(April 8): UBS Group AG’s joint-venture firm in Japan will acquire Credit Suisse’s wealth management business in the country, following the lender’s takeover of its smaller Swiss rival last year.

UBS SuMi Trust Wealth Management Co will absorb the Credit Suisse Securities Japan unit’s employees and clients’ assets, the joint venture (JV) said a statement. UBS Securities Japan Co owns 51% of the JV, and Sumitomo Mitsui Trust Holdings hold the other 49%.

UBS, which completed the acquisition of Credit Suisse last year, provides wealth management services for clients with accounts of more than US$2 million (RM9.51 million), and this standard will be applied to clients held by Credit Suisse Securities, according to people familiar with the matter, possibly making some accounts ineligible.

The move comes as the number of affluent households in Japan has been increasing, making wealth management more attractive, though the field is dominated by domestic banks. The financial assets of households with net financial assets of ¥500 million (US$3.3 million or RM15.67 million) or more totalled ¥105 trillion in 2021, compared with ¥46 trillion in 2005, according to a study by Nomura Research Institute.

Across the Asia-Pacific region, UBS is planning to shut smaller-value Credit Suisse wealth accounts numbering in the low thousands, and the lender is reviewing the accounts with a balance of around US$2 million or less.