At the UBS 2011 Investor Day, newly appointed CEO of Swiss bank UBS, Sergio Ermotti said:
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The bank also laid out a strategy plan involving the paring down of its investment banking operations, paying out dividends and concentrating on wealth management.
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Only three days ago, Ermotti said:
“strategy will be centered on our leading wealth management businesses and our position as the strongest universal bank in Switzerland. A focused, less complex and less capital-intensive Investment Bank and our asset management business are also key elements for growing our wealth management franchise. To credibly serve the needs of our core wealth management clients, these businesses must each be strong and successful in meeting the needs of their corporate, sovereign, and institutional clients. Our industry-leading capital position gives us a significant competitive advantage, particularly during these challenging times." |
But this comes as no surprise to Euromoney.
For many years, Euromoney has reported on UBS' shaky risk management record, which was only emphasised after UBS found that it was housing a rogue trader which lost the Swiss bank €2.3 billion - which wiped out most its profit from the previous quarter.
Moreover, Euromoney has questioned why the bank has- for so long- been setting its sights on investment banking, when it's wealth management unit is more profitable and seemingly less risky.
However the key issue, when reading between the lines, is whether UBS can actually stick to this action plan or will we be seeing another change of guards at UBS HQ in two years time?