Bonus boost at UBS with giant’s investment wing back in profit
UBS’s investment banking arm swung back to profit in the final three months of 2013, the lender reported yesterday, driving up bonuses.
The bank’s overall profits came in at SFr917m (£621m) in the quarter, compared with a loss of SFr1.9bn in the same period of 2012.
For 2013 as a whole, it made SFr3.2bn, from a loss of SFr2.5bn a year earlier.
Investment banking performed strongly, with a profit of SFr2.3bn for the year, more than eight-times the SFr267m in 2012.
A recovery in equity capital markets work and income from the equities unit of its investor client services arm drove the improved performance.
The growth led to a strong rise in pay – variable pay increased by SFr200m in the year to SFr3.2bn.
A SFr470m tax gain and reduced legal costs also boosted profits.
The bank’s shares jumped 5.39 per cent on the day.