UBS is trying to fix its US wealth business after years of adviser departures and weak profitability. CEO Sergio Ermotti made it a priority post-Credit Suisse rescue. The Americas unit had a pre-tax margin under 10% versus Morgan Stanley's 29%.

New leaders Rob Karofsky and Michael Camacho overhauled compensation, scrapping the "combined team grid," causing hundreds of advisers to leave. Adviser count fell to 5,722. But Q1 2025 showed improvement: $448mn pre-tax profit, 13.7% margin, approaching the 15% target.

UBS gained a national US banking licence in March, aiming to offer deposits and lending to capture more client wallets. It estimates $150bn in client deposits at rivals. Goal: raise deposit/lending revenue share from 17% to 27%, potentially lifting margins to ~20%. Products roll out late 2027.

Swiss "too big to fail" reforms may require $22bn extra capital for foreign subsidiaries, with the US business taking the largest share. This threatens the very market UBS needs to close its valuation gap with Wall Street.