UBS is preparing to provide investors with details of a strategic plan that will shrink its investment bank's balance sheet by half, the Financial Times reported on Wednesday.

The newspaper cited people familiar with the plans as saying the Swiss group is set to reveal target for return on equity at a meeting with investors on Thursday.

The return on equity, a key measure of profitability, is set to be between 13 and 14 percent, which is a range well below previous levels, according to the FT.

The newspaper said the bank will outline at the meeting its strategy for shrinking its investment bank and shifting resources towards its core wealth management business. It also will detail plans to shed about half its assets weighted by risk in its investment bank.

The move follows the anointing of Sergio Ermotti as permanent group chief executive on Tuesday two months after he was vaulted into the role on an interim basis in the wake of a $2.3 billion unauthorised trading scandal.

The newspaper cited people familiar with the matter as saying Carsten Kengeter, the head of UBS's investment bank, will stay on to oversee a sweeping restructuring of the Swiss group, despite being passed over for the top job.

(Reporting by Stephen Mangan; Editing by Matt Driskill)