UBS continues to bleed assets as advisor departures slow

Core Insights - UBS' Americas wealth management unit experienced $14 billion in net new asset outflows in Q4, marking the worst period since compensation changes were announced in November 2024 [1] - Despite the outflows, pretax profit nearly doubled to $417 million, supported by a 9.4% revenue increase to $3.2 billion [3] - UBS anticipates positive net new assets in 2026, although headwinds are expected in the first half of the year [2] Financial Performance - The firm reported a modest increase in expenses to $2.8 billion, a 2.5% rise year-over-year [3] - Total assets under management rose 8% year-over-year to nearly $2.3 trillion, aided by strong market performance [3] Advisor Departures - Advisor headcount decreased by 3.3% year-over-year to 5,772 advisors, with significant departures including teams managing $6 billion and $3.7 billion in client assets [1][4] - A $6.3 billion team left for Wells Fargo in December, and another $1 billion team joined Rockefeller Capital Management [5] Talent Development Initiatives - UBS introduced three new training programs for advisors to strengthen its talent pipeline, including a three-year training program for new advisors [6] - The initiatives aim to provide structured pathways for career advancement within the firm [6]