UBS Group has ended its contract with BlackRock’s Aladdin technology platform, part of integrating Credit Suisse’s asset management operations. The decision was made earlier this year, with the transition to UBS systems ongoing and aiming for completion by year-end. The Aladdin contract, generating $126m since 2019, faced challenges due to declining revenues and cost-cutting efforts.

UBS’s asset management division, managing $1.8tn in assets, reported a $135m pretax profit in Q1 2022 under new leadership. The restructuring, led by Aleksandar Ivanovic, aims to streamline product offerings and reduce costs. BlackRock’s Aladdin, a widely-used platform for trading and risk management, aligns with CEO Larry Fink’s technology-focused strategy for the firm.

BlackRock’s technology services division, including Aladdin, saw a 45% revenue increase to $1.6bn from 2020 to 2024. The termination of the Aladdin contract by UBS follows the bank’s acquisition of Credit Suisse and aims to enhance shareholder value by removing outdated IT infrastructure. The move signals UBS’s commitment to its integration strategy and future growth.

Read more at Yahoo Finance: UBS terminates Aladdin contract with BlackRock