UBS increases bonus pool by 28 per cent in wake of bumper profits
Swiss financial services company UBS has announced profit before tax for the fourth quarter of 356m Swiss francs (£242m) after being boosted by a tax benefit and bumper revenues from its investment bank.
In good news for UBS staff, the bank has decided to increase its total bonus pool by whopping 28 per cent.
The company's tax benefit came to 470m Swiss francs in the fourth quarter, up from 220m Swiss francs the previous quarter. However, revenue for its fixed income sales and trading division declined.
Chief executive, Sergio Ermotti, said:
A year ago, we said we would further adapt our business to better serve clients, reduce risk, deliver more sustainable performance and enhance shareholder returns.
I am pleased to report that in 2013 we accomplished all those goals. We finished the year ahead of the majority of our performance targets and will continue to execute our strategy in a disciplined manner in order to ensure the firm's long-term success.
UBS's investment bank saw revenues jump by 16 per cent on the same period in 2012. The bank will be further cheered that there were no new disclosures in its review of the series of regulatory investigations it is involved in.
However, the group maintained a cautious outlook as ongoing difficulties in emerging markets continue to unnerve clients "The volatility out there is quite huge – there are a lot of unresolved matters," said chief executive Sergio Ermotti.