Published On: Fri, Dec 18th, 2020

UBS to divest Austrian wealth management business to LGT

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, a subsidiary of Swiss banking group , will sell its Austrian wealth management business to -based private banking and LGT.

The financial terms of the transaction were not revealed by the parties.

The Austrian wealth management business of UBS has assets under management (AUM) of about €4 billion. It has a workforce of around 60 employees, who along with the business’ client relationships, products, and services will be taken over by LGT.

UBS’ Austrian asset management business is not part of the deal.

Wolfgang Eisl – UBS Country Head said: “Our domestic wealth management business in Austria has developed well and yielded sustainable profits over the past few years, but our market share remains comparatively small. After a thorough review and analysis over the course of this year, we came to the conclusion that UBS Austria is better positioned for future growth with a leading wealth manager in Austria.

“LGT has an excellent market position and, due to its size in Austria, offers our clients and employees a long-term and sustainable future perspective. Regardless of this decision, our European wealth management activities are and will remain a central and strategic core business for UBS.”

UBS to divest Austrian wealth management business to LGT

UBS to divest Austrian wealth management business to LGT. Photo courtesy of ds_30 from Pixabay.

The acquisition by LGT will increase the AUM of LGT Bank Österreich, its Austrian subsidiary, to €12 billion from what was about €8 billion at mid-2020, thereby making the latter one of the top private banks in Austria for high-net-worth private clients.

– LGT CEO, commenting on the acquisition of UBS Austrian wealth management business, said: “We are convinced that our stability, our tradition in private banking and our investment expertise, particularly also in the area of alternative and sustainable investments, make us a reliable and attractive partner for these clients. We also want to welcome our future colleagues to LGT. Austria is an integral part of our strategy in Europe.”

The transaction, which is subject to receipt of customary approvals, is expected to be wrapped up in the third quarter of 2021.

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