capabilities within the first quarter of 2027 and ramp up throughout the 12 months.
“We’re actually inspired by having now the nationwide financial institution constitution to assist an expanded providing,” he added. “And what that would imply in enhancing [net interest income] and growing accreting pretax margins.”
Tuckner stated that the corporate expects to bolster its workplace-related choices and constructing these up “continues to be a precedence for us.”
“It’s a funnel that we’ll proceed to develop. It’s been, as we’ve stated previously, the strategic precedence that we’ll proceed to make progress on,” he stated.
Rival Morgan Stanley has targeted on transferring office and self-directed purchasers to its advisor-led channel. Earlier this month, the agency reported it drew a document $232 billion in web new belongings pushed partly by preliminary public choices, together with SpaceX.