UBS AG, Switzerland's largest bank, announced on Tuesday the highest annual loss in Swiss corporate history and plans to cut a further 2,000 investment banking jobs.
The company reported a bigger-than-expected 8.1 billion Swiss franc ($7 billion) net loss in the fourth quarter, bringing its full-year loss to 19.7 billion francs.
After receiving a government bailout last October it has received political pressure and has said it is slashing bonus payments. Variable compensation will be 95 percent lower than the previous year, and 80 percent lower for the group overall.
UBS emphasized its commitment to investment banking in spite of problems, again scotching rumors that the unit may be sold.
While we leave a bad year behind us.. We can nevertheless report substantial progress. Our business are well positioned for a challenging future. We had an encouraging start into the new year but the environment will remain difficult and volatile as the real economy has not seen the worst yet, Chief executive officer Marcel Rohner told reporters, according to the Globe and Mail.