UBS CEO Sergio Ermotti. (Photo: Bloomberg)
UBS Group AG plans to increase charges for international wealth management clients located abroad and holding deposits in Switzerland, broadening its efforts to reduce costly cash holdings as negative interest rates persist.
Starting next year, the bank will charge wealth clients who don't live in Switzerland 330 Swiss francs ($360) a month for holding cash deposits of 500,000 francs or less, according to a pricing list published on its website. Previously, the bank was charging clients about that amount for the year, a person familiar with the pricing details said.
At the end of June, depositors were given six months to decide whether to move a substantial amount of their holdings into investments or use other UBS services or face the increased charges, the person said, asking not to be identified as the matter is private.
UBS and global peers have seen their profitability hurt by half a decade of negative interest rates, which effectively make banks pay for holding clients' cash. Many European lenders are pushing clients to use more investment products after a recession sparked by the coronavirus pandemic increases the probability that rates will stay low or negative for the foreseeable future.
