UBS bank said Tuesday that it made a net loss of
2.51 billion Swiss francs (2.76 billion dollars) last year, owing to
fines for interest-rate rigging and restructuring costs.
Switzerland's largest bank had made a profit of 4.1 billion francs
in 2011.
UBS said it planned to reduce the burden of its interest payments
by buying back 5 billion francs of its own bonds.
At the same time, bonuses for managers were reduced to 2.5 billion
francs, 7 per cent lower than in the previous year. UBS also
announced a new bonus system that will result in deferred payouts and
lower cash payments.
The bank's stocks gained 0.58 per cent in the first hour of
trading at the Zurich Stock Exchange, as analysts had predicted an
even higher loss.
The lender was given a record fine of 1.5 billion dollars by US
and British regulators in December, for its role in the Libor
interest rate scandal that involved several major banks.
UBS is in the process of reducing its investment banking business,
which led to write-downs of more than 3 billion francs of the
company's value.
The bank's income from trading dropped nearly 20 per cent to 3.48
billion francs, while net interest income fell 12 per cent to 5.99
billion francs.
At the same time, the wealth management branch of UBS attracted 47
billion dollars of new assets, especially from Asian customers and
from super-rich clients. This was a significant rise from the 36
billion that flowed into the bank in the previous year.
UBS was hit by the financial crisis between 2007 and 2009 and was
bailed out by the Swiss state.
Besides reducing its investment banking, the bank has started
other restructuring programmes and is in the process of shedding
10,000 further jobs.
Chief executive Sergio Ermotti said the bank would have an
advantage over other major banks also this year because of its
financial strength and its strong client base. "This allows us to
restore client confidence while we execute our strategy and address
challenges of the past," he said.
