Aug 12 UBS AG UBSN.VX will separate its wealth
management business from investment banking and asset management
as the world's biggest banker to the rich acknowledged its
one-bank model was flawed. [ID:nLB144790].
Following are the key details of the repositioning of UBS.
* UBS to separate business divisions into three units:
Global Wealth Management & Business Banking, Investment Bank and
Global Asset Management.
* UBS to invest in and develop its Global Wealth Management
business in a bid to strengthen its presence in international
growth markets and its position in Switzerland.
* Investment Bank to further reduce balance sheet and risk
positions as it repositions towards client-driven growth. This
will ensure maximum accountability for creation of shareholder
* In Global Asset Management division, incentives for
leadership and staff will be aligned with results and investment
* The new structure is to result in more transparency on
value creation within UBS, impose strict standards on the
availability and usage of capital and provide flexibility to
capture future shareholder value.
* UBS's position in Switzerland, both as a wealth manager
and as the largest retail bank, to remain a cornerstone of the
strategy and of sustainable profit growth.
* Executive management of the group to be led by the Chief
Executive Officer who will be supported by the Group Executive
Board (GEB) and its newly established Executive Committee.
* Executive Committee will be made up of the CEO, Chief
Financial Officer, Chief Risk Officer and the General Counsel.
(Reporting by Katie Reid; Editing by David Cowell)