[ad_1]
Sergio Ermotti’s time at UBS ends with a good quarterly result. In all areas, profits increased from July to the end of September. Except for one thing: in Switzerland.
Precisely where UBS is the leading power, it is difficult. Under division manager Axel Lehmann, the big bank is not budging. It was down 13 percent in year-on-year earnings.
However, the 20,000 employees in Switzerland receive a gift, along with the other 45,000 worldwide. They receive a week’s salary for their efforts at Covid.
UBS reserves 30 million for this. This averages around 500 francs per UBS employee.
In Switzerland, an employee receives a salary for one more month. If you earn 10,000 francs a month, that’s 2,500 francs as a one-time supplement.
The gift is only given to employees “of certain ranks” as “thanks for their special commitment in this difficult year and in view of the fact that the pandemic sometimes has unexpected economic effects.”
With this gesture, Ermotti says goodbye to the people. That should be well received, because the weekly present helps the lowest in the hierarchy in particular.
But the former don’t have to go hungry either. Their bonus programs are adjusted in your favor.
The “expiration conditions of certain pending deferred compensation for eligible employees” would be adjusted “to allow greater professional flexibility at this time of uncertainty,” the financial multinational announced this morning.
In accordance with this, all “employees who leave voluntarily with the exception of members of the Group’s Management” will benefit from this adjustment.
It means: Retained bonuses are partially released, although those who are canceled would not be entitled to them.
The higher the bonus withheld, the higher the benefit of this special offer. Early Christmas for CEOs.
The bank rejoices in business. In the third quarter, the profit was 2.1 billion dollars, which is the best profit before taxes of a third quarter “in ten years.”
There was an 18 percent increase compared to the prior year in global asset management, plus 495 (!) Percent in asset management, plus 268 percent in investment bank.
The crazy jumps in the last two divisions are partly related to special benefits.
Even then, the UBS Switzerland division is on the way. At minus 13 percent, it is the downside outlier.
For Axel Lehmann, head of division, this becomes a problem. Even if UBS tries to justify the theft today with bad loans at national companies and a major case of fraud.
“The main reason for the decrease in earnings before tax was the value adjustments for credit risks in the amount of CHF 84 million, of which CHF 65 million were value adjustments on level 3 items.”
“Of this, 54 million Swiss francs were due to a case of fraud involving a counterparty active in financing the commodity trade, which affected several creditors, including UBS.”
The loan amount still open is now only “minimal.” And yet: How can UBS lose $ 54 million nationally to a single customer?
