UBS Weighs Changes to Elite Global Family Office

UBS, under CEO Ralph Hamers, is considering significant changes to streamline operations by implementing a fixed profit share agreement between its wealth management and investment banking divisions. This move aims to address dissatisfaction among wealth division heads over profit sharing with the investment bank. The wealth division, being the bank's largest profit generator, seeks to reclaim profits currently shared with the investment bank.

What is the main strategic change UBS is considering under CEO Ralph Hamers?

• Reducing the number of bank branches

• Expanding into new international markets

• Implementing a fixed profit share agreement

• Introducing a new digital banking platform

What is the primary reason for UBS considering a fixed profit share agreement?

• To expand into new markets

• To simplify operations and improve efficiency

• To increase the number of clients

• To reduce operational costs

Why are the UBS Wealth Co heads unhappy with the current profit-sharing system?

• They believe the investment bank is not profitable enough

• They prefer a more flexible profit-sharing model

• They want more control over investment decisions

• Their unit shares a significant portion of its profits with the investment bank

How much profit does the wealth division generate compared to the investment bank?

• $5 billion compared to $2 billion

• $3 billion compared to $3 billion

• $4 billion compared to $2.5 billion

• $2 billion compared to $4 billion

What potential benefit could the wealth division gain from the proposed changes?

• Higher profit retention

• Increased market share

• Better client relationships

• More investment opportunities