UBS promises more cost cuts amid damage in Q1

Wednesday, 20. March 2019 13:18

The current market environment is among the most difficult ever for the first quarter, UBS Group AG said on Wednesday, prompting a stock selloff. Executives vowed to save $300 million more than planned this year and scale back on job openings. The drastic warning comes after last week's indication from the Swiss lender that its investment banking business is struggling.

Chief executive Sergio Ermotti revealed income in the segment dropped by a third on an annual basis and cited a drought in the merger business and stock market listings except from in the United States. Wealth management also suffered, putting the drop at 9%, he said but also acknowledged improvement registered lately.

Shares tumbled 2.09% to 12.395 Swiss francs at 1:01 pm CET after dipping to as low as 12.33 apiece. They lost 22.02% in the past six months, compared to a rise of 5.28% in the benchmark SMI index.

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