UBS’s Americas wealth management division reported solid financial performance in the second quarter, with both revenue and profit rising year over year.
However, those gains were overshadowed by notable advisor attrition and $3.5 billion in net client outflows—trends RIAs and independent advisors will want to watch closely.
The unit, which generates roughly half of UBS’s global wealth management revenue, posted a 48% jump in pretax profit to $364 million, and a 6% increase in revenue to $2.9 billion. Yet client assets flowed out for the quarter, reversing strong inflows earlier in the year: Q1 saw $20.2 billion in net new assets, and the same quarter last year brought in $6.2 billion.
UBS attributes some of the outflows to seasonal tax-related withdrawals by U.S. clients, which commonly occur in Q2. A temporary equity market selloff sparked by renewed tariff concerns under former President Trump also contributed to market-related drawdowns, though markets rebounded by quarter’s end.
More concerning for long-term growth, however, is the ongoing departure of financial advisors. The advisor headcount in the Americas fell to 5,773 in Q2, down from 5,884 in Q1. The figure includes advisors across the U.S., Canada, and Latin America. The decline follows late-2024 compensation changes at UBS that resulted in lower payout structures for some U.S.-based advisors.
Speaking to the issue during the earnings call, UBS CFO Todd Tuckner acknowledged that Q2 tends to be more active in terms of advisor movement, but also conceded that comp changes had triggered attrition. “We may continue to see movement across firms and toward the independent channel,” he said. “That said, we are actively recruiting, and we’ve seen more advisors opt into our retirement and retention programs than at any time since they were introduced.”
UBS is also increasing investment in technology and tools designed to improve advisor productivity. Tuckner said these initiatives are delivering results, both in advisor efficiency and in profit growth. The Americas wealth unit reported a pretax profit margin of 12.4% for the quarter, with long-term targets aiming for margins in the mid-teens.
CEO Sergio Ermotti reinforced that ambition. “We’re not yet where we should be in terms of U.S. profitability,” he told analysts, “but we are tackling the issue. We’re confident in our ability to achieve a mid-teens pretax margin over the medium term.”
Asked whether UBS would consider selling the Americas wealth unit if approached with a credible offer, Ermotti declined to speculate. “I’m not going to comment on hypothetical scenarios,” he said.
UBS shares rose 0.4% in afternoon trading following the earnings release, outperforming the S&P 500’s 0.2% gain. The Swiss bank beat Wall Street expectations with Q2 earnings per share of $0.72 versus the consensus $0.68, according to FactSet. Revenue met expectations at $11.6 billion.
Broader changes in UBS’s global wealth footprint remain underway following the firm’s 2023 acquisition of Credit Suisse. UBS has completed the migration of Credit Suisse client accounts booked outside Switzerland onto its platform, and is now transitioning domestic Swiss accounts as part of the integration. UBS reiterated that the integration remains on schedule.
The acquisition, orchestrated with support from the Swiss government, has sparked political backlash in Switzerland. In June, Swiss authorities proposed higher capital requirements for UBS, citing concerns over systemic risk. On the earnings call, Ermotti pushed back strongly, describing the proposal as fundamentally flawed and misaligned with UBS’s risk profile.
“Even under the most generous assumptions, the proposed changes would still force us to raise roughly $24 billion in additional capital at the parent bank,” he said. “We’ll evaluate all appropriate responses to protect shareholder value, but any mitigation efforts would come at a substantial cost.”
UBS plans to engage with regulators on the matter and does not expect to implement any changes before 2027. “In the meantime, we remain focused on executing what we can control: delivering for clients, completing the Credit Suisse integration, and positioning UBS for long-term success,” Ermotti said.
For RIAs and independent advisors monitoring wirehouse shifts, UBS’s compensation adjustments, advisor attrition, and recruiting strategies serve as key signals. The firm’s investment in technology and commitment to higher profit margins suggest it’s playing the long game—but retention and growth in the U.S. market remain uphill battles.
