In the 12 months relevant to The Banker’s awards, it ranks first in terms of the volume of deals executed in the region, and has a top ranking in pretty much every product area of the investment bank.
According to Rory Tapner, CEO of UBS Group in Asia-Pacific, longevity, commitment and the shape of UBS’s business lie behind these successes. “We have been there a long time and that pays dividends in this region,” he says.
“Equally, relative to the US or Europe, a higher proportion of customers have a very high proportion of family control, so if you combine the wealth management business and private banking with the brand and power of the investment bank, then it gives you a very powerful push in. The make-up of the region suits the shape of our business.”
In terms of geography, India and Indonesia are important growth markets for UBS, says Mr Tapner, and the whole market is hoping that Japan’s green shoots do not wither. The bank’s key growth area, though, will continue to be China. The firm’s revenues there are up by 600%, albeit from a relatively low base, and it has built an enviable position. Following the restructuring of Beijing Securities into UBS, the firm is able to operate as if it were a domestic broker. “That sent a strong message to potential clients and will help to generate a lot of business,” says Mr Tapner. “Strategically, we are in a strong position; now we must convert that into strong revenues.”
Mr Tapner says that product-wise, there are great volumes in commodities and equity derivative-type products. “When China’s equity derivatives market comes online, that has the potential to be a huge market.”
There are still some relative weaknesses to address, admits Mr Tapner, including in the fixed income business. “Like the rest of the business, the Asia-Pacific fixed income business has had some issues, but we have been putting a lot of effort there and the numbers are sharply up. In the past 12 months, for example, we have completed deals in seven of the 11 markets in the region and led debut international bond offer- ings for clients such as PT Bank Lippo, Pakuwon Jati, KDB and Megaworld.”
Mr Tapner is optimistic about the region’s potential as well as UBS’s business there. “It’s still got problems in terms of politics, elections, North Korea and Taiwan, etc, but in the past there has been a tendency for Asia to fall apart when there is a problem elsewhere, and that hasn’t happened during the recent financial markets turmoil.”
