UBS cuts jobs after Q4 loss, stems outflows in Jan

UBS cuts jobs after Q4 loss, stems outflows in Jan
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First Published: Tue, Feb 10 2009. 12 16 PM IST
Updated: Tue, Feb 10 2009. 12 16 PM IST
Zurich: Swiss bank UBS announced it would cut about 1,600 more jobs at its investment bank after it posted a 8.1 billion Swiss franc ($7 billion) loss in the fourth quarter, missing forecasts.
UBS’s loss for 2008 came at 19.7 billion Swiss francs, the highest ever by a Swiss group. A Reuters poll had forecast UBS to have a loss of 7.1 billion Swiss francs in the quarter and a loss of 18.7 billion francs in the year.
Swiss bank giant UBS, which made nearly $49 billion of writedowns in the credit crisis, said it had suffered new money outflows of 58.2 billion Swiss franc at its prized wealth management unit, higher than the previous quarter and forecast.
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.
Rich clients had withdrawn 49 billion francs in the third quarter, or around 2.5% of the bank’s assets under management in its core wealth management division.
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First Published: Tue, Feb 10 2009. 12 16 PM IST
More Topics: UBS | Layoffs | Loss | Credit crisis | Slowdown |