(Reuters) – Swiss bank UBS is looking to build the bonus pool for its investment banks by as much as 20% after a rise in trading revenues helped it post its ‘highest profit in five years, Bloomberg News bloom.bg/3rrTGCs reported Friday, citing people with knowledge of the issue.
The key staff of UBS ‘s wealth management unit, the world’ s largest wealth manager, will see flat or slightly upward variable compensation from the previous year, with major changes by sector, Bloomberg said in the report, affecting those people.
Wealth managers in Asia Pacific regions are expected to receive some of the higher rewards, with bonuses going up 10%, Bloomberg said. Some private bank employees in Europe will see their bonuses reduced by between 10% and 15%.
UBS declined to comment on the Bloomberg report.
Banks around the world have struggled with the uneven impact of the COVID-19 pandemic, as stock markets continued to trade while national locks tightened. economic impact, leaving lenders braced for impending defaults.
UBS’s business model paid off in 2020, as its low-risk loan book – made up mostly of mortgages and loans for the wealthy, as well as some successful Swiss corporate and retail credits – was means less losses than many competitors on the street.
Chief Executive Ralph Hamers recently said a strong connection with futures was helping the bank to raise more than $ 100 billion in new net cash across the wealth management and asset management industry in the past year.
Reporting by Vishal Vivek in Bengaluru; additional recitation by Kanishka Singh; Edited by Anil D’Silva