The tough course being followed by top UBS investment banker Andrea Orcel to boost profit in the advisory business doesn’t seem to suit all of those working for him. They are free to leave, UBS says.
The UBS investment bank under the leadership of Andrea Orcel delivered an unexpectedly strong first quarter both in trading and in the advisory business, as reported by finews.com.
UBS now wants to build on this success, focusing particularly on the corporate solutions unit, which advises clients on mergers and acquisitions. The business is regarded as an important contributor to the key wealth management division.
Orcel has set his unit aggressive targets for the coming quarters. He is looking for an increase in turnover of several hundred million Swiss francs in the coming three to four years, a source familiar with the matter told «Bloomberg», without giving detailed figures. Costs will be kept under strict control during the expansion.
Whoever Can’t Must Leave
Not all the investment bankers are happy with the ambitious new demands and this is leading to frustration among junior and senior bankers alike. Evidence of the dissatisfaction is the increasing fluctuation at the investment bank in recent weeks. UBS acknowledged that the new performance-related environment may not be suitable for all the staff. «We wish them well elsewhere,» a UBS spokesman told «Bloomberg».
The recent departures are low compared to previous years and are in line with the market average, the bank said. It is also attracting new talent.
Advisory Business Focus
Orcel is targeting the best talent among investment bankers, a fact reflected by his aggressive plans for the U.S. market. The 54-year-old is looking to double the pool of M&A bankers within three to five years, with only the best being considered for employment. In this way Orcel wants to propel UBS into one of the Ferraris among investment banks.
The focus on the advisory services is also an answer to the erosion of margins in the trading business, where UBS expects further headwinds. At the same time UBS sees chances in the sector against the backdrop of reduced activities among its European rivals. UBS is thus hoping to increase its market share, it is reported.
