Swiss bank UBS profits cut by half
(28 July 2011 – Europe) The Zurich-based bank UBS AG has to cut an undisclosed number of jobs as it slashes up to 2 billion Swiss francs (A$2.3 billion) in costs after a huge second-quarter profit loss.
Net profit collapsed by almost half amid poor showing from its fixed-income arm, as the strong Swiss franc continues to eat into earnings.
UBS has joined the ranks of rivals in cutting costs as securities markets and client activity were too weak to justify large investment banking units.
Last week, US-based Goldman Sachs said it planned to cut 1000 jobs, while Credit Suisse is expected to lay off as many as 1600 people when it reports on the quarter this Thursday. UBS didn't elaborate on how many jobs it would cut.
'Current economic uncertainty shows little sign of abating. We therefore do not envisage material improvements in market conditions in the third quarter of 2011, particularly given the seasonal decline in activity levels traditionally associated with the summer holiday season, and expect these conditions to continue to constrain our results,' UBS said in a statement.
UBS has joined the ranks of rivals in cutting costs as securities markets and client activity were too weak to justify large investment banking units.
Last week, US-based Goldman Sachs said it planned to cut 1000 jobs, while Credit Suisse is expected to lay off as many as 1600 people when it reports on the quarter this Thursday. UBS didn't elaborate on how many jobs it would cut.
'Current economic uncertainty shows little sign of abating. We therefore do not envisage material improvements in market conditions in the third quarter of 2011, particularly given the seasonal decline in activity levels traditionally associated with the summer holiday season, and expect these conditions to continue to constrain our results,' UBS said in a statement.
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