ZURICH, June 8 (Reuters) - UBS expects to see 3-3.5 billion Swiss francs ($3.10-3.62 billion) of net outflows from charging wealthy clients holding money in euros, Chief Financial Officer Kirt Gardner said on Thursday.
“Clients that have large concentrations of euro deposits are economic loss-makers for us. We are pricing all of our wealth management euro deposit-holders, that will result in 3-3.5 billion of net outflows,” Gardner said while speaking at the Goldman Sachs European financials conference.
“Those net outflows will be accretive to the business overall, but might show up as an impairment to net new money.”
The world’s biggest wealth manager said in March it would in May begin imposing a 0.6 percent penalty charge on accounts with more than 1 million euros ($1.1 million) in response to the European Central Bank’s ultra-low rates.
($1 = 0.8908 euros)
$1 = 0.9668 Swiss francs Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields