UBS Profits Slide as Investment Bank Struggles

Swiss bank UBS has announced a $100m overhaul of its investment bank after profits at the division more than halved in the third quarter, contributing to an overall earnings drop despite a resilient performance in wealth management, the Financial Times reported. Pre-tax profit at the investment bank fell to $203m from $489m in the same period last year — well below analysts’ expectations for $290m. Revenue in the bank’s M&A advisory, equity and debt capital markets businesses shrank 19 per cent, though the trading side fared better, with income falling only 5 per cent in choppy markets. The share price was flat on Tuesday but has fallen by 17 per cent in the past 12 months. “We are not satisfied with our investment bank financial performance this quarter,” chief executive Sergio Ermotti said on Tuesday. Read more