UBS to cut 2,000 jobs

UBS posted the biggest ever annual loss for a Swiss firm and it will axe 2,000 more jobs as it restructures to focus on wealth management.

UBS reported an 8.1 billion Swiss francs (Dh25.6 billion) net loss in the fourth quarter, missing a Reuters poll forecast for 7.1 billion Swiss francs. UBS’ loss for 2008 came in at 19.7 billion Swiss francs, above analysts’ predictions for 18.7 billion francs.

The quarterly loss came on the back of a hefty 8.8 billion Swiss franc trading loss, as well as charges it made after selling billions in toxic assets to the Swiss National Bank when it was rescued by the state in October.

Chief Executive Officer Marcel Rohner told journalists that the world’s biggest wealth manager was not paying a 2008 dividend but still aims to return to profit in 2009 after seeing some positive signs at the start of the year.

UBS continued to suffer massive outflows in the fourth quarter at its core wealth management business. But the Swiss bank said net new money had turned positive in both wealth management and asset management in January, the first time after a streak of negative quarters. It did not give details.

UBS stock swung sharply in early trade, rising as much as 7 per cent before dipping 2 per cent to trade at 12.64 Swiss francs by 0910 GMT, broadly in line with a 2.3 per cent weaker DJ Stoxx European banking index.

UBS also announced structural changes to refocus the bank on its core Swiss businesses, its global wealth management operation and on the growth potential of its onshore business.

It is creating two new business divisions: Wealth Management & Swiss Bank under the leadership of Franco Morra and Juerg Zeltner, and Wealth Management Americas, led by Marten Hoekstra.

All three are members of the board.

UBS said it was continuing to cut the size of its troubled investment bank, saying it aimed to bring its total staff to about 15,000 from 17,171 now.

From Gulf News