UBS faces great losses
11 February 2009In 2008 Swiss bank UBS has incurred ¬ the losses, which became unexpectedly great not only for the company, but also for all corporate history of Switzerland. Now the European bank, which has suffered from crisis, hopes to correct situation at the expense of reductions of employees and reorganization.
Last year UBS’ losses reached almost EUR 13 billion, in the fourth quarter of last year UBS has lost EUR 5,35 billion, thus that analysts predicted losses not more than EUR 4,1 billion. Results of financial activity of division on actives management and investment division have appeared the most disappointing. According to UBS managers wrong decisions in investing sphere have led so to substantial damages - till the end of a year this division will cut 2 thousand workplaces. Besides, the bank plans to change the structure, having divided business on work with premium clients on Wealth Mana¬gement & Swiss Bank, and also Wealth Management Americas.
UBS will continue the program of economy including expenses reduction and refusal from risky positions. As to unprofitable investment division it still remains to one of leading programs of the bank.
Last year investing department has cardinally changed business model, having reduced stuff, additional capital share and having risks. Despite rather sad results of last year financial activity, UBS has not refused from payment of bonuses. However, they will be reduced almost to 80 % and will make only EUR 1,43 billion.
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