UBS expects big loss, to cut 8,700 jobs

Special Report:Global Financial Crisis

Swiss bank UBS outgoing chairman Peter Kurer is seen on a huge TV screen as he addresses the general shareholders meeting in Zurich April 15, 2009. UBS estimated on Wednesday that it would suffer a loss of almost 2 billion Swiss francs (about 1.75 billion U.S. dollars) in the first quarter of this year. The bank also announced that it would cut 8,700 jobs worldwide by the end of 2010, more than 10 percent of its total workforce.(Xinhua/AFP Photo)
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GENEVA, April 15 (Xinhua) -- Switzerland's largest
bank, UBS, estimated on Wednesday that it would suffer a loss of almost 2
billion Swiss francs (about 1.75 billion U.S. dollars) in the first quarter of
this year.

The bank, which has been hit severely by the
financial crisis, also announced that it would cut 8,700 jobs worldwide by the
end of 2010, more than 10 percent of its total workforce.

According to a statement issued ahead of its annual
shareholders meeting, UBS said its first quarter loss seems mainly from a
negative contribution totaling roughly 3.9 billion Swiss francs (3.4 billion
dollars) due to losses on previously disclosed bad investments, credit loss
expenses and adjustment in values of toxic assets.

UBS also announced that it would close the first
quarter with an overall outflow of net new money.

The bank's wealth management division recorded a net
outflow of about 23 billion Swiss francs (20 billion dollars) in the first
quarter. This occurred mainly after UBS agreed to release data of clients to the
U.S. authorities, indicating that the Swiss banking secrecy have to be eased
under increasing international pressure to crack down on tax havens.

UBS also said it plans to "adapt its size to the
changed market conditions and lower levels of business." The bank is planning to
have cost savings by the end of 2010 of about 3.5 to 4 billion Swiss francs (3.1
to 3.5 billion dollars) compared to 2008 levels.

The bank also seeks to realize substantial cost
savings in all areas, which means major job cuts are unavoidable, the statement
said.

The bank currently employs 76,200 people worldwide.

"We know where we have to set to work. It will be a
long road back to success without any quick fixes. Rather, we will move forward
step by step in a rigorous and disciplined manner," UBS CEO, Oswald Grubel,
said.