UBS doubles stock research for Credit Suisse wealth clients

BLOOMBERG

UBS Group AG will double the coverage of single stocks that Credit Suisse wealth clients can access as it moves to integrate the two firms’ research offerings. The transition will enable Credit Suisse wealth clients to receive research from UBS’s team, expanding coverage to over 3,000 stocks, according to a memo sent to customers. That also means those clients will see research on 18,000 bonds from a previous universe of 2,600 bonds, according to the lender’s memo.
The memo was seen by Bloomberg News and the contents were confirmed by a UBS spokesperson. UBS is in the middle of one of the most complex integrations in global banking since the financial crisis, as it seeks to retain the wealthy clients and private banking talent of its long-time rival while shedding riskier assets, for instance in the investment bank.
The lender outlined major targets for that process and posted the biggest ever quarterly profit for a bank on the back of the bargain deal that closed in June. Credit Suisse’s securities research for the investment bank will also be integrated with UBS, according to a separate memo. As a result, it will start terminating coverage on September 18.
Credit Suisse clients will continue to have access to “historic” Credit Suisse research until early October and institutional clients will be given access to the UBS research platform in the coming weeks, subject to their onboarding, according to the Credit Suisse memo.  UBS Chief Executive Officer Sergio Ermotti said that the firm is trying to win back roughly $200 billion in client assets that fled Credit Suisse in the quarters preceding the takeover. UBS has deployed incentive programs for relationship managers to bring in new client money, and Credit Suisse’s wealth business started to see inflows in June. Still, the firm faces headwinds as private bankers who left Credit Suisse try to lure longtime customers to their new banks.