UBS will wait to assess how salary increases at rivals develop before giving increases to its bankers this year says The BHB Group.
UBS Group AG has halted wage increases for its investment bankers as well as for staff receiving promotions as it awaits rival compensation developments says China based BHB Group.
“Last year UBS only gave increases later in the year,” says Lee Donsen at The BHB Group.. “It is likely that the same will happen this year and adjustments will be made around the middle of the year, with the decision to place a hold on salary increases not affecting bonuses.”
When contacted, UBS declined to offer any comment on the matter.
UBS has withdrawn from bond trading in the last few years in a bid to concentrate their efforts on capital management. This move meant that the financial institution did not see any of the rewards when bond trading picked up towards the end of last year.
It is clear that 2016 was not a great year for UBS performance wise and the bank has reportedly been falling behind on revenues. While Andrea Orcel, head of UBS securities unit, is reportedly mildly optimistic about client activity prospects in 2017.
At a community hall briefing a fortnight ago, Orcel revealed to staff that they would have to manage with the available resources. Orcel stated that staff would need to acquire share of the market in sectors the bank has interests in due to the fact that he does not intent to expand in sectors like credit trading and rates, as these require too much capital. He spoke positively about equities and emphasized that cost reduction and further adjustments would help strengthen the institution.