(Bloomberg) -- UBS Group AG’s 13 markets in Asia-Pacific all posted an increase in revenue for the second quarter this year, the first time that’s happened in two years, according to outgoing regional head Edmund Koh.
Australia and Singapore led the way during the quarter marked by progress in the integration of Credit Suisse, Koh said in a presentation to staff during a town-hall with incoming regional president Iqbal Khan on Wednesday. Khan is set to succeed Koh on Sept. 1, with the latter becoming regional chairman.
Like other rivals, global banks’ revenue in Asia has been hurt in recent years by geopolitical tensions, a deal drought, and China’s worsening economy. The region is nevertheless key to the Swiss bank’s ambitions to dominate global wealth management, and Khan’s posting is seen as a test in the race to succeed Chief Executive Officer Sergio Ermotti.
UBS’s Asia teams “band together during the difficult times and come out even stronger in the good times”, Koh told the audience in Hong Kong. Khan thanked his predecessor for the work he has left behind and committed to building the business to new heights in the region.
Khan’s home base will be in Hong Kong, but he will also have a residence and dedicated office in Singapore and he’s likely to divide the majority of his time between the two cities, people familiar with the matter told Bloomberg in early August. The 48-year-old will run Asia along with his other mandate as co-head of global wealth management with Rob Karofsky.
UBS completed the historic acquisition of its former rival Credit Suisse Group AG in May. The Zurich-based firm posted higher than expected profit in the second quarter, as investment banking revenue and progress in integrating its former rival helped bolster Ermotti’s efforts to return capital to shareholders.
In Asia Pacific, the wealth division attracted $8.2 billion of net new assets during the second quarter, second only to Switzerland. It is the biggest wealth manager in the region with over 1,000 client advisers. With the merger completed, the bank said it is migrating clients onto UBS platforms in Singapore and Hong Kong in the fourth quarter.
The Swiss lender has been cutting thousands of jobs following the emergency rescue of Credit Suisse, but earlier this year, Koh signaled that most of the job cuts in the region are over.
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