Following a slump in profits at the Asian division in 2016, the investment-banking bonus pool at UBS has been pared back. With increased competition from local players what is next for the Swiss banking giant?
According to «Bloomberg» UBS' Asia-Pacific (APAC) investment-banking bonus pool fell about 15 percent after profit at the division slumped in the region in 2016.
Asian equity markets sank in the first nine months of 2016, and Asia fell to fourth place from second in equity capital market activity.
Moves and Changes
The Zurich bank saw a number of changes in its investment banking division in Asia last year as finews.asia reported, including the loss of one of its top rainmakers, Joseph Chee.
After making cuts to its private bank, UBS also trimmed its investment bank in Hong Kong and Singapore. The Swiss bank was responding to sluggish deal revenue by paring back its teams in both Asia financial centers.
The bank also reshuffled teams last year, removing senior heads at its Asia corporate client solutions unit as part of a move to save costs and run its businesses more efficiently.
Investigation by Hong Kong Regulator
The move came against the backdrop of cooling deal flow in the wider region as well as increasing competition from local players such as Chinese firms.
UBS along with other banks, is also currently under investigation in Hong Kong by the local securities regulator The Securities & Futures Commission of Hong Kong (SFC).
