UBS cuts mid-term targets

22 January, 2020 12:00 AM printer

ZURICH: UBS Group AG cut profitability targets on Tuesday as Switzerland’s largest bank grapples with ultra-low interest rates and increased competition for wealthy clients.

Chief Executive Sergio Ermotti, who successfully pivoted UBS away from investment banking to wealth management nearly a decade ago, is under pressure to retain UBS’ edge in the business of managing money for the rich, report agencies.

The bank said it would now target a 12-15 per cent return on core capital (RoCET1) and a reported 75-78 per cent cost/income ratio through 2022 after missing both ambitions in 2019. Its RoCET1 last year was 12.4% per cent while its reported cost/income ratio was 80.5 per cent.