HONG KONG: UBS has promised retention packages to wealth management staff in Asia at Credit Suisse, two people with knowledge of the matter said, as the Swiss bank tries to stem a talent exodus after the takeover of its former rival.
In a town hall address at Credit Suisse's Hong Kong office on Friday, Iqbal Khan, UBS's president for global wealth management, also focused on stabilising the Credit Suisse Asia team and boosting confidence, one of the people said.
The sources declined to be named because they were not authorised to speak to media.
Credit Suisse had been steadily losing wealth management market share to UBS and to more well-capitalised U.S. banks in investment banking in the last few years, but remained the second-biggest wealth manager in Asia, behind only its acquirer.
Asia, particularly the greater China region, is seen as a growth engine for both banks.
In his address, Khan said the top performers at the Credit Suisse wealth business in Asia would get retention packages, the second person said, adding the details of the arrangements were not yet disclosed to staff.
The main message during the Friday town hall was to encourage the senior managers of Credit Suisse's wealth business that the prospects would be bright after the firms merged, a third person said.
Khan said it would take time, but the merged entity would emerge as an even stronger player in the wealth management business and Credit Suisse staff had no need to be worried, the person added.
Credit Suisse and UBS declined to comment.
Bloomberg first reported the development on Friday.
Khan, a former top Credit Suisse banker, held the town hall along with Francesco de Ferrari, Credit Suisse's CEO for wealth management, two of the people said.
UBS told Credit Suisse wealth bankers in Zurich this week that it was weighing financial sweeteners for them to stay as it sought to reassure key staff following the 3 billion Swiss francs ($3.23 billion) takeover, Reuters reported on Monday.
The deal is expected to be completed by the end of the year. - Reuters