Strategy & Practice Management

UBS and Sumitomo Mitsui Trust to Enhance Wealth Management in Japan by Acquiring Credit Suisse's Division

The joint venture company of UBS in Japan is set to take over the wealth management division of Credit Suisse in the nation.

This development follows UBS's acquisition of its Swiss competitor the previous year. UBS SuMi Trust Wealth Management will integrate the staff and client assets of Credit Suisse Securities Japan, with the merger's details being kept confidential by sources. The joint venture is majority-owned by UBS Securities Japan with a 51% stake, while Sumitomo Mitsui Trust owns the remaining 49%.

After acquiring Credit Suisse, UBS, a provider of wealth management services to clients holding accounts of over US$2 million, will apply this threshold to Credit Suisse's clientele, potentially excluding some accounts. This acquisition aligns with the growing market for wealth management in Japan, where the wealth of high-net-worth households has seen a significant rise, from 46 trillion yen in 2005 to 105 trillion yen in 2021, according to Nomura Research Institute.

Representatives from UBS Securities and Sumitomo Mitsui Trust have not provided any comments on the matter. In a broader strategy across the Asia-Pacific region, UBS intends to close several smaller Credit Suisse wealth accounts, focusing on those with around US$2 million or less.