UBS Outlook

Why yes ofc. One would think that all the CS rainmakers would help the IB but tbh most left for EB before the merger closed. Every qualified junior left as well. The only ones left are incompetent VPs and second years who are just collecting a check until their next gig starts. Honestly UBS really fumbled the bag by keeping CS folks in limbo for so long and by not shutting down mass layoff rumors. In addition the talent is just not there. Hard to name one UBS MD that’s known on the street or that has closed anything major in the last few years. They mainly do shitty cap raises and talk a big game that they can’t and don’t live up to. Also tech alone will get UBS. A task that would take an analyst normally 1 hour to do takes at least 4 given how drastically slow the computers are. You just can’t compete at that rate. They’re pretty cheap and treat analysts like garbage (are threatening to zero bonuses for second years who leave this year) so will be tough for them to attract junior talent in the coming years.

Eeeh not true. I’m a CS second year who’s survived every layoff (including the CSFB ones). I am salty but that’s mainly bec they’re threatening to zero bonuses if you leave (a little counterintuitive in my opinion).

I mean a bank that has had so little talent that it’s more common for analysts to stay than leave after 2 years says enough about the talent level imo

Nice.  A bunch of political losers(from a wholly blown out bank and one on its way).  Just what we need!

Given the group heads of most of the groups are ex-Barclays and not ex-CS or UBS, this is just factually true. Not sure why so many downvotes here. Most group heads are the ex-Lehman/Barclays folks followed by a big gap to ex-CS people and then ex-UBS people. I think there's a lot of clear misinformation about the firm from people who are mad at the firm for layoffs and bonuses. 

Yep it does

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UBS Group AG is planning another round of job cuts as the firm continues to trim headcount following its rescue of Credit Suisse, according to people with knowledge of the matter. 

The job cuts are expected to affect more than a hundred positions across the firm’s global investment bank, the people said, asking not to be identified discussing private information. The reduction in force — which goes beyond a routine pruning of underperformers — is scheduled to take place in the coming weeks, they said.

Job losses are also expected in the wealth management and markets units, another person said. The emergency takeover of Credit Suisse increased UBS’s global workforce by around 45,000 to about 120,000. 

A UBS spokeswoman declined to comment. Decisions, including the timing of such cuts, aren’t final and could still change. 

The move marks the latest round of cuts at the lender. While Chief Executive Officer Sergio Ermotti has given little guidance on what the overall number of job losses will be, the bank has said it aims to save around $6 billion in staff costs in the coming years.

In particular, management have shown little appetite for Credit Suisse’s investment bank since the government-brokered deal was announced. Zurich-based UBS cut a group of senior investment bankers in January and has also trimmed staff across its Asia private wealth and investment banking teams. 

Capital Hit 

UBS’s shares have fallen in recent days on news that the Swiss government wants to impose an increase in regulatory capital requirements on the lender. The proposed reforms would likely translate into a $20 billion capital hit, a person familiar with the matter has previously said.

That more stringent-than-expected posture came with the lender in the thick of the complex integration and restructuring of Credit Suisse. Chairman Colm Kelleher warned in November that 2024 will be one of the most difficult in the multi-year process, citing the legal merger of the parent banks and big subsidiaries.