Credit Suisse clients flee to UBS in Asia Pacific as rich weigh options

Hundreds of wealthy customers have sought to place their funds with UBS in the key growth region, and the bank is planning to re-allocate staff to handle these expanding accounts, people familiar with the matter said. Morgan Stanley is also among the banks benefiting from the historic outflows at Credit Suisse, the people said.

It’s unclear how much of the funds will stick permanently at UBS, with many potential new clients stuck in due diligence, according to the people, who asked not to be identified as the details are private.

The loss of client money marks a major setback for Credit Suisse as executives seek to put the lender back on course with a sweeping overhaul that places a greater focus on private banking.
Global banks have been fighting for a greater share of Asian wealth created in recent years, driving fierce competition for advisers who can bring billions of dollars in client assets. UBS runs the largest private bank in Asia by assets, excluding onshore China, according to a 2021 ranking by Asian Private Banker, while Credit Suisse is second-biggest.

Spokespeople for UBS, Credit Suisse and Morgan Stanley declined to comment.

Clients pulled as much as 84 billion Swiss francs ($89 billion) of their money from the bank globally during the first few weeks of the quarter, marking potentially the worst exodus since the financial crisis and contributing to an expected fourth quarter loss.