UBS’ Iqbal Khan Rethinks How to Measure Success in WM

UBS’ Iqbal Khan Rethinks How to Measure Success in WM

UBS’ Iqbal Khan talked about rethinking how to measure success for the Swiss bank’s wealth management business and considering net present value due to the heterogeneity of client needs.

One of the standard measures of success for the wealth industry adopted by many analysts is to look at assets under management (AUM) and the fees made from them, similar to that of the fund industry. According to Iqbal Khan, UBS’ global wealth management co-president, this may not be applicable for the Swiss bank’s client base.

«They are not wholesale clients. They are heterogeneous. Their needs are very different. Their goals, their situations are very different,» said Khan during the PWMA (Private Wealth Management Association) Wealth Management Summit 2025 in Hong Kong. «Why not look at net present value (NPV) of a relationship?

Future Streams

NPV is a method used to calculate the current value of a future stream of payments from a company, project, investment or, in the case of UBS, a relationship.

Instead of using AUM, which assumes homogeneity amongst investors, Khan suggested that NPV may be a more appropriate tool for the business, as clients have not only varying investment needs but are also often seeking so-called «one-bank» solutions that may involve revenues generated in collaboration with the investment bank or other parts of the financial group.

Driver of Business

This may especially be relevant in Asia, where Khan is the bank’s president, as many ultra-rich individuals still retain control of businesses, be it as a next-generation family owner or a first-generation entrepreneur.

«That’s something that we’re going to be bringing to our KPI,» Khan shared, adding that the bank will also look to educate investors that NPV of a multi-generational relationship is a fundamental driver of the business.