UBS to cut 300 in­vest­ment bank­ing jobs

The Pak Banker - - COMPANIES/BOSS -

Swiss bank UBS plans to cut around six per­cent of its in­vest­ment bank­ing jobs in Europe in the com­ing weeks, two sources fa­mil­iar with the mat­ter told me­dia.

The Swiss bank plans to lose about 300 staff out of an es­ti­mated 5,000 cur­rently work­ing in front and back of­fice roles in the re­gion un­der ex-Mer­rill Lynch deal­maker An­drea Orcel.

The move comes af­ter UBS im­posed a pay freeze in Fe­bru­ary across its in­vest­ment bank­ing arm as banks in Europe try to cut costs to im­prove prof­itabil­ity.

In Jan­uary, Bar­clays said it would cut 1,000 in­vest­ment bank staff on top of some 7,000 job losses al­ready an­nounced. Deutsche Bank, Uni­Credit, Credit Suisse, HSBC and Stan­dard Char­tered also an­nounced job cuts in the se­cond half of 2015. UBS has re­shaped its strat­egy in the wake of the global fi­nan­cial cri­sis, slim­ming down its in­vest­ment bank and fo­cus­ing more on its wealth man­age­ment busi­ness, which now ac­counts for more than half of its op­er­at­ing profit. Mar­ket volatil­ity, how­ever, has shown that few banks are im­mune when tu­mul­tuous times prompt rich clients to re­treat to the side­lines.

UBS CEO Ser­gio Er­motti said on Wed­nes­day that chal­leng­ing con­di­tions had con­tin­ued into 2016.

"Given the lack of clar­ity in cer­tain aspects of regulation, there is also a risk that some costs that we view as tem­po­rary to­day may not fall away com­pletely," Er­motti told a fi­nan­cial con­fer­ence in Lon­don.

"There­fore the ef­fects and as­so­ci­ated costs of le­gal en­tity regulation, for ex­am­ple, mean that we are con­sid­er­ing fur­ther changes in our pro­cesses in or­der to achieve our tar­gets. This means the over­all scope of gross sav­ings has in­creased rel­a­tive to the net tar­get we have com­mu­ni­cated."

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