UBS Group AG's Americas wealth division reported $8.6 billion in client asset outflows during the third quarter, marking a sharp reversal from $8 billion in inflows during the same period last year. AdvisorHub reports that the firm's advisor headcount also continued to decline, reflecting the impact of cost-cutting measures and compensation changes introduced nearly a year ago.
According to UBS Chief Financial Officer Todd Tuckner, the latest outflows "primarily" stem from advisor movement tied to last year's structural changes, including revisions to the advisor-compensation grid implemented as part of a broader realignment strategy. UBS's U.S. advisor ranks fell 3.5% year-over-year to 5,779, including advisors across Latin America and Canada.
At least 46 advisor teams, collectively managing $33.2 billion in assets, have exited UBS this year, according to AdvisorHub. The firm's declining net new assets contrast with competitors Merrill Lynch and Morgan Stanley Wealth Management, both of which reported improved flows in the same period.
Tuckner acknowledged the ongoing challenges but noted that UBS remains focused on profitability and retention. Despite the turnover, UBS's strategic reset has improved pre-tax margins and operating leverage, providing greater capacity for investment in advisor resources and client solutions.
Pre-tax profit at UBS's Americas wealth unit rose 26.1% year-over-year to $416 million, while revenue increased 9.1% to $3.09 billion. The firm also improved its cost-to-revenue ratio, reducing it to 86.2% from 88.1% a year earlier. Driven by market gains, UBS's assets under management climbed 9% to nearly $2.3 trillion.
According to AdvisorHub, UBS recently announced a new compensation plan for 2026, which executives described as offering "all carrots and no sticks." However, Tuckner confirmed that the firm would not reverse the 2025 grid reductions, noting that those cuts proved "accretive" to margins.
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