Orient Securities Company Limited (DFZQ) has released a research report stating that the wealth management industry is currently undergoing a profound transformation from transactional, channel-based services to the full lifecycle management of client assets. The UBS experience demonstrates that two-way synergy between investment banking and wealth management can connect corporate capital needs with individual and family wealth requirements, helping to improve client asset retention and comprehensive revenue per client. In China, leading securities firms with substantial client reserves, comprehensive investment banking capabilities for deal origination and execution, a rich product supply system, and forward-looking cross-border strategies possess a stronger foundation for advancing wealth management transformation and expanding comprehensive financial service revenue. The main viewpoints of Orient Securities are as follows:

Client Asset Expansion is the Core Driver of Long-Term Growth for UBS Wealth Management

From 2004 to 2025, UBS Global Wealth Management's invested assets grew from $1.5 trillion to $4.8 trillion. In 2025, the wealth management segment's revenue reached $26 billion, contributing 52.4% of the group's total revenue. In terms of profitability characteristics, UBS Wealth Management's comprehensive income ratio (wealth management income / average invested assets) has stabilized around 0.6% in recent years. Client asset scale remains the primary foundation for long-term revenue and profit growth, with a relatively high proportion of recurring income, indicating relatively strong business stability.

Diverse Comprehensive Needs of High-Net-Worth Clients Create the Basis for Cross-Business Integrated Services

High-net-worth groups such as entrepreneurs and family offices have simultaneous, complex financial needs spanning personal, family, and corporate domains, expanding the business scope for full-chain comprehensive wealth management services. The needs of this client segment have extended beyond traditional asset allocation to include diverse scenarios such as corporate investment and financing, equity management, liquidity planning, and family wealth succession. Relying on its global brand barrier, strong capital strength, worldwide service network, and local professional teams, UBS addresses these complex, comprehensive needs. It uses wealth management as a long-term relationship maintenance hub, integrating synergy across investment banking, asset management, credit, and family service lines to achieve higher client asset retention and comprehensive revenue per client.

The "One Firm" Synergy Model Facilitates Two-Way Referrals, Continuously Increasing Client Asset Share and Value Per Client

On one hand, after investment banking engages with entrepreneur clients, it can channel the personal and family wealth needs of controlling shareholders and management to the wealth management division. On the other hand, wealth management teams can identify corporate-side needs for mergers and acquisitions, financing, and liquidity management from their existing high-net-worth client base and refer them back to specialized investment banking teams for execution. Looking at the revenue structure, in 2025, UBS Wealth Management's net recurring fee income accounted for 52.7%, while net interest income and transaction-based income contributed 27.0% and 20.1%, respectively. These diverse revenue sources effectively enhance client asset retention rates and comprehensive revenue per client.

Amid Tech Innovation Investment Trends, Domestic Leading Brokers Can Learn from the "Three-Investment Linkage" Synergy Mechanism, Using Entrepreneur Clients as an Entry Point to Advance Wealth Transformation

The barriers built by UBS through its global network, comprehensive banking business foundation, and century-old brand are difficult to replicate in the short term. However, its mature mechanisms—such as a unified client view, two-way referrals between investment banking and wealth management, cross-team collaborative operations, and tiered, refined services—hold significant reference value for the wealth transformation of domestic securities firms. Leading domestic brokers can leverage a "three-investment linkage" system to establish relationships with entrepreneur clients early. During key capital operation milestones like IPOs, refinancing, shareholder divestments, and family succession, they can naturally extend comprehensive corporate services to the personal and family wealth needs of controlling shareholders. The approach involves first establishing client relationships and internal organizational mechanisms, then gradually building a fee-based investment advisory system and enhancing cross-border wealth service capabilities.

Risk Warnings

Significant volatility in capital markets leading to a decline in client asset scale; slower-than-expected progress in wealth management transformation and the development of buyer-side investment advisory; slower-than-expected progress in cross-departmental synergy and organizational mechanism reform; discrepancies between overseas experience and domestic regulations or client needs; and higher-than-expected risks in cross-border business development and compliance.