Swiss giant UBS has announced it will split its business divisions into three separate units as the bank recorded another $5.1bn write-down in the second quarter.
UBS was hit with another loss in Q2, but the CHF 358m deficit was much improved on the CHF 11.54bn loss incurred in the first quarter.
It now says it will move away from its ‘one firm’ model and split into three divisions; Global Wealth Management & Business Banking, Investment Bank and Global Asset Management.
The bank had been under pressure from major shareholders to restructure its business, after posting some of the credit crunch’s largest losses.
UBS says it will align incentives for management and staff of each autonomous business division directly with its financial results.
“Our review has clearly revealed the weaknesses associated with the integrated 'one firm' business model,” UBS chairman Peter Kurer says.
"Some of these weaknesses – such as the blurring of the true risk-reward-profile of individual businesses – are the source of substantial risk, as we have seen in the past few months.
“The new structure will create a spirit of transformation, clear accountability and transparency, and will allow us to optimize funding and capital usage.”IFAonline
'Life catches up with us in the end'
‘Personalised Predictive Analysis’ tool
Summer series continues
Both start in August