UBS announces London overhaul as profit rises
Wednesday 07 May 2014
Switzerland’s largest bank, UBS, has announced plans to create separate legal entities, which would see more of the risk attached to its investment bank moved to London.
UBS, which employs 5,600 people in the capital, down from 6,500 two years ago, said it would inject more capital into UBS Limited (the UK business) to reflect the fact that it will be “bearing and retaining a greater degree of risk and reward of its business activities”.
The Swiss business will concentrate on retail banking and domestic wealth management activities. UBS said this would improve its ability to shut one area of the bank without damaging another. Under “too big to fail” rules, it would also release capital, which the bank will pay back to shareholders through a special dividend.
UBS said headline pre-tax profits doubled in the first quarter to Sfr1.5bn (£1bn). Unlike Barclays, its investment bank operating profits rose 18 per cent to Sfr2.2bn.
Its rival Credit Suisse is meanwhile reported to be in talks to settle allegations by the Department of Justice that it helped US citizens avoid tax. It could pay as much as $1.6bn (£948m) to settle the case, higher than the $1.2bn it has set aside. The Swiss finance minister Eveline Widmer-Schlumpf was in Washington on Friday, meeting with the US attorney general Eric Holder.
Yesterday, Switzerland also officially signed up to a global standard to automatically exchange tax information with other countries at a ministerial meeting in Paris.
- 1 Porn block in India: hundreds of sexual websites banned, internet outraged
- 2 Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
- 3 Gamers confess the worst things they've done in The Sims
- 4 Sex with robots will be ‘the norm’ in 50 years
- 5 Barack Obama turns 54: US President's best put downs to celebrate his birthday
Jackie Chan climbs to second place in Forbes' Highest Paid Actors list after magazine includes actors working outside US movie industry
Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
Gwen Stefani and Gavin Rossdale divorce: One of music industry’s most enduring couples announce split after 12 years of marriage
Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
Dutch King Willem-Alexander declares the end of the welfare state
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
iJobs Money & Business
£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...
£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...