UBS Raises Profitability Target as Ermotti Shrinks Bank
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UBS AG, Switzerland’s biggest bank, boosted its profitability goal and announced plans for about 10,000 job cuts as Chief Executive Officer Sergio Ermotti moved to shrink the investment bank and focus on wealth management.
UBS will seek a return on equity, a measure of profitability, of at least 15 percent starting in 2015, compared with a previous goal of 12 percent to 17 percent, the Zurich-based bank said today. It will reduce staff by more than 15 percent to about 54,000 over three years to help save an additional 3.4 billion Swiss francs ($3.6 billion).