(Bloomberg) -- UBS Group AG Chief Executive Officer Sergio Ermotti said he expects to see more consolidation among asset managers, adding that he can’t rule out an acquisition.

“The asset-management industry is becoming very competitive and is likely to see more consolidation,” Ermotti said in an interview with Bloomberg Television’s Francine Lacqua in Washington. “We look first of all at making our business more efficient and effective and eventually we can’t rule anything out. Our base scenario is to grow organically.”

Europe’s largest banks are under pressure to cut costs as record-low interest rates, volatile markets and tougher regulatory rules squeeze margins. Deutsche Bank AG may consider selling parts or all of its asset-management division, people familiar with the matter have said, as CEO John Cryan seeks to shore up capital buffers and profitability.

UBS, the world’s largest wealth manager, is “going through a redefinition” of its asset-management strategy, Ermotti said, without elaborating. He declined to comment on Deutsche Bank.

USB targets an adjusted annual profit of 1 billion Swiss francs ($1 billion) “in the medium term” at the asset-management unit, which is led by Ulrich Koerner. The business had outflows in the last four reported quarters.

--With assistance from Francine Lacqua To contact the reporter on this story: Jeffrey Vögeli in Zurich at To contact the editors responsible for this story: Simone Meier at, Jon Menon

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